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Definition of Load-to-load
Arrangement whereby the customer pays for the last delivery when the next one is received.
Requirement that none of an order be executed unless all of it can be executed at the specified price.
An Arrangement whereby a security issue is canceled if the underwriter is unable
An option is at-the-money if the strike price of the option is equal to the market price of the
Also called the broker loan rate , the interest rate that banks charge brokers to finance
The provision of some futures contracts that requires not delivery of underlying assets but
Raw materials or subassemblies used to make either finished goods
Arrangement whereby the shareholders of a project receive output free of
The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract.
The written notice given by the seller of his intention to make delivery against an open, short
The options available to the seller of an interest rate futures contract, including the quality
Those points designated by futures exchanges at which the financial instrument or
A company’s stated goal for how soon a customer order will be
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
A transaction in which the buyer's payment for securities is due at the time of
This is the best known U.S.index of stocks. It contains 30 stocks that trade on
Dow Jones Industrial Average
Index of the investment performance of a portfolio of 30 “blue-chip” stocks.
dual pricing arrangement
a transfer pricing system that allows
economic components model
Abrams’ model for calculating DLOM based on the interaction of discounts from four economic components.
Elasticity of an option
Percentage change in the value of an option given a 1% change in the value of the
Elasticity - See Lambda
European Monetary System (EMS)
An exchange Arrangement formed in 1979 that involves the currencies
Fiat Money is paper currency made legal tender by law or fiat. It is not backed by gold or silver and is not necessarily redeemable in coin. This practice has had widespread use for about the last 70 years. If governments produce too much of it, there is a loss of confidence. Even so, governments print it routinely when they need it. The value of fiat money is dependent upon the performance of the economy of the country which issued it. Canada's currency falls into this category.
A transaction in which the settlement will occur on a specified date in the future at a price
A delivery in which everything - endorsement, any necessary attached legal papers, etc. - is in
Good delivery and settlement procedures
Refers to PSA Uniform Practices such as cutoff times on delivery
See money base.
Money that moves across country borders in response to interest rate differences and that moves
A put option that has a strike price higher than the underlying futures price, or a call option
International Monetary Fund
An organization founded in 1944 to oversee exchange Arrangements of
International Monetary Fund (IMF)
Organization originally established to manage the postwar fixed exchange rate system.
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial
A method of valuing inventory that uses the cost of the most recent item in
Last-in, first-out (LIFO)
An inventory costing methodology that bases the recognized cost of
Last-in, first-out (LIFO)
An inventory valuation method under which one assumes that the
Last-In, First-Out (LIFO) Inventory Method
The inventory cost-flow assumption that assigns the most recent inventory acquisition costs to cost of goods sold. The earliest inventory
Last-in, first-out (LILO)
A method of accounting for inventory.
After a stock split, the number of shares distributed for each share held and the date of the
Last To Die Coverage
This means that there are two or more life insured on the same policy but the death benefit is paid out on the last person to die. The cost of this type of coverage is much less than a first to die policy and it is generally used to protect estate value for children where there might be substantial capital gains taxes due upon the death of the last parent. This kind of policy is also valuable when one of two people covered has health problems which would prohibit obtaining individual coverage.
Last trading day
The final day under an exchange's rules during which trading may take place in a particular
Law of one price
An economic rule stating that a given security must have the same price regardless of the
law of one price
Theory that prices of goods in all countries should be equal when translated to a common currency.
The last-in-first-out inventory valuation methodology. A method of valuing
LIFO (Last In, First Out)
An inventory valuation method that presumes that the last units received were the first ones
Refers to the seller's actually turning over to the buyer the asset agreed upon in a forward contract.
School of economic thought stressing the importance of the money supply in the economy. Adherents believe that the economy is inherently stable, so that policy is best undertaken through adoption of a policy rule.
Proposal that the money supply be increased at a steady rate equal approximately to the real rate of growth of the economy. Contrast with discretionary policy.
Any measure of the economy's money supply.
See money base.
Gold held by governmental authorities as a financial asset.
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Actions taken by the central bank to change the supply of money and the interest rate and thereby affect economic activity.
Monetizing the Debt
See printing money.
Any item that serves as a medium of exchange, a store of value, and a unit of account. See medium of exchange.
Composed of currency and coins outside the banking system plus liabilities to the deposit money banks.
Cash plus deposits of the commercial banks with the central bank.
Money center banks
Banks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds.
This is the process by which "dirty money" generated by criminal activities is converted through legitimate businesses into assets that cannot be easily traced back to their illegal origins.
Related: Investment management.
Related: Investment manager.
Money markets are for borrowing and lending money for three years or less. The securities in
A market that specializes in trading short-term, low-risk, very liquid
Market for short-term financial assets.
A financial market in which short-term (maturity of less than a year) debt instruments such as bonds are traded.
Financial market in which funds are borrowed or lent for short periods. (The money market is distinguished from the capital market, which is the market for long term funds.)
Money market demand account
An account that pays interest based on short-term interest rates.
Money market fund
A mutual fund that invests only in short term securities, such as bankers' acceptances,
money market fund
A type of mutual fund that invests primarily in short-term debt securities maturing in one year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates.
Money market hedge
The use of borrowing and lending transactions in foreign currencies to lock in the
Money market notes
Publicly traded issues that may be collateralized by mortgages and MBSs.
Change in the money supply per change in the money base.
A guaranteed form of payment in amounts up to and including $5,000. You might request a money order in order to pay for tuition fees at a university or a college, or for a magazine subscription.
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Money Rate of Interest
See interest rate, nominal.
Money rate of return
Annual money return as a percentage of asset value.
M1-A: Currency plus demand deposits
Neutrality of Money
The doctrine that the money supply affects only the price level, with no long-run impact on real variables.
In a Treasury auction, the amount by which the par value of the securities offered exceeds that of
Next futures contract
The contract settling immediately after the nearby futures contract.
Odd first or last period
Fixed-income securities may be purchased on dates
A special case of the arbitrage pricing theory that is derived from the one-factor model by
One man picture
The picture quoted by a broker is said to be a one-man picture if both the bid and offered
1) A market in which only one side, the bid or asked, is quoted or firm.
The percentage increase in an option's value given a 1% change in the value of the
A call option is out-of-the-money if the strike price is greater than the market price
Overnight delivery risk
A risk brought about because differences in time zones between settlement centers
In mutual funds, the ability to transfer shares between funds in the same family by
A delivery of stock to a location in or near the shop floor
The option of postponing a project without eliminating the possibility of undertaking it.
Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a
The percentage change in the quantity divided by the percentage change in the price.
Sale of bonds by the government to the central bank.
Quantity Theory of Money
Theory that velocity is constant, and so a change in money supply will change nominal income by the same percentage. Formalized by the equation Mv = PQ.
Real Money Supply
Money supply expressed in base-year dollars, calculated by dividing the money supply by a price index.
Realizable Revenue A revenue transaction where assets received in exchange for goods and
services are readily convertible into known amounts of cash or claims to cash.
Willing to pay money to transfer risk from others.
Extended credit for customers who order goods in periods other than peak seasons.
Issue of a security for which there is an existing market. Related: Unseasoned issue.
Seasoned new issue
A new issue of stock after the company's securities have previously been issued. A
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