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Definition of Scalp
To trade for small gains. It normally involves establishing and liquidating a position quickly, usually
The ratio of accounts receivables to sales, or the total
An estimation of price that uses the average or representative price of a
Net flow of goods (exports minus imports) between countries.
Related: Program trades.
A large trading order, defined on the New York Stock Exchange as an order that consists of
The price change portion of a stock's return.
Sources of funds internally provided from operations that alter a company's
To eliminate a long or short position, leaving no ownership or obligation.
Voluntary arrangement to restructure a firm's debt, under which payment is reduced.
The exchange of goods for other goods rather than for cash; barter.
An order to buy or sell stock that automatically expires if it can't be executed on the day it is entered.
Refers to establishing and liquidating the same position or positions within one day's trading.
Average collection period.
The average number of days' worth of sales that is held in inventory.
Average collection period.
First notice day
The first day, varying by contracts and exchanges, on which notices of intent to deliver
1) A bond in default trades flat; that is, the price quoted covers both principal and unpaid,
A member who generally trades only for his own account, for an account controlled by him or
A transaction in which the settlement will occur on a specified date in the future at a price
trades that are the result of either a reallocation of wealth or an implementation of an
trades in which an investor believes he or she possesses pertinent
Last trading day
The final day under an exchange's rules during which trading may take place in a particular
An options position where a person has executed one or more option trades where the net
Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.
Payment by a firm to its owners from capital rather than from earnings.
Modigliani and Miller Proposition I
A proposition by Modigliani and Miller which states that a firm cannot
Modigliani and Miller Proposition II
A proposition by Modigliani and Miller which states that the cost of
A day on which notices of intent to deliver pertaining to a specified delivery month may be
A net long or short position whose value will change with a change in prices.
A market commitment; the number of contracts bought or sold for which no offsetting transaction
Diagram showing the possible payoffs from a derivative investment.
Prices after the decision to trade.
Prices occurring before or at the decision to trade.
Also called basket trades, orders requiring the execution of trades in a large number of
Publicly traded assets
Assets that can be traded in a public market, such as the stock market.
A member of the exchange who executes frequent trades for his or her own account.
Entering the opposite side of a currently held futures position to close out the position.
Loan to finance current assets, The sale of the current assets provides the cash to repay
Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed,
The trade is settled one business day beyond what is normal.
The tendency of small firms (in terms of total market capitalization) to outperform the
Small issues exemption
Securities issues that involve less than $1.5 million are not required to file a
The purchase and sale of a foreign currency, commodity, or other item for immediate delivery.
Take a position
To buy or sell short; that is, to have some amount that is owned or owed on an asset or
Terms of trade
The weighted average of a nation's export prices relative to its import prices.
A verbal (or electronic) transaction involving one party buying a security from another party. Once a
Written demand that has been accepted by an industrial company to pay a given sum at a future date.
Credit granted by a firm to another firm for the purchase of goods or services.
In an interest rate swap, the date that the counterparties commit to the swap. Also, the date on
A draft addressed to a commercial enterprise. See:draft.
Trade on top of
trade at a narrow or no spread in basis points relative to some other bond yield, usually
A firm which deals in actual commodities.
Persons who take positions in securities and their derivatives with the objective of making profits.
NUMBER OF DAYS SALES IN RECEIVABLES
(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that haven’t been collected yet.
extraordinary gains and losses
No pun intended, but these types of gains
dollar days (of inventory)
a measurement of the value of inventory for the time that inventory is held
North American Free Trade Agreement (NAFTA)
an agreement among Canada, Mexico, and the United States establishing the North American Free trade Zone, with a resulting reduction in trade barriers
World Trade Organization (WTO)
the arbiter of global trade that was created in 1995 under the General Agreement on Tariffs and trade; each signatory country has one
Outright ownership of a security or financial instrument. The
Short sale, short position
The sale of a security or financial instrument not
Purchase of an investment.
MM dividend-irrelevance proposition
Theory that under ideal conditions, the value of the firm is unaffected by dividend policy.
MM's proposition I (debt irrelevance proposition)
The value of a firm is unaffected by its capital structure.
MM's proposition II
The required rate of return on equity increases as the firm’s debt-equity ratio increases.
The sale of an investment, particularly by someone who does not yet own it.
Debt levels are chosen to balance interest tax shields against the costs of financial distress.
Balance of Merchandise Trade
The difference between exports and imports of goods.
Balance of Trade
See balance of merchandise trade.
Fallacy of Composition
The incorrect conclusion that something that is true for an individual is necessarily true for the economy as a whole.
The absence of any government restrictions, such as tariffs or quotas, on imports or exports.
Theory that anticipated policy has no effect on output.
Terms of Trade
The quantity of imports that can be obtained for a unit of exports, measured by the ratio of an export price index to an import price index.
Deficit on the balance of merchandise trade.
Accounts Payable Days (A/P Days)
The number of days it would take to pay the ending balance
Accounts Receivable Days (A/R Days)
The number of days it would take to collect the ending
Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized against
Measures the number days' worth of sales in accounts receivable (accounts receivable
The number of days it would take to sell the ending balance in inventory at the
Realized Gains and Losses
Increases or decreases in the fair value of an asset or a liability that
A term used for channel stuffing in the domestic tobacco industry.
Under certain circumstances, taxation rules assume that a transfer of property has occurred, even though there has not been an actual purchase or sale. This could happen upon death or transfer of ownership.
Status of a firm's assets, liabilities, and equity accounts as of a certain time, as shown in its financial statement.
High-Risk Small Business
Firm viewed as being particularly subject to risk from an investors perspective.
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