Archives for August 2010

Turnaround

Turnaround 1. Refers to a company improving performance and changing financial course, in context to its poor past performance. 2. Also refers to buying and selling of securities and settling them the same day. Random Finance Terms for the Letter T Trust Deed Trust … [Read more...]

Turnaround Time

Turnaround Time It is the time that will be required to make the turnaround happen. Random Finance Terms for the Letter T Trust Deed Trust Fund Trust Receipt TT&L Account Turnaround Turnaround Time Turnkey Construction Contract Turnover Two-Factor Model … [Read more...]

Turnkey Construction Contract

Turnkey Construction Contract It is a kind of construction contract where the company carrying out the project is required to complete the construction project meeting a set of laid down criteria for an agreed price frozen at the time contract signing. Random Finance Terms … [Read more...]

Turnover

Turnover 1. In mutual funds, it is a trading activity measure for the last year that is calculated as percentage of fund’s total assets (average). A 33% turnover ratio means that the trades value represented one third of the fund’s assets. 2. In finance, it refers to the number … [Read more...]

Two-Factor Model

Two-Factor Model Capital asset pricing model’s zero beta version by Black. Random Finance Terms for the Letter T Trust Deed Trust Fund Trust Receipt TT&L Account Turnaround Turnaround Time Turnkey Construction Contract Turnover Two-Factor Model … [Read more...]

Two-Fund Separation Theorem

Two-Fund Separation Theorem It is a non-real life and purely theoretical result, which indicates that all investors will possess a combination of the market portfolio and risk free assets. Random Finance Terms for the Letter T Two-Fund Separation Theorem Two Name … [Read more...]

Two Name Paper

Two Name Paper Trade paper is colloquially called trade name paper. Both bankers acceptances and trade acceptances are two name papers. Random Finance Terms for the Letter T Two-Fund Separation Theorem Two Name Paper Two-Sided Market Two-State Option Pricing … [Read more...]

Two-Sided Market

Two-Sided Market It is a market in which asked and bid prices are quoted. Random Finance Terms for the Letter T Two-Fund Separation Theorem Two Name Paper Two-Sided Market Two-State Option Pricing Model Two Step Mortgage Two-Tier Tax System Two Way Quote Type … [Read more...]

Two Step Mortgage

Two Step Mortgage A mortgage which is fixed interest rate for a pre specified period (generally 5-7 years), after which the interest rates are market driven. Random Finance Terms for the Letter T Two-Fund Separation Theorem Two Name Paper Two-Sided Market Two-State … [Read more...]

Two-Tier Tax System

Two-Tier Tax System It is a taxation system in which the shareholder’s income ends up getting taxed twice. Random Finance Terms for the Letter T Two-Fund Separation Theorem Two Name Paper Two-Sided Market Two-State Option Pricing Model Two Step Mortgage Two-Tier Tax … [Read more...]

Two Way Quote

Two Way Quote It is a quote that informs about both the ask and bid price security. This helps the trader find out at what price could he can buy or sell the security at. Random Finance Terms for the Letter T Two-Fund Separation Theorem Two Name Paper Two-Sided … [Read more...]

Type

Type Categorizing an options contract as a call or put. Random Finance Terms for the Letter T Two-Fund Separation Theorem Two Name Paper Two-Sided Market Two-State Option Pricing Model Two Step Mortgage Two-Tier Tax System Two Way Quote Type … [Read more...]

Unauthorized Investment

Unauthorized Investment An Investment that does not have a specific authorization by a bank or legal trust. The statutory requirements for trusts and banks can be met, but not the trustee’s criteria. Random Finance Terms for the Letter U Unauthorized Investment Unbiased … [Read more...]

Unbiased Predicator

Unbiased Predicator According to this theory, the price of a security at a future date would equal forward rates in the market today. Random Finance Terms for the Letter U Unauthorized Investment Unbiased Predicator Unbundling Unchanged Uncommitted Facility Uncovered … [Read more...]

Unchanged

Unchanged Situations where there are no changes in the price of a security between two time frames or periods (day, weak, year etc). Random Finance Terms for the Letter U Unauthorized Investment Unbiased Predicator Unbundling Unchanged Uncommitted Facility Uncovered … [Read more...]

Uncommitted Facility

Uncommitted Facility Credit facilities that do not impose restrictions on lending institutions with regard to fund amounts that can be lent. Random Finance Terms for the Letter U Unauthorized Investment Unbiased Predicator Unbundling Unchanged Uncommitted … [Read more...]

Uncovered Call

Uncovered Call A position in a short call option where the underlying stocks in the writer’s options contracts are not owned by him. It is riskier compared to covered calls, where the underlying stock is owned by the writer. If the buyer chooses to exercise the contract, the writer … [Read more...]

Uncovered Put

Uncovered Put A position in a short put option where (a) there isn’t an equivalent short-stock position (b) there are no deposits of cash equivalents or cash whose value equals the put’s exercise value. This is very risks for the writer, who has made a pledge to buy the stocks at a … [Read more...]

Undercapitalization

Undercapitalization A situation in which a company does not generate sufficient cash flow to conduct business operations or to pay creditors. If this continues for some time, then there is a possibility of the company going bankrupt. Random Finance Terms for the Letter … [Read more...]

Undercast

Undercast An error in forecasting that arises when things like performance levels, cash flows or production are being estimated. The estimation produced in undercasting is lower that the actual realized value. Random Finance Terms for the Letter U Unauthorized … [Read more...]