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Definition of Street name
Describes securities held by a broker on behalf of a client but registered in the name of the Wall street firm.
In mutual funds, the ability to transfer shares between funds in the same family by
Brokers, dealers, underwriters, and other knowledgeable members of the financial community; from
Generic term for firms that buy, sell, and underwrite securities.
Related: Sell-side analyst.
A nickname for the New York Stock Exchange. Also known as The Exchange. More than 2,000
A nickname for the New York stock exchange. Also known as the Big Board. More than
Central bank switching of government deposits between the central bank and commercial banks.
Liquidating an existing position and simultaneously reinstating a position in another futures
mutual funds that do not charge an upfront or back-end commission, but instead take out up to
The process of satisfying stakeholders in the organization that managers have acted in the best interests of the stakeholders, a result of the stewardship function of managers, which takes place through accounting.
Cumulative gains or losses reported in shareholders'
The sum of cash, accounts receivable, and short-term marketable
Very early orders for materials before the completion
A bond covenant that specifies certain actions the firm must take.
securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign
Annual fund operating expenses
For investment companies, the management fee and "other expenses,"
Formal request for funds for capital investment project.
Bond or note secured by assets of company.
also called surplus management, the task of managing funds of a financial
Number of shares authorized for issuance by a firm's corporate charter.
The number of shares of stock that the company is legally authorized to sell.
Checks deposited by a company that have not yet been cleared.
Checks already deposited that have not yet been cleared.
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.
Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a
Base probability of loss
The probability of not achieving a portfolio expected return.
Beta equation (Mutual Funds)
The beta of a fund is determined as follows:
Beta (Mutual Funds)
The measure of a fund's or stocks risk in relation to the market. A beta of 0.7 means
A transaction to move inventory from one storage bin to another.
The 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
An individual who is paid a commission for executing customer orders. Either a floor broker who
An agent who handles public orders to buy or sell financial assets.
Broker loan rate
Related: Call money rate.
A market where an intermediary offers search services to buyers and sellers.
Changes in Financial Position
Sources of funds internally provided from operations that alter a company's
a system using transfer prices; see transfer
chief financial officer (CFO)
Officer who oversees the treasurer and controller and sets overall financial strategy.
Communication barrier between financiers (investment bankers) and traders. This barrier is
The grouping of investors who have a preference that the firm follow a particular financing
An investment company that sells shares like any other corporation and usually does not
A broker on the floor of an exchange acts as agent for a particular brokerage house and
Are equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends.
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
he written statement that follows any "trade" in the securities markets. Confirmation is issued
Conflict between bondholders and stockholders
these two groups may have interests in a corporation that
Contingent deferred sales charge (CDSC)
The formal name for the load of a back-end load fund.
An obligation that is dependent on the occurrence or nonoccurrence of
Contingent pension liability
Under ERISA, the firm is liable to the plan participants for up to 39% of the net
Corporate financial management
The application of financial principals within a corporation to create and
Corporate financial planning
financial planning conducted by a firm that encompasses preparation of both
Cost of funds
Interest rate associated with borrowing money.
costs of financial distress
Costs arising from bankruptcy or distorted business decisions before bankruptcy.
Country financial risk
The ability of the national economy to generate enough foreign exchange to meet
Cumulative probability distribution
A function that shows the probability that the random variable will
This is typically the accounts payable, short-term notes payable, and
An entity that stands ready and willing to buy a security for its own account (at its bid price) or sell
A person or firm in the financial asset business who buys for his or her own account and then resells to customers, in contrast to a broker, who buys only on behalf of a customer.
Overnight, collateralized loan made to a dealer financing his position by borrowing from a
A market where traders specializing in particular commodities buy and sell assets for their
Over-the-counter options, such as those offered by government and mortgage-backed
IOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and
Deferred Tax Liability
Future tax obligation that results from the origination of a temporary
Depository transfer check (DTC)
Check made out directly by a local bank to a particular firm or person.
design for manufacturability (DFM)
a process that is part of the project management of a new product; concerned with finding optimal solutions to minimizing product failures
a cost that differs in amount among the alternatives being considered
The practice of reporting conflicting or markedly different information in official
Swap between two LIBO rates of interest, e.g. yen LIBOR for dollar LIBOR. Payments are
a technique for avoiding competition by distinguishing a product or service from that of competitors through adding sufficient value (including quality and/or features) that customers are willing to pay
Inability to work due to injury or sickness.
Insurance that pays you an ongoing income if you become disabled and are unable to pursue employment or business activities. There are limits to how much you can receive based on your pre-disability earnings. Rates will vary based on occupational duties and length of time in a particular industry. This kind of coverage has a waiting period before you can begin collecting benefits, usually 30, 60 or 90 days. The benefit paying period also varies from 2 years to age 65. A short waiting period will cost more that a longer waiting period. As well, a long benefit paying period will cost more than a short benefit paying period.
Disability Insurance (Credit Insurance)
Group Insurance designed to cover monthly obligations due to a borrower being unable to work due to sickness or injury.
Non-interest-bearing money market instruments that are issued at a discount and
A group of shareholders who prefer that the firm follow a particular dividend policy. For
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past 12
DLOM (discount for lack of marketability)
an amount or percentage deducted from an equity interest to reflect lack of marketability.
Dupont system of financial control
Highlights the fact that return on assets (ROA) can be expressed in terms
EFT (electronic funds transfer)
funds which are electronically credited to your account (e.g. direct deposit), or electronically debited from your account on an ongoing basis (e.g. a pre-authorized monthly bill payment, or a monthly loan or mortgage payment). A wire transfer is a form of EFT.
Electronic depository transfers
The transfer of funds between bank accounts through the Automated
Employee stock fund
A firm-sponsored program that enables employees to purchase shares of the firm's
Investment funds established for the support of institutions such as colleges, private
Evidence of Insurability
Evidence submitted to Canada Life that is used to determine whether an individual is eligible for the insurance coverage the individual has applied for.
Instruments exempt from the registration requirements of the securities Act of 1933 or the
External Financial Statements
Corporate financial statements that have been reported on by an external independent accountant.
Family and Medical Leave Act
A federal Act containing the rules for offering
Federal agency securities
securities issued by corporations and agencies created by the U.S. government,
Non-interest bearing deposits held in reserve for depository institutions at their district Federal
Federal funds market
The market where banks can borrow or lend reserves, allowing banks temporarily
Federal funds rate
This is the interest rate that banks with excess reserves at a Federal Reserve district bank
Federal Funds Rate
The interest rate at which banks lend deposits at the Federal Reserve to one another overnight.
The production of financial statements, primarily for those interested parties who are external to the business.
a discipline in which historical, monetary
also called securities analysts and investment analysts, professionals who analyze
Claims on real assets.
Claims to the income generated by real assets. also called securities.
Economic assistance provided by unrelated third parties, typically government agencies. They may take the form of loans, loan guarantees, subsidies, tax allowances, contributions, or cost-sharing arrangements.
a plan that aggregates monetary details
The management of a firm's costs and expenses in order to control them in relation to
A feature of a debt or credit agreement that is designed to protect the lender or creditor. It is common to characterize covenants as either positive or negative covenants.
A promise made related to financial conditions or events. Often a promise not to allow certain balance sheet items or ratios to fall below an agreed level. Usually found in loan documents, as a protection mechanism.
Events preceding and including bankruptcy, such as violation of loan contracts.
Financial distress costs
Legal and administrative costs of liquidation or reorganization. also includes
Combining or dividing existing instruments to create new financial products.
A contract entered into now that provides for the delivery of a specified asset in exchange
a monetary reward provided for performance
An expression of economic benefit that motivates behavior that might otherwise not take place.
Institutions that provide the market function of matching borrowers and lenders or
firm that raises money from many small investors and provides financing to businesses or other
Any institution, such as a bank, that takes deposits from savers and loans them to borrowers.
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