Definition of Program trades

Program Trades Image 1

Program trades

Also called basket trades, orders requiring the execution of trades in a large number of
different stocks at as near the same time as possible. Related: block trade

Related Terms:

A network of trading desks for the major brokerage firms and institutional investors that
communicate with each other by means of electronic display systems and telephones to facilitate block trades
and program trades.

Direct stock-purchase programs

The purchase by investors of securities directly from the issuer.

Flat trades

1) A bond in default trades flat; that is, the price quoted covers both principal and unpaid,
accrued interest.
2) Any security that trades without accrued interest or at a price that includes accrued
interest is said to trade flat.

Guarantor program

Under the Freddie Mac program, the aggregation by a single issuer (usually an S&L)
for the purpose of forming a qualifying pool to be issued as PCs under the Freddie Mac guarantee.

Informationless trades

trades that are the result of either a reallocation of wealth or an implementation of an
investment strategy that only utilizes existing information.

Information-motivated trades

trades in which an investor believes he or she possesses pertinent
information not currently reflected in the stock's price.

Integer programming

Variant of linear programming whereby the solution values must be integers.

Linear programming

Technique for finding the maximum value of some equation subject to stated linear constraints.

Mathematical programming

An operations research technique that solves problems in which an optimal
value is sought subject to specified constraints. Mathematical programming models include linear
programming, quadratic programming, and dynamic programming.

Planned capital expenditure program

Capital expenditure program as outlined in the corporate financial plan.

Planned financing program

program of short-term and long-term financing as outlined in the corporate
financial plan.

Program trading

trades based on signals from computer programs, usually entered directly from the trader's
computer to the market's computer system and executed automatically.

Tandem programs

Under Ginnie Mae, mortgage funds provided at below-market rates to residential
mortgage buyers with FHA Section 203 and 235 loans and to developers of multifamily projects with Section
236 loans initially and later with Section 221(d)(4) loans.

Zero-one integer programming

An analytical method that can be used to determine the solution to a capital
rationing problem.

Planning, programming and budgeting system (PPBS)

A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres.

integer programming

a mathematical programming technique in which all solutions for variables must be restricted to whole numbers

linear programming

a method of mathematical programming used to solve a problem that involves an objective function and multiple limiting factors or constraints long-term variable cost a cost that was traditionally viewed as a fixed cost

mathematical programming

a variety of techniques used
to allocate limited resources among activities to achieve a
specific objective

program budgeting

an approach to budgeting that relates
resource inputs to service outputs

Entitlement Program

A program, such as social security, under which everyone meeting the eligibility requirements is entitled to receive benefits from the program, so that costs are not known in advance.

Detailed Program

Design In software development, a detailed step-by-step plan for completing the software.

Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.