Delivery Options Options such as timing option, quality option and wild card option that the seller of a future contract with interest rates can use. There is uncertainty in the exact kind of T bond delivered or exact date owing to delivery options. … [Read more...]
Liability Driven Investment – LDI
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Liability Driven Investment - LDI Investing strategy where primary goal is to invest in sufficient assets to meet all current and future liabilities. Commonly found with defined-benefit pension plans. … [Read more...]
Yield Spread Strategies
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Yield Spread Strategies Tactics using which a portfolio is positioned to take advantage of anticipated changes in spread of yields between different bond market sectors. Random Finance Terms for the Letter Y Yankee Bonds Yankee CD Yankee Market Yard Yield Yield … [Read more...]
Passive Portfolio Strategy
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Passive Portfolio Strategy Investment strategy aiming at diversifying the portfolio in line with an index to ensure good returns. Here securities are simply chosen to match the index rather than on any study of their future prospects. For e.g.: a portfolio consisting of all S&P 500 … [Read more...]
Yield to Maturity
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Yield to Maturity Rate of return (in percentage) paid on a note, fixed income security or bond if it is bought and held till its maturity date. It is based on the assumption that the coupon interest paid over the bond’s life shall be reinvested at a similar rate. YTM is calculated … [Read more...]
Loan Amortization Schedule
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Loan Amortization Schedule The due dates specified under a schedule for a loan for making interest and principal repayments. … [Read more...]
ABO – Accumulated Benefit Obligation
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ABO - Accumulated Benefit Obligation Refer: projected benefit obligation. Approximation of plan liability in event it is terminated on calculation date. … [Read more...]
ACRS- Accelerated Cost Recovery System
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ACRS- Accelerated Cost Recovery System Schedule of rates of depreciation used for tax purposes. … [Read more...]
ACSI- American Customer Satisfaction Index
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ACSI- American Customer Satisfaction Index Index indicating satisfaction of U.S. consumers with the quality of products and services available in the country. The ACSI has four levels of scores - national customer satisfaction, economic sector (10 scores), industry (43 scores), and … [Read more...]
ACU- Asian Currency Unit
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ACU- Asian Currency Unit Deposits denominated in dollars held in Asian centers like Singapore. … [Read more...]
ADR- American Depositary Receipts
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ADR- American Depositary Receipts U.S. depositary bank issued certificates. These represent foreign shares owned by the bank, usually through its branch or correspondent set up in the issuing country. A portion of foreign share, a single share or a group of shares of the foreign … [Read more...]
AMEX – American Stock Exchange
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AMEX - American Stock Exchange U.S stock exchange. This second-largest exchange lists medium sized and small sized companies. … [Read more...]
AMT- Alternative Minimum Tax
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AMT- Alternative Minimum Tax Taxation procedure whereby certain items with tax preference are added back into adjusted gross income. AMT follows a different set of regulations to calculate income that is taxable after allowed deductions. … [Read more...]
APR- Annual Percentage Rate
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APR- Annual Percentage Rate The rate per period multiplied by the yearly number of periods. For example, quarterly return of 5% means a 20% APR. … [Read more...]
APT- Arbitrage Pricing Theory
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APT- Arbitrage Pricing Theory Model that is considered an alternative to CAPM or capital asset pricing model, created by Stephen Ross. Arbitrage arguments entirely form the basis of this model. … [Read more...]
APV- Adjusted Present Value
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APV- Adjusted Present Value An asset’s net present value analysis when it is financed purely by equity (current value of non-levered flows of cash), plus the current value of financing decisions (levered flows of cash). The tax shields arising from interest deductibility and other … [Read more...]
AQO- Average Qualitative Opinion
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AQO- Average Qualitative Opinion Summarizes ratings given to a particular company by analysts. … [Read more...]
ARM- Adjustable Rate Mortgage
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ARM- Adjustable Rate Mortgage Mortgages that carry an adjustable rate of interest done at regular intervals depending on a predetermined established index. Adjustment includes a spread or margin that is added over the index. Usually such interest rate is subject to per-period and … [Read more...]
ARPS- Auction Rate Preferred Stock
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ARPS- Auction Rate Preferred Stock Preferred stock with floating rate whose dividend is adjusted through a Dutch auction every seven weeks. … [Read more...]
