Bill of Exchange

Bill of Exchange Refers to any document containing a payment demand. … [Read more...]

Effective Spread

Effective Spread Spread derived in gross underwriting after taking into account the impact of common stock offer announcement on the share price of a firm. … [Read more...]

P&S

P&S Statement showing purchase and sale, given by broker. Shows the final position of customer’s account after last transaction has been executed. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]

Management Fee

Management Fee An advisory fee for investment charged by a financial advisor and payable by a fund. Amount depends on average assets of the fund, but sometimes calculated using a sliding scale that moves downward when the fund’s dollar value is on the rise. … [Read more...]

Series Bond

Series Bond A type of bond that is issued in many series under a written agreement between the issuer and investor/bondholder. Random Finance Terms for the Letter S Separation Property Separation Theorem Serial Bonds Serial Covariance Series Bond Series Set of … [Read more...]

Risk Premium Approach

Risk Premium Approach Portfolio management strategy that involves selecting high risk investments that give higher yields to compensate. Random Finance Terms for the Letter S Risk Controlled Arbitrage Risk Indexes Risk Lover Risk Management Risk Neutral Risk … [Read more...]

Eurocredits

Eurocredits Eurocurrency loans of intermediate-term that are given to corporates and government by banking syndicates. … [Read more...]

Economic Assumptions

Economic Assumptions The conditions of the economy that are expected to prevail throughout the term of the financial plan outlined by a company. … [Read more...]

Short Position

Short Position Establishing a market position by selling a contract but not closing out the position by buying later and offsetting the purchase. Random Finance Terms for the Letter S Sharpe Benchmark Sharpe Ratio Shelf Registration Shirking Shogun … [Read more...]

Dividend Recapitalization

Dividend Recapitalization Also termed dividend recap. Payment of special dividend by a company from a new debt taken for this purpose. … [Read more...]

Liquidity Preference Hypothesis

Liquidity Preference Hypothesis Concept that when all else is equal, higher liquidity is valuable. Also refers to the concept that the future interest rate is lower than forward rates. … [Read more...]

Opening Bell

Opening Bell Bell that is rung to signify the start of trading in an exchange. Random Finance Terms for the Letter O Open Position Open Repo Open-End Fund Open End Lease Open-End Mortgage Open-Market Operation Open-Market Purchase Operation Open-Outcry Opening, … [Read more...]

Discount Window

Discount Window Federal Reserve facility allowing banks which are members, to take loans through government issued securities or other types of acceptable paper, against collateral. … [Read more...]

Checks and Balances

Checks and Balances Procedures established to reduce mistakes or unethical behavior. Ensure that no individual or department has complete decision making authority. … [Read more...]

Euroyen Bonds

Euroyen Bonds Eurobond that has a Japanese yen denomination. … [Read more...]

Variable Rate Demand Note (VRDN)

Variable Rate Demand Note Debt instruments representing borrowed funds which are payable on demand and accumulate interest depending on some current benchmark, like the prime lending rate. Random Finance Terms for the Letter V Variable Rate CDs Variable Rated Demand … [Read more...]

Extinguish

Extinguish Paying off debt or retiring it. … [Read more...]

Earnings

Earnings Post tax net income earned in a period by business. … [Read more...]

Bank Discount Basis

Bank Discount Basis Conventional method used in making bid and offer quotes for T bills, using a 360 day year as basis in terms of annualized yield. … [Read more...]

In-the-money

In-the-money Related to put. Put option with a strike price above that of the underlying futures price. Else, a call option that has a strike price lower than the futures price underlying it. … [Read more...]