Financial Terms Main Page

This site contains comprehensive definitions for a wide range of terms that cover topics such as financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit...

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Arbitrageurs

People who search for and exploit arbitrage opportunities.

Budget

A detailed schedule of financial activity, such as an advertising budget, a sales budget, or a capital budget.

Corner A Market

To purchase enough of the available supply of a commodity or stock in order to
manipulate its price.

Full coupon bond

A bond with a coupon equal to the going market rate, thereby, the bond is selling at par.

Open (good-til-cancelled) order

An individual investor can place an order to buy or sell a security. That
open order stays active until it is completed or the investor cancels it.

Option not to deliver

In the mortgage pipeline, an additional hedge placed in tandem with the forward or
substitute sale.

Real time

A real time stock or bond quote is one that states a security's most recent offer to sell or bid (buy).
A delayed quote shows the same bid and ask prices 15 minutes and sometimes 20 minutes after a trade takes place.

Kaizen

A method of costing that involves making continual, incremental improvements to the
production process during the manufacturing phase of the product/service lifecycle, typically
involving setting targets for cost reduction.

cost pool

a collection of monetary amounts incurred either
for the same purpose, at the same organizational level, or
as a result of the occurrence of the same cost driver

Cap

Interest-rate option that guarantees that the rate on a floating-rate loan
will not exceed a certain level.

stock split

Issue of additional shares to firm’s stockholders.

Effective Exchange Rate

The weighted average of several exchange rates, where the weights are determined by the extent of our trade done with each country.

Foreign Exchange Reserves

A fund containing the central bank's holdings of foreign currency or claims thereon.

Frictional Unemployment

Unemployment associated with people changing jobs or quitting to search for new jobs.

Phantom bill of material

A bill of materials for a subassembly that is not normally
kept in stock, because it is used at once as part of a higher-level assembly or
finished product.