ISDA Stands for International Swap Dealers Association. Established in 1985 with the aim of promoting consistent practices in trading, writing and settlement of derivatives like swaps. … [Read more...]
ISMA
ISMA Stands for International Security Market Association. A Swiss law association based in Zurich that reclassifies the participants in the primary and secondary markets in Eurobond. Consistent trading practices in international bond markets are ensured by ISMA. … [Read more...]
Isoquant Curve
Isoquant Curve Graphical representation of all possible combinations of inputs that give the desired output. A tool used in microeconomics to evaluate the impact that inputs have on the production or output levels possible. … [Read more...]
Issuer
Issuer The individual or entity from whom/ where the financial asset issues. … [Read more...]
J-Curve
J-Curve Theory stating that the trade deficit of a country will first worsen following a depreciation of its currency as higher prices on overseas imports will more than balance out (in the short term) the smaller volume of imports. … [Read more...]
J-Curve Effect
J-Curve Effect Graphical representation of a trend where the curve moves downward to begin with and then rises to a level higher than originating point. J curve effect is witnessed when an initial loss is succeeded by a significant gain. … [Read more...]
Jensen Index
Jensen Index - Represents the "alpha" of the investment manager or the investment. - Index using the CAP (capital asset pricing) model to assess if a money manager has performed better than a market index. … [Read more...]
Joint Account
Joint Account A formal understanding between two firms or more for risk sharing as well as sharing financing responsibility when securities are purchased or underwritten. … [Read more...]
Joint Clearing Members
Joint Clearing Members Businesses that clear on two or more exchanges. … [Read more...]
Joint Liability
Joint Liability Any obligation that allows two or more parties to share the associated risks inherent in taking additional debt and insulating themselves giants any future legal consequences. Includes obligations to repay debts. … [Read more...]
Jumbo Loan
Jumbo Loan A loan that exceeds a $1 billion sum or a loan that exceeds the limits set by the Federal Reserve for securitization. These loans cannot be guaranteed by Freddie Mac or Fannie Mae. … [Read more...]
Junk Bond
Junk Bond Also called junk or high yield bond. Bond with speculative credit rating of Ba (Moody's) or BB (S&P) or lower. These bonds give higher yields than those of financially sound companies. Both Moody's investor Services and Standard & Poors rate bonds to provide a comparative … [Read more...]
Junior Debt (Subordinate Debt)
Junior Debt (Subordinate Debt) Also refer subordinated debt. A debt that is lower in priority when compared with senior debts as far as repayment is concerned. … [Read more...]
Junior Equity
Junior Equity Equity that ranks lower than other superior forms of equity. Usually refers to common stock that is lower priority than preferred stock. Common stockholders come second after preferred stockholders with respect to claim on dividends announced by the company. … [Read more...]
Just-In-Time Inventory Systems
Just-In-Time Inventory Systems Inventory management systems that schedule the arrival of materials so that it coincides with the need for the material during production. … [Read more...]
K-Percent Rule
K-Percent Rule Macroeconomic money-supply growth theory propounded by Milton Friedman. States that most effective method to control inflation in the long term is for central banks to automatically enhance money supply by a specific limit (the "k" variable) every year, irrespective … [Read more...]
Kappa
Kappa A ratio comparing dollar price fluctuation in the option price to 1% of change in the volatility expected in price. … [Read more...]
Keefe Bank Index
Keefe Bank Index Index, compiled by investment bankers Keefe, Keefe, Bruyette and Woods, listing regional bank and money centers. The banks included here are weighted in terms of capitalization. … [Read more...]




