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Financial Terms | |
Safekeep |
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Definition of SafekeepSafekeepFor a fee, bankers will hold in their vault, clip coupons on, and present for payment at maturity
Related Terms:Custodial fees Feescharged by an institution that holds securities in safekeeping for an investor. 12B-1 feesThe percent of a mutual fund's assets used to defray marketing and distribution expenses. The Front End Feesfees paid when for example a financial instrument such as a loan is arranged. Participating feesThe portion of total fees in a syndicated credit that go to the participating banks. 12B-1 feesThe percent of a mutual fund's assets used to defray marketing and distribution expenses. The Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity Alternative mortgage instrumentsVariations of mortgage instruments such as adjustable-rate and variablerate ![]() Annualized holding period returnThe annual rate of return that when compounded t times, would have Asset-Backed SecuritiesBond or note secured by assets of company. At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the Auction marketsmarkets in which the prevailing price is determined through the free interaction of Automatic Benefits PaymentAutomatic payment of moneys derived from a benefit. Average maturityThe average time to maturity of securities held by a mutual fund. Changes in interest rates Back feeThe fee paid on the extension date if the buyer wishes to continue the option. Balance of paymentsA statistical compilation formulated by a sovereign nation of all economic transactions Balance of PaymentsThe difference between the demand for and supply of a country's currency on the foreign exchange market. ![]() Balance of Payments AccountsA statement of a country's transactions with other countries. Balloon maturityAny large principal payment due at maturity for a bond or loan with or without a a sinking Bankers AcceptancesA bill of exchange, or draft, drawn by the borrower for payment on a specified date, and accepted by a chartered bank. Upon acceptance, the bill becomes, in effect, a postdated certified cheque. Bear marketAny market in which prices are in a declining trend. bear marketA market in which stock or bond prices are generally Bear MarketA prolonged period of falling stock market prices. Bill and Hold PracticesProducts that have been sold with an explicit agreement that delivery Black marketAn illegal market. Bonds payableAmounts owed by the company that have been formalized by a legal document called a bond. Book-entry securitiesThe Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Brady bondsbonds issued by emerging countries under a debt reduction plan. Break-even lease paymentThe lease payment at which a party to a prospective lease is indifferent between Break-even payment rateThe prepayment rate of a MBS coupon that will produce the same CFY as that of Brokered marketA market where an intermediary offers search services to buyers and sellers. Bull marketAny market in which prices are in an upward trend. bull marketA market in which stock or bond prices are generally rising. Bull MarketA prolonged period of rising stock market prices. Bulldog marketThe foreign market in the United Kingdom. Buy-and-hold strategyA passive investment strategy with no active buying and selling of stocks from the Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Canada Savings BondsA bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value. Capital marketThe market for trading long-term debt instruments (those that mature in more than one year). Capital marketThe market in which investors buy and sell shares of companies, normally associated with a Stock Exchange. Capital MarketA market that specializes in trading long-term, relatively high risk Capital MarketThe market in which savings are made available to those needing funds to undertake investment projects. A financial market in which longer-term (maturity greater than one year) bonds and stocks are traded. Capital market efficiencyReflects the relative amount of wealth wasted in making transactions. An efficient Capital market imperfections viewThe view that issuing debt is generally valuable but that the firm's Capital market line (CML)The line defined by every combination of the risk-free asset and the market portfolio. capital marketsmarkets for long-term financing. Cash marketsAlso called spot markets, these are markets that involve the immediate delivery of a security Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Collateral trust bondsA bond in which the issuer (often a holding company) grants investors a lien on Commitment feeA fee paid to a commercial bank in return for its legal commitment to lend funds that have Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s Performance presentation Standards Implementation Common marketAn agreement between two or more countries that permits the free movement of capital Common stock marketThe market for trading equities, not including preferred stock. Complete capital marketA market in which there is a distinct marketable security for each and every Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that Convertible bondsbonds that can be converted into common stock at the option of the holder. Corner A MarketTo purchase enough of the available supply of a commodity or stock in order to Corporate bondsDebt obligations issued by corporations. cost presentationthe approach to product costing that determines Coupon / CouponsThe periodic interest payment(s) made by the issuer of a bond Coupon paymentsA bond's interest payments. Cross holdingsOne corporation holds shares in another firm. Current maturityCurrent time to maturity on an outstanding debt instrument. Current Tax Payment Act of 1943A federal Act requiring employers to withhold income taxes from employee pay. Cushion bondsHigh-coupon bonds that sell at only at a moderate premium because they are callable at a Date of paymentDate dividend checks are mailed. Dealer marketA market where traders specializing in particular commodities buy and sell assets for their Debt marketThe market for trading debt instruments. Debt securitiesIOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and Delivery versus paymentA transaction in which the buyer's payment for securities is due at the time of Derivative instrumentsContracts such as options and futures whose price is derived from the price of the Derivative marketsmarkets for derivative instruments. Direct search marketBuyers and sellers seek each other directly and transact directly. Discount securitiesNon-interest-bearing money market instruments that are issued at a discount and DLOM (discount for lack of marketability)an amount or percentage deducted from an equity interest to reflect lack of marketability. Dollar bondsMunicipal revenue bonds for which quotes are given in dollar prices. Not to be confused with Domestic marketPart of a nation's internal market representing the mechanisms for issuing and trading Efficient capital marketA market in which new information is very quickly reflected accurately in share efficient capital marketsFinancial markets in which security prices rapidly reflect all relevant information about asset values. Efficient Market HypothesisIn general the hypothesis states that all relevant information is fully and Efficient Markets HypothesisThe hypothesis that securities are typically in equilibrium--that they are fairly priced in the sense that the price reflects all publicly available information on the security. Either-way marketIn the interbank Eurodollar deposit market, an either-way market is one in which the bid Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. Eligible bankers' acceptancesIn the BA market, an acceptance may be referred to as eligible because it is Emerging marketsThe financial markets of developing economies. Equilibrium market price of riskThe slope of the capital market line (CML). Since the CML represents the Equity marketRelated:Stock market EquityholdersThose holding shares of the firm's equity. Eurocurrency marketThe money market for borrowing and lending currencies that are held in the form of Eurodollar bondsEurobonds denominated in U.S.dollars. Euroyen bondsEurobonds denominated in Japanese yen. Excess return on the market portfolioThe difference between the return on the market portfolio and the Exempt securitiesinstruments exempt from the registration requirements of the securities Act of 1933 or the External marketAlso referred to as the international market, the offshore market, or, more popularly, the Fair market priceAmount at which an asset would change hands between two parties, both having Fair market valueThe price that an asset or service will fetch on the open market. Fair Market ValueThe highest price available, expressed in terms of cash, in an open and unrestricted market between informed, prudent parties acting at arm's length and under no compulsion to transact. Farm Improvement and Marketing Cooperatives Loans ActSee here Federal agency securitiessecurities issued by corporations and agencies created by the U.S. government, Federal funds marketThe market where banks can borrow or lend reserves, allowing banks temporarily Federal Open Market Committee (FOMC)Fed committee that makes decisions about open-market operations. Federally related institutionsArms of the federal government that are exempt from SEC registration and FeeA charge for services. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |