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Definition of Remainderman
One who receives the principal of a trust when it is dissolved.
Abramsâ€™ model for calculating DLOM based on the interaction of discounts from four economic compOnents.
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
A bond in which the issuer (often a holding company) grants investors a lien on
DTC is a user-owned securities depository which accepts deposits of
This is the best known U.S.index of stocks. It contains 30 stocks that trade on
Certificates issued by a trust that was formed to purchase an asset and lease it
An exchange arrangement formed in 1979 that involves the currencies
A technical accounting term that encompasses the
A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee
MOney that moves across country borders in response to interest rate differences and that moves
An organization founded in 1944 to oversee exchange arrangements of
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial
A put option that has a strike price higher than the underlying futures price, or a call option
A closed-end fund regulated by the Investment Company Act of 1940. These funds have a
Law of one price
An economic rule stating that a given security must have the same price regardless of the
Gold held by governmental authorities as a financial asset.
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Monetary / non-monetary method
Under this translation method, mOnetary items (e.g. cash, accounts
Composed of currency and coins outside the banking system plus liabilities to the deposit mOney banks.
Money center banks
Banks that raise most of their funds from the domestic and international mOney markets, relying less on depositors for funds.
Related: Investment management.
Related: Investment manager.
MOney markets are for borrowing and lending mOney for three years or less. The securities in
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 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.
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Money rate of return
Annual mOney return as a percentage of asset value.
M1-A: Currency plus demand deposits
In a Treasury auction, the amount by which the par value of the securities offered exceeds that of
Notional principal amount
In an interest rate swap, the predetermined dollar principal on which the
One man picture
The picture quoted by a broker is said to be a One-man picture if both the bid and offered
A special case of the arbitrage pricing theory that is derived from the One-factor model by
1) A market in which only One side, the bid or asked, is quoted or firm.
A call option is out-of-the-mOney if the strike price is greater than the market price
An interest in an asset held by a trustee for the benefit of another person.
In mutual funds, the ability to transfer shares between funds in the same family by
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
1) The total amount of mOney being borrowed or lent.
Principal of diversification
Highly diversified portfolios will have negligible unsystematic risk. In other
A situation that can be modeled as One person, an agent, who acts on the behalf
The face amount of debt; the amount borrowed or lent. Often called principal.
Principal only (PO)
A mortgage-backed security in which the holder receives only principal cash flows on
REIT (real estate investment trust)
Real estate investment trust, which is similar to a closed-end mutual
Remaining principal balance
The amount of principal dollars remaining to be paid under the mortgage as of
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
SIMEX (Singapore International Monetary Exchange)
A leading futures and options exchange in Singapore.
Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.
Investment principle that states a firm should accept or reject a project by comparing it
Target zone arrangement
A mOnetary system under which countries pledge to maintain their exchange rates
A closed-end fund that has a fixed termination or maturity date.
Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar
Advertisement listing the underwriters to a security issue.
Transaction demand (for money)
The need to accommodate a firm's expected cash transactions.
Agreement between trustee and borrower setting out terms of bond.
Receipt for goods that are to be held in trust for the lender.
Unit investment trust
MOney invested in a portfolio whose composition is fixed for the life of the fund.
Issue of a security for which there is no existing market. See: seasOned issue.
Value additivity principal
Prevails when the value of a whole group of assets exactly equals the sum of the
Whole life insurance
A contract with both insurance and investment compOnents: (1) It pays off a stated
Wholesale mortgage banking
The purchasing of loans originated by others, with the servicing rights
Zero-one integer programming
An analytical method that can be used to determine the solution to a capital
A market that specializes in trading short-term, low-risk, very liquid
See Par value.
Dow Jones Industrial Average
Index of the investment performance of a portfolio of 30 â€śblue-chipâ€ť stocks.
law of one price
Theory that prices of goods in all countries should be equal when translated to a common currency.
Market for short-term financial assets.
Sale of securities by a firm that is already publicly traded.
See mOney base.
International Monetary Fund (IMF)
Organization originally established to manage the postwar fixed exchange rate system.
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.
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.
Cash plus deposits of the commercial banks with the central bank.
A financial market in which short-term (maturity of less than a year) debt instruments such as bonds are traded.
Change in the mOney supply per change in the mOney base.
Money Rate of Interest
See interest rate, nominal.
Neutrality of Money
The doctrine that the mOney supply affects only the price level, with no long-run impact on real variables.
The original amount loaned, which is repaid plus interest. See face value.
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.
Roth IRA. An IRA account whose earnings are not taxable at all under certain
Raw materials or subassemblies used to make either finished goods
The practice of picking by area of the warehouse, rather than by
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.
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