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Definition of Wi
A computer message system linking major banks. It is used not for effecting payments, but as a
The combination of all of the individual opinions about a stock's or security's value.
Facility provided by the Fed enabling member banks to borrow reserves against collateral
A wire transfer system for high-value payments operated by the Federal Reserve System.
Mortgages in which annual increases in monthly payments are used to
Excess of the purchase price over the fair market value of the net assets acquired under purchase
A constant stream of cash flows without end that is expected to rise indefinitely.
A bond covenant that restricts in some way a firm's ability to borrow at
A strategy that seeks to combine assets a portfolio with returns that are less than
The graphical depiction of the Markowitz efficient set of portfolios
Also called a mean-variance efficient portfolio, a portfolio that has the highest
The collection of all efficient portfolios, graphically referred to as the
Demand deposits that pay interest.
In mutual funds, the ability to transfer shares between funds in the same family by
A dedicated computer network to support funds transfer messages internationally between over 900 member banks worldwide.
Special drawing rights (SDR)
A form of international reserve assets, created by the IMF in 1967, whose
Bank borrowing facility to provide finance while the firm replaces U.S. commercial paper
Jargon for the Swiss Franc.
Liquidating an existing position and simultaneously reinstating a position in another futures
Triple witching hour
The four times a year that the S&P futures contract expires at the same time as the S&P
Treasury bills trade on a wi basis between the day they are auctioned and the day settlement is made.
Wild card option
The right of the seller of a Treasury Bond futures contract to give notice of intent to deliver
A guaranteed investment contract purchased with deposits over some future designated
curse Problem faced by uninformed bidders. For example, in an initial public offering uninformed
A firm operating a private wire to its own branch offices or to other firms, commission houses or
Purchase of shares in which the buyer is entitled to the forthcoming dividend. Related: exdividend.
Purchase of shares in which the buyer is entitled to the rights to buy shares in the company's
The ability to establish automatic periodic mutual fund redemptions and have proceeds
A tax levied by a country of source on income paid, usually on dividends remitted to the
If 70 were bid in the market and there was no offer, the quote would be "70 bid without." The
without the lender having any right to seek payment or seize assets in the event of
A model for selecting an optimum investment portfolio,
The excess of the price paid to buy another company over the book value of
A term used to describe a situation in which a business combination
Central bank switching of government deposits between the central bank and commercial banks.
The Federal Reserve facility at which reserves are loaned to banks at the discount rate.
The trade deficit and the government budget deficit.
The release of items from storage.
This is a will which specifically expresses the testator's desire not to be kept alive on life support machines, should the occasion arise.
This is a legal document detailing how you want your assets to be distributed upon your death. You may also stipulate how you wish to be buried or who you would like to take care of any surviving dependent family members. In my opinion, it is very important to be quite specific about your wishes for the distribution of special assets such as the antique grandfather clock, the classic silver tea set or the antique piano. If you think that your beneficiaries may dispute how your things are to be distributed, consider stipulating that an auction be held in which all beneficiaries may bid on the item which they value and all moneys collected are then shared in the same manner in which you distributed your other liquid assets. Your might want to remember that a will is automatically revoked upon marriage unless the will specifically states that the will is made in contemplation of marriage.
Intangible assets of a firm established by the excess of the price paid for the going concern over the value of its assets.
systematic withdrawal plan
Plans offered by mutual fund companies that allow unitholders to receive payment from their investment at regular intervals.
An electronic transmission of money from one place to another. For example, you might request that your bank transfer money from your bank account in Vancouver to the account of a relative in Quebec City. To do this, you would provide the relativeâ€™s name and account number, as well as the address of the bank in Quebec City. Your bank would then "wire" the funds, which would usually arrive within a couple of days.
the rate of return on investment that would be required by a prudent investor to invest in an asset with a specific level risk. Also, a rate of return used to convert a monetary sum, payable or receivable in the future, into present value.
present value of a perpetuity with growth.
Ordinary least squares (OLS)
regression analysis a statistical technique that minimizes the sum of the squared deviations between a dependent variable and one or more independent variables and provides the user
the period before a formal announcement of a takeover bid in which one or more bidders are either preparing to make an announcement or speculating that someone else will.
Part of the return that is not due to systematic influences (market wide influences). In
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on
The ease and quickness with which assets can be converted to cash.
Act of state doctrine
This doctrine says that a nation is sovereign within its own borders and its domestic
Agency cost view
The argument that specifies that the various agency costs create a complex environment in
Annual fund operating expenses
For investment companies, the management fee and "other expenses,"
An annuity with n payments, wherein the first payment is made at time t = 0 and the last
Annuity in arrears
An annuity with a first payment on full period hence, rather than immediately.
The simultaneous buying and selling of a security at two different prices in two different markets,
Also known as a trading index (TRIN)= (number of advancing issues)/ (number of declining
Arm's length price
The price at which a willing buyer and a willing unrelated seller would freely agree to
This is the quoted ask, or the lowest price an investor will accept to sell a stock. Practically speaking, this
A bond indenture restriction that permits additional borrowing on if the ratio of assets to
An interest rate swap used to alter the cash flow characteristics of an institution's assets so as to
The correlation of a variable with itself over successive time intervals.
Automated Clearing House (ACH)
A collection of 32 regional electronic interbank networks used to
An arithmetic mean of selected stocks intended to represent the behavior of the market or some
The average time to maturity of securities held by a mutual fund. Changes in interest rates
A trade, quote, or market that does not originate with the dealer in question, e.g., "the bid is 98-10
The fee paid on the extension date if the buyer wishes to continue the option.
Brokerage house clerical operations that support, but do not include, the trading of stocks and
Any large principal payment due at maturity for a bond or loan with or without a a sinking
BAN (Bank anticipation notes)
Notes issued by states and municipalities to obtain interim financing for
In the words of Warren Buffet, Bill Bane Sr., is, "a great American and one of the last real traders
Bank for International Settlements (BIS)
An international bank headquartered in Basel, Switzerland, which
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
Contracts with trigger points that, when crossed, automatically generate buying or selling of
Packages that involve the exchange of more than two currencies against a base currency at
An investor who believes a stock or the overall market will decline. A bear market is a prolonged period
A situation in which large traders sell positions with the intention of driving prices down.
Benchmark interest rate
Also called the base interest rate, it is the minimum interest rate investors will
A method of securities distribution/ underwriting in which the securities firm agrees to sell
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
The term applied to the liberalization in 1986 of the London Stock Exchange in which trading was
Bill of lading
A contract between the exporter and a transportation company in which the latter agrees to
Designing a portfolio so that its performance will match the performance of some bond index.
with respect to convertible bonds, the value the security would have if it were not convertible
To obtain or receive money on loan with the promise or understanding that it will be repaid.
In the mortgage pipeline, the risk that prospective borrowers of loans committed to be
Break-even payment rate
The prepayment rate of a MBS coupon that will produce the same CFY as that of
Security prices sometimes move wildly above their true values.
An investor who thinks the market will rise. Related: bear.
Bond whose principal repayment is linked to the price of another security. The bonds are
A guaranteed investment contract purchased with a single (one-shot) premium. Related:
A trend allowing creation of securities either by combining primitive and derivative
A business that has terminated with a loss to creditors.
The risk that the cash flow of an issuer will be impaired because of adverse economic
Buy on close
To buy at the end of the trading session at a price within the closing range.
Buy on opening
To buy at the beginning of a trading session at a price within the opening range.
A passive investment strategy with no active buying and selling of stocks from the
Mortgages in which monthly payments consist of principal and interest, with portions of these
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