[{ "title": "‘Can get $xxx’","link": "https://www.alphaflow.com/?glossary=can-get-xxx","glink": "can_get","desc": "Refers to over-the-counter trading. 'I have a buyer who will pay $xxx for the stock'. Usually a standard markdown from $xxx is applied to this price in bidding the seller for its stock. Antithesis of cost me."},{ "title": "‘Cannot compete’","link": "https://www.alphaflow.com/?glossary=cannot-compete","glink": "cannot_compete","desc": "In the context of general equities, cannot accommodate customers at that price level (i.e., compete with other market makers), often because there is no natural opposite side of the trade."},{ "title": "‘Cannot complete’","link": "https://www.alphaflow.com/?glossary=cannot-complete","glink": "cannot_complete","desc": "In the context of general equities, inability to finish an order on a principal or agency basis, given prevailing price instructions and/or market conditions."},{ "title": "‘Clean your skirts’","link": "https://www.alphaflow.com/?glossary=clean-your-skirts","glink": "clean_your_skirts","desc": "In the context of general equities, i.e. 'make all your obligated calls' check with all prior obligations in a security. Often preceded by 'subject to.'"},{ "title": "‘Confirm me out’","link": "https://www.alphaflow.com/?glossary=confirm-me-out","glink": "confirm_me_out","desc": "Used for listed equity securities. 'Go to the floor and check with the specialist or floor broker that my previously active order has been canceled and was not executed'. One does not have to honor any trade reported after being given a 'firm out'."},{ "title": "‘Cost me’","link": "https://www.alphaflow.com/?glossary=cost-me","glink": "cost_me","desc": "Refers to over-the-counter trading. 'The price I must pay to obtain the securities you wish to buy is [$]'. Usually, a standard markup is then applied for resale to this buyer. Antithesis of can get."},{ "title": "‘Customer picking prices’","link": "https://www.alphaflow.com/?glossary=customer-picking-prices","glink": "customer_picking_prices","desc": "Customer is firm on price and has set the price at which to transact."},{ "title": "‘How are you making XXX?’","link": "https://www.alphaflow.com/?glossary=how-are-you-making-xxx","glink": "how_are_you_making","desc": "'What is your market in a particular stock?' See: Quotation."},{ "title": "‘It’s us,’","link": "https://www.alphaflow.com/?glossary=its-us","glink": "its_us","desc": "Used in the context of general equities. 'The firm, and not a customer, is the party involved.'"},{ "title": "‘Just me asking’","link": "https://www.alphaflow.com/?glossary=just-me-asking","glink": "just_me_asking","desc": "Used in the context of general equities. 'Not a customer request for information.'"},{ "title": "‘Kick it out’","link": "https://www.alphaflow.com/?glossary=kick-it-out","glink": "kick_it_out","desc": "Used in the context of general equities. 'Liquidate a position (sell a long/cover a short) without regard to price.'"},{ "title": "‘More behind it’","link": "https://www.alphaflow.com/?glossary=more-behind-it","glink": "more_behind_it","desc": "Used in the context of general equities. More stock exists to be bought or sold by the same buyer or seller, respectively. Often, the buyer or seller does not disclose the full size of his buy or sell interest as not to affect the market adversely. See: May expand."},{ "title": "‘Need the tick’","link": "https://www.alphaflow.com/?glossary=need-the-tick","glink": "need_the_tick","desc": "Used for listed equity securities. A stock must trade up/down at least one tick (1/8) in order to comply with regulations governing short sales/corporate repurchases."},{ "title": "‘News out’","link": "https://www.alphaflow.com/?glossary=news-out","glink": "news_out","desc": "Refers to over-the-counter trading. A news story concerning the stock being considered has recently been posted on one of the news services, such as the Dow Jones News Service or Reuters. A courtesy standard in trading is to mention that 'news is out,' in case the other party is unaware of the new development."},{ "title": "‘No Autex’","link": "https://www.alphaflow.com/?glossary=no-autex","glink": "no_autex","desc": "Used in the context of general equities. 'No buy or sell interest should be entered into the Autex (advertising) system.' Inquirers do not want exposure of an inquiry to affect the price at which they hope to ultimately transact the trade, hence disturbing the customer's picture."},{ "title": "‘O.K. to cross’","link": "https://www.alphaflow.com/?glossary=o-k-to-cross","glink": "ok_to_cross","desc": "Used for listed equity securities. 'Legal to cross the buy and sell orders on the exchange floor because transactor is not a principal in the transaction.'"},{ "title": "‘Participate but do not initiate’","link": "https://www.alphaflow.com/?glossary=participate-but-do-not-initiate","glink": "participate_but_do_not_initiate","desc": "Used for listed equity securities. 'Participate in the side of the market indicated by the order, but do not initiate the interest that causes the trade to take place.' This kind of order can cause one to 'miss stock' because the broker or investor is at the mercy of the player who does initiate the trade. See: Market order go along, percentage order."},{ "title": "‘Put it on ‘","link": "https://www.alphaflow.com/?glossary=put-it-on","glink": "put_it_on","desc": "Used for listed equity securities. 'Go to the floor to transact.' See: Print."},{ "title": "‘Put pants on it ‘","link": "https://www.alphaflow.com/?glossary=put-pants-on-it","glink": "put_pants_on_it","desc": "Used in the context of general equities. 'Elaborate on your intentions or your inquiry,' especially with respect to size, side, and price. See: Open up."},{ "title": "‘Ring the cash register’","link": "https://www.alphaflow.com/?glossary=ring-the-cash-register","glink": "ring_the_cash_register","desc": "Used in the context of general equities. 'Take a profit.' See: Profit taking."},{ "title": "‘Send it in’","link": "https://www.alphaflow.com/?glossary=send-it-in","glink": "send_it_in","desc": "Market language: 'I bought your stock - 'send it in' (and possibly more).'"},{ "title": "‘Soft’ capital rationing","link": "https://www.alphaflow.com/?glossary=soft-capital-rationing","glink": "soft_capital_rationing","desc": "Constraints on spending that under certain circumstances can be violated or even viewed as constituting targets rather than absolute limits."},{ "title": "‘Static’ Return","link": "https://www.alphaflow.com/?glossary=static-return","glink": "static_return","desc": "The return that an investor would make on a particular position if the underlying stock were unchanged in price at the expiration of the options in the position."},{ "title": "‘Take it down’","link": "https://www.alphaflow.com/?glossary=take-it-down","glink": "take_it_down","desc": "Reduce the offering price or hit others' bids to such an extent as to lower the inside market."},{ "title": "‘Take me along’","link": "https://www.alphaflow.com/?glossary=take-me-along","glink": "take_me_along","desc": "'Allow me to participate in the side of a particular trade."},{ "title": "‘Trade me out’","link": "https://www.alphaflow.com/?glossary=trade-me-out","glink": "trade_me_out","desc": "Work out of one's long position (usually created by committing firm principal to complete a trade block trade) by selling stock. Antithesis of 'buy them back.'"},{ "title": "1/f Noise","link": "https://www.alphaflow.com/?glossary=1f-noise","glink": "1_f_noise","desc": "See: Anti-Persistence"},{ "title": "10-K","link": "https://www.alphaflow.com/?glossary=10-k","glink": "10_k","desc": "Annual report required by the SEC each year. Provides a comprehensive overview of a company's state of business. Must be filed within 90 days after fiscal year-end. A 10-Q report is filed quarterly."},{ "title": "10-Q","link": "https://www.alphaflow.com/?glossary=10-q","glink": "10_q","desc": "Quarterly report required by the SEC each quarter. Provides a comprehensive overview of a company's state of business."},{ "title": "10% guideline","link": "https://www.alphaflow.com/?glossary=10-guideline","glink": "ten_percent_guideling","desc": "The standard analysts' principle that funded debt over 10% of the assessed valuation of taxable property for a municipality is excessive."},{ "title": "1031 Exchange","link": "https://www.alphaflow.com/?glossary=1031-exchange","glink": "","desc": "A section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes. Taxes on capital gains are not charged on the sale of a property if the money is being used to purchase another property - the payment of tax is deferred until property is sold with no re-investment. "},{ "title": "1040 form","link": "https://www.alphaflow.com/?glossary=1040-form","glink": "1040_form","desc": "The standard individual tax return form of the IRS."},{ "title": "1099","link": "https://www.alphaflow.com/?glossary=1099","glink": "1099_form","desc": "A statement sent to the IRS and taxpayers by the payers of dividends and interest and by issuers of taxable original issue discount securities."},{ "title": "1099 B","link": "https://www.alphaflow.com/?glossary=1099-b","glink": "1099_b","desc": "The tax statement used for reporting proceeds resulting from the sale, redemption or liquidation of shares."},{ "title": "1099 DIV","link": "https://www.alphaflow.com/?glossary=1099-div","glink": "1099_div","desc": "The tax statement used for reporting dividends paid to registered shareholders."},{ "title": "12B-1 fees","link": "https://www.alphaflow.com/?glossary=12b-1-fees","glink": "12b_1_fees","desc": "The percent of a mutual fund's assets used to defray marketing and distribution expenses. The amount of the fee is stated in the fund's prospectus. The SEC has recently proposed that 12B-1 fees in excess of 0.25% be classed as a load. A true no load fund has neither a sales charge nor a 12b-1 fee."},{ "title": "12B-1 funds","link": "https://www.alphaflow.com/?glossary=12b-1-funds","glink": "12b_1_funds","desc": "Mutual funds that do not charge an up-front or back-end commission, but instead take out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12B-1 (passed in 1980)."},{ "title": "144 stock","link": "https://www.alphaflow.com/?glossary=144-stock","glink": "BM144_stock","desc": "Used in the context of general equities. Restricted stock."},{ "title": "19c3 stock","link": "https://www.alphaflow.com/?glossary=19c3-stock","glink": "BM19c3_stock","desc": "A stock listed on a national securities exchange after April 26, 1979, that is exempt from the Securities and Exchange Commission rule that prohibits exchange members from participating in off-board trading."},{ "title": "20% cushion rule","link": "https://www.alphaflow.com/?glossary=20-cushion-rule","glink": "twenty_percent_cushion_rule","desc": "Guideline that revenues from facilities financed by municipal bonds should exceed the operating budget plus maintenance costs and debt service by at least 20% to allow for unforeseen expenses."},{ "title": "25% rule","link": "https://www.alphaflow.com/?glossary=25-rule","glink": "twenty_five_percent_rule","desc": "The guidelines that bonded debt over 25% of a municipality's annual budget is excessive."},{ "title": "401(K)","link": "https://www.alphaflow.com/?glossary=401k","glink": "401_(k)","desc": "Under section 401(K) of the Internal Revenue Code, a deferred compensation plan set up by an employer so that employees can set aside money for retirement on a pre-tax basis. Employers may match a percentage of the amount that employees contribute to the plan. Contributions by both employees and employers, as well as investment earnings and interest, are not taxed until the employee withdraws the money; if the employee withdraws the money before retirement age, he or she pays an early withdrawal penalty tax. Currently, employees are allowed to annually contribute up to 15 percent of their salary but no more than $11,000 ($12,000 for people 50 or older). Many employers now offer these deferred compensation plans in lieu of or in addition to pensions."},{ "title": "403(b)","link": "https://www.alphaflow.com/?glossary=403b","glink": "403b","desc": "Under section 403(b) of Internal Revenue Code, 403(b) plan is a tax-advantaged retirement savings plan for public education organizations, cooperative hospital service organizations, and some non-profit employers. Tax treatment is similar to that of 401(K) plan."},{ "title": "48-hour rule","link": "https://www.alphaflow.com/?glossary=48-hour-rule","glink": "48_hour_rule","desc": "PSA Uniform Practices requirement that all pool information in a to be announced (TBA) transaction be communicated by the seller to the buyer before 3 p.m. EST on the business day 48 hours prior to the agreed-upon trade date."},{ "title": "A (NASDAQ)","link": "https://www.alphaflow.com/?glossary=a-nasdaq","glink": "A","desc": "Fifth letter of a Nasdaq stock symbol specifying Class A shares."},{ "title": "A paper","link": "https://www.alphaflow.com/?glossary=a-paper","glink": "a_paper","desc": "Another name for prime paper."},{ "title": "A-D","link": "https://www.alphaflow.com/?glossary=a-d","glink": "ad","desc": "Advance-Decline, or measurement of the number of issues trading above their previous closing prices less the number trading below their previous closing prices over a particular period. As a technical measure of market breadth, the steepness of the AD line indicates whether a strong bull or bear market is under way."},{ "title": "A1","link": "https://www.alphaflow.com/?glossary=a1","glink": "a1","desc": "The fifth highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated A1 are considered upper-medium grade and are subject to low credit risk. Rating one notch higher is Aa3. Rating one notch lower is A2"},{ "title": "A2","link": "https://www.alphaflow.com/?glossary=a2","glink": "a2","desc": "The sixth highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated A2 are considered upper-medium grade and are subject to low credit risk. Rating one notch higher is A1. Rating one notch lower is A3"},{ "title": "A3","link": "https://www.alphaflow.com/?glossary=a3","glink": "a3","desc": "The seventh highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated A3 are considered upper-medium grade and are subject to low credit risk. Rating one notch higher is A2. Rating one notch lower is Baa1"},{ "title": "Aa1","link": "https://www.alphaflow.com/?glossary=aa1","glink": "aa1","desc": "The second highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated Aa1 are judged to be of high quality and are subject to very low credit risk. Rating one notch higher is Aaa. Rating one notch lower is Aa2"},{ "title": "Aa2","link": "https://www.alphaflow.com/?glossary=aa2","glink": "aa2","desc": "The third highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated Aa2 are judged to be of high quality and are subject to very low credit risk. Rating one notch higher is Aa1. Rating one notch lower is Aa3"},{ "title": "Aa3","link": "https://www.alphaflow.com/?glossary=aa3","glink": "aa3","desc": "The fourth highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated Aa3 are judged to be of high quality and are subject to very low credit risk. Rating one notch higher is Aa2. Rating one notch lower is A1"},{ "title": "Aaa","link": "https://www.alphaflow.com/?glossary=aaa","glink": "aaa","desc": "The highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk. Rating one notch lower is Aa1."},{ "title": "AAA+ Bank","link": "https://www.alphaflow.com/?glossary=aaa-bank","glink": "aaa_bank","desc": "Refers to banks that are rated AAA by IBCA, Moodys Investor Service and Standard & Poors."},{ "title": "Abandonment","link": "https://www.alphaflow.com/?glossary=abandonment","glink": "abandonment","desc": "Controlling party giving up rights to property voluntarily."},{ "title": "Abandonment option","link": "https://www.alphaflow.com/?glossary=abandonment-option","glink": "abandonment_option","desc": "The option of terminating an investment earlier than originally planned."},{ "title": "ABC agreement","link": "https://www.alphaflow.com/?glossary=abc-agreement","glink": "abc_agreement","desc": "A contract between an employee and a brokerage firm outlining the rights of the firm purchasing an NYSE membership for that employee."},{ "title": "Ability to pay","link": "https://www.alphaflow.com/?glossary=ability-to-pay","glink": "ability_to_pay","desc": "Refers to the borrower's ability to make interest and principal payments on debts. See: Fixed charge coverage ratio.
In context of municipal bonds, refers to the issuer's present and future ability to create sufficient tax revenue to fulfill its contractual obligations, accounting for municipal income and property values.
In context of taxation, notion that tax rates should be determined according to income or wealth."},{ "title": "Abnormal returns","link": "https://www.alphaflow.com/?glossary=abnormal-returns","glink": "abnormal_return","desc": "The component of the return that is not due to systematic influences (market-wide influences). In other words, the abnormal returns is the difference between the actual return and that is expected to result from market movements (normal return). Related: excess returns."},{ "title": "Above par","link": "https://www.alphaflow.com/?glossary=above-par","glink": "above_par","desc": "See: Par."},{ "title": "Absolute advantage","link": "https://www.alphaflow.com/?glossary=absolute-advantage","glink": "absolute_advantage","desc": "A person, company or country has an absolute advantage if its output per unit of input of all goods and services produced is higher than that of another person, company or country."},{ "title": "Absolute form of purchasing power parity","link": "https://www.alphaflow.com/?glossary=absolute-form-of-purchasing-power-parity","glink": "absolute_form_of_puchasing__power_parity","desc": "A theory that prices of products of two different countries should be equal when measured by a common currency. Also called the 'law of one price.'"},{ "title": "Absolute Physical Life","link": "https://www.alphaflow.com/?glossary=absolute-physical-life","glink": "absolute_physical_life","desc": "The period of use after which an asset has deteriorated to such an extent that it can no longer be used."},{ "title": "Absolute priority","link": "https://www.alphaflow.com/?glossary=absolute-priority","glink": "absolute_priority","desc": "Rule in bankruptcy proceedings requiring senior creditors to be paid in full before junior creditors receive any payment."},{ "title": "Absorbed","link": "https://www.alphaflow.com/?glossary=absorbed","glink": "absorbed","desc": "Used in context of general equities. Securities are 'absorbed' as long as there are corresponding orders to buy and sell. The market has reached the absorption point when further assimilation is impossible without an adjustment in price. See: Sell the book."},{ "title": "Abusive tax shelter","link": "https://www.alphaflow.com/?glossary=abusive-tax-shelter","glink": "abusive_tax_shelter","desc": "A limited partnership that the IRS judges to be claiming tax deductions illegally."},{ "title": "ABW","link": "https://www.alphaflow.com/?glossary=abw","glink": "a.b.w.","desc": "The three-character ISO 3166 country code for ARUBA."},{ "title": "ABX index","link": "https://www.alphaflow.com/?glossary=abx-index","glink": "abx_index","desc": "Index created by the firm Markit. It is based on the price of credit default swaps on the index's constituent mortgage backed securities. A decline in the the ABX Index indicates that the market associates more risk with subprime mortgages."},{ "title": "Accelerated cost recovery system","link": "https://www.alphaflow.com/?glossary=accelerated-cost-recovery-system","glink": "accelerated_cost_recovery","desc": "Schedule of depreciation rates allowed for tax purposes."},{ "title": "Accelerated depreciation","link": "https://www.alphaflow.com/?glossary=accelerated-depreciation","glink": "accelerated_depreciation","desc": "Any depreciation method that produces larger deductions for depreciation in the early years of an asset's life. Accelerated cost recovery system (ACRS), which is a depreciation schedule allowed for tax purposes, is one such example."},{ "title": "Acceleration clause","link": "https://www.alphaflow.com/?glossary=acceleration-clause","glink": "acceleration_clause","desc": "A contract stating that the unpaid balance becomes due and payable if specific actions transpire, such as failure to make interests payments on time."},{ "title": "Accelerator acquisitions","link": "https://www.alphaflow.com/?glossary=accelerator-acquisitions","glink": "accelerator_acquisitions","desc": "Buying a firm very early on in its life cycle and, usually, at an inexpensive price"},{ "title": "Acceptance","link": "https://www.alphaflow.com/?glossary=acceptance","glink": "acceptance","desc": "Contractual agreement instigated when the drawee of a time draft 'accepts' the draft by writing the word 'accepted' thereon. The drawee assumes responsibility as the acceptor and for payment at maturity. See: Letter of credit and banker's acceptance."},{ "title": "Accommodation","link": "https://www.alphaflow.com/?glossary=accommodation","glink": "accommodation","desc": "A form of loan in which the borrower is not obligated to compensate the lender. These loans are often accompanied by accommodation bills, which guarantee that a third party compensates the lender, should the borrower be unable.  Troubled financial institutions frequently use accommodation loans."},{ "title": "Accommodation loan","link": "https://www.alphaflow.com/?glossary=accommodation-loan","glink": "accomodation_loan","desc": "A legal agreement signed by two parties whereby one of the co-signers guarantees credit liability for the other co-signer.  Accommodation loans, often called accommodation endorsements or bills, allows the guarantor to add strength to the creditworthiness of the other party.  If the receiving party defaults on its debt, the guarantor is then responsible for the debt of the other party. See: Covenant"},{ "title": "Accommodative monetary policy","link": "https://www.alphaflow.com/?glossary=accommodative-monetary-policy","glink": "accommodative_monetary_policy","desc": "Federal Reserve System policy to increase the amount of money available to banks for lending. See: Monetary policy."},{ "title": "Account","link": "https://www.alphaflow.com/?glossary=account","glink": "account","desc": "In the context of bookkeeping, refers to the ledger pages upon which various assets, liabilities, income, and expenses are represented.

In the context of investment banking, refers to the status of securities sold and owned or the relationship between parties to an underwriting syndicate. In the context of securities, the relationship between a client and a broker/dealer firm allowing the firm's employee to be the client's buying and selling agent. See: Account executive; account statement.

"},{ "title": "Account Ad Valorem Duty","link": "https://www.alphaflow.com/?glossary=account-ad-valorem-duty","glink": "account_ad_valorem_duty","desc": "An imported merchandise tax expressed as a percentage."},{ "title": "Account balance","link": "https://www.alphaflow.com/?glossary=account-balance","glink": "account_balance","desc": "Credits minus debits at the end of a reporting period."},{ "title": "Account executive","link": "https://www.alphaflow.com/?glossary=account-executive","glink": "account_executive","desc": "The brokerage firm employee who handles stock orders for clients. See: Broker."},{ "title": "Account in trust","link": "https://www.alphaflow.com/?glossary=account-in-trust","glink": "account_in_trust","desc": "Account managed by the account holder for another person, called the beneficiary. For example, an account opened by parents to give money to their minor children."},{ "title": "Account Party","link": "https://www.alphaflow.com/?glossary=account-party","glink": "account_party","desc": "Party who applies to open a bank for the issuance of a letter of credit."},{ "title": "Account reconciliation","link": "https://www.alphaflow.com/?glossary=account-reconciliation","glink": "account_reconciliation","desc": "The reviewing and adjusting of the balance in a personal checkbook to match your bank statement."},{ "title": "Account statement","link": "https://www.alphaflow.com/?glossary=account-statement","glink": "account_statement","desc": "In the context of banking, refers to a summary of all balances.

In the context of securities, a summary of all transactions and positions (long and short) between a broker/dealer and a client. See also: Option agreement.

"},{ "title": "Accountant’s opinion","link": "https://www.alphaflow.com/?glossary=accountants-opinion","glink": "accountants_opinion","desc": "A signed statement from an independent public accountant after examination of a firm's records and accounts. The opinion may be unqualified or qualified. See: Qualified opinion."},{ "title": "Accounting earnings","link": "https://www.alphaflow.com/?glossary=accounting-earnings","glink": "accounting_earnings","desc": "Earnings of a firm as reported on its income statement."},{ "title": "Accounting exposure","link": "https://www.alphaflow.com/?glossary=accounting-exposure","glink": "accounting_exposure","desc": "The change in the value of a firm's foreign currency-denominated accounts due to a change in exchange rates."},{ "title": "Accounting insolvency","link": "https://www.alphaflow.com/?glossary=accounting-insolvency","glink": "accounting_insolvency","desc": "Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books."},{ "title": "Accounting liquidity","link": "https://www.alphaflow.com/?glossary=accounting-liquidity","glink": "accounting_liquidity","desc": "The ease and quickness with which assets can be converted to cash."},{ "title": "Accounts payable","link": "https://www.alphaflow.com/?glossary=accounts-payable","glink": "accounts_payable","desc": "Money owed to suppliers."},{ "title": "Accounts receivable","link": "https://www.alphaflow.com/?glossary=accounts-receivable","glink": "accounts_receivable","desc": "Money owed by customers."},{ "title": "Accounts receivable financing","link": "https://www.alphaflow.com/?glossary=accounts-receivable-financing","glink": "accounts_receivable_financing","desc": "A short-term financing method in which accounts receivable are collateral for cash advances. See: Factoring."},{ "title": "Accounts receivable turnover","link": "https://www.alphaflow.com/?glossary=accounts-receivable-turnover","glink": "accounts_receivable_turnover","desc": "The ratio of net credit sales to average accounts receivable, which is a measure of how quickly customers pay their bills."},{ "title": "Accredited investor","link": "https://www.alphaflow.com/?glossary=accredited-investor","glink": "accredited_investor","desc": "Refers to an individual whose net worth, or joint net worth with a spouse, exceeds $1,000,000; or whose individual income exceeded $200,000 or whose joint income with a spouse exceeded $300,000 in each of the 2 most recent years and can be expected to meet that income in the current year. More details of the definitions for investors other that individuals are found in Regulation D of the Securities and Exchange Commission."},{ "title": "Accreting Swap)","link": "https://www.alphaflow.com/?glossary=accreting-swap","glink": "accreting_swap","desc": "An interest rate swap in which the notional principal amount increases over time, for example as with a construction loan provided in tranches as each stage of the project is completed."},{ "title": "Accretion (of a discount)","link": "https://www.alphaflow.com/?glossary=accretion-of-a-discount","glink": "accretion_(of_a_discount)","desc": "In portfolio accounting, a straight-line accumulation of capital gains on a discount bond in anticipation of receipt of par at maturity."},{ "title": "Accrual Accounting Convention","link": "https://www.alphaflow.com/?glossary=accrual-accounting-convention","glink": "accrual_accounting_convention","desc": "An accounting system that tries to match the recognition of revenues earned with the expenses incurred in generating those revenues. It ignores the timing of the cash flows associated with revenues and expenses."},{ "title": "Accrual basis","link": "https://www.alphaflow.com/?glossary=accrual-basis","glink": "accrual_basis","desc": "In the context of accounting, practice in which expenses and income are accounted for as they are earned or incurred, whether or not they have been received or paid. Antithesis of cash basis accounting."},{ "title": "Accrual bond","link": "https://www.alphaflow.com/?glossary=accrual-bond","glink": "accrual_bond","desc": "A bond on which interest accrues but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity."},{ "title": "Accrued benefits","link": "https://www.alphaflow.com/?glossary=accrued-benefits","glink": "accrued_benefits","desc": "The pension benefits earned by an employee according to the years of the employee's service."},{ "title": "Accrued discount","link": "https://www.alphaflow.com/?glossary=accrued-discount","glink": "accrued_discount","desc": "Interest that accumulates on savings bonds from the date of purchase until the date of redemption or final maturity, whichever comes first. Series A, B, C, D, E, EE, F, I, and J are discount or accrual bonds, meaning principal and interest are paid when the bonds are redeemed. Series G, H, HH, and K are income bonds, and the semiannual interest paid to their holders is not included in accrued discount."},{ "title": "Accrued interest","link": "https://www.alphaflow.com/?glossary=accrued-interest","glink": "accrued_interest","desc": "Interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security. At the time of sale, the buyer pays the seller the bond's price plus 'accrued interest,' calculated by multiplying the coupon rate by the fraction of the coupon period that has elapsed since the last payment. (If a bondholder receives $40 in coupon payments per bond semiannually and sells the bond one-quarter of the way into the coupon period, the buyer pays the seller $10 as the latter's proportion of interest earned.)"},{ "title": "Accrued market discount","link": "https://www.alphaflow.com/?glossary=accrued-market-discount","glink": "accrued_market_discount","desc": "The rise in the market value of a discount bond as it approaches maturity (when it is redeemable at par) and not because of falling market interest rates."},{ "title": "Accumulate","link": "https://www.alphaflow.com/?glossary=accumulate","glink": "accumulate","desc": "Broker/analyst recommendation that could mean slightly different things depending on the broker/analyst. In general, it means to increase the number of shares of a particular security over the near term, but not to liquidate other parts of the portfolio to buy a security that might skyrocket. A buy recommendation, but not an urgent buy."},{ "title": "Accumulated Benefit Obligation","link": "https://www.alphaflow.com/?glossary=accumulated-benefit-obligation","glink": "accumulated_benefit_obligation","desc": "An approximate measure of the liability of a pension plan in the event of a termination at the date the calculation is performed. Related: Projected benefit obligation."},{ "title": "Accumulated dividend","link": "https://www.alphaflow.com/?glossary=accumulated-dividend","glink": "accumulated_dividend","desc": "A dividend that has reached its due date, but is not paid out. See: Cumulative preferred stock."},{ "title": "Accumulated Other Comprehensive Income","link": "https://www.alphaflow.com/?glossary=accumulated-other-comprehensive-income","glink": "accumulated_other_comprehensive_income","desc": "A balance sheet account that reports the total of all comprehensive income items except Net Income."},{ "title": "Accumulated profits tax","link": "https://www.alphaflow.com/?glossary=accumulated-profits-tax","glink": "accumulated_profits_tax","desc": "A tax on earnings retained in a firm as a way for the principals to defer personal income taxes."},{ "title": "Accumulation","link": "https://www.alphaflow.com/?glossary=accumulation","glink": "accumulation","desc": "In the context of corporate finance, refers to profits that are added to the capital base of the company rather than paid out as dividends. See: Accumulated profits tax.
In the context of investments, refers to the purchase by an institutional broker of a large number of shares over a period of time in order to avoid pushing the price of that share up.
In the context of mutual funds, refers to the regular investing of a fixed amount while reinvesting dividends and capital gains."},{ "title": "Accumulation area","link": "https://www.alphaflow.com/?glossary=accumulation-area","glink": "accumulation_area","desc": "A range within which a buyer accumulates shares of a stock. See: On-balance volume and distribution area."},{ "title": "Acid test ratio","link": "https://www.alphaflow.com/?glossary=acid-test-ratio","glink": "acid_test_ratio","desc": "Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities."},{ "title": "Acquired surplus","link": "https://www.alphaflow.com/?glossary=acquired-surplus","glink": "acquired_surplus","desc": "The surplus acquired when a company is purchased in a pooling of interests combination, i.e. the net worth not considered to be capital stock."},{ "title": "Acquiree","link": "https://www.alphaflow.com/?glossary=acquiree","glink": "acquiree","desc": "A firm that is being acquired."},{ "title": "Acquirer","link": "https://www.alphaflow.com/?glossary=acquirer","glink": "acquirer","desc": "A firm or individual that is purchasing another firm or asset."},{ "title": "Acquisition","link": "https://www.alphaflow.com/?glossary=acquisition","glink": "acquisition","desc": "When a firm buys another firm."},{ "title": "Acquisition cost","link": "https://www.alphaflow.com/?glossary=acquisition-cost","glink": "acquisition_cost","desc": "Refers to the price (including the closing costs) to purchase another company or property. In the context of investments, refers to price plus brokerage commissions, of a security, or the sales charge applied to load funds. See: Tax basis."},{ "title": "Acquisition of assets","link": "https://www.alphaflow.com/?glossary=acquisition-of-assets","glink": "acquisition_of_assets","desc": "A merger or consolidation in which an acquirer purchases the selling firm's assets."},{ "title": "Acquisition of stock","link": "https://www.alphaflow.com/?glossary=acquisition-of-stock","glink": "acquisition_of_stock","desc": "A merger or consolidation in which an acquirer purchases the acquiree's stock."},{ "title": "Acquittance","link": "https://www.alphaflow.com/?glossary=acquittance","glink": "acquittance","desc": "A written document which releases a second party from any financial or other liability. An example of an acquittance would be a receipt indicating payment in full."},{ "title": "Across the board","link": "https://www.alphaflow.com/?glossary=across-the-board","glink": "across_the_board","desc": "Movement or trend in the stock market that causes all stocks in all sectors to move in the same direction."},{ "title": "Act of Bankruptcy","link": "https://www.alphaflow.com/?glossary=act-of-bankruptcy","glink": "act_of_bankruptcy","desc": "An action by a debtor that can be a basis for creditors to file a bankruptcy petition against the debtor. Examples of such actions are concealing assets, defrauding creditors, favoring one creditor over another, or admitting in written a willingness to be adjudged bankrupt."},{ "title": "Act of state doctrine","link": "https://www.alphaflow.com/?glossary=act-of-state-doctrine","glink": "act_of_state-doctrine","desc": "This doctrine says that a nation is sovereign within its own borders, and its domestic actions may not be questioned in the courts of another nation."},{ "title": "Acting in concert","link": "https://www.alphaflow.com/?glossary=acting-in-concert","glink": "acting_in_concert","desc": "Investors working together and performing identical actions to attain the same investment goal."},{ "title": "Active","link": "https://www.alphaflow.com/?glossary=active","glink": "active","desc": "A market in which there is frequent trading."},{ "title": "Active account","link": "https://www.alphaflow.com/?glossary=active-account","glink": "active_account","desc": "Refers to a brokerage account in which many transactions occur. Brokerage firms may levy a fee if an account generates an inadequate level of activity."},{ "title": "Active bond crowd","link": "https://www.alphaflow.com/?glossary=active-bond-crowd","glink": "active_bond_crowd","desc": "Refers to members of the bond department of the NYSE who trade the most bonds. Antithesis of cabinet crowd."},{ "title": "Active box","link": "https://www.alphaflow.com/?glossary=active-box","glink": "active_box","desc": "Securities that are held in safekeeping and are available as collateral for securing brokers' loans or customers' margin positions."},{ "title": "Active commitments","link": "https://www.alphaflow.com/?glossary=active-commitments","glink": "active_commitments","desc": "In the context of private equity, active commitments is an investment that has not reached the end of its legal term."},{ "title": "Active fund management","link": "https://www.alphaflow.com/?glossary=active-fund-management","glink": "active_fund_management","desc": "An investment approach that purposely shifts funds either between asset classes (asset allocation), sectors (sector rotation), or between individual securities (security selection) in order to seek superior returns."},{ "title": "Active income","link": "https://www.alphaflow.com/?glossary=active-income","glink": "active_income","desc": "Income from an active business as opposed to passive investment income according to the U.S. tax code."},{ "title": "Active Management","link": "https://www.alphaflow.com/?glossary=active-management","glink": "active_management","desc": "The opposite of passive management. The passive manager simply minimizes the tracking error of their portfolio and a well known index (e.g. S&P 500 index mutual funds). The active manager will deviate from the benchmark weights by (i) varying the weights from the benchmark weights on the securities; (ii) adding securities outside the benchmark or choosing not to hold securities included in the benchmark and (iii) time-varying asset allocation where weights on certain asset classes change through time. The goal of active management is to produce a return that exceeds the passive return with minimal risk."},{ "title": "Active portfolio strategy","link": "https://www.alphaflow.com/?glossary=active-portfolio-strategy","glink": "active_portfolio_strategy","desc": "A strategy that uses available information and forecasting techniques to seek better performance than a buy and hold portfolio. Related: Passive portfolio strategy."},{ "title": "Active Return","link": "https://www.alphaflow.com/?glossary=active-return","glink": "active_return","desc": "Return relative to a benchmark. If a portfolio's return is 5%, and the benchmark's return is 3%, then the portfolio's active return is 2%."},{ "title": "Active Risk","link": "https://www.alphaflow.com/?glossary=active-risk","glink": "active_risk","desc": "The risk (annualized standard deviation) of the active return. Also called the tracking error."},{ "title": "Activist Investor","link": "https://www.alphaflow.com/?glossary=activist-investor","glink": "activist_investor","desc": "A minority shareholder who seeks to influence decision making at a company by voicing concerns, engaging in a dialogue with management, or lobbying other shareholders for support. The demands could relate to changes in management, representation on the board, acquisitions or divestitures, salaries, bonus payments, use of retained earnings etc."},{ "title": "Actual Cash Value","link": "https://www.alphaflow.com/?glossary=actual-cash-value","glink": "actual_cash_value","desc": "Cost of replacing a property with another of the same kind and in similar condition. Calculated as the replacement cost less depreciation."},{ "title": "Actual market","link": "https://www.alphaflow.com/?glossary=actual-market","glink": "actual_market","desc": "Used in context of general equities. Firm market. Antithesis of Subject market."},{ "title": "Actual/360","link": "https://www.alphaflow.com/?glossary=actual360","glink": "actual_360","desc": "Day count convention for calculating interest accrued on U.S. Treasury bills and other money market instruments. Uses actual number of days in a month and 360 days in a year for calculating interest payments. Also see Day count convention."},{ "title": "Actual/Actual","link": "https://www.alphaflow.com/?glossary=actualactual","glink": "actual_actual","desc": "Day count convention for calculating interest accrued on U.S. Treasury bonds. Uses actual number of days in a month and actual number of days in a year for calculating interest payments. Also see Day count convention."},{ "title": "Actuals","link": "https://www.alphaflow.com/?glossary=actuals","glink": "actuals","desc": "The physical commodities underlying a futures contract. Cash commodity, physical asset."},{ "title": "AD","link": "https://www.alphaflow.com/?glossary=ad","glink": "a.d.","desc": "The two-character ISO 3166 country code for ANDORRA."},{ "title": "Ad valorem tax","link": "https://www.alphaflow.com/?glossary=ad-valorem-tax","glink": "ad_valorem_tax","desc": "A type of tax calculated based on percentage of gross or stated value. For example, VAT."},{ "title": "Additional bonds test","link": "https://www.alphaflow.com/?glossary=additional-bonds-test","glink": "additional_bonds_test","desc": "A test for ensuring that bond issuers can meet the debt service requirements of issuing any new additional bonds."},{ "title": "Additional hedge","link": "https://www.alphaflow.com/?glossary=additional-hedge","glink": "additional_hedge","desc": "A protection against fallout risk in the mortgage pipeline."},{ "title": "Adequacy of coverage","link": "https://www.alphaflow.com/?glossary=adequacy-of-coverage","glink": "adequacy_of_coverage","desc": "A test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging."},{ "title": "Adjustable rate","link": "https://www.alphaflow.com/?glossary=adjustable-rate","glink": "adjustable_rate","desc": "Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. Typically, such issues have a set floor or ceiling, called caps and collars that limits the adjustment."},{ "title": "Adjustable-rate mortgage","link": "https://www.alphaflow.com/?glossary=adjustable-rate-mortgage","glink": "adjustable_rate_mortgage","desc": "A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or margin, over the index, usually subject to per-interval and to life-of-loan interest rate and/or payment rate caps."},{ "title": "Adjustable-rate mortgage securities","link": "https://www.alphaflow.com/?glossary=adjustable-rate-mortgage-securities","glink": "adjustable_rate_mortgage_securities","desc": "Mortgage-backed securities where the underlying asset is a pool of Adjustable rate mortgages."},{ "title": "Adjustable-rate preferred stock","link": "https://www.alphaflow.com/?glossary=adjustable-rate-preferred-stock","glink": "adjustable_rate_preferred_stock","desc": "Publicly traded issues that may be collateralized by mortgages and MBS"},{ "title": "Adjusted balance method","link": "https://www.alphaflow.com/?glossary=adjusted-balance-method","glink": "adjusted_balance_method","desc": "Method of calculating finance charges that uses the account balance remaining after adjusting for all transactions posted during the given billing period as its basis. Related: Average daily balance method, previous balance method, past due balance method."},{ "title": "Adjusted basis","link": "https://www.alphaflow.com/?glossary=adjusted-basis","glink": "adjusted_basis","desc": "Price from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for."},{ "title": "Adjusted debit balance","link": "https://www.alphaflow.com/?glossary=adjusted-debit-balance","glink": "adjusted_debit_balance","desc": "The account balance for a margin account that is calculated by combining the balance owed to a broker with any outstanding balance in the special miscellaneous account, and any paper profits on short accounts."},{ "title": "Adjusted exercise price","link": "https://www.alphaflow.com/?glossary=adjusted-exercise-price","glink": "adjusted_exercise_price","desc": "Term used in options on Ginnie Mae (Government National Mortgage Association) contracts. The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages. For example, if the standard GNMA mortgage has an 9% yield, the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield."},{ "title": "Adjusted gross income","link": "https://www.alphaflow.com/?glossary=adjusted-gross-income","glink": "adjusted_gross_income","desc": "Gross income less allowable adjustments, which is the income on which an individual is taxed by the federal government."},{ "title": "Adjusted present value","link": "https://www.alphaflow.com/?glossary=adjusted-present-value","glink": "adjusted_present_value","desc": "The net present value analysis of an asset if financed solely by equity (present value of unlevered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leveraged buyout."},{ "title": "Adjustment bond","link": "https://www.alphaflow.com/?glossary=adjustment-bond","glink": "adjustment_bond","desc": "A bond issued in exchange for outstanding bonds when a corporation facing bankruptcy is recapitalized."},{ "title": "Administrative pricing rules","link": "https://www.alphaflow.com/?glossary=administrative-pricing-rules","glink": "administrative_pricing_rules","desc": "IRS rules used to allocate income on export sales to a foreign sales corporation."},{ "title": "ADP","link": "https://www.alphaflow.com/?glossary=adp","glink": "a.d.p.","desc": "See: Automatic Data Processing, Inc. "},{ "title": "Advance","link": "https://www.alphaflow.com/?glossary=advance","glink": "advance","desc": "Increase in the market price of stocks, bonds, commodities, or other assets."},{ "title": "Advance commitment","link": "https://www.alphaflow.com/?glossary=advance-commitment","glink": "advance_commitment","desc": "A promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price approximately."},{ "title": "Advance Computerized Execution System","link": "https://www.alphaflow.com/?glossary=advance-computerized-execution-system","glink": "aces","desc": "Refers to the Advance Computerized Execution System, run by Nasdaq. ACES automates trades between order entry and market maker firms that have established trading relationships with each other. Securities are designated as specified for automatic execution."},{ "title": "Advance Decline Ratio","link": "https://www.alphaflow.com/?glossary=advance-decline-ratio","glink": "advance_decline_ratio","desc": "Ratio of the number of stocks that advance in value to the number of stocks that decline in value over a given time period. An increasing advance-decline ratio signals a bullish trend while a decreasing advance-decline ratio signals a bearish trend."},{ "title": "Advance funded pension plan","link": "https://www.alphaflow.com/?glossary=advance-funded-pension-plan","glink": "advance_funded_pension_plan","desc": "A pension plan in which funds are set aside in advance of the date of retirement."},{ "title": "Advance refunding","link": "https://www.alphaflow.com/?glossary=advance-refunding","glink": "advance_refunding","desc": "In the context of municipal bonds, refers to the sale of new bonds (the refunding issue) before the first call date of old bonds (the issue to be refunded). The refunding issue usually specifies a rate lower than the issue to be refunded, and the proceeds are invested, usually in government securities, until the higher-rate bonds become callable. See: Refunding escrow deposits."},{ "title": "Advance tax ruling","link": "https://www.alphaflow.com/?glossary=advance-tax-ruling","glink": "advance_tax_ruling","desc": "A written statement sought by a taxpayer from the tax authorities about the tax implications of a transaction. It is often a precondition for closing the transaction because an adverse tax ruling may make the transaction (e.g. a merger) financially unviable."},{ "title": "Advancement","link": "https://www.alphaflow.com/?glossary=advancement","glink": "advancement","desc": "Money or property given to a person by the deceased before death and intended as an advance against the beneficiary's share in the will."},{ "title": "Adverse opinion","link": "https://www.alphaflow.com/?glossary=adverse-opinion","glink": "adverse_opinion","desc": "An independent auditor's opinion expressing that a firm's financial statements do not reflect the company's position accurately. See also: Qualified opinion."},{ "title": "Adverse selection","link": "https://www.alphaflow.com/?glossary=adverse-selection","glink": "adverse_selection","desc": "Refers to a situation in which sellers have relevant information that buyers lack (or vice versa) about some aspect of product quality."},{ "title": "Advising bank","link": "https://www.alphaflow.com/?glossary=advising-bank","glink": "advising_bank","desc": "Corresponding bank in the beneficiary's country to which an issuing bank sends a letter of credit."},{ "title": "Advisory letter","link": "https://www.alphaflow.com/?glossary=advisory-letter","glink": "advisory_letter","desc": "A newsletter offering financial advice to its readers."},{ "title": "AE","link": "https://www.alphaflow.com/?glossary=ae","glink": "A.E.","desc": "The two-character ISO 3166 country code for UNITED ARAB EMIRATES."},{ "title": "AED","link": "https://www.alphaflow.com/?glossary=aed","glink": "aed","desc": "The ISO 4217 currency code for United Arab Emirates Dirham."},{ "title": "AF","link": "https://www.alphaflow.com/?glossary=af","glink": "a.f.","desc": "The two-character ISO 3166 country code for AFGHANISTAN."},{ "title": "AFA","link": "https://www.alphaflow.com/?glossary=afa","glink": "afa","desc": "The ISO 4217 currency code for Afghan Afghani."},{ "title": "Affidavit of Loss","link": "https://www.alphaflow.com/?glossary=affidavit-of-loss","glink": "affidavit_of_loss","desc": "A sworn statement describing the particulars and circumstances of the loss of securities. This affidavit is required before a Bond of Indemnity can be issued and the securities replaced."},{ "title": "Affiliate","link": "https://www.alphaflow.com/?glossary=affiliate","glink": "affiliate","desc": "Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company."},{ "title": "Affiliated corporation","link": "https://www.alphaflow.com/?glossary=affiliated-corporation","glink": "affiliated_corporation","desc": "A corporation that is an affiliate to the parent company."},{ "title": "Affiliated person","link": "https://www.alphaflow.com/?glossary=affiliated-person","glink": "affiliated_person","desc": "An individual who possesses enough influence and control in a corporation as to be able to alter the actions of the corporation."},{ "title": "Affirmative covenant","link": "https://www.alphaflow.com/?glossary=affirmative-covenant","glink": "affirmative_covenant","desc": "A bond covenant that specifies certain actions the firm must take."},{ "title": "Affirmative obligation","link": "https://www.alphaflow.com/?glossary=affirmative-obligation","glink": "affirmative_obligation","desc": "A New York Stock Exchange rule that governs the behavior of specialists. Affirmative obligation is the mandate of the specialists to step in and act as either the buyer or the seller when public investor orders exist do not match up naturally. Also known as positive_obligation. Related: negative_obligation."},{ "title": "Affordability index","link": "https://www.alphaflow.com/?glossary=affordability-index","glink": "affordability_index","desc": "An index that measures the financial ability of consumers to purchase a home."},{ "title": "AFG","link": "https://www.alphaflow.com/?glossary=afg","glink": "a.f.g.","desc": "The three-character ISO 3166 country code for AFGHANISTAN."},{ "title": "AFS","link": "https://www.alphaflow.com/?glossary=afs","glink": "a.f.s.","desc": "See: Available for Sale"},{ "title": "After acquired clause","link": "https://www.alphaflow.com/?glossary=after-acquired-clause","glink": "after_acquired_clause","desc": "A contractual clause in a mortgage agreement stating that any additional mortgageable property attained by the borrower after the mortgage is signed will be regarded as additional security for the obligation addressed in the mortgage."},{ "title": "After-hours dealing or trading","link": "https://www.alphaflow.com/?glossary=after-hours-dealing-or-trading","glink": "after_hours_trading","desc": "Securities trading after regular trading hours on organized exchanges."},{ "title": "After-Repaired-Value","link": "https://www.alphaflow.com/?glossary=after-repaired-value","glink": "","desc": "In real estate investing, properties are often purchased in less than great condition, with the plan to make repairs or remodel them and resell or flip them at a profit. When an investor looks at the viability of a project, they must be able to estimate the value of the property after all repairs are completed, or the After Repair Value."},{ "title": "After-tax basis","link": "https://www.alphaflow.com/?glossary=after-tax-basis","glink": "after_tax_basis","desc": "The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond."},{ "title": "After-tax profit margin","link": "https://www.alphaflow.com/?glossary=after-tax-profit-margin","glink": "after_tax_profit_margin","desc": "The ratio of net income to net sales."},{ "title": "After-tax real rate of return","link": "https://www.alphaflow.com/?glossary=after-tax-real-rate-of-return","glink": "after_tax_real_rate_of_return","desc": "The after-tax rate of return minus the inflation rate."},{ "title": "Aftermarket","link": "https://www.alphaflow.com/?glossary=aftermarket","glink": "aftermarket","desc": "See: Secondary market."},{ "title": "AG","link": "https://www.alphaflow.com/?glossary=ag","glink": "a.g.","desc": "The two-character ISO 3166 country code for ANTIGUA AND BARBUDAAG."},{ "title": "Against the box","link": "https://www.alphaflow.com/?glossary=against-the-box","glink": "against_the_box","desc": "See: Selling short against the box."},{ "title": "Aged fail","link": "https://www.alphaflow.com/?glossary=aged-fail","glink": "aged_fail","desc": "An account between two broker/dealers that remains intact 30 days after the settlement date. The receiving firm must adjust its capital as it can no longer treat this account as an asset."},{ "title": "Agencies","link": "https://www.alphaflow.com/?glossary=agencies","glink": "agencies","desc": "See: Federal agency securities."},{ "title": "Agency","link": "https://www.alphaflow.com/?glossary=agency","glink": "agency","desc": "In context of general equities, buying or selling for the account and risk of a customer. Generally, an agent, or broker, acts as intermediary between buyer and seller, taking no financial risk personally or as a firm, and charging a commission for the service. The broker represents a customer buyer/seller to a customer seller/buyer and does not act as principal for the firm's own trading account. Antithesis of principal. See: Dealer."},{ "title": "Agency bank","link": "https://www.alphaflow.com/?glossary=agency-bank","glink": "agency_bank","desc": "A form of organization commonly used by foreign banks to enter the US market. An agency bank cannot accept deposits or extend loans in its own name; it acts as agent for the parent bank. It is also the financial_institution that issues ADRs to the general market."},{ "title": "Agency basis","link": "https://www.alphaflow.com/?glossary=agency-basis","glink": "agency_basis","desc": "A means of compensating the broker of a program trade solely on the basis of commission established through bids submitted by various brokerage firms."},{ "title": "Agency cost view","link": "https://www.alphaflow.com/?glossary=agency-cost-view","glink": "agency_cost_view","desc": "The argument that specifies that the various agency costs create a complex environment in which total agency costs are at a minimum with some, but less than 100%, debt financing."},{ "title": "Agency costs","link": "https://www.alphaflow.com/?glossary=agency-costs","glink": "agency_costs","desc": "The incremental costs of having an agent make decisions for a principal."},{ "title": "Agency incentive arrangement","link": "https://www.alphaflow.com/?glossary=agency-incentive-arrangement","glink": "agency_incentive_arrangement","desc": "A means of compensating the broker of a program trade using benchmark prices for issues to be traded in determining commissions or fees."},{ "title": "Agency pass-throughs","link": "https://www.alphaflow.com/?glossary=agency-pass-throughs","glink": "agency_pass_throughs","desc": "Mortgage pass-through securities whose principal and interest payments are guaranteed by government agencies, such as the Government National Mortgage Association (Ginnie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), and Federal National Mortgage Association (Fannie Mae)."},{ "title": "Agency problem","link": "https://www.alphaflow.com/?glossary=agency-problem","glink": "agency_problems","desc": "Conflicts of interest among stockholders, bondholders, and managers."},{ "title": "Agency securities","link": "https://www.alphaflow.com/?glossary=agency-securities","glink": "agency_securities","desc": "Securities issued by federally related institutions and U.S. government-sponsored entities. Such agencies were created to reduce borrowing costs for certain sectors of the economy, such as agriculture."},{ "title": "Agency theory","link": "https://www.alphaflow.com/?glossary=agency-theory","glink": "agency_theory","desc": "The analysis of principal-agent relationships, in which one person, an agent, acts on behalf of another person, a principal."},{ "title": "Agent","link": "https://www.alphaflow.com/?glossary=agent","glink": "agent","desc": "A party appointed to act on behalf of a principal entity or person. In context of project financing, refers to the bank in charge of administering the project financing."},{ "title": "Aggregate exercise price","link": "https://www.alphaflow.com/?glossary=aggregate-exercise-price","glink": "aggregate_exercise_price","desc": "The exercise price multiplied by the number of shares in a put or call contract. The option premium is excluded in the aggregate exercise price. In the case of options traded on debt instruments, the aggregate exercise price is the exercise price of the underlying security multiplied by its face value."},{ "title": "Aggregation","link": "https://www.alphaflow.com/?glossary=aggregation","glink": "aggregation","desc": "Process in corporate financial planning whereby the smaller investment proposals of each of the firm's operational units are aggregated and effectively treated as a whole."},{ "title": "Aggressive Growth Hedge Fund","link": "https://www.alphaflow.com/?glossary=aggressive-growth-hedge-fund","glink": "aggressive_growth_hedge_fund","desc": "In the context of hedge funds, a style of management that focuses primarily on equities that are expected to have strong earnings growth."},{ "title": "Aggressive growth mutual fund","link": "https://www.alphaflow.com/?glossary=aggressive-growth-mutual-fund","glink": "aggressive_growth_mutual_fund","desc": "A mutual fund designed for maximum capital appreciation that places its money in companies with high growth rates."},{ "title": "Aggressively","link": "https://www.alphaflow.com/?glossary=aggressively","glink": "aggressively","desc": "Used in context of general equities. For a customer it means working to buy or sell one's stock, with an emphasis on execution over price. For a trader it means acting in a way that puts the firm's capital at higher risk through paying a higher price, selling cheaper, or making a larger short sale or purchase than the trader would under normal circumstances."},{ "title": "Aging schedule","link": "https://www.alphaflow.com/?glossary=aging-schedule","glink": "aging_schedule","desc": "A table of accounts receivable broken down into age categories (such as 0-30 days, 30-60 days, and 60-90 days), which is used to determine if customer payments are keeping close to schedule."},{ "title": "AGO","link": "https://www.alphaflow.com/?glossary=ago","glink": "a.g.o.","desc": "The three-character ISO 3166 country code for ANGOLA."},{ "title": "Agreement among underwriters","link": "https://www.alphaflow.com/?glossary=agreement-among-underwriters","glink": "agreement_among_underwriters","desc": "A contract among participating members of a syndicate that defines the members' proportionate liability, which is usually limited to and based on the participants' level of involvement. The contract outlines the payment schedule on the settlement date. Compare: Underwriting agreement."},{ "title": "Agreement corporation","link": "https://www.alphaflow.com/?glossary=agreement-corporation","glink": "agreement_corporation","desc": "Corporation chartered by a state to engage in international banking: so named because the corporation enters into an 'agreement' with the Fed's Board of Governors that it will limit its activities to those permitted by an Edge Act Corporation."},{ "title": "Ahead of itself","link": "https://www.alphaflow.com/?glossary=ahead-of-itself","glink": "ahead_of_itself","desc": "In context of general equities, refers to equities that are overbought or oversold on a fundamental basis."},{ "title": "Ahead of you","link": "https://www.alphaflow.com/?glossary=ahead-of-you","glink": "ahead_of_you","desc": "Used for listed equity securities. At the same price but entered ahead of your order/interest, usually referring to the specialist's book. See: Behind, matched orders, priority, stock ahead."},{ "title": "AI","link": "https://www.alphaflow.com/?glossary=ai","glink": "a.i.","desc": "The two-character ISO 3166 country code for ANGUILLAAI."},{ "title": "AIA","link": "https://www.alphaflow.com/?glossary=aia","glink": "a.i.a","desc": "The three-character ISO 3166 country code for ANGUILLAAI."},{ "title": "AIBD","link": "https://www.alphaflow.com/?glossary=aibd","glink": "a.i.b.d.","desc": "Association of International Bond Dealers"},{ "title": "AIMR Performance Presentation Standards Implementation Committee","link": "https://www.alphaflow.com/?glossary=aimr-performance-presentation-standards-implementation-committee","glink": "aimr_performance_presentation_standards_implementation_committee","desc": "The Association for Investment Management and Research (AIMR) Performance Presentation Standards Implementation Committee is charged with the responsibility to interpret, revise, and update the AIMR Performance Presentation Standards (AIMR-PPS(TM) for portfolio performance presentations."},{ "title": "Air Freight Consolidator","link": "https://www.alphaflow.com/?glossary=air-freight-consolidator","glink": "air_freight_consolidator","desc": "An air freight carrier that does not own or operate its own aircraft but ships its cargo with actual equipment operating carriers. Consolidators issue house air waybills to their customers and receive master air waybills from the actual carriers."},{ "title": "Air pocket stock","link": "https://www.alphaflow.com/?glossary=air-pocket-stock","glink": "air_pocket_stock","desc": "A stock whose price drops precipitously, often on the unexpected news of poor results."},{ "title": "AL","link": "https://www.alphaflow.com/?glossary=al","glink": "a.l.","desc": "The two-character ISO 3166 country code for ALBANIA."},{ "title": "ALA","link": "https://www.alphaflow.com/?glossary=ala","glink": "a.l.a.","desc": "The three-character ISO 3166 country code for ALAND ISLANDS."},{ "title": "ALB","link": "https://www.alphaflow.com/?glossary=alb","glink": "a.l.b.","desc": "The three-character ISO 3166 country code for ALBANIA."},{ "title": "ALCO package","link": "https://www.alphaflow.com/?glossary=alco-package","glink": "alco_package","desc": "Reporting package that contains financial information related to the Asset-Liability Committee e.g. yield  curve  assumptions,  net  interest  income  projections,  and  economic  value  of  equity  assessments  made  by  the  firms  as  part  of  their  business  planning  processes."},{ "title": "Algo or Algorithmic Trading","link": "https://www.alphaflow.com/?glossary=algo-or-algorithmic-trading","glink": "algo_trading","desc": "Refers to computerized trading using proprietary algorithms. There are two types algo trading. Algo execution trading is when an order (often a large order) is executed via an algo trade. The algo program is designed to get the best possible price. It may split the order into smaller pieces and execute at different times. The second type of algo trading is not executing a set order but looking for small trading opportunities in the market. It is estimated that 50 percent of stock trading volume in the U.S. is currently being driven by algo trading. Also known as high-frequency trading."},{ "title": "Alien corporation","link": "https://www.alphaflow.com/?glossary=alien-corporation","glink": "alien_corporation","desc": "A company incorporated under the laws of a foreign country regardless of where the company conducts its operations."},{ "title": "ALL","link": "https://www.alphaflow.com/?glossary=all","glink": "all","desc": "The ISO 4217 currency code for Albanian Lek."},{ "title": "All equity rate","link": "https://www.alphaflow.com/?glossary=all-equity-rate","glink": "all_equity_rate","desc": "The discount rate that reflects only the business risks of a project, distinct from the effects of financing."},{ "title": "All in","link": "https://www.alphaflow.com/?glossary=all-in","glink": "all_in","desc": "Refers to an issuer's interest rate after accounting for commissions and various related expenses."},{ "title": "All or none order","link": "https://www.alphaflow.com/?glossary=all-or-none-order","glink": "all_or_none_order","desc": "Used in context of general equities. A limited price order that is to be executed in its entirety or not at all (no partial transaction), and thus is testing the strength/conviction of the counterparty. Unlike an FOK order, an AON order is not to be treated as cancelled if not executed as soon as it is represented in the trading crowd, but instead remains alive until executed or cancelled. The making of 'all or none' bids or offers in stocks is prohibited, and the making of 'all or none' bids or offers in bonds is subject to the restrictions of Rule 61. AON orders are not shown on the specialist's book because they cannot be traded in pieces. Antithesis of any-part-of order. See: FOK order."},{ "title": "All Ordinaries Index","link": "https://www.alphaflow.com/?glossary=all-ordinaries-index","glink": "all_ordinaries_index","desc": "The major stock price index in Australia. The capitalization weighted index is made up of the largest 500 companies as measured by market capitalization that are listed on the Australian Stock Exchange. The index was developed with a base value of 500 as of 1979."},{ "title": "All Risk Insurance","link": "https://www.alphaflow.com/?glossary=all-risk-insurance","glink": "all_risk_insurance","desc": "Marine cargo insurance which covers most perils except strikes, riots, civil unrest, capture, war, seizure, civil war, piracy, loss of market, and inherent vice."},{ "title": "All-in cost","link": "https://www.alphaflow.com/?glossary=all-in-cost","glink": "all_in_cost","desc": "Total costs, explicit and implicit."},{ "title": "All-in-rate","link": "https://www.alphaflow.com/?glossary=all-in-rate","glink": "all_in_rate","desc": "Rate used in charging customers for accepting banker's acceptances, consisting of the discount interest rate plus the commission."},{ "title": "All-or-none underwriting","link": "https://www.alphaflow.com/?glossary=all-or-none-underwriting","glink": "all_or_none_underwriting","desc": "An arrangement whereby a security issue is cancelled if the underwriter is unable to resell the entire issue."},{ "title": "Allied member","link": "https://www.alphaflow.com/?glossary=allied-member","glink": "allied_member","desc": "A partner or stockholder of a firm that is a member of the NYSE, the partner or stockholder is not personally a member of the NYSE."},{ "title": "Alligator spread","link": "https://www.alphaflow.com/?glossary=alligator-spread","glink": "alligator_spread","desc": "The term used to describe a spread in the options market that generates such a large commission that the client is unlikely to make a profit even if the markets move as the investor anticipated."},{ "title": "ALLL","link": "https://www.alphaflow.com/?glossary=alll","glink": "alll","desc": "See Allowance for loan and lease losses."},{ "title": "Allocation-of-income rules","link": "https://www.alphaflow.com/?glossary=allocation-of-income-rules","glink": "allocation_of_income_rules","desc": "US tax provisions that define how income and deductions are to be allocated between domestic source and foreign source income."},{ "title": "Allocational efficiency","link": "https://www.alphaflow.com/?glossary=allocational-efficiency","glink": "allocational_efficiency","desc": "The effectiveness with which a market channels capital toward its most productive uses."},{ "title": "Allotment","link": "https://www.alphaflow.com/?glossary=allotment","glink": "allotment","desc": "The number of securities assigned to each of the participants in an underwriting syndicate."},{ "title": "Allowance for Loan and Lease Losses","link": "https://www.alphaflow.com/?glossary=allowance-for-loan-and-lease-losses","glink": "allowance_for_loan_and_lease_losses","desc": "A contra-account on the balance sheet used for offsetting losses on loan and lease assets."},{ "title": "Alpha","link": "https://www.alphaflow.com/?glossary=alpha","glink": "alpha","desc": "Measure of risk-adjusted performance. Some refer to the alpha as the difference between the investment return and the benchmark return. However, this does not properly adjust for risk. More appropriately, an alpha is generated by regressing the security or mutual fund's excess return on the benchmark (for example S&P 500) excess return. The beta adjusts for the risk (the slope coefficient). The alpha is the intercept. Example: Suppose the mutual fund has a return of 25%, and the short-term interest rate is 5% (excess return is 20%). During the same time the market excess return is 9%. Suppose the beta of the mutual fund is 2.0 (twice as risky as the S&P 500). The expected excess return given the risk is 2 x 9%=18%. The actual excess return is 20%. Hence, the alpha is 2% or 200 basis points. Alpha is also known as the Jensen Index. The alpha depends on the benchmark used. For example, it may be the intercept in a multifactor model that includes risk factors in addition to the S&P 500. Related: Risk-adjusted return."},{ "title": "Alpha equation","link": "https://www.alphaflow.com/?glossary=alpha-equation","glink": "alpha_equation","desc": "Regression usually run over 36-60 months of data: Return-Treasury bill= alpha + beta (S&P 500 - Treasury bill) + error. The alpha is the intercept. Note that the benchmark does not necessarily have to be the S&P 500. A mutual fund specializing in international investment might be benchmarked to a broader world market index, such as the MSCI World Index."},{ "title": "Alphabet stock","link": "https://www.alphaflow.com/?glossary=alphabet-stock","glink": "alphabet_stock","desc": "Categories of common stock of a corporation associated with a particular subsidiary resulting from acquisitions and restructuring. The various alphabetical categories have different voting rights and pay dividends tied to the operating performance of the particular divisions. See also: Tracking stocks."},{ "title": "ALT","link": "https://www.alphaflow.com/?glossary=alt","glink": "alt","desc": "Alternative Trading System. This term is defined under section 301 of the U.S. Securities Act."},{ "title": "Alt-A","link": "https://www.alphaflow.com/?glossary=alt-a","glink": "alt_a","desc": "Short for Alternative-A paper. Alt-A are loans that are considered riskier than prime loans but less risky than subprime loans. Generally made to individuals with a good credit score but some aspect of the loan (e.g. limited documentation or high loan-to-value ratio) makes the loan riskier than prime. Also see A paper, No docs."},{ "title": "Alternative investments","link": "https://www.alphaflow.com/?glossary=alternative-investments","glink": "alternative_investments","desc": "Usually refers to investments in hedge funds. Many hedge funds pursue strategies that are uncommon relative to mutual funds. Examples of alternative investment strategies are: long--short equity, event driven, statistical arbitrage, fixed income arbitrage, convertible arbritage, short bias, global macro, and equity market neutral. May also refer to the high frequency style of commodity trading advisors who often employ technical and quantitative tools for intraday investments"},{ "title": "Alternative Minimum Tax","link": "https://www.alphaflow.com/?glossary=alternative-minimum-tax","glink": "alternative_minimum_tax","desc": "A federal tax aimed at ensuring that wealthy individuals, estates, trusts, and corporations pay a minimal level income tax. For individuals, the AMT is calculated by adding adjusted gross income to tax preference items."},{ "title": "Alternative mortgage instruments","link": "https://www.alphaflow.com/?glossary=alternative-mortgage-instruments","glink": "alternative_mortgage_instruments","desc": "Variations of mortgage instruments such as adjustable-rate and variable-rate mortgages, graduated-payment mortgages, reverse-annuity mortgages, and several seldom-used variations."},{ "title": "Alternative order","link": "https://www.alphaflow.com/?glossary=alternative-order","glink": "alternative_order","desc": "Used in context of general equities. Order giving a broker a choice between two courses of action, either to buy or sell, never both. Execution of one course automatically eliminates the other. An example is a combination buy limit/ buy stop order, where the buy limit is below the current market and the buy stop is above. If the order is for one unit of trading, when one part of the order is executed on the occurrence of one alternative, the order on the other alternative is to be treated as cancelled. If the order is for an amount of more than one unit of trading, the number of units executed determines the amount of the alternative order to be treated as cancelled. Sometimes known as One Cancels the Other. Also see: Either-or order."},{ "title": "AM","link": "https://www.alphaflow.com/?glossary=am","glink": "a.m.","desc": "The two-character ISO 3166 country code for ARMENIA."},{ "title": "AMD","link": "https://www.alphaflow.com/?glossary=amd","glink": "amd","desc": "The ISO 4217 currency code for Armenian Dram."},{ "title": "American Association of Individual Investors","link": "https://www.alphaflow.com/?glossary=american-association-of-individual-investors","glink": "american_association_of_individual_investors","desc": "A not-for-profit organization to educate individual investors about stocks, bonds, mutual funds, and other financial instruments."},{ "title": "American Depositary Receipt","link": "https://www.alphaflow.com/?glossary=american-depositary-receipt","glink": "american_depositary_receipts","desc": "Certificates issued by a US depository bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are 'sponsored,' the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADR. 'Unsponsored' ADRs do not receive such assistance. ADRs are subject to the same currency, political, and economic risks as the underlying foreign share. Arbitrage keeps the prices of ADRs and underlying foreign shares, adjusted for the SDR/ordinary ratio essentially equal. American depository shares (ADS) are a similar form of certification."},{ "title": "American Depositary Receipt Fees","link": "https://www.alphaflow.com/?glossary=american-depositary-receipt-fees","glink": "a.d.r._fees","desc": "Fees associated with the creating or releasing of ADRs from ordinary shares, charged by the commercial banks with correspondent banks in the international sites."},{ "title": "American Depositary Receipt Ratio","link": "https://www.alphaflow.com/?glossary=american-depositary-receipt-ratio","glink": "a.d.r._ratio","desc": "The number of ordinary shares into which an ADR can be converted."},{ "title": "American Depositary Share","link": "https://www.alphaflow.com/?glossary=american-depositary-share","glink": "american_depositary_share","desc": "Foreign stock issued in the US and registered in the ADR system."},{ "title": "American option","link": "https://www.alphaflow.com/?glossary=american-option","glink": "american_option","desc": "An option that may be exercised at any time up to and including the expiration date. Related: European option"},{ "title": "American shares","link": "https://www.alphaflow.com/?glossary=american-shares","glink": "american_shares","desc": "Securities certificates issued in the US by a transfer agent acting on behalf of the foreign issuer. The certificates represent claims to foreign equities."},{ "title": "American Stock Exchange","link": "https://www.alphaflow.com/?glossary=american-stock-exchange","glink": "american_stock_exchange","desc": "Stock exchange with the third highest volume of trading in the US. Located at 86 Trinity Place in downtown Manhattan. The bulk of trading on AMEX consists of index options (computer technology index, institutional index, major market index) and shares of small to medium-sized companies are predominant. Recently merged with Nasdaq See: Curb."},{ "title": "American-style option","link": "https://www.alphaflow.com/?glossary=american-style-option","glink": "american_style_option","desc": "An option contract that can be exercised at any time between the date of purchase and the expiration date. Most exchange-traded equity options are American style."},{ "title": "Amman Financial Market","link": "https://www.alphaflow.com/?glossary=amman-financial-market","glink": "amman_financial_market","desc": "Established in 1976, the AFM is the only stock exchange in Jordan."},{ "title": "Amman Stock Exchange","link": "https://www.alphaflow.com/?glossary=amman-stock-exchange","glink": "amman_stock_exchange","desc": "The only agency authorized as a formal market for trading securities in Jordan."},{ "title": "Amortization","link": "https://www.alphaflow.com/?glossary=amortization","glink": "amortization","desc": "The repayment of a loan by installments."},{ "title": "Amortization factor","link": "https://www.alphaflow.com/?glossary=amortization-factor","glink": "amortization_factor","desc": "The pool factor implied by the scheduled amortization assuming no prepayments."},{ "title": "Amortizing interest rate swap","link": "https://www.alphaflow.com/?glossary=amortizing-interest-rate-swap","glink": "amortizing_interest_rate_swap","desc": "Swap in which the principal or notional amount declines over time."},{ "title": "Amount outstanding and in circulation","link": "https://www.alphaflow.com/?glossary=amount-outstanding-and-in-circulation","glink": "amounts_outstanding_and_in_circulation","desc": "All currency issued by the Bureau of the Mint and intended as a medium of exchange. Coins sold by the Bureau of the Mint at premium prices are not included; uncirculated coin sets sold at face value plus handling charge are included."},{ "title": "Amsterdam Exchange","link": "https://www.alphaflow.com/?glossary=amsterdam-exchange","glink": "amsterdam_exchange","desc": "Exchange that comprises the AEX-Effectenbeurs, the AEX-Optiebeurs (formerly the European Options Exchange or EOE) and the AEX-Agrarische Termijnmarkt. AEX-Data Services is the operating company responsible for the dissemination of data from the Amsterdam Exchange via its integrated Mercury 2000 system."},{ "title": "AMTEL","link": "https://www.alphaflow.com/?glossary=amtel","glink": "amtel","desc": "Used in context of general equities. In-house message system entered and displayed through Quotron A page."},{ "title": "AN","link": "https://www.alphaflow.com/?glossary=an","glink": "A.N.","desc": "The two-character ISO 3166 country code for NETHERLANDS ANTILLES."},{ "title": "Analyst","link": "https://www.alphaflow.com/?glossary=analyst","glink": "analyst","desc": "Employee of a brokerage or fund management house who studies companies and makes buy-and-sell recommendations on stocks of these companies. Most specialize in a specific industry."},{ "title": "AND","link": "https://www.alphaflow.com/?glossary=and","glink": "a.n.d.","desc": "The three-character ISO 3166 country code for ANDORRA."},{ "title": "And interest","link": "https://www.alphaflow.com/?glossary=and-interest","glink": "and_interest","desc": "An indication that the buyer will receive accrued interest in addition to the price quoted for a bond."},{ "title": "Andean Pact","link": "https://www.alphaflow.com/?glossary=andean-pact","glink": "andean_pact","desc": "A regional trade pact that includes Venezuela, Colombia, Ecuador, Peru, and Bolivia."},{ "title": "ANG","link": "https://www.alphaflow.com/?glossary=ang","glink": "ang","desc": "The ISO 4217 currency code for Netherlands Antilles Guilder."},{ "title": "Angel","link": "https://www.alphaflow.com/?glossary=angel","glink": "angel","desc": "An investment-grade bond. Antithesis to fallen angel. In the context of venture capital, the first investor."},{ "title": "Angels","link": "https://www.alphaflow.com/?glossary=angels","glink": "angels","desc": "Individuals providing venture capital."},{ "title": "Ankle biter","link": "https://www.alphaflow.com/?glossary=ankle-biter","glink": "ankle_biter","desc": "Stock issued with a market capitalization of less than $500 million."},{ "title": "Announcement date","link": "https://www.alphaflow.com/?glossary=announcement-date","glink": "announcement_date","desc": "Date on which particular news concerning a given company is announced to the public. Used in event studies, which researchers use to evaluate the economic impact of events of interest."},{ "title": "Annual basis","link": "https://www.alphaflow.com/?glossary=annual-basis","glink": "annual_basis","desc": "The technique in statistics of taking a figure covering a period of less than one year and extrapolating it to cover a full one year period. The process is known as annualizing."},{ "title": "Annual effective yield","link": "https://www.alphaflow.com/?glossary=annual-effective-yield","glink": "annual_effective_yield","desc": "See: Annual percentage yield."},{ "title": "Annual exclusion","link": "https://www.alphaflow.com/?glossary=annual-exclusion","glink": "annual_exclusion","desc": "A tax rule allowing the deduction of certain income from taxation."},{ "title": "Annual fund operating expenses","link": "https://www.alphaflow.com/?glossary=annual-fund-operating-expenses","glink": "annual_fund_operating_expenses","desc": "For investment companies, the management fee and 'other expenses,' including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. For 12b-1 funds, selling and marketing costs are also included."},{ "title": "Annual meeting","link": "https://www.alphaflow.com/?glossary=annual-meeting","glink": "annual_meeting","desc": "Meeting of stockholders held once a year at which the managers of a company report to the stockholders on the year's results."},{ "title": "Annual percentage rate","link": "https://www.alphaflow.com/?glossary=annual-percentage-rate","glink": "annual_percentage_rate","desc": "In the context of credit cards, the periodic rate times the number of periods in a year. For example, a 1.5% monthly rate has an APR of 18%. In the context of consumer lending, the APR takes into account more than the interest rate applied to the principal per period. Under the Truth in Lending Act, it has a specific definition and includes all the costs paid by a non-exempt consumer borrower that are considered a 'finance charge,' including fees paid to third parties by the lender if not properly disclosed and excluded from the finance charge (such as credit insurance)."},{ "title": "Annual percentage yield","link": "https://www.alphaflow.com/?glossary=annual-percentage-yield","glink": "annual_percentage_yield","desc": "The effective, or true annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the effect of compounding. The APY is calculated by taking one plus the periodic rate, raising it to the number of periods in a year and then subtracting one. For example, a 1% per month rate has an APY of 12.68% (1.01^12 -1)."},{ "title": "Annual rate of return","link": "https://www.alphaflow.com/?glossary=annual-rate-of-return","glink": "annual_rate_of_return","desc": "There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, we sometimes multiply this by 12 to express an annual rate of return. This is often called the annual percentage rate (APR). The annual percentage yield (APY) includes the effect of compounding interest."},{ "title": "Annual renewable term insurance","link": "https://www.alphaflow.com/?glossary=annual-renewable-term-insurance","glink": "annual_renewable_term_insurance","desc": "See: Term insurance."},{ "title": "Annual report","link": "https://www.alphaflow.com/?glossary=annual-report","glink": "annual_report","desc": "Yearly record of a publicly held company's financial condition. It includes a description of the firm's operations, as well as balance sheet, income statement, and cash flow statement information. SEC rules require that it be distributed to all shareholders. A more detailed version is called a 10-K."},{ "title": "Annualized gain","link": "https://www.alphaflow.com/?glossary=annualized-gain","glink": "annualized_gain","desc": "If stock X appreciates 1.5% in one month, the annualized gain for that stock over a twelve month period is (12 x 1.5%) = 18%. Compounded over the 12 month period, the gain is (1.015)^12 -1 = 19.6%."},{ "title": "Annualized holding-period return","link": "https://www.alphaflow.com/?glossary=annualized-holding-period-return","glink": "annualized_holding_period_return","desc": "The annual rate of return that when compounded t times generates the same t-period holding return as actually occurred from period 1 to period t."},{ "title": "Annualizing","link": "https://www.alphaflow.com/?glossary=annualizing","glink": "annualizing","desc": "See: Annual basis."},{ "title": "Annuitant","link": "https://www.alphaflow.com/?glossary=annuitant","glink": "annuitant","desc": "An individual who receives benefits from an annuity."},{ "title": "Annuitize","link": "https://www.alphaflow.com/?glossary=annuitize","glink": "annuitize","desc": "To commence a series of payments from the capital that has accumulated in an annuity. The payments may be a fixed amount, for a fixed period of time, or for a lifetime."},{ "title": "Annuity","link": "https://www.alphaflow.com/?glossary=annuity","glink": "annuity","desc": "A regular periodic payment made by an insurance company to a policyholder for a specified period of time."},{ "title": "Annuity certain","link": "https://www.alphaflow.com/?glossary=annuity-certain","glink": "annuity_certain","desc": "An annuity that pays a specific amount on a monthly basis for a set amount of time."},{ "title": "Annuity due","link": "https://www.alphaflow.com/?glossary=annuity-due","glink": "annuity_due","desc": "An annuity with n payments, where the first payment is made at time t = 0, and the last payment is made at time t = n - 1."},{ "title": "Annuity factor","link": "https://www.alphaflow.com/?glossary=annuity-factor","glink": "annuity_factor","desc": "Present value of $1 paid for each of t periods."},{ "title": "Annuity in arrears","link": "https://www.alphaflow.com/?glossary=annuity-in-arrears","glink": "annuity_in_arrears","desc": "An annuity with a first payment one full period hence, rather than immediately."},{ "title": "Annuity starting date","link": "https://www.alphaflow.com/?glossary=annuity-starting-date","glink": "annuity_starting_date","desc": "The date when an annuitant starts receiving payments from an annuity."},{ "title": "ANT","link": "https://www.alphaflow.com/?glossary=ant","glink": "A.N.T.","desc": "The three-character ISO 3166 country code for NETHERLANDS ANTILLES."},{ "title": "Anti-Persistence","link": "https://www.alphaflow.com/?glossary=anti-persistence","glink": "anti_persistence","desc": "In R/S Analysis, an anti-persistent time series reverses itself more often than a random series would. If the system had been up in the previous period, it is more likely that it will be down in the next period and vice versa. Also called pink noise, or 1/f noise. See: Persistence, R/S Analysis, Hurst Exponent, Joseph Effect, Noah Effect."},{ "title": "Anticipated holding period","link": "https://www.alphaflow.com/?glossary=anticipated-holding-period","glink": "anticipating_holding_period","desc": "The period of time an individual expects to hold an asset."},{ "title": "Anticipation","link": "https://www.alphaflow.com/?glossary=anticipation","glink": "anticipation","desc": "Paying what is owed before it is due (usually to save interest charges)."},{ "title": "Antidilutive effect","link": "https://www.alphaflow.com/?glossary=antidilutive-effect","glink": "antidilutive_effect","desc": "Result of a transaction that increases earnings per common share (e.g., by decreasing the number of shares outstanding)."},{ "title": "Antigreenmail","link": "https://www.alphaflow.com/?glossary=antigreenmail","glink": "antigreenmail","desc": "Greenmail refers to the agreement between a large shareholder and a company in which the shareholder agrees to sell his stock back to the company, usually at a premium, in exchange for the promise not to seek control of the company for a specified period of time. Antigreenmail provisions prevent such arrangements unless the same repurchase offer is made to all shareholders or approved by shareholder vote. There are some states that have antigreenmail laws."},{ "title": "Antitrust laws","link": "https://www.alphaflow.com/?glossary=antitrust-laws","glink": "antitrust_laws","desc": "Legislation established by the federal government to prevent the formation of monopolies and to regulate trade."},{ "title": "Any-interest-date","link": "https://www.alphaflow.com/?glossary=any-interest-date","glink": "any_interest_date","desc": "A call provision in a municipal bond indenture that establishes the right of redemption for the issuer on any interest payment due date."},{ "title": "Any-or-all bid","link": "https://www.alphaflow.com/?glossary=any-or-all-bid","glink": "any_or_all_bid","desc": "Often used in risk arbitrage. Takeover bid in which the acquirer offers to pay a set price for all outstanding shares of the target company, or any part thereof; contrasts with two-tier bid."},{ "title": "Any-part-of order","link": "https://www.alphaflow.com/?glossary=any-part-of-order","glink": "any_part_of_order","desc": "In context of general equities, order to buy or sell a quantity of stock in pieces if necessary. Antithesis of an all-or-none order (AON)."},{ "title": "AO","link": "https://www.alphaflow.com/?glossary=ao","glink": "a.o.","desc": "The two-character ISO 3166 country code for ANGOLA."},{ "title": "AOR","link": "https://www.alphaflow.com/?glossary=aor","glink": "aor","desc": "The ISO 4217 currency code for Angolan Reajustado Kwanza."},{ "title": "Applied mathematics","link": "https://www.alphaflow.com/?glossary=applied-mathematics","glink": "applied_mathematics","desc": "The study of the application of mathematical principles to domains outside of mathematics itself.  Although the branches of mathematics within this categorization change with time, applied mathematics typically involves the use of differential equations, numerical analysis, and statistics with areas of knowledge such as engineering, biology, physics, computer science, economics, and finance."},{ "title": "Appraisal ratio","link": "https://www.alphaflow.com/?glossary=appraisal-ratio","glink": "appraisal_ratio","desc": "The signal-to-noise ratio of an analyst's forecasts. The ratio of alpha to residual standard deviation."},{ "title": "Appraisal rights","link": "https://www.alphaflow.com/?glossary=appraisal-rights","glink": "appraisal_rights","desc": "A right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently."},{ "title": "Appreciation","link": "https://www.alphaflow.com/?glossary=appreciation","glink": "appreciation","desc": "Increase in the value of an asset."},{ "title": "Appropriation request","link": "https://www.alphaflow.com/?glossary=appropriation-request","glink": "appropriation_request","desc": "Formal request for funds for capital investment project."},{ "title": "Approved list","link": "https://www.alphaflow.com/?glossary=approved-list","glink": "approved_list","desc": "A list of equities and other investments that a financial institution or mutual fund is allowed to invest in. See: Legal list."},{ "title": "APS","link": "https://www.alphaflow.com/?glossary=aps","glink": "aps","desc": "Auction Preferred Stock. A type of Dutch Auction Preferred Stock (Goldman Sachs product)."},{ "title": "AQ","link": "https://www.alphaflow.com/?glossary=aq","glink": "a.q.","desc": "The two-character ISO 3166 country code for ANTARCTICA."},{ "title": "AR","link": "https://www.alphaflow.com/?glossary=ar","glink": "a.r.","desc": "The two-character ISO 3166 country code for ARGENTINA."},{ "title": "Arbitrage","link": "https://www.alphaflow.com/?glossary=arbitrage","glink": "arbitrage","desc": "The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist, but, arbitrage opportunities are often precluded because of transactions costs."},{ "title": "Arbitrage bonds","link": "https://www.alphaflow.com/?glossary=arbitrage-bonds","glink": "arbitrage_bonds","desc": "Municipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date. Lower-rate refunding issue proceeds are invested in Treasuries until the first call date of the higher-rate issue."},{ "title": "Arbitrage Pricing Theory","link": "https://www.alphaflow.com/?glossary=arbitrage-pricing-theory","glink": "arbitrage_pricing_theory","desc": "An alternative model to the capital asset pricing model developed by Stephen Ross and based purely on arbitrage arguments. The APT implies that there are multiple risk factors that need to be taken into account when calculating risk-adjusted performance or alpha."},{ "title": "Arbitrage Trading Program","link": "https://www.alphaflow.com/?glossary=arbitrage-trading-program","glink": "atp","desc": "See: Program trading."},{ "title": "Arbitrage-free option-pricing models","link": "https://www.alphaflow.com/?glossary=arbitrage-free-option-pricing-models","glink": "arbitrage_free_option_pricing_models","desc": "Yield curve option-pricing models."},{ "title": "Arbitrageur","link": "https://www.alphaflow.com/?glossary=arbitrageur","glink": "arbitrageur","desc": "One who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The arbitrageur profits by simultaneously purchasing and selling these securities to take advantage of pricing differentials (spreads) created by market conditions. See: Risk arbitrage, convertible arbitrage, index arbitrage, and international arbitrage."},{ "title": "Arbs","link": "https://www.alphaflow.com/?glossary=arbs","glink": "arbs","desc": "Short for Arbitrageurs.."},{ "title": "ARE","link": "https://www.alphaflow.com/?glossary=are","glink": "A.R.E.","desc": "The three-character ISO 3166 country code for UNITED ARAB EMIRATES."},{ "title": "Are you open?","link": "https://www.alphaflow.com/?glossary=are-you-open","glink": "are_you_open?","desc": "Used in context of general equities. 'Can a new customer still participate on opposing side of the trade from that which the first customer initiated?', Inquiring as to whether any portion of that trade is still available See: Open."},{ "title": "ARG","link": "https://www.alphaflow.com/?glossary=arg","glink": "a.r.g.","desc": "The three-character ISO 3166 country code for ARGENTINA."},{ "title": "Arithmetic average (mean) rate of return","link": "https://www.alphaflow.com/?glossary=arithmetic-average-mean-rate-of-return","glink": "arithmetic_average_rate_of_return","desc": "Arithmetic mean return."},{ "title": "Arithmetic mean return","link": "https://www.alphaflow.com/?glossary=arithmetic-mean-return","glink": "arithmetic_mean_return","desc": "An average of the subperiod returns, calculated by summing the subperiod returns and dividing by the number of subperiods."},{ "title": "Arizona Stock Exchange","link": "https://www.alphaflow.com/?glossary=arizona-stock-exchange","glink": "arizona_stock_exchange","desc": "A single price auction exchange for equity trading that allows anonymous buyers and sellers to trade at low transaction costs."},{ "title": "Arm’s length price","link": "https://www.alphaflow.com/?glossary=arms-length-price","glink": "arms_length_price","desc": "The price at which a willing buyer and a willing unrelated seller would freely agree to transact or a trade between related parties that is conducted as if they were unrelated, so that there is no conflict of interest in the transaction."},{ "title": "Arms index","link": "https://www.alphaflow.com/?glossary=arms-index","glink": "arms_index","desc": "Also known as a TRading INdex (TRIN). The index is usually calculated as the number of advancing issues divided by the number of declining issues. This, in turn, is divided by the advancing volume divided by the declining volume. If there is considerably more advancing volume relative to declining volume this will tend to reduce the index (i.e. increase the denominator). Hence, a value less than 1.0 is bullish while values greater than 1.0 indicate bearish demand. The index often is smoothed with a simple moving average."},{ "title": "Around us","link": "https://www.alphaflow.com/?glossary=around-us","glink": "around_us","desc": "Used in context of general equities. See: Away from you."},{ "title": "Arranger","link": "https://www.alphaflow.com/?glossary=arranger","glink": "arranger","desc": "The senior tier of a syndication. This implies the entity that agreed and negotiated the project financing structure. Also refers to the bank or underwriter entitled to syndicate the loan or bond issue. Also known as the lead underwriter."},{ "title": "Arrearage","link": "https://www.alphaflow.com/?glossary=arrearage","glink": "arrearage","desc": "In the context of investments, refers to the amount by which interest on bonds or dividends on cumulative preferred stock is due and unpaid."},{ "title": "Articles of incorporation","link": "https://www.alphaflow.com/?glossary=articles-of-incorporation","glink": "articles_of_incorporation","desc": "Legal document establishing a corporation and its structure and purpose."},{ "title": "Artificial currency","link": "https://www.alphaflow.com/?glossary=artificial-currency","glink": "artificial_currency","desc": "A currency substitute, e.g., special drawing rights (SDRs)."},{ "title": "Artificial Intelligence","link": "https://www.alphaflow.com/?glossary=artificial-intelligence","glink": "artifical_intelligence","desc": "The creation of models that mimic thought processes. See: Neural Networks, Fuzzy Logic, and Genetic Algorithms."},{ "title": "AS","link": "https://www.alphaflow.com/?glossary=as","glink": "a.s.","desc": "The two-character ISO 3166 country code for AMERICAN SAMOA."},{ "title": "Ascending tops","link": "https://www.alphaflow.com/?glossary=ascending-tops","glink": "ascending_tops","desc": "A chart pattern that depicts that each peak in a security's price over a period of time is higher than the preceding peak. Antithesis of descending tops."},{ "title": "Asia-Pacific Economic Cooperation Pact","link": "https://www.alphaflow.com/?glossary=asia-pacific-economic-cooperation-pact","glink": "asia_pacific_economic_cooperation_pact","desc": "A loose economic affiliation of Southeast Asian and Far Eastern nations. The most prominent members are China, Japan, and Korea."},{ "title": "Asian Currency Units","link": "https://www.alphaflow.com/?glossary=asian-currency-units","glink": "asian_currency_units","desc": "Dollar deposits held in Singapore or other Asian centers."},{ "title": "Asian Development Bank","link": "https://www.alphaflow.com/?glossary=asian-development-bank","glink": "asian_development_bank","desc": "A financial_institution established in 1966 to reduce poverty in the Asia-Pacific region. The bank is headquartered in Manila, Philippines and consists of 61 member countries."},{ "title": "Asian dollar market","link": "https://www.alphaflow.com/?glossary=asian-dollar-market","glink": "asian_dollar_market","desc": "Asian banks that collect deposits and make loans denominated in US dollars."},{ "title": "Asian option","link": "https://www.alphaflow.com/?glossary=asian-option","glink": "asian_option","desc": "Option based on the average price of the underlying assets during the life of the option."},{ "title": "Ask","link": "https://www.alphaflow.com/?glossary=ask","glink": "ask","desc": "This is the quoted ask, or the lowest price an investor will accept to sell a stock. Practically speaking, this is the quoted offer at which an investor can buy shares of stock; also called the offer price."},{ "title": "Asked price","link": "https://www.alphaflow.com/?glossary=asked-price","glink": "asked_price","desc": "In context of general equities, price at which a security or commodity is offered for sale on an exchange or in the OTC Market."},{ "title": "Asked to bid/offer","link": "https://www.alphaflow.com/?glossary=asked-to-bidoffer","glink": "asked_to_bid_offer","desc": "Used in context of general equities. Usually a seller (buyer) looking to aggressively sell (buy) stock, usually asking for a capital commitment from an investment bank."},{ "title": "ASM","link": "https://www.alphaflow.com/?glossary=asm","glink": "a.s.m.","desc": "The three-character ISO 3166 country code for AMERICAN SAMOA."},{ "title": "Aspirin","link": "https://www.alphaflow.com/?glossary=aspirin","glink": "aspirin","desc": "Australian Stock Price Riskless Indexed Notes. Zero-coupon four-year bonds repayable at face value plus the percentage increase by which the Australian stock index of all ordinaries (common stocks) rises above a predefined level during the given period."},{ "title": "Assay","link": "https://www.alphaflow.com/?glossary=assay","glink": "assay","desc": "Metal purity test to confirm that the metal meets the standards for trading on a commodities exchange (commodities exchange center)."},{ "title": "Assessed valuation","link": "https://www.alphaflow.com/?glossary=assessed-valuation","glink": "assessed_valuation","desc": "The value assigned to property by a municipality for the purpose of tax assessment. Such an assessed valuation is important to investors in municipal bonds that are backed by property taxes."},{ "title": "Asset","link": "https://www.alphaflow.com/?glossary=asset","glink": "asset","desc": "Any possession that has value in an exchange."},{ "title": "Asset activity ratios","link": "https://www.alphaflow.com/?glossary=asset-activity-ratios","glink": "asset_acitivty_ratios","desc": "Ratios that measure how effectively the firm is managing its assets."},{ "title": "Asset allocation decision","link": "https://www.alphaflow.com/?glossary=asset-allocation-decision","glink": "asset_allocation_decision","desc": "The decision regarding how an institution's funds should be distributed among the major classes of assets in which it may invest."},{ "title": "Asset allocation mutual fund","link": "https://www.alphaflow.com/?glossary=asset-allocation-mutual-fund","glink": "asset_allocation_mutual_fund","desc": "A mutual fund that rotates among stocks, bonds, and money market securities to maximize return on investment and minimize risk."},{ "title": "Asset Backed Commercial Paper","link": "https://www.alphaflow.com/?glossary=asset-backed-commercial-paper","glink": "asset_backed_commercial_paper","desc": "Short term debt secured by assets."},{ "title": "Asset Class","link": "https://www.alphaflow.com/?glossary=asset-class","glink": "","desc": "A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. The three main asset classes are equities (stocks), fixed-income (bonds) and cash equivalents (money market instruments), in addition to real estate. "},{ "title": "Asset classes","link": "https://www.alphaflow.com/?glossary=asset-classes","glink": "asset_classes","desc": "Categories of assets, such as stocks, bonds, real estate, and foreign securities."},{ "title": "Asset Depreciation Range System","link": "https://www.alphaflow.com/?glossary=asset-depreciation-range-system","glink": "asset_depreciation_ranfe_system","desc": "A range of depreciable lives the IRS allows for particular classes of assets."},{ "title": "Asset for asset swap","link": "https://www.alphaflow.com/?glossary=asset-for-asset-swap","glink": "asset_for_asset_swap","desc": "Creditors exchange the debt of one defaulting borrower for the debt of another defaulting borrower."},{ "title": "Asset impairment","link": "https://www.alphaflow.com/?glossary=asset-impairment","glink": "asset_impairment","desc": "See Impairment."},{ "title": "Asset management account","link": "https://www.alphaflow.com/?glossary=asset-management-account","glink": "asset_management_account","desc": "Account at a brokerage house, bank, or savings institution that integrates banking services and brokerage features."},{ "title": "Asset play","link": "https://www.alphaflow.com/?glossary=asset-play","glink": "asset_play","desc": "A company with assets that are not believed to be accurately reflected in its stock price, making it an attractive buy or play."},{ "title": "Asset pricing model","link": "https://www.alphaflow.com/?glossary=asset-pricing-model","glink": "asset_pricing_model","desc": "A model for determining the required or expected rate of return on an asset. Related: Capital asset pricing model and arbitrage pricing theory."},{ "title": "Asset stripper","link": "https://www.alphaflow.com/?glossary=asset-stripper","glink": "asset_stripper","desc": "A corporate raider (company A) that takes over a target company (company B) in order to sell large assets of company B to repay debt. Company A calculates that the net, selling off the assets and paying off the debt, will leave the raider with assets that are worth more than what it paid for company B."},{ "title": "Asset substitution","link": "https://www.alphaflow.com/?glossary=asset-substitution","glink": "asset_substitution","desc": "Occurs when a firm invests in assets that are riskier than those that the debtholders expected."},{ "title": "Asset substitution problem","link": "https://www.alphaflow.com/?glossary=asset-substitution-problem","glink": "asset_substitution_problem","desc": "Arises when the stockholders substitute riskier assets for the firm's existing assets and expropriate value from the debtholders."},{ "title": "Asset swap","link": "https://www.alphaflow.com/?glossary=asset-swap","glink": "asset_swap","desc": "An interest rate swap used to alter the cash flow characteristics of an institution's assets in order to provide a better match with its liabilities."},{ "title": "Asset turnover","link": "https://www.alphaflow.com/?glossary=asset-turnover","glink": "asset_turnover","desc": "The ratio of net sales to total assets."},{ "title": "Asset value","link": "https://www.alphaflow.com/?glossary=asset-value","glink": "asset_value","desc": "The net market value of a corporation's assets on a per-share basis, not the market value of the shares. A company is undervalued in the market when asset value exceeds market value."},{ "title": "Asset-backed security","link": "https://www.alphaflow.com/?glossary=asset-backed-security","glink": "asset_backed_security","desc": "A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate."},{ "title": "Asset-based financing","link": "https://www.alphaflow.com/?glossary=asset-based-financing","glink": "asset_based_financing","desc": "Methods of financing in which lenders and equity investors look principally to the cash flow from a particular asset or set of assets for a return on, and the return of, their financing."},{ "title": "Asset-coverage test","link": "https://www.alphaflow.com/?glossary=asset-coverage-test","glink": "asset_coverage_test","desc": "A bond indenture restriction that permits additional borrowing if the ratio of assets to debt does not fall below a specified minimum."},{ "title": "Asset/equity ratio","link": "https://www.alphaflow.com/?glossary=assetequity-ratio","glink": "asset_equity_ratio","desc": "The ratio of total assets to stockholder equity."},{ "title": "Asset/Liability Committee","link": "https://www.alphaflow.com/?glossary=assetliability-committee","glink": "asset_liability_committee","desc": "A risk management committee in a bank that evaluates the risk associated with the bank's assets and liabilities. It manages interest rate risk while ensuring adequate returns and liquidity."},{ "title": "Asset/liability management","link": "https://www.alphaflow.com/?glossary=assetliability-management","glink": "asset_liability_management","desc": "The task of managing the funds of a financial institution to accomplish two goals: (1) to earn an adequate return on funds invested and (2) to maintain a comfortable surplus of assets beyond liabilities. Also called surplus management."},{ "title": "Assets","link": "https://www.alphaflow.com/?glossary=assets","glink": "assets","desc": "A firm's productive resources."},{ "title": "Assets requirements","link": "https://www.alphaflow.com/?glossary=assets-requirements","glink": "assets_requirements","desc": "A common element of a financial plan that describes projected capital spending and the proposed uses of net working capital."},{ "title": "Assets under management","link": "https://www.alphaflow.com/?glossary=assets-under-management","glink": "assets_under_management","desc": "The market value of assets that an investment company manages on behalf of investors. For investment managers, assets under management is viewed as a measure of success."},{ "title": "Assets-in-place","link": "https://www.alphaflow.com/?glossary=assets-in-place","glink": "assets_in_place","desc": "Property in which a firm has already invested."},{ "title": "Assignment","link": "https://www.alphaflow.com/?glossary=assignment","glink": "assignment","desc": "The receipt of an exercise notice by an options writer that requires the writer to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price."},{ "title": "Assignment of proceeds","link": "https://www.alphaflow.com/?glossary=assignment-of-proceeds","glink": "assignment_of_proceeds","desc": "Arrangement that allows the original beneficiary of a letter of credit to pledge or turn over proceeds to another, typically end supplier."},{ "title": "Assimilation","link": "https://www.alphaflow.com/?glossary=assimilation","glink": "assimilation","desc": "The public absorption of a new issue of stocks once the stock has been completely sold by underwriter. See: Absorbed."},{ "title": "Association of Southeast Asian Nations","link": "https://www.alphaflow.com/?glossary=association-of-southeast-asian-nations","glink": "association_of_southeast_asian_nations","desc": "A loose economic and geopolitical affiliation that includes Singapore, Brunei, Malaysia, Thailand, the Philippines, Indonesia, and Vietnam. Future members are likely to include Burma, Laos, and Cambodia."},{ "title": "Assumed debt","link": "https://www.alphaflow.com/?glossary=assumed-debt","glink": "assumed_debt","desc": "A debt obligation of an acquired company that becomes an obligation of the acquirer."},{ "title": "Assumed interest rate","link": "https://www.alphaflow.com/?glossary=assumed-interest-rate","glink": "assumed_interest_rate","desc": "Rate of interest used by an insurance company to calculate the payout on an annuity contract."},{ "title": "Assumption","link": "https://www.alphaflow.com/?glossary=assumption","glink": "assumption","desc": "Becoming responsible for the liabilities of another party."},{ "title": "ASX Derivatives and Options Market","link": "https://www.alphaflow.com/?glossary=asx-derivatives-and-options-market","glink": "asxd","desc": "Options market trading options on more than 50 of Australia's and New Zealand's leading companies."},{ "title": "Asymmetric information","link": "https://www.alphaflow.com/?glossary=asymmetric-information","glink": "asymmetric_information","desc": "Information that is known to some people but not to other people."},{ "title": "Asymmetric taxes","link": "https://www.alphaflow.com/?glossary=asymmetric-taxes","glink": "asymmetric_taxes","desc": "When participants in a transaction have different net tax rates."},{ "title": "Asymmetric volatility","link": "https://www.alphaflow.com/?glossary=asymmetric-volatility","glink": "asymmetric_volatility","desc": "Phenomenon that volatility is higher in down markets than in up markets."},{ "title": "Asymmetry","link": "https://www.alphaflow.com/?glossary=asymmetry","glink": "asymmetry","desc": "A lack of equivalence between two things, such as the unequal tax treatment of interest expense and dividend payments."},{ "title": "AT","link": "https://www.alphaflow.com/?glossary=at","glink": "a.t.","desc": "The two-character ISO 3166 country code for AUSTRIA."},{ "title": "At par","link": "https://www.alphaflow.com/?glossary=at-par","glink": "at_par","desc": "A price equal to nominal or face value of a security. See: Par."},{ "title": "At risk","link": "https://www.alphaflow.com/?glossary=at-risk","glink": "at_risk","desc": "The exposure to the danger of economic loss. Frequently used in the context of claiming tax deductions. For example, a person can claim a tax deduction in a limited partnership if the taxpayer can show it is at risk of never realizing a profit and of losing its initial investment. See: Value at risk."},{ "title": "At the bell","link": "https://www.alphaflow.com/?glossary=at-the-bell","glink": "at_the_bell","desc": "In context of general equities, at the opening or close of the market. See: MOC Order."},{ "title": "At the close order","link": "https://www.alphaflow.com/?glossary=at-the-close-order","glink": "at_the_close_order","desc": "In the context of securities, an all or none market order that is to be executed at the closing price of the security on the exchange. If the execution cannot be made under this condition, the order is to be treated as cancelled.

In the context of futures and options, refers to a contract that is to be executed on some exchanges during the closing period, a period in which there is a range of prices.

"},{ "title": "At the figure","link": "https://www.alphaflow.com/?glossary=at-the-figure","glink": "at_the_figure","desc": "In context of general equities, at the whole integer price (excluding the fraction) closest to the side of the market (bid/ask) being discussed. At the full."},{ "title": "At the full","link": "https://www.alphaflow.com/?glossary=at-the-full","glink": "at_the_full","desc": "Used in context of general equities. At the figure."},{ "title": "At the market","link": "https://www.alphaflow.com/?glossary=at-the-market","glink": "at_the_market","desc": "See: Market order."},{ "title": "At the opening order","link": "https://www.alphaflow.com/?glossary=at-the-opening-order","glink": "at_the_opening_order","desc": "In context of general equities, market order or limited price order that is to be executed at the opening (and corresponding price) of the stock or not at all, and any such order or portion thereof not so executed is to be treated as cancelled."},{ "title": "At-the-money","link": "https://www.alphaflow.com/?glossary=at-the-money","glink": "at_the_money","desc": "An option is at the money if the strike price of the option is equal to the market price of the underlying security. For example, if xyz stock is trading at 54, then the xyz 54 option is at the money."},{ "title": "At/for","link": "https://www.alphaflow.com/?glossary=atfor","glink": "at_for","desc": "Used in context of general equities. Paramount terms used to differentiate an offering. Stock is offered at; stock is bid for. In an offering, the trading syntax followed is 'Quantity-at-Price'; in a bid, the syntax followed is 'Price-for-Quantity.'"},{ "title": "ATA","link": "https://www.alphaflow.com/?glossary=ata","glink": "a.t.a.","desc": "The three-character ISO 3166 country code for ANTARCTICA."},{ "title": "ATF","link": "https://www.alphaflow.com/?glossary=atf","glink": "A.T.F.","desc": "The three-character ISO 3166 country code for FRENCH SOUTHERN TERRITORIES."},{ "title": "ATG","link": "https://www.alphaflow.com/?glossary=atg","glink": "a.t.g.","desc": "The three-character ISO 3166 country code for ANTIGUA AND BARBUDAAG."},{ "title": "Athens Stock Exchange","link": "https://www.alphaflow.com/?glossary=athens-stock-exchange","glink": "ase","desc": "Greece's principal stock exchange."},{ "title": "ATS","link": "https://www.alphaflow.com/?glossary=ats","glink": "ats","desc": "The ISO 4217 currency code for Austrian Schilling."},{ "title": "Attractor","link": "https://www.alphaflow.com/?glossary=attractor","glink": "attractor","desc": "In non-linear dynamic series, an attractor defines the equilibrium level of the system. See: Point Attractor, Limit Cycle, and Strange Attractor."},{ "title": "Attribute bias","link": "https://www.alphaflow.com/?glossary=attribute-bias","glink": "attribute_bias","desc": "The tendency of stocks preferred by the dividend discount model to share certain equity attributes such as low price-earnings ratios, high dividend yield, high book value ratio, or membership in a particular industry sector."},{ "title": "AU","link": "https://www.alphaflow.com/?glossary=au","glink": "a.u.","desc": "The two-character ISO 3166 country code for AUSTRALIA."},{ "title": "Auction Market Preferred Stock","link": "https://www.alphaflow.com/?glossary=auction-market-preferred-stock","glink": "amps","desc": "A type of Dutch Auction Preferred Stock (A Merrill Lynch product)."},{ "title": "Auction markets","link": "https://www.alphaflow.com/?glossary=auction-markets","glink": "auction_markets","desc": "Markets in which the prevailing price is determined through the free interaction of prospective buyers and sellers, as on the floor of the stock exchange."},{ "title": "Auction rate preferred stock","link": "https://www.alphaflow.com/?glossary=auction-rate-preferred-stock","glink": "auction_rate_preferred_stock","desc": "Floating rate preferred stock, whose dividend is adjusted every seven weeks through a Dutch auction."},{ "title": "Auction Rate Securities","link": "https://www.alphaflow.com/?glossary=auction-rate-securities","glink": "auction_rate_securities","desc": "Long term bonds whose interest rate may be reset at regular short-term intervals by an auction process"},{ "title": "AUD","link": "https://www.alphaflow.com/?glossary=aud","glink": "aud","desc": "The ISO 4217 currency code for Australian Dollar currency."},{ "title": "Audit","link": "https://www.alphaflow.com/?glossary=audit","glink": "audit","desc": "An examination of a company's accounting records and books conducted by an outside professional in order to determine whether the company is maintaining records according to generally accepted accounting principles. See: accountant's opinion."},{ "title": "Audit trail","link": "https://www.alphaflow.com/?glossary=audit-trail","glink": "audit_trail","desc": "Resolves the validity of an accounting entry by a step-by-step record by which accounting data can be traced to their source."},{ "title": "Auditor’s certificate","link": "https://www.alphaflow.com/?glossary=auditors-certificate","glink": "auditors_certificate","desc": "See: Accountant's opinion."},{ "title": "Auditor’s report","link": "https://www.alphaflow.com/?glossary=auditors-report","glink": "auditors_report","desc": "A section of an annual report that includes the auditor's opinion about the veracity of the financial statements."},{ "title": "AUM","link": "https://www.alphaflow.com/?glossary=aum","glink": "aum","desc": "See: Assets under management"},{ "title": "Aunt Millie","link": "https://www.alphaflow.com/?glossary=aunt-millie","glink": "aunt_millie","desc": "An unsophisticated investor."},{ "title": "AUS","link": "https://www.alphaflow.com/?glossary=aus","glink": "a.u.s.","desc": "The three-character ISO 3166 country code for AUSTRALIA."},{ "title": "Australian Stock Exchange","link": "https://www.alphaflow.com/?glossary=australian-stock-exchange","glink": "australian_stock_exchange","desc": "Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987."},{ "title": "AUT","link": "https://www.alphaflow.com/?glossary=aut","glink": "a.u.t.","desc": "The three-character ISO 3166 country code for AUSTRIA."},{ "title": "Autarky","link": "https://www.alphaflow.com/?glossary=autarky","glink": "autarky","desc": "Absence of a cross-border trade in models of international trade."},{ "title": "Autex","link": "https://www.alphaflow.com/?glossary=autex","glink": "autex","desc": "Video communication network through which brokerage houses alert institutional investors of their desire to transact block business (a purchase or sale) in a given security. Indications transmit small, medium, and large sizes only, with occasional limits mentioned. Supers are messages with specific size and price included. Both 'indications' and 'supers' can be only seen by customers (institutional subscribers to Autex). Trade recaps, advertised block trades entered by the dealer/subscribers, are also displayed, but can be seen by both institutions and dealers. See: Expunge, size."},{ "title": "Authentication","link": "https://www.alphaflow.com/?glossary=authentication","glink": "authenticaion","desc": "In the context of bonds, refers to the validation of a bond certificate."},{ "title": "Authority bond","link": "https://www.alphaflow.com/?glossary=authority-bond","glink": "authority_bond","desc": "A bond issued by a government agency or a corporation created to manage a revenue-producing public enterprise. The difference between an authority bond and a municipal bond is that margin protections may be incorporated in the authority bond contract as well as in the legislation that enables the authority."},{ "title": "Authorized shares","link": "https://www.alphaflow.com/?glossary=authorized-shares","glink": "authorized_shares","desc": "Number of shares authorized for issuance by a firm's corporate charter."},{ "title": "Auto-Regressive (AR) Process","link": "https://www.alphaflow.com/?glossary=auto-regressive-ar-process","glink": "auto_regressive_process","desc": "A stationary stochastic process where the current value of the time series is related to the past p values, where p is any integer, is called an AR(p) process. When the current value is related to the previous two values, it is an AR(2) process. An AR(1) process has an infinite memory."},{ "title": "Autocorrelation","link": "https://www.alphaflow.com/?glossary=autocorrelation","glink": "autocorrelation","desc": "The correlation of a variable with itself over successive time intervals. Sometimes called serial correlation."},{ "title": "Automated bond system","link": "https://www.alphaflow.com/?glossary=automated-bond-system","glink": "automated_bond_system","desc": "The computerized system that records bids and offers for inactively traded bonds until they are cancelled or executed on the NYSE."},{ "title": "Automated Clearing House","link": "https://www.alphaflow.com/?glossary=automated-clearing-house","glink": "automated_clearing_house","desc": "A collection of 32 regional electronic interbank networks used to process transactions electronically with a guaranteed one-day bank collection float."},{ "title": "Automated Customer Account Transfer","link": "https://www.alphaflow.com/?glossary=automated-customer-account-transfer","glink": "automated_customer_account_transfer","desc": "For transfers of securities from a non-equity trading account to your equity trading account with your broker."},{ "title": "Automated Export System","link": "https://www.alphaflow.com/?glossary=automated-export-system","glink": "automated_export_system","desc": "Electronic filing of Shippers Export Declaration (SEDs) with US Customs prior to departure."},{ "title": "Automated Order System","link": "https://www.alphaflow.com/?glossary=automated-order-system","glink": "automated_order_system","desc": "Investment bank computerized order entry system that sends single order entries to DOT (Odd-Lot) or to investment banks floor brokers on the exchange. See: Round lot, GTC orders."},{ "title": "Automated Pit Trading","link": "https://www.alphaflow.com/?glossary=automated-pit-trading","glink": "automated_pit_trading","desc": "Introduced in 1989, APT is the LIFFE screen-based trading system that replicates the open outcry method of trading on screen. APT is used to extend the trading day for the major futures contracts as well as to provide a daytime trading environment for non-floor trading products."},{ "title": "Automated teller machine","link": "https://www.alphaflow.com/?glossary=automated-teller-machine","glink": "automated_teller_machine_(atm)","desc": "Computer-controlled terminal located on the premises of financial institutions or elsewhere, though which customers may make deposits, withdrawals or other transactions as they would through a bank teller. Other terms sometimes used to describe such terminals are customer-bank communications terminal (CBCT) and remote service unit (RSU). Groups of banks sometimes share ATMs. Sometimes called Automated Banking Machines."},{ "title": "Automatic Data Processing (ADP), Inc.","link": "https://www.alphaflow.com/?glossary=automatic-data-processing-adp-inc","glink": "automatic_data_processing","desc": "A company that acts as an intermediary to perform proxy services for several banks and brokers. Distributes proxy material to beneficial owners, tabulates the returned proxies, and provides the Corporation or its tabulator compiled reports of the tabulation results. ADP also distributes quarterly reports and other corporate information to the beneficial owners. ADP also provides timely information on U.S. payrolls. The ADP employment release usual precedes the U.S. Non-Farm Payrolls release by two days."},{ "title": "Automatic exercise","link": "https://www.alphaflow.com/?glossary=automatic-exercise","glink": "automatic_exercise","desc": "A protection procedure whereby the Options Clearing Corporation attempts to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder."},{ "title": "Automatic extension","link": "https://www.alphaflow.com/?glossary=automatic-extension","glink": "automatic_extension","desc": "An automatic extension of time granted to a taxpayer to file a tax return."},{ "title": "Automatic funds transfer","link": "https://www.alphaflow.com/?glossary=automatic-funds-transfer","glink": "automatic_funds_transfer","desc": "A transfer of funds from one account or investment vehicle to another using electronic or telecommunications technology."},{ "title": "Automatic investment program","link": "https://www.alphaflow.com/?glossary=automatic-investment-program","glink": "automatic_investment_program","desc": "A program in which an investor can invest or withdraw funds automatically. A mutual fund, for example, automatically withdraws a pre determined specified amount from the investor's bank account on a regular basis."},{ "title": "Automatic reinvestment","link": "https://www.alphaflow.com/?glossary=automatic-reinvestment","glink": "automatic_reinvestment","desc": "See: Constant dollar plan."},{ "title": "Automatic stay","link": "https://www.alphaflow.com/?glossary=automatic-stay","glink": "automatic_stay","desc": "The restricting of liability holders from collection efforts related to collateral seizure. Automatically imposed when a firm files for bankruptcy under Chapter 11."},{ "title": "Automatic transfer service (ATS) account","link": "https://www.alphaflow.com/?glossary=automatic-transfer-service-ats-account","glink": "automatic_transfer_service_(ats)_account","desc": "A depositor's saving account from which funds may be transferred automatically to the same depositor's checking account to cover a check written or to maintain a minimum balance."},{ "title": "Automatic withdrawal","link": "https://www.alphaflow.com/?glossary=automatic-withdrawal","glink": "automatic_withdrawal","desc": "A mutual fund that gives shareholders the right to receive a fixed payment from dividends on a quarterly or monthly basis."},{ "title": "Autoquote","link": "https://www.alphaflow.com/?glossary=autoquote","glink": "autoquote","desc": "Autoquote indicative prices are generated for many of the financial options contracts traded at LIFFE using standard mathematical models as derived by Black and Scholes and Cox, Ross, Rubinstein. Autoquote calculates prices for all series by processing variables captured in real-time from other systems and trading members each time the underlying price changes. Autoquotes indicate where a series may trade, given the current level of the underlying instrument."},{ "title": "Autoregressive","link": "https://www.alphaflow.com/?glossary=autoregressive","glink": "autoregressive","desc": "Using past data or variable of interest to predict future values of the same variable."},{ "title": "Autoregressive Conditional Heteroskedasticity","link": "https://www.alphaflow.com/?glossary=autoregressive-conditional-heteroskedasticity","glink": "auto_regressive_conditional_heteroscedasticity","desc": "A nonlinear stochastic process, where the variance is time-varying, and a function of the past variance. ARCH processes have frequency distributions which have high peaks at the mean and fat-tails, much like fractal distributions. The ARCH model was invented by Robert Engle. The Generalized ARCH (GARCH) model is the most widely used and was pioneered by Tim Bollerslev. See: Fractal Distributions."},{ "title": "Autorité des Marchés Financiers","link": "https://www.alphaflow.com/?glossary=autorite-des-marches-financiers","glink": "autorite_des_marches_financiers","desc": "France's supervisory authority for the French financial markets. French financial regulator."},{ "title": "Autoriteit Financià«le Markten","link": "https://www.alphaflow.com/?glossary=autoriteit-financiele-markten","glink": "autoriteit_financiele_markten","desc": "Dutch supervisory authority for the Dutch financial markets. The Netherland's financial regulator."},{ "title": "Availability","link": "https://www.alphaflow.com/?glossary=availability","glink": "availibility","desc": "The period in which the project financing is available for drawdown."},{ "title": "Availability float","link": "https://www.alphaflow.com/?glossary=availability-float","glink": "availability_float","desc": "Checks deposited by a company that have not yet been cleared."},{ "title": "Available cash flow","link": "https://www.alphaflow.com/?glossary=available-cash-flow","glink": "available_cash_flow","desc": "Total cash sources less total cash uses before payment of debt service."},{ "title": "Available for Sale","link": "https://www.alphaflow.com/?glossary=available-for-sale","glink": "available_for_sale","desc": "Investment in securities where the intention is not to trade in the short-term and they may or may not be held to maturity. These are usually reported at market value. Unrealized gains or losses on these investments do not appear in Net Income but in the Accumulated Other Comprehensive Income account. Also see Held to Maturity, Trading Securities."},{ "title": "Available on the way in","link": "https://www.alphaflow.com/?glossary=available-on-the-way-in","glink": "available_on_the_way_in","desc": "In context of general equities, stock is available to new customer as trade initiated by another customer is about to be consummated (on the exchange floor). Usually said to an inquiring salesperson. See: Open."},{ "title": "Aval","link": "https://www.alphaflow.com/?glossary=aval","glink": "aval","desc": "Term meaning inseparable from the financial instrument. This gives a guarantee and is abstracted from the performance of the underlying trade contract: Article 31 of the 1930 Geneva Convention of the Bills Of Exchange states that the aval can be written on the bill itself or on an allonge. US Banks are prohibited from avalizing drafts."},{ "title": "Avalizor","link": "https://www.alphaflow.com/?glossary=avalizor","glink": "avalizor","desc": "An institution or person who gives the aval."},{ "title": "Average","link": "https://www.alphaflow.com/?glossary=average","glink": "average","desc": "An arithmetic mean return of selected stocks intended to represent the behavior of the market or some component of it. One good example is the widely quoted Dow Jones Industrial Average, which adds the current prices of the 30 DJIA stocks, and divides the results by a predetermined number, the divisor."},{ "title": "Average (across-day) measures","link": "https://www.alphaflow.com/?glossary=average-across-day-measures","glink": "average_measures","desc": "An estimation of price that uses the average or representative price of a large number of trades."},{ "title": "Average accounting return","link": "https://www.alphaflow.com/?glossary=average-accounting-return","glink": "average_accounting_return","desc": "The average project earnings after taxes and depreciation divided by the average book value of the investment during its life."},{ "title": "Average age of accounts receivable","link": "https://www.alphaflow.com/?glossary=average-age-of-accounts-receivable","glink": "average_age_of_accounts_receivable","desc": "The weighted-average age of all the firm's outstanding invoices."},{ "title": "Average collection period, or days’ receivables","link": "https://www.alphaflow.com/?glossary=average-collection-period-or-days-receivables","glink": "average_collection_period_or_days_receivables","desc": "The ratio of accounts receivables to sales, or the total amount of credit extended per dollar of daily sales (average AR/sales 365)."},{ "title": "Average cost","link": "https://www.alphaflow.com/?glossary=average-cost","glink": "average_cost","desc": "In the context of investing, refers to the average cost of shares or stock bought at different prices over time."},{ "title": "Average cost of capital","link": "https://www.alphaflow.com/?glossary=average-cost-of-capital","glink": "average_cost_of_capital","desc": "A firm's required payout to bondholders and stockholders expressed as a percentage of capital contributed to the firm. Average cost of capital is computed by dividing the total required cost of capital by the total amount of contributed capital."},{ "title": "Average daily balance","link": "https://www.alphaflow.com/?glossary=average-daily-balance","glink": "average_daily_balance","desc": "A method for calculating interest in which the balance owed each day by a customer is divided by the number of days. See also: Adjusted balance method and previous balance method."},{ "title": "Average discount rate","link": "https://www.alphaflow.com/?glossary=average-discount-rate","glink": "average_discount_rate","desc": "Purchasers tender their competitive bids on a discount rate basis. The weighted, or adjusted mean of all bids accepted in Treasury bill auctions."},{ "title": "Average down","link": "https://www.alphaflow.com/?glossary=average-down","glink": "average_down","desc": "A strategy used by investors to reduce the average cost of shares, in which the investor purchases more shares with a fixed amount of capital as the price of the shares decreases. The investor receives more shares per dollar and decreases the average price per share."},{ "title": "Average equity","link": "https://www.alphaflow.com/?glossary=average-equity","glink": "average_equity","desc": "A customer's average daily balance in a trading account at a brokerage firm."},{ "title": "Average life","link": "https://www.alphaflow.com/?glossary=average-life","glink": "average_life","desc": "Also referred to as the weighted-average life (WAL). The average number of years that each dollar of unpaid principal due on the mortgage remains outstanding. Average life is computed as the weighted-average time to the receipt of all future cash flows, using as the weights the dollar amounts of the principal paydowns."},{ "title": "Average maturity","link": "https://www.alphaflow.com/?glossary=average-maturity","glink": "average_maturity","desc": "The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average maturity."},{ "title": "Average rate of return","link": "https://www.alphaflow.com/?glossary=average-rate-of-return","glink": "average_rate_of_return","desc": "The ratio of the average cash inflow to the amount invested."},{ "title": "Average tax rate","link": "https://www.alphaflow.com/?glossary=average-tax-rate","glink": "average_tax_rate","desc": "Taxes as a fraction of income; total taxes divided by total taxable income."},{ "title": "Average up","link": "https://www.alphaflow.com/?glossary=average-up","glink": "average_up","desc": "A strategy used by investors to lower the overall cost of shares by buying as many shares with a given amount of capital in an increasing market. Buying $1000 worth of shares at $30, $35, $40, and $45, for instance, will make the average cost of the sharesx $36.65, lower than the average price of $37.50."},{ "title": "Averaging","link": "https://www.alphaflow.com/?glossary=averaging","glink": "averaging","desc": "See: Constant dollar plan."},{ "title": "Avoided cost","link": "https://www.alphaflow.com/?glossary=avoided-cost","glink": "avoided_cost","desc": "In context of project financing, the capital and expense that would have to be spent if the project did not proceed."},{ "title": "AW","link": "https://www.alphaflow.com/?glossary=aw","glink": "a.w.","desc": "The two-character ISO 3166 country code for ARUBA."},{ "title": "Away","link": "https://www.alphaflow.com/?glossary=away","glink": "away","desc": "A trade, quote, or market that does not originate with the dealer in question, e.g., 'the bid is 98-10 away from me.'"},{ "title": "Away from the market","link": "https://www.alphaflow.com/?glossary=away-from-the-market","glink": "away_from_the_market","desc": "In context of general equities, out of line with the inside market at this time, such as when a bid on a limit order is lower or the offer price is higher than the current market price for the security; held by the specialist for later execution unless FOK. Antithesis of in-line."},{ "title": "Away from us","link": "https://www.alphaflow.com/?glossary=away-from-us","glink": "away_from_us","desc": "Used in context of general equities, to characterize role of a competing broker/dealer. Trading away from us signifies that stock is bought and/or sold with institutions using other trading firms."},{ "title": "Away from you","link": "https://www.alphaflow.com/?glossary=away-from-you","glink": "away_from_you","desc": "Used for listed equity securities. See: Outside of you."},{ "title": "AWG","link": "https://www.alphaflow.com/?glossary=awg","glink": "awg","desc": "The ISO 4217 currency code for Aruban Guilder."},{ "title": "AX","link": "https://www.alphaflow.com/?glossary=ax","glink": "ax","desc": "The two-character ISO 3166 country code for ALAND ISLANDS."},{ "title": "Axe to grind","link": "https://www.alphaflow.com/?glossary=axe-to-grind","glink": "axe_to_grind","desc": "Used in context of general equities. Involvement in a security, whether through a position, order, or inquiry."},{ "title": "AZ","link": "https://www.alphaflow.com/?glossary=az","glink": "a.z.","desc": "The two-character ISO 3166 country code for AZERBAIJAN."},{ "title": "AZE","link": "https://www.alphaflow.com/?glossary=aze","glink": "a.z.e.","desc": "The three-character ISO 3166 country code for AZERBAIJAN."},{ "title": "AZM","link": "https://www.alphaflow.com/?glossary=azm","glink": "azm","desc": "The ISO 4217 currency code for Azerbaijani Manat."},{ "title": "B (NASDAQ)","link": "https://www.alphaflow.com/?glossary=b-nasdaq","glink": "B","desc": "Fifth letter of a Nasdaq stock descriptor specifying that issue is the Class B shares of the company."},{ "title": "B1","link": "https://www.alphaflow.com/?glossary=b1","glink": "b1","desc": "A rating within speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated B1 are considered speculative and are subject to high credit risk. Rating one notch higher is Ba3. Rating one notch lower is B2"},{ "title": "B2","link": "https://www.alphaflow.com/?glossary=b2","glink": "b2","desc": "A rating within speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated B2 are considered speculative and are subject to high credit risk. Rating one notch higher is B1. Rating one notch lower is B3"},{ "title": "B2B","link": "https://www.alphaflow.com/?glossary=b2b","glink": "b2b","desc": "An Internet strategy of dealing directly with businesses, rather than consumers, i.e. business to (2) business."},{ "title": "B3","link": "https://www.alphaflow.com/?glossary=b3","glink": "b3","desc": "A rating within speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated B3 are considered speculative and are subject to high credit risk. Rating one notch higher is B2. Rating one notch lower is Caa1"},{ "title": "BA","link": "https://www.alphaflow.com/?glossary=ba","glink": "B.A.","desc": "The two-character ISO 3166 country code for BOSNIA AND HERZEGOVINA."},{ "title": "Ba1","link": "https://www.alphaflow.com/?glossary=ba1","glink": "Ba1","desc": "The highest rating of speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated Ba1 are judged to have speculative elements and are subject to substantial credit risk. Rating one notch higher is Baa3. Rating one notch lower is Ba2"},{ "title": "Ba2","link": "https://www.alphaflow.com/?glossary=ba2","glink": "Ba2","desc": "The second highest rating of speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated Ba2 are judged to have speculative elements and are subject to substantial credit risk. Rating one notch higher is Ba1. Rating one notch lower is Ba3"},{ "title": "Ba3","link": "https://www.alphaflow.com/?glossary=ba3","glink": "Ba3","desc": "The third highest rating of speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated Ba1 are judged to have speculative elements and are subject to substantial credit risk. Rating one notch higher is Ba2. Rating one notch lower is B1"},{ "title": "Baa1","link": "https://www.alphaflow.com/?glossary=baa1","glink": "Baa1","desc": "The eighth highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated Baa1 are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics. Rating one notch higher is A3. Rating one notch lower is Baa2"},{ "title": "Baa2","link": "https://www.alphaflow.com/?glossary=baa2","glink": "Baa2","desc": "The ninth highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated Baa2 are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics. Rating one notch higher is Baa1. Rating one notch lower is Baa3"},{ "title": "Baa3","link": "https://www.alphaflow.com/?glossary=baa3","glink": "Baa3","desc": "The lowest rating of investment grade Moody's Long-term Corporate Obligation Rating. Obligations rated Baa3 are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics. Rating one notch higher is A3. Rating one notch lower is Ba1"},{ "title": "Baby bond","link": "https://www.alphaflow.com/?glossary=baby-bond","glink": "baby_bond","desc": "A bond with a par value of less than $1000."},{ "title": "Back away","link": "https://www.alphaflow.com/?glossary=back-away","glink": "back_away","desc": "In the context of general equities, to withdraw from a previously declared interest, indication, or transaction; broker-dealer's failure, as a market maker in a given security, to make good on a bid/offer for the minimum quantity."},{ "title": "Back fee","link": "https://www.alphaflow.com/?glossary=back-fee","glink": "back_fee","desc": "The fee paid on the extension date if the buyer wishes to continue the option."},{ "title": "Back months","link": "https://www.alphaflow.com/?glossary=back-months","glink": "back_months","desc": "In the context of futures and options trading, refers to the months of contracts with expiration dates farthest away. See farthest month."},{ "title": "Back office","link": "https://www.alphaflow.com/?glossary=back-office","glink": "back_office","desc": "Brokerage house clerical operations that support, but do not include, the trading of stocks and other securities. All written confirmation and settlement of trades, record keeping, and regulatory compliance happen in the back office."},{ "title": "Back on the shelf","link": "https://www.alphaflow.com/?glossary=back-on-the-shelf","glink": "back_on_the_shelf","desc": "In the context of general equities, permanently canceled order/interest in a stock by a customer. See: Take a powder."},{ "title": "Back taxes","link": "https://www.alphaflow.com/?glossary=back-taxes","glink": "back_taxes","desc": "Due taxes that have not been paid on time."},{ "title": "Back up","link": "https://www.alphaflow.com/?glossary=back-up","glink": "back_up","desc": "(1) When bond yields rise and prices fall, the market is said to back up. (2) An investor who swaps out of one security into another of shorter current maturity is said to back up."},{ "title": "Back up the truck","link": "https://www.alphaflow.com/?glossary=back-up-the-truck","glink": "back_up_the_truck","desc": "In the context of general equities, 'Prepare for a very large buyer.'"},{ "title": "Back-end load fund","link": "https://www.alphaflow.com/?glossary=back-end-load-fund","glink": "back_end_loan_fund","desc": "A mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. Some back-end load funds impose a full commission if the shares are redeemed within a designated length of time, such as one year. The commission decreases, the longer the investor holds the shares. The formal name for the back-end load is the contingent deferred sales charge, or CDSC"},{ "title": "Back-testing","link": "https://www.alphaflow.com/?glossary=back-testing","glink": "back_testing","desc": "Creating a hypothetical portfolio performance history by applying current asset selection criteria to prior time periods."},{ "title": "Back-to-back financing","link": "https://www.alphaflow.com/?glossary=back-to-back-financing","glink": "back_to_back_financing","desc": "An intercompany loan channeled through a bank."},{ "title": "Back-to-back loan","link": "https://www.alphaflow.com/?glossary=back-to-back-loan","glink": "back_to_back_loan","desc": "A loan in which two companies in separate countries borrow each other's currency for a specific time period and repay the other's currency at an agreed-upon maturity."},{ "title": "Backdating","link": "https://www.alphaflow.com/?glossary=backdating","glink": "backdating","desc": "In the context of mutual funds, a feature allowing fundholders to use an earlier date on a letter of intent to invest in a mutual fund in exchange for a reduced sales charge, e.g. Giving retroactive value to purchases from the earlier date. In the context of corporate governance, the illegal practice of setting the date of options awarded as part of executive compensation to a period when the stock price was very low (rather than setting the date of the options on the date the award was made)."},{ "title": "Backdoor listing","link": "https://www.alphaflow.com/?glossary=backdoor-listing","glink": "backdoor_listing","desc": "See Going public through the backdoor.."},{ "title": "Backed in","link": "https://www.alphaflow.com/?glossary=backed-in","glink": "backed_in","desc": "In the context of general equities, to describe the result of unanticipated events that allow for a purchase at a discount or a sale at a premium."},{ "title": "Backup line","link": "https://www.alphaflow.com/?glossary=backup-line","glink": "backup_line","desc": "A commercial paper issuer's bank line of credit covering maturing notes if, for some reason, selling new notes to cover the maturing notes is not possible."},{ "title": "Backup Line of Credit","link": "https://www.alphaflow.com/?glossary=backup-line-of-credit","glink": "backup_line_of_credit","desc": "A bank assurance of funds obtained by an issuer of commercial paper to protect the CP investor from default. The issuer pays a commitment fee to the bank."},{ "title": "Backup Withholding","link": "https://www.alphaflow.com/?glossary=backup-withholding","glink": "backup_withholding","desc": "Withholding of a certain amount of investment income (e.g. interest, dividends) by banks and other businesses under conditions such as missing Taxpayer Identification Number (TIN) or under directions from the IRS. Also see: TEFRA, W-8, W-9."},{ "title": "Backwardation","link": "https://www.alphaflow.com/?glossary=backwardation","glink": "backwardation","desc": "A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This may occur when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango."},{ "title": "Bad bank","link": "https://www.alphaflow.com/?glossary=bad-bank","glink": "bad_bank","desc": "A government owned entity that takes over and liquidates toxic assets from failed or declining financial institutions to leave them with a clean balance sheet. The strategy was last used during the Savings and Loan crisis of 1980s where this entity was called the Resolution Trust Corporation."},{ "title": "Bad debt","link": "https://www.alphaflow.com/?glossary=bad-debt","glink": "bad_debt","desc": "A debt that is written off and deemed uncollectible."},{ "title": "Bad delivery","link": "https://www.alphaflow.com/?glossary=bad-delivery","glink": "bad_delivery","desc": "Antithesis of good delivery."},{ "title": "Bad title","link": "https://www.alphaflow.com/?glossary=bad-title","glink": "bad_title","desc": "Title to property that does not distinctly confer ownership, usually in the context of real estate."},{ "title": "Bai-kai","link": "https://www.alphaflow.com/?glossary=bai-kai","glink": "bai_kai","desc": "Two-sided market picture, in Japanese terminology applies mainly to international equities."},{ "title": "Bailing out","link": "https://www.alphaflow.com/?glossary=bailing-out","glink": "bailing_out","desc": "In the context of securities, refers to selling a security or commodity quickly, regardless of the price. May occur when an investor no longer wants to sustain further losses on a stock.

Also refers to relieving an individual, corporation, or government entity in financial trouble.

"},{ "title": "Bailout","link": "https://www.alphaflow.com/?glossary=bailout","glink": "bailout","desc": "A capital infusion offered to a business with a national or multi-national footprint that is in danger of bankruptcy, insolvency, or total liquidation.  Financial aid can be provided in the form of debt or equity offerings, cash contributions, or some form of loan or line of credit, and is often accompanied by greater government oversight and regulation.  The failure of a business that employs thousands or plays an influential role in the economy potentially can send shock waves throughout the entire economy, including other industries. The credit crisis that began in 2007 created numerous failures around the world, which resulted in a large number of government-sponsored bailouts in almost every industry across the globe. See: Conservator, Conservatorship."},{ "title": "Bailout bond","link": "https://www.alphaflow.com/?glossary=bailout-bond","glink": "bailout_bond","desc": "A bond issued by the Resolution Funding Corporation (Refcorp) to save the failing savings and loan associations in the late 1980s and early 1990s."},{ "title": "Baker Plan","link": "https://www.alphaflow.com/?glossary=baker-plan","glink": "baker_plan","desc": "A plan by former U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor countries (the Baker 15) would undertake growth-oriented structural reforms, to be supported by increased financing from the World Bank and continued lending from commercial banks."},{ "title": "Balance of payments","link": "https://www.alphaflow.com/?glossary=balance-of-payments","glink": "balance_of_payments","desc": "A statistical compilation formulated by a sovereign nation of all economic transactions between residents of that nation and residents of all other nations during a stipulated period of time, usually a calendar year."},{ "title": "Balance of trade","link": "https://www.alphaflow.com/?glossary=balance-of-trade","glink": "balance_of_trade","desc": "Net flow of goods (exports minus imports) between two countries."},{ "title": "Balance on goods and services","link": "https://www.alphaflow.com/?glossary=balance-on-goods-and-services","glink": "balance_on_goods_and_services","desc": "Netting of transaction balances, including the net amount of payments of interest and dividends to foreign investors and investments, as well as receipts and payments resulting from international tourism. Also known as Trade Balance."},{ "title": "Balance sheet","link": "https://www.alphaflow.com/?glossary=balance-sheet","glink": "balance_sheet","desc": "Also called the statement of financial condition, it is a summary of a company's assets, liabilities, and owners' equity."},{ "title": "Balance sheet exposure","link": "https://www.alphaflow.com/?glossary=balance-sheet-exposure","glink": "balance_sheet_exposure","desc": "See: Accounting exposure."},{ "title": "Balance sheet identity","link": "https://www.alphaflow.com/?glossary=balance-sheet-identity","glink": "balance_sheet_identity","desc": "Total assets = Total liabilities + Total stockholders' equity."},{ "title": "Balanced budget","link": "https://www.alphaflow.com/?glossary=balanced-budget","glink": "balanced_budget","desc": "A budget in which the income equals expenditure. See: budget."},{ "title": "Balanced fund","link": "https://www.alphaflow.com/?glossary=balanced-fund","glink": "balanced_fund","desc": "An investment company that invests in stocks and bonds. The same as a balanced mutual fund."},{ "title": "Balanced mutual fund","link": "https://www.alphaflow.com/?glossary=balanced-mutual-fund","glink": "balanced_mutual_fund","desc": "This is a fund that buys common stock, preferred stock, and bonds. The same as a balanced fund."},{ "title": "Balloon interest","link": "https://www.alphaflow.com/?glossary=balloon-interest","glink": "balloon_interest","desc": "In the context of serial bond issues, the elevated coupon rate on bonds with late maturities."},{ "title": "Balloon maturity","link": "https://www.alphaflow.com/?glossary=balloon-maturity","glink": "balloon_maturity","desc": "Any large principal payment due at maturity for a bond or loan with or without a sinking fund requirement."},{ "title": "Balloon Payment","link": "https://www.alphaflow.com/?glossary=balloon-payment","glink": "balloon_payment","desc": "The final (large) payment that repays all the remaining principal and interest of a partially amortized or unamortized loan. See: Bullet."},{ "title": "Ballot","link": "https://www.alphaflow.com/?glossary=ballot","glink": "ballot","desc": "The document distributed at the annual meeting to shareholders of record who wish to vote their shares in person."},{ "title": "Baltic Dry Index","link": "https://www.alphaflow.com/?glossary=baltic-dry-index","glink": "baltic_dry_index","desc": "An index that tracks the price of transporting dry bulk cargo like cement, coal, iron ore, and grain on bulk freighters. As many of these commodities are raw materials that go into production of finished goods, the BDI is often taken to be an indicator of economic growth and production. The index is maintained by the London-based Baltic Exchange."},{ "title": "BAM","link": "https://www.alphaflow.com/?glossary=bam","glink": "bam","desc": "The ISO 4217 currency code for Bosnia & Herzegovinan Convertible Mark."},{ "title": "Bank anticipation notes","link": "https://www.alphaflow.com/?glossary=bank-anticipation-notes","glink": "bank_anticipation_notes","desc": "Notes issued by states and municipalities to obtain interim financing for projects that will eventually be funded long term through the sale of a bond issue."},{ "title": "Bank collection float","link": "https://www.alphaflow.com/?glossary=bank-collection-float","glink": "bank_collection_float","desc": "The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank."},{ "title": "Bank discount basis","link": "https://www.alphaflow.com/?glossary=bank-discount-basis","glink": "bank_discount_basis","desc": "A convention used for quoting bids and offers for Treasury bills in terms of annualized yield, based on a 360-day year."},{ "title": "Bank draft","link": "https://www.alphaflow.com/?glossary=bank-draft","glink": "bank_draft","desc": "A draft addressed to a bank."},{ "title": "Bank for International Settlements","link": "https://www.alphaflow.com/?glossary=bank-for-international-settlements","glink": "bank_for_international_settlements","desc": "An international bank headquartered in Basel, Switzerland, which serves as a forum for monetary cooperation among several European central banks, the Bank of Japan, and the US Federal Reserve System. Founded in 1930 to handle the German payment of World War I reparations, it now monitors and collects data on international banking activity and promulgates rules concerning international bank regulation."},{ "title": "Bank holding company","link": "https://www.alphaflow.com/?glossary=bank-holding-company","glink": "bank_holding_company","desc": "A company that owns or has controlling interest in two or more banks and/or other bank holding companies."},{ "title": "Bank Insurance Fund","link": "https://www.alphaflow.com/?glossary=bank-insurance-fund","glink": "bank_insurance_fund","desc": "A unit of the Federal Deposit Insurance Corporation (FDIC) that provides deposit insurance for banks excluding thrifts."},{ "title": "Bank Investment Contract","link": "https://www.alphaflow.com/?glossary=bank-investment-contract","glink": "bank_investment_contract","desc": "Interest guaranteed by the bank in a portfolio over a specific time frame with a specific yield."},{ "title": "Bank Letter of Credit Policy","link": "https://www.alphaflow.com/?glossary=bank-letter-of-credit-policy","glink": "bank_letter_of_credit_policy","desc": "Standards allowing banks to confirm letters of credit by foreign banks supporting the purchase of US exports."},{ "title": "Bank line","link": "https://www.alphaflow.com/?glossary=bank-line","glink": "bank_line","desc": "Line of credit that a bank grants to a customer."},{ "title": "Bank loan","link": "https://www.alphaflow.com/?glossary=bank-loan","glink": "bank_loan","desc": "Usually refers to a loan or a line of credit expended to a corporation from a traditional bank. Also see: Leveraged loan"},{ "title": "Bank note","link": "https://www.alphaflow.com/?glossary=bank-note","glink": "bank_note","desc": "A term used synonymously with paper money or currency issued by a bank. Notes are, in effect, a promise to pay the bearer on demand the amount stated on the face of the note. Today, only the Federal Reserve Banks are authorized to issue bank notes, i.e. Federal Reserve notes, in the United States."},{ "title": "Bank of England","link": "https://www.alphaflow.com/?glossary=bank-of-england","glink": "","desc": "The central bank of England."},{ "title": "Bank of England (BoE)","link": "https://www.alphaflow.com/?glossary=bank-of-england-boe","glink": "boe","desc": "The central bank of England."},{ "title": "Bank of Japan","link": "https://www.alphaflow.com/?glossary=bank-of-japan","glink": "","desc": "The central bank of Japan."},{ "title": "Bank of Japan (BoJ)","link": "https://www.alphaflow.com/?glossary=bank-of-japan-boj","glink": "boj","desc": "The central bank of Japan."},{ "title": "Bank regulation","link": "https://www.alphaflow.com/?glossary=bank-regulation","glink": "bank_regulation","desc": "The formulation and issuance by authorized agencies of specific rules or regulations, under governing law, for the conduct and structure of banking."},{ "title": "Bank run","link": "https://www.alphaflow.com/?glossary=bank-run","glink": "","desc": "A series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed by the chartering agency, i.e. many depositors withdraw cash almost simultaneously. Since the cash reserve a bank keeps on hand is only a small fraction of its deposits, a large number of withdrawals in a short period of time can deplete available cash and force the bank to close and possibly go out of business."},{ "title": "Bank run (bank panic)","link": "https://www.alphaflow.com/?glossary=bank-run-bank-panic","glink": "bank_run_(bank_panic)","desc": "A series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed by the chartering agency, i.e. many depositors withdraw cash almost simultaneously. Since the cash reserve a bank keeps on hand is only a small fraction of its deposits, a large number of withdrawals in a short period of time can deplete available cash and force the bank to close and possibly go out of business."},{ "title": "Bank trust department","link": "https://www.alphaflow.com/?glossary=bank-trust-department","glink": "bank_trust_department","desc": "Bank department that deals with estates, administers trusts, and provides services such as estate planning advice to its clients."},{ "title": "Bank wire","link": "https://www.alphaflow.com/?glossary=bank-wire","glink": "bank_wire","desc": "A computer message system linking major banks. It is used not for effecting payments, but as a mechanism to advise the receiving bank of some action that has occurred, e.g., the payment by a customer of funds into that bank's account."},{ "title": "Bank-based corporate governance system","link": "https://www.alphaflow.com/?glossary=bank-based-corporate-governance-system","glink": "bank_based_corporate_governance_system","desc": "Organization of a supervisory board so that it is dominated by bankers and corporate insiders."},{ "title": "Banker’s acceptance","link": "https://www.alphaflow.com/?glossary=bankers-acceptance","glink": "bankers_acceptance","desc": "A short-term credit investment created by a nonfinancial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts to face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions."},{ "title": "Banking Delay","link": "https://www.alphaflow.com/?glossary=banking-delay","glink": "banking_delay","desc": "Time required for processing and clearing a check through the banking system."},{ "title": "Bankmail","link": "https://www.alphaflow.com/?glossary=bankmail","glink": "bankmail","desc": "An agreement between a company engaged in a takeover bid and a bank that the bank will not finance the bid of another acquirer."},{ "title": "Bankruptcy","link": "https://www.alphaflow.com/?glossary=bankruptcy","glink": "bankruptcy","desc": "Inability to pay debts. In bankruptcy of a publicly owned entity, the ownership of the firm's assets is transferred from the stockholders to the bondholders."},{ "title": "Bankruptcy code","link": "https://www.alphaflow.com/?glossary=bankruptcy-code","glink": "bankruptcy_code","desc": "Laws governing bankruptcy proceedings for corporations, municipalities, and individuals. Enacted through the U.S. Federal Bankruptcy Reform Act of 1978."},{ "title": "Bankruptcy cost view","link": "https://www.alphaflow.com/?glossary=bankruptcy-cost-view","glink": "bankruptcy_cost_view","desc": "The argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of leverage is less than 100% debt financing."},{ "title": "Bankruptcy proceedings","link": "https://www.alphaflow.com/?glossary=bankruptcy-proceedings","glink": "bankruptcy_proceedings","desc": "Legal proceedings covered by Bankruptcy Code. The proceedings could result in liquidation or reorganization of the firm."},{ "title": "Bankruptcy risk","link": "https://www.alphaflow.com/?glossary=bankruptcy-risk","glink": "bankruptcy_risk","desc": "The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk."},{ "title": "Bankruptcy view","link": "https://www.alphaflow.com/?glossary=bankruptcy-view","glink": "bankuptcy_view","desc": "The argument that expected bankruptcy costs preclude firms from financing entirely with debt."},{ "title": "Bar","link": "https://www.alphaflow.com/?glossary=bar","glink": "bar","desc": "Slang for one million dollars."},{ "title": "Barbell strategy","link": "https://www.alphaflow.com/?glossary=barbell-strategy","glink": "barbell_strategy","desc": "A fixed income strategy in which the maturities of the securities included in the portfolio are concentrated at two extremes. For example, a portfolio manager invests in short and long duration bonds but not in the intermediate duration bonds."},{ "title": "Barefoot Investor","link": "https://www.alphaflow.com/?glossary=barefoot-investor","glink": "barefoot_investor","desc": "A popular Australian radio program focused on teaching young people financial literacy."},{ "title": "Barefoot pilgrim","link": "https://www.alphaflow.com/?glossary=barefoot-pilgrim","glink": "barefoot_pilgrim","desc": "A slang term for an unsophisticated investor who has lost everything on the stock market. Not to be confused with Barefoot Investor."},{ "title": "Bargain hunter","link": "https://www.alphaflow.com/?glossary=bargain-hunter","glink": "bargain_hunter","desc": "In the context of general equities, purchaser who is extremely selective in the price sought on a transaction."},{ "title": "Bargain-purchase-price option","link": "https://www.alphaflow.com/?glossary=bargain-purchase-price-option","glink": "bargain_purchase_price_option","desc": "Gives the lessee the option to purchase the asset at a price below fair market value when the lease expires."},{ "title": "Barometer","link": "https://www.alphaflow.com/?glossary=barometer","glink": "barometer","desc": "Economic and market data that represent an overall trend. The Dow Jones Industrial Average is an example of a stock market barometer."},{ "title": "BARRA’s performance analysis","link": "https://www.alphaflow.com/?glossary=barras-performance-analysis","glink": "barras_performance_analysis","desc": "A method developed by BARRA, a consulting firm in Berkeley, Calif. It is commonly used by institutional investors applying performance attribution analysis to evaluate their money managers' performance."},{ "title": "Barrier options","link": "https://www.alphaflow.com/?glossary=barrier-options","glink": "barrier_options","desc": "Option contracts that remain dormant until a trigger point (the barrier price) is reached, at which point the call or put option is activated, and results either in a long or short options position, or in the automatic exercise of an options position. One example is an up-and-in call. Assume an exercise price of $50 and a barrier price of $53. If the stock stays below $53, the call option cannot be exercised. If the stock price reaches the $53 barrier price, the holder then has a call option on the shares at $50. These are exotic options."},{ "title": "Barron’s confidence index","link": "https://www.alphaflow.com/?glossary=barrons-confidence-index","glink": "barrons_confidence_index","desc": "Index measuring the ratio of the average yield on 10 top-grade bonds to the average yield on 10 intermediate-grade bonds. The discrepancy between high-rated top-grade bonds and low-rated bond yields establishes a measure that is indicative of investor confidence."},{ "title": "Barter","link": "https://www.alphaflow.com/?glossary=barter","glink": "barter","desc": "The trading/exchange of goods or services without using currency."},{ "title": "Base","link": "https://www.alphaflow.com/?glossary=base","glink": "base","desc": "A technical analysis tool. A chart pattern depicting the period when the supply and demand of a certain stock are in relative equilibrium, resulting in a narrow trading range. The merging of the support level and resistance level."},{ "title": "Base currency","link": "https://www.alphaflow.com/?glossary=base-currency","glink": "base_currency","desc": "Applies mainly to international equities. Currency in which gains or losses from operating an international portfolio are measured."},{ "title": "Base interest rate","link": "https://www.alphaflow.com/?glossary=base-interest-rate","glink": "base_interest_rate","desc": "Related: Benchmark interest rate."},{ "title": "Base market value","link": "https://www.alphaflow.com/?glossary=base-market-value","glink": "base_market_value","desc": "The average market price of a group of securities at a specific time. Used for the purpose of indexing."},{ "title": "Base period","link": "https://www.alphaflow.com/?glossary=base-period","glink": "base_period","desc": "A particular period of time used for comparative purposes when measuring economic data."},{ "title": "Base probability of loss","link": "https://www.alphaflow.com/?glossary=base-probability-of-loss","glink": "base_probability_of_loss","desc": "The probability of not achieving a portfolio expected return. Related: Value at risk."},{ "title": "Base rate","link": "https://www.alphaflow.com/?glossary=base-rate","glink": "base_rate","desc": "British equivalent of the US prime rate."},{ "title": "Basel I","link": "https://www.alphaflow.com/?glossary=basel-i","glink": "basel_1","desc": "Agreement concluded among country representatives in 1988 in Basel, Switzerland to develop standardized risk-based capital requirements for banks across countries. The Accord is also known as 1988 Basel Accord and it primarily focused on credit risk and is now viewed as outdated. Basel II is currently in the process of implementation and Basel III is currently under development."},{ "title": "Basel II","link": "https://www.alphaflow.com/?glossary=basel-ii","glink": "basel_2","desc": "An update of Basel I, Basel II was published in June 2004. The revised accord aimed to improve the consistency of capital regulations internationally, make regulatory capital more risk sensitive, and promote enhanced risk-management practices among large, internationally active banking organizations. Generally speaking, with Basel II, the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold. However, critics of Basel II say that the revised accord failed to regulate certain risk transfers, such as securitization or transfer of risk to unregulated parts of holding companies."},{ "title": "Basel III","link": "https://www.alphaflow.com/?glossary=basel-iii","glink": "basel_3","desc": "Describes the third version of the Basel Accords agreed upon by 27 countries on September 12, 2010. Among the highlights was the increasing of Tier 1 capital from 2% to 4.5% and the addition of a buffer of 2.5%. The assets that qualify for capital were also redefined. The full implementation of the accord is not due until 2023."},{ "title": "Basic balance","link": "https://www.alphaflow.com/?glossary=basic-balance","glink": "basic_balance","desc": "In a balance of payments, the basic balance is the net balance of the combination of the current account and the capital account."},{ "title": "Basic business strategies","link": "https://www.alphaflow.com/?glossary=basic-business-strategies","glink": "basic_business_strategies","desc": "Key strategies a firm intends to pursue in carrying out its business plan."},{ "title": "Basic IRR rule","link": "https://www.alphaflow.com/?glossary=basic-irr-rule","glink": "basic_irr_rule","desc": "Accept the project if IRR is higher than the discount rate; reject the project if it is lower than the discount rate. It is wise to also consider net present value for project evaluation."},{ "title": "Basis","link": "https://www.alphaflow.com/?glossary=basis","glink": "basis","desc": "The price an investor pays for a security plus any out-of-pocket expenses. It is used to determine capital gains or losses for tax purposes when the stock is sold. Also, for a futures contract, the difference between the cash price and the futures price observed in the market."},{ "title": "Basis point","link": "https://www.alphaflow.com/?glossary=basis-point","glink": "basis_point","desc": "In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points higher than an interest rate of 4.5%. Sometimes referred to as BPS, BIPS, and pronounced 'Bips'"},{ "title": "Basis price","link": "https://www.alphaflow.com/?glossary=basis-price","glink": "basis_price","desc": "Price expressed in terms of yield to maturity or annual rate of return."},{ "title": "Basis risk","link": "https://www.alphaflow.com/?glossary=basis-risk","glink": "basis_risk","desc": "Unexpected changes in the basis between the placing and the lifting of a hedge. Basis risk is in excess of convergence."},{ "title": "Basis trade","link": "https://www.alphaflow.com/?glossary=basis-trade","glink": "basis_trade","desc": "A trade that takes a view on the difference between two financial instruments. For futures contract, the difference between the cash and the futures price of an instrument."},{ "title": "Basket","link": "https://www.alphaflow.com/?glossary=basket","glink": "basket","desc": "Applies to derivative products. Group of stocks that is formed with the intention of either being bought or sold all at once, usually to perform index arbitrage or a hedging program."},{ "title": "Basket credit default swap","link": "https://www.alphaflow.com/?glossary=basket-credit-default-swap","glink": "basket_credit_default_swap","desc": "A credit derivative contract that provides a payoff when any of the multiple reference entities default. The contract specifies the number of defaults after which the payoff is generated, based on which the instrument is classified as first-to-default CDS, second-to-default CDS or more generally nth-to-default CDS."},{ "title": "Basket options","link": "https://www.alphaflow.com/?glossary=basket-options","glink": "basket_options","desc": "Packages that involve the exchange of more than two currencies against a base currency at expiration. The basket option buyer purchases the right, but not the obligation, to receive designated currencies in exchange for a base currency, either at the prevailing foreign exchange market rate or at a prearranged rate of exchange. Multinational corporations with multicurrency cash flows frequently use basket options because it is generally cheaper to buy an option on a basket of currencies than to buy individual options on each of the currencies that make up the basket."},{ "title": "Basket trades","link": "https://www.alphaflow.com/?glossary=basket-trades","glink": "basket_trades","desc": "Related: Program trades."},{ "title": "Baskets of Listed Depositary Receipts","link": "https://www.alphaflow.com/?glossary=baskets-of-listed-depositary-receipts","glink": "baskets_of_listed_depositary_receipts","desc": "Nasdaq's fund family made of four funds that will track indexes composed of American Depositary Receipts (ADRs) of foreign companies."},{ "title": "Bayseian inference","link": "https://www.alphaflow.com/?glossary=bayseian-inference","glink": "bayesian_inference","desc": "An alternative method of reasoning whereby the observer has a prior belief about a hypothesis and that belief is updated after observing the data."},{ "title": "BB","link": "https://www.alphaflow.com/?glossary=bb","glink": "B.B.","desc": "The two-character ISO 3166 country code for BARBADOS."},{ "title": "BBD","link": "https://www.alphaflow.com/?glossary=bbd","glink": "bbd","desc": "The ISO 4217 currency code for Barbadian Dollar."},{ "title": "BD","link": "https://www.alphaflow.com/?glossary=bd","glink": "b.d.","desc": "The two-character ISO 3166 country code for BANGLADESH."},{ "title": "BD form","link": "https://www.alphaflow.com/?glossary=bd-form","glink": "bd_form","desc": "An SEC document required of brokerage houses that outlines the firm's finances and officers."},{ "title": "BDS Statistic","link": "https://www.alphaflow.com/?glossary=bds-statistic","glink": "bds_statistic","desc": "A statistic based upon the correlation integral which examines the probability that a purely random system could have the same scaling properties as the system under study. See: Correlation Integral."},{ "title": "BDT","link": "https://www.alphaflow.com/?glossary=bdt","glink": "bdt","desc": "The ISO 4217 currency code for Bangladeshi Taka currency."},{ "title": "BE","link": "https://www.alphaflow.com/?glossary=be","glink": "B.E.","desc": "The two-character ISO 3166 country code for BELGIUM."},{ "title": "Bear","link": "https://www.alphaflow.com/?glossary=bear","glink": "bear","desc": "An investor who believes a stock or the overall market will decline. A bear market is a prolonged period of falling stock prices, usually by 20% or more. Related: bull."},{ "title": "Bear CD","link": "https://www.alphaflow.com/?glossary=bear-cd","glink": "bear_cd","desc": "A bear CD pays the holder a fraction of any fall in a given market index."},{ "title": "Bear hug","link": "https://www.alphaflow.com/?glossary=bear-hug","glink": "bear_hug","desc": "Often used in risk arbitrage. Hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market value of the acquiree's shares so as to as to squeeze (hug) the target into acceptance."},{ "title": "Bear market","link": "https://www.alphaflow.com/?glossary=bear-market","glink": "bear_market","desc": "Any market in which prices exhibit a declining trend. For a prolonged period, usually falling by 20% or more."},{ "title": "Bear raid","link": "https://www.alphaflow.com/?glossary=bear-raid","glink": "bear_raid","desc": "In the context of general equities, attempt by investors to move the price of a stock opportunistically by selling large numbers of shares short. The investors pocket the difference between the initial price and the new, lower price after this maneuver. This technique is illegal under SEC rules, which stipulate that every short sale must be on an uptick."},{ "title": "Bear rally","link": "https://www.alphaflow.com/?glossary=bear-rally","glink": "bear_rally","desc": "A temporary surge in stock markets while the primary market trend is bearish."},{ "title": "Bear spread","link": "https://www.alphaflow.com/?glossary=bear-spread","glink": "bear_spread","desc": "Applies to derivative products. Strategy in the options or futures markets designed to take advantage of a fall in the price of a security or commodity. A bear spread with call options is created by buying a call option with a certain strike price and selling a call option on the same stock with a lower strike price (with the same expiration date). A bear spread with put options is where an investor buys a put with a high strike price and sells a put with a low strike price. With futures, the investor sells the nearby contract and purchases the next out contract. All of these strategies are designed to profit from a fall in the underlying asset's price."},{ "title": "Bear trap","link": "https://www.alphaflow.com/?glossary=bear-trap","glink": "bear_trap","desc": "The predicament facing short sellers when a bear market reverses its trend and becomes bullish. The assets continue to sell in anticipation of further declines in price, and short sellers then are forced to cover at higher prices."},{ "title": "Bearer bond","link": "https://www.alphaflow.com/?glossary=bearer-bond","glink": "bearer_bond","desc": "Bonds that are not registered on the books of the issuer. Such bonds are held in physical form by the owner, who receives interest payments by physically detaching coupons from the bond certificate and delivering them to the paying agent."},{ "title": "Bearer form","link": "https://www.alphaflow.com/?glossary=bearer-form","glink": "bearer_form","desc": "Describes issue form of security not registered on the issuing corporation's books, and therefore payable to its bearer. See also: Bearer bond; coupon bond."},{ "title": "Bearer share","link": "https://www.alphaflow.com/?glossary=bearer-share","glink": "bearer_share","desc": "Security not registered on the books of the issuing corporation and thus payable to possessor of the shares. Negotiable without endorsement and transferred by delivery, thus avoiding some of the control associated with ordinary shares. Dividends are payable upon presentation of dividend coupons, which are dated or numbered. Applies mainly to international equities."},{ "title": "Bearish","link": "https://www.alphaflow.com/?glossary=bearish","glink": "bearish","desc": "Words used to describe investor attitude. A bearish investor believes that a particular asset or the market as a whole will decline in value."},{ "title": "Beating the gun","link": "https://www.alphaflow.com/?glossary=beating-the-gun","glink": "beating_the_gun","desc": "In the context of general equities, gaining an advantageous price in a trade through a quick response to market developments."},{ "title": "BEF","link": "https://www.alphaflow.com/?glossary=bef","glink": "bef","desc": "The ISO 4217 currency code for Belgian Franc."},{ "title": "Before-tax contributions","link": "https://www.alphaflow.com/?glossary=before-tax-contributions","glink": "before_tax_contributions","desc": "The portion of an employee's salary contributed to a retirement plan before federal income taxes are deducted; this reduces the individual's gross income for federal tax purposes."},{ "title": "Before-tax profit margin","link": "https://www.alphaflow.com/?glossary=before-tax-profit-margin","glink": "before_tax_profit_margin","desc": "The ratio of net income before taxes to net sales."},{ "title": "Beggar-thy-neighbor","link": "https://www.alphaflow.com/?glossary=beggar-thy-neighbor","glink": "beggar_thy_neighbor","desc": "An international trade policy of competitive devaluations and increased protective barriers that one country institutes to gain at the expense of its trading partners."},{ "title": "Beggar-thy-neighbor devaluation","link": "https://www.alphaflow.com/?glossary=beggar-thy-neighbor-devaluation","glink": "beggar_thy_neighbor_devaluation","desc": "A devaluation that is designed to cheapen a nation's currency and thereby increase its exports at the expense of other countries. Devaluation can also reduce a nation's imports. Such devaluations often lead to trade wars."},{ "title": "Behavioral finance","link": "https://www.alphaflow.com/?glossary=behavioral-finance","glink": "behavioral_finance","desc": "An important subfield of finance. Behavioral finances uses insights from the field of pyschology and applies them to the actions of individuals in trading and other financial applications."},{ "title": "Behind","link": "https://www.alphaflow.com/?glossary=behind","glink": "behind","desc": "Used for listed equity securities. At the same price but entered after your order/interest, such as on the specialist's book. Antithesis of ahead of you."},{ "title": "Beige book","link": "https://www.alphaflow.com/?glossary=beige-book","glink": "beige_book","desc": "Official name for the Beige book is Summary of Commentary on Current Economic Conditions. It is a report published by the Fed before FOMC meeting (eight times a year) and is used to inform the members on changes in the economy."},{ "title": "BEL","link": "https://www.alphaflow.com/?glossary=bel","glink": "B.E.L.","desc": "The three-character ISO 3166 country code for BELGIUM."},{ "title": "Bell","link": "https://www.alphaflow.com/?glossary=bell","glink": "bell","desc": "Signal on a stock exchange to indicate the open and close of trading."},{ "title": "Bellwether issues","link": "https://www.alphaflow.com/?glossary=bellwether-issues","glink": "bellwether_issues","desc": "Related: Benchmark issues."},{ "title": "Below par","link": "https://www.alphaflow.com/?glossary=below-par","glink": "below_par","desc": "Less than the nominal or face value of a security."},{ "title": "BEN","link": "https://www.alphaflow.com/?glossary=ben","glink": "B.E.N","desc": "The three-character ISO 3166 country code for BENIN."},{ "title": "Benchmark","link": "https://www.alphaflow.com/?glossary=benchmark","glink": "benchmark","desc": "The performance of a predetermined set of securities, used for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy."},{ "title": "Benchmark error","link": "https://www.alphaflow.com/?glossary=benchmark-error","glink": "benchmark_error","desc": "Use of an inappropriate proxy for the true market portfolio."},{ "title": "Benchmark interest rate","link": "https://www.alphaflow.com/?glossary=benchmark-interest-rate","glink": "benchmark_interest_rate","desc": "Also called base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturity offered on the comparable-maturity treasury security that was most recently issued (on-the-run)."},{ "title": "Benchmark issue","link": "https://www.alphaflow.com/?glossary=benchmark-issue","glink": "benchmark_issues","desc": "Also called on-the-run or current-coupon issue or bellwether issue. In the secondary market, the benchmark issue is the most recently auctioned Treasury issues for each maturity."},{ "title": "Beneath","link": "https://www.alphaflow.com/?glossary=beneath","glink": "beneath","desc": "Used for listed equity securities. 1) Behind; 2) Lower in price."},{ "title": "Beneficial Owner","link": "https://www.alphaflow.com/?glossary=beneficial-owner","glink": "beneficial_owner","desc": "As used for most purposes under the federal securities laws. A beneficial owner of stock is any person or entity with sole or shared power to vote or dispose of the stock. This SEC definition is intended to include a holder who enjoys the benefits of ownership although the shares may be held in another name."},{ "title": "Beneficial ownership","link": "https://www.alphaflow.com/?glossary=beneficial-ownership","glink": "beneficial_ownership","desc": "Often used in risk arbitrage. Person who enjoys the benefits of ownership even though title is in another name. (Abused through the illegal use of a parking violation.)"},{ "title": "Beneficiary","link": "https://www.alphaflow.com/?glossary=beneficiary","glink": "beneficiary","desc": "Term used to refer to the person who receives the benefits of a trust or the recipient of the proceeds of a life insurance policy."},{ "title": "Bequest","link": "https://www.alphaflow.com/?glossary=bequest","glink": "bequest","desc": "Property left to an heir under the terms of a will."},{ "title": "Bermudan option","link": "https://www.alphaflow.com/?glossary=bermudan-option","glink": "bermudan_option","desc": "An option that can be exercised at a set number of times (unlike European options, which can be exercised only at the expiration date and American options, which can be exercised any time)."},{ "title": "Best efforts","link": "https://www.alphaflow.com/?glossary=best-efforts","glink": "best_efforts","desc": "A high standard of undertaking, but nevertheless excusable in the event of a force majeure."},{ "title": "Best-efforts sale","link": "https://www.alphaflow.com/?glossary=best-efforts-sale","glink": "best_efforts_sale","desc": "A method of securities distribution/underwriting in which the securities firm agrees to sell as much of the offering as possible and return any unsold shares to the issuer. As opposed to a guaranteed or fixed-price sale or bought deal, in which the underwriter agrees to sell a specific number of shares (and holds any unsold shares in its own account if necessary)."},{ "title": "Best-interests-of-creditors test","link": "https://www.alphaflow.com/?glossary=best-interests-of-creditors-test","glink": "best_interests_of_creditors_test","desc": "The requirement that a claim holder voting against a plan of reorganization must receive at least as much as if the debtor were liquidated."},{ "title": "Best’s rating","link": "https://www.alphaflow.com/?glossary=bests-rating","glink": "bests_rating","desc": "A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders."},{ "title": "Beta","link": "https://www.alphaflow.com/?glossary=beta","glink": "beta","desc": "The measure of an asset's risk in relation to the market (for example, the S&P500) or to an alternative benchmark or factors. Roughly speaking, a security with a beta of 1.5, will have move, on average, 1.5 times the market return. [More precisely, that stock's excess return (over and above a short-term money market rate) is expected to move 1.5 times the market excess return).] According to asset pricing theory, beta represents the type of risk, systematic risk, that cannot be diversified away. When using beta, there are a number of issues that you need to be aware of: (1) betas may change through time; (2) betas may be different depending on the direction of the market (i.e. betas may be greater for down moves in the market rather than up moves); (3) the estimated beta will be biased if the security does not frequently trade; (4) the beta is not necessarily a complete measure of risk (you may need multiple betas). Also, note that the beta is a measure of co-movement, not volatility. It is possible for a security to have a zero beta and higher volatility than the market."},{ "title": "Beta equation","link": "https://www.alphaflow.com/?glossary=beta-equation","glink": "","desc": "The market beta of a security is determined as follows: Regress excess returns of stock y on excess returns of the market. The slope coefficient is beta. Define n as number of observation numbers. Beta=
[(n) (sum of [xy]) ]-[ (sum of x) (sum of y)]/
[(n) (sum of [xx]) ]-[ (sum of x) (sum of x)]
where: n = # of observations (usually 36 to 60 months)
x = rate of return for the S&P 500 index
y = rate of return for the security.
Related: Alpha"},{ "title": "Beta equation (security)","link": "https://www.alphaflow.com/?glossary=beta-equation-security","glink": "beta_equation","desc": "The market beta of a security is determined as follows: Regress excess returns of stock y on excess returns of the market. The slope coefficient is beta. Define n as number of observation numbers. "},{ "title": "BF","link": "https://www.alphaflow.com/?glossary=bf","glink": "b.f.","desc": "The two-character ISO 3166 country code for BURKINA FASO."},{ "title": "BFA","link": "https://www.alphaflow.com/?glossary=bfa","glink": "b.f.a","desc": "The three-character ISO 3166 country code for BURKINA FASO."},{ "title": "BG","link": "https://www.alphaflow.com/?glossary=bg","glink": "b.g.","desc": "The two-character ISO 3166 country code for BULGARIA."},{ "title": "BGD","link": "https://www.alphaflow.com/?glossary=bgd","glink": "b.g.d.","desc": "The three-character ISO 3166 country code for BANGLADESH."},{ "title": "BGL","link": "https://www.alphaflow.com/?glossary=bgl","glink": "bgl","desc": "The pre-July 1999 ISO 4217 currency code for Bulgarian Lev."},{ "title": "BGN","link": "https://www.alphaflow.com/?glossary=bgn","glink": "bgn","desc": "The current ISO 4217 currency code for Bulgarian Lev."},{ "title": "BGR","link": "https://www.alphaflow.com/?glossary=bgr","glink": "b.g.r.","desc": "The three-character ISO 3166 country code for BULGARIA."},{ "title": "BH","link": "https://www.alphaflow.com/?glossary=bh","glink": "b.h.","desc": "The two-character ISO 3166 country code for BAHRAIN."},{ "title": "BHC","link": "https://www.alphaflow.com/?glossary=bhc","glink": "b.h.c.","desc": "See: Bank Holding Company."},{ "title": "BHD","link": "https://www.alphaflow.com/?glossary=bhd","glink": "bhd","desc": "The ISO 4217 currency code for Bahrainian Dinar."},{ "title": "BHR","link": "https://www.alphaflow.com/?glossary=bhr","glink": "b.h.r","desc": "The three-character ISO 3166 country code for BAHRAIN."},{ "title": "BHS","link": "https://www.alphaflow.com/?glossary=bhs","glink": "b.h.s.","desc": "The three-character ISO 3166 country code for BAHAMAS."},{ "title": "BI","link": "https://www.alphaflow.com/?glossary=bi","glink": "b.i.","desc": "The two-character ISO 3166 country code for BURUNDI."},{ "title": "Bi-weekly mortgage loan","link": "https://www.alphaflow.com/?glossary=bi-weekly-mortgage-loan","glink": "bi_weekly_mortgage","desc": "A mortgage loan on which interest and principal payments are made every half-month (total of 26 payments) as opposed to monthly payments. This results in earlier loan retirement."},{ "title": "Biased expectations theories","link": "https://www.alphaflow.com/?glossary=biased-expectations-theories","glink": "biased_expectations_theories","desc": "Related: Pure expectations theory."},{ "title": "Bid","link": "https://www.alphaflow.com/?glossary=bid","glink": "bid","desc": "The price a potential buyer is willing to pay for a security. Sometimes also used in the context of takeovers where one corporation is bidding for (trying to buy) another corporation. In trading, we have the bid-ask spread which is the difference between what buyers are willing to pay and what sellers are asking for in terms of price."},{ "title": "Bid away","link": "https://www.alphaflow.com/?glossary=bid-away","glink": "bid_away","desc": "Refers to over-the-counter trading. Bid from another dealer exists at the same (listed) or higher (OTC) price."},{ "title": "Bid bond","link": "https://www.alphaflow.com/?glossary=bid-bond","glink": "bid_bond","desc": "A bid 'performance' bond consisting of a small percentage (1-3%) of the tender contract price, refunded to losers once the contract is awarded."},{ "title": "Bid price","link": "https://www.alphaflow.com/?glossary=bid-price","glink": "bid_price","desc": "This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically speaking, this is the available price at which an investor can sell shares of stock. Related: Ask, offer."},{ "title": "Bid wanted","link": "https://www.alphaflow.com/?glossary=bid-wanted","glink": "bid_wanted","desc": "Used in the context of general equities. Announcement that a holder of securities wants to sell and will entertain bids."},{ "title": "Bid-asked spread","link": "https://www.alphaflow.com/?glossary=bid-asked-spread","glink": "bid_asked_spread","desc": "The difference between the bid and the asked prices."},{ "title": "Bid-to-cover ratio","link": "https://www.alphaflow.com/?glossary=bid-to-cover-ratio","glink": "bid-to-cover_ratio","desc": "The ratio of the number of bids received in a Treasury security auction compared to the number of accepted bids."},{ "title": "Bidder","link": "https://www.alphaflow.com/?glossary=bidder","glink": "bidder","desc": "A firm or person that wants to buy a firm or security."},{ "title": "Bidding buyer","link": "https://www.alphaflow.com/?glossary=bidding-buyer","glink": "bidding_buyer","desc": "In the context of general equities, a nonaggressive buyer who prefers to await a natural seller in the hope of paying a lower price."},{ "title": "Bidding through the market","link": "https://www.alphaflow.com/?glossary=bidding-through-the-market","glink": "bidding_through_the_market","desc": "In the context of general equities, aggressive willingness to purchase a security at a premium to the inside market. Contrasts with bidding buyer."},{ "title": "Bidding up","link": "https://www.alphaflow.com/?glossary=bidding-up","glink": "bidding_up","desc": "Moving the bid price higher."},{ "title": "Bifurcation","link": "https://www.alphaflow.com/?glossary=bifurcation","glink": "bifurcation","desc": "When a non-linear dynamic system develops twice the possible solutions that it had before it passed its critical level. A bifurcation cascade is often called the period doubling route to chaos because the transition from an orderly system to a chaotic system often occurs when the number of possible solutions begins increasing, doubling each time."},{ "title": "Bifurcation Diagram","link": "https://www.alphaflow.com/?glossary=bifurcation-diagram","glink": "bifurcation_Diagram","desc": "A graph that shows the critical points where bifurcation occurs, and the possible solutions that exist at that point."},{ "title": "Big Bang","link": "https://www.alphaflow.com/?glossary=big-bang","glink": "big_bang","desc": "The term applied to the liberalization in 1986 of the London Stock Exchange (LSE) when trading was automated."},{ "title": "Big Board","link": "https://www.alphaflow.com/?glossary=big-board","glink": "big_board","desc": "A nickname for the New York Stock Exchange (NYSE). Also known as The Exchange. More than 2,000 common and preferred stocks are traded. Founded in 1792, the NYSE is the oldest exchange in the United States, and the largest. It is located on Wall Street in New York City."},{ "title": "Big Mac Index","link": "https://www.alphaflow.com/?glossary=big-mac-index","glink": "big_mac_index","desc": "The Big Mac Index is published by the Economist as an informal way of measuring the Purchasing Power Parity between currencies by comparing the price of a Big Mac in one country (in its currency) with the price of a Big Mac in another country (in its currency). The index was first introduced in September 1986 and has been published annually by the Economist since then."},{ "title": "Big picture","link": "https://www.alphaflow.com/?glossary=big-picture","glink": "big_picture","desc": "To highlight trading interest due to the size of the trade."},{ "title": "Big producer","link": "https://www.alphaflow.com/?glossary=big-producer","glink": "big_producer","desc": "A successful broker who generates a large volume of commission. See Rainmaker."},{ "title": "Big uglies","link": "https://www.alphaflow.com/?glossary=big-uglies","glink": "big_uglies","desc": "Unpopular stocks."},{ "title": "BIH","link": "https://www.alphaflow.com/?glossary=bih","glink": "B.I.H.","desc": "The three-character ISO 3166 country code for BOSNIA AND HERZEGOVINA."},{ "title": "Bilateral Netting","link": "https://www.alphaflow.com/?glossary=bilateral-netting","glink": "bilateral_netting","desc": "Bilateral netting - the consolidation of all swap agreements between two counterparties into one master agreement. The result is that if one counterparty bankrupts, that counterparty cannot seek to collect on any swaps that are in-the-money to them while at the same time refusing to pay out on any that are out-of-the-money. Instead, the master agreement sets out that in this event all swaps between the two counterparties will be netted; only then will the bankrupt company receive money, and then only if they are net in-the-money."},{ "title": "Bill of exchange","link": "https://www.alphaflow.com/?glossary=bill-of-exchange","glink": "bill_of_exchange","desc": "General term for a document demanding payment."},{ "title": "Bill of lading","link": "https://www.alphaflow.com/?glossary=bill-of-lading","glink": "bill_of_lading","desc": "A contract between an exporter and a transportation company in which the latter agrees to transport the goods under specified conditions that limit its liability. It is the exporter's receipt for the goods as well as proof that goods have been or will be received."},{ "title": "Billing cycle","link": "https://www.alphaflow.com/?glossary=billing-cycle","glink": "billing_cycle","desc": "The time elapsed between billing periods for goods sold or services rendered."},{ "title": "Binary credit default swap","link": "https://www.alphaflow.com/?glossary=binary-credit-default-swap","glink": "binary_credit_default_swap","desc": "Similar to a credit default swap except that there is a fixed dollar payoff in the event of default."},{ "title": "Binary option","link": "https://www.alphaflow.com/?glossary=binary-option","glink": "binary_option","desc": "An option where the payoff is a fixed amount of an asset or nothing at all."},{ "title": "Binder","link": "https://www.alphaflow.com/?glossary=binder","glink": "binder","desc": "An amount of money paid to indicate good faith in a transaction before the transaction is completed."},{ "title": "Binomial option pricing model","link": "https://www.alphaflow.com/?glossary=binomial-option-pricing-model","glink": "binomial_option_pricing_model","desc": "An option pricing model in which the underlying asset can assume one of only two possible, discrete values in the next time period for each value that it can take on in the preceding time period."},{ "title": "Bip","link": "https://www.alphaflow.com/?glossary=bip","glink": "bip","desc": "A basis point or 1/100th of one percent. Sometimes called bips or bps."},{ "title": "BIPS","link": "https://www.alphaflow.com/?glossary=bips","glink": "bips","desc": "See: Basis point."},{ "title": "BJ","link": "https://www.alphaflow.com/?glossary=bj","glink": "B.J.","desc": "The two-character ISO 3166 country code for BENIN."},{ "title": "BL","link": "https://www.alphaflow.com/?glossary=bl","glink": "B.L.","desc": "The two-character ISO 3166 country code for SAINT BARTHELEMY."},{ "title": "Black Friday","link": "https://www.alphaflow.com/?glossary=black-friday","glink": "black_friday","desc": "A precipitous drop in a financial market . The original Black Friday occurred on September 24, 1869, when prospectors attempted to corner the gold market."},{ "title": "Black Litterman Model","link": "https://www.alphaflow.com/?glossary=black-litterman-model","glink": "black_litterman_model","desc": "An asset allocation model that allows portfolio managers to incorporate views into CAPM equilibrium returns and generate portfolios that are more diversified than those produced with plain mean-variance optimization."},{ "title": "Black market","link": "https://www.alphaflow.com/?glossary=black-market","glink": "black_market","desc": "An illegal market."},{ "title": "Black Monday","link": "https://www.alphaflow.com/?glossary=black-monday","glink": "black_monday","desc": "Refers to October 19, 1987, when the Dow Jones Industrial Average fell 508 points on the heels of sharp drops the previous week. On Monday, October 27, 1997, the Dow dropped 554 points. While the point drop set a new record, the percentage decline was substantially less than in 1987."},{ "title": "Black-Scholes option-pricing model","link": "https://www.alphaflow.com/?glossary=black-scholes-option-pricing-model","glink": "black_scholes_option_pricing_model","desc": "A model for pricing call options based on arbitrage arguments. Uses the stock price, the exercise price, the risk-free interest rate, the time to expiration, and the expected standard deviation of the stock return. Developed by Fischer Black and Myron Scholes in 1973."},{ "title": "Blackout period","link": "https://www.alphaflow.com/?glossary=blackout-period","glink": "blackout_period","desc": "A period of time before the earnings release of a public company during which its directors and specific employees deemed insiders cannot trade the company's stock."},{ "title": "Blank check","link": "https://www.alphaflow.com/?glossary=blank-check","glink": "blank_check","desc": "A check that is duly signed, but the amount of the check is left blank to be supplied by the drawee."},{ "title": "Blank check offering","link": "https://www.alphaflow.com/?glossary=blank-check-offering","glink": "blank_check_offering","desc": "An initial public offering by a company whose business activities are undefined and therefore peculative."},{ "title": "Blank Check Preferred Stock","link": "https://www.alphaflow.com/?glossary=blank-check-preferred-stock","glink": "blank_check_preferred_stock","desc": "This is stock over which the board of directors has broad authority to determine voting, dividend, conversion, and other rights. While it can be used to enable a company to meet changing financial needs, its most important use is to implement poison pills or to prevent takeovers by placement of this stock with friendly investors."},{ "title": "Blanket certification form","link": "https://www.alphaflow.com/?glossary=blanket-certification-form","glink": "blanket_certification_form","desc": "See: NASD form FR-1"},{ "title": "Blanket fidelity bond","link": "https://www.alphaflow.com/?glossary=blanket-fidelity-bond","glink": "blanket_fidelity_bond","desc": "SEC-required insurance coverage that brokerage firms are required to have in order to cover fraudulent trading by employees."},{ "title": "Blanket inventory lien","link": "https://www.alphaflow.com/?glossary=blanket-inventory-lien","glink": "blanket_inventory_lien","desc": "A secured loan that gives the lender a lien against all the borrower's inventories."},{ "title": "Blanket Mortgage","link": "https://www.alphaflow.com/?glossary=blanket-mortgage","glink": "blanket_mortgage","desc": "A mortgage that covers at least two pieces of real estate as collateral for the same mortgage."},{ "title": "Blanket recommendation","link": "https://www.alphaflow.com/?glossary=blanket-recommendation","glink": "blanket_recommendation","desc": "A recommendation by a brokerage firm sent to all its customers advising that they buy or sell a particular stock regardless of investment objectives or portfolio size."},{ "title": "BLDRS","link": "https://www.alphaflow.com/?glossary=bldrs","glink": "bldrs","desc": "See: Baskets of Listed Depositary Receipts"},{ "title": "Blind pool","link": "https://www.alphaflow.com/?glossary=blind-pool","glink": "blind_pool","desc": "A limited partnership that does not announce its intentions as to what properties will be acquired."},{ "title": "Blind trust","link": "https://www.alphaflow.com/?glossary=blind-trust","glink": "blind_trust","desc": "A trust in which a fiduciary third party has total discretion to make investments on behalf of a beneficiary while the beneficiary is uninformed about the holdings of the trust."},{ "title": "Blitzkrieg tender offer","link": "https://www.alphaflow.com/?glossary=blitzkrieg-tender-offer","glink": "blitzkrieg_tender_offer","desc": "In the context of a takeover, refers to a tender offer that is priced so attractively that the tender is completed quickly."},{ "title": "BLM","link": "https://www.alphaflow.com/?glossary=blm","glink": "B.L.M.","desc": "The three-character ISO 3166 country code for SAINT BARTHELEMY."},{ "title": "Block","link": "https://www.alphaflow.com/?glossary=block","glink": "block","desc": "Large quantity of stock or large dollar amount of bonds held or traded. As a rule of thumb, 10,000 shares or more of stock and $200,000 or more worth of bonds would be described as a block."},{ "title": "Block call","link": "https://www.alphaflow.com/?glossary=block-call","glink": "block_call","desc": "In the context of general equities, conference meeting during which customer indications and orders, along with the traders' own buy/sell preferences, are conveyed to the entire organization. See block list."},{ "title": "Block house","link": "https://www.alphaflow.com/?glossary=block-house","glink": "block_house","desc": "Brokerage firms that help to find potential buyers or sellers of large block trades."},{ "title": "Block list","link": "https://www.alphaflow.com/?glossary=block-list","glink": "block_list","desc": "In the context of general equities, listing of stock the investment bank is looking for (wants to buy) or (wants to sell) at the beginning of the day, whether on an agency or principal basis."},{ "title": "Block trade","link": "https://www.alphaflow.com/?glossary=block-trade","glink": "block_trade","desc": "A large trading order, defined on the New York Stock Exchange as an order that consists of 10,000 shares of a given stock or at a total market value of $200,000 or more."},{ "title": "Block trader","link": "https://www.alphaflow.com/?glossary=block-trader","glink": "block_trader","desc": "A dealer who will take a position in the block trades to accommodate customer buyers and sellers of blocks. See: Dealer, market maker, principal."},{ "title": "Block voting","link": "https://www.alphaflow.com/?glossary=block-voting","glink": "block_voting","desc": "Describes a group of shareholders banding together to vote their shares in a single block."},{ "title": "Blocked currency","link": "https://www.alphaflow.com/?glossary=blocked-currency","glink": "blocked_currency","desc": "A currency that is not freely convertible to other currencies due to exchange controls."},{ "title": "Blocked funds","link": "https://www.alphaflow.com/?glossary=blocked-funds","glink": "blocked_funds","desc": "Cash flows generated by a foreign project that cannot be immediately repatriated to the parent firm because of capital flow restrictions imposed by the host government."},{ "title": "Blocker Corporation","link": "https://www.alphaflow.com/?glossary=blocker-corporation","glink": "blocker_corporation","desc": "A blocker corporation is a type of C Corporaton. Tax exempt investors and foreign investors often set up offshore feeder corporation known as a blocker corporation when they invest in private equity or hedge funds in order to avoid US trade or business income tax."},{ "title": "Blow-off top","link": "https://www.alphaflow.com/?glossary=blow-off-top","glink": "blow_off_top","desc": "A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen in charts and used in technical analysis of stock price and market trends."},{ "title": "Blowout","link": "https://www.alphaflow.com/?glossary=blowout","glink": "blowout","desc": "The rapid sale of all shares in a new securities offering. See: hot issue."},{ "title": "BLR","link": "https://www.alphaflow.com/?glossary=blr","glink": "B.L.R.","desc": "The three-character ISO 3166 country code for BELARUS."},{ "title": "Blue chip stocks","link": "https://www.alphaflow.com/?glossary=blue-chip-stocks","glink": "blue_chip_stock","desc": "Common stock of well-known companies with a history of growth and dividend payments."},{ "title": "Blue list","link": "https://www.alphaflow.com/?glossary=blue-list","glink": "blue_list","desc": "Daily financial publication featuring bonds offered for sale by dealers and banks that represent billions of dollars in par value. Also available on-line at www.bluelist.com."},{ "title": "Blue-chip company","link": "https://www.alphaflow.com/?glossary=blue-chip-company","glink": "blue_chip_company","desc": "Used in the context of general equities. Large and creditworthy company. Company renowned for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends. Gilt-edged security."},{ "title": "Blue-sky laws","link": "https://www.alphaflow.com/?glossary=blue-sky-laws","glink": "blue_sky_laws","desc": "State laws covering the issue and trading of securities."},{ "title": "BLZ","link": "https://www.alphaflow.com/?glossary=blz","glink": "B.L.Z.","desc": "The three-character ISO 3166 country code for BELIZE."},{ "title": "BM","link": "https://www.alphaflow.com/?glossary=bm","glink": "B.M.","desc": "The two-character ISO 3166 country code for BERMUDA."},{ "title": "BMD","link": "https://www.alphaflow.com/?glossary=bmd","glink": "bmd","desc": "The ISO 4217 currency code for Bermudan Dollar."},{ "title": "BMU","link": "https://www.alphaflow.com/?glossary=bmu","glink": "B.M.U.","desc": "The three-character ISO 3166 country code for BERMUDA."},{ "title": "BN","link": "https://www.alphaflow.com/?glossary=bn","glink": "B.N.","desc": "The two-character ISO 3166 country code for BRUNEI DARUSSALAM."},{ "title": "BND","link": "https://www.alphaflow.com/?glossary=bnd","glink": "bnd","desc": "The ISO 4217 currency code for Brunei Darussalam Dollar."},{ "title": "BO","link": "https://www.alphaflow.com/?glossary=bo","glink": "B.O.","desc": "The two-character ISO 3166 country code for BOLIVIA."},{ "title": "Bo Derek stock","link": "https://www.alphaflow.com/?glossary=bo-derek-stock","glink": "bo_derek_stock","desc": "High quality stock."},{ "title": "Board broker","link": "https://www.alphaflow.com/?glossary=board-broker","glink": "board_broker","desc": "Employee of the Chicago Board Options Exchange who manages away from the market orders, which cannot be executed immediately."},{ "title": "Board of Directors","link": "https://www.alphaflow.com/?glossary=board-of-directors","glink": "board_of_directors","desc": "Individuals elected by the shareholders of a corporation who carry out certain tasks established in the charter."},{ "title": "Board of Governors of the Federal Reserve System","link": "https://www.alphaflow.com/?glossary=board-of-governors-of-the-federal-reserve-system","glink": "board_of_governors_of_the_federal_reserve_system","desc": "The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply."},{ "title": "Board room","link": "https://www.alphaflow.com/?glossary=board-room","glink": "board_room","desc": "A room at a brokerage firm where its clients can watch an electronic board displaying stock prices and transactions. Also refers to the room where Board of Directors meetings take place."},{ "title": "BOB","link": "https://www.alphaflow.com/?glossary=bob","glink": "bob","desc": "The ISO 4217 currency code for Bolivian Boliviano."},{ "title": "Bogey","link": "https://www.alphaflow.com/?glossary=bogey","glink": "bogey","desc": "The return an investment manager is compared to for performance evaluation."},{ "title": "Boiler room","link": "https://www.alphaflow.com/?glossary=boiler-room","glink": "boiler_room","desc": "Used to describe place or operation in which unscrupulous salespeople call and try to sell people speculative, even fraudulent securities."},{ "title": "Boilerplate","link": "https://www.alphaflow.com/?glossary=boilerplate","glink": "boilerplate","desc": "Standard terms and conditions."},{ "title": "BOL","link": "https://www.alphaflow.com/?glossary=bol","glink": "B.O.L.","desc": "The three-character ISO 3166 country code for BOLIVIA."},{ "title": "Bollinger Bands","link": "https://www.alphaflow.com/?glossary=bollinger-bands","glink": "bollinger_bands","desc": "Plus or minus two standard deviations where the standard deviations are calculated historically in a moving window estimation. Hence, the bands will widen if the most recent data is more volatile. If the prices break out of the band, this is considered a significant move."},{ "title": "Bolsa","link": "https://www.alphaflow.com/?glossary=bolsa","glink": "bolsa","desc": "Spanish for stock exchange."},{ "title": "Bolsa de Commercio de Santiago","link": "https://www.alphaflow.com/?glossary=bolsa-de-commercio-de-santiago","glink": "sse","desc": "Chile's preeminent stock exchange."},{ "title": "Bolsa de Valores de Rio de Janeiro","link": "https://www.alphaflow.com/?glossary=bolsa-de-valores-de-rio-de-janeiro","glink": "bvrj","desc": "Brazil's second-largest stock exchange."},{ "title": "Bolsa de Valores de Sao Paulo","link": "https://www.alphaflow.com/?glossary=bolsa-de-valores-de-sao-paulo","glink": "bovespa","desc": "The largest stock exchange in Brazil."},{ "title": "Bolsa Familia Program","link": "https://www.alphaflow.com/?glossary=bolsa-familia-program","glink": "bolsa_familia_program","desc": "Direct translation is 'Family Allowance', Bolsa Familia Program is a part of Brazilian governmental welfare program Fome Zero (Zero Hunger) launched by President Luiz Inà¡cio Lula da Silva (Brazilian President 2003-2011). Bolsa Familia provides financial aid to low-income Brazilian families under the condition that their children attend school and are vaccinated. It is currently the largest conditional cash transfer program in the world."},{ "title": "Bolt","link": "https://www.alphaflow.com/?glossary=bolt","glink": "bolt","desc": "Used for listed equity securities. Block trading version of COLT."},{ "title": "Bolt-on acquisition","link": "https://www.alphaflow.com/?glossary=bolt-on-acquisition","glink": "bolton_acquisition","desc": "Bolt-on acquisition is a term in private equity. It is used when a PE backed company (Company A) acquires another company (Company B) as a 'bolt-on' to enhance the value of Company A."},{ "title": "Bombay Stock Exchange","link": "https://www.alphaflow.com/?glossary=bombay-stock-exchange","glink": "bse","desc": "Largest stock exchange of India. See also: National Stock Exchange; Mumbai stock exchange."},{ "title": "Bon voyage bonus","link": "https://www.alphaflow.com/?glossary=bon-voyage-bonus","glink": "bon_voyage_bonus","desc": "See: Greenmail."},{ "title": "Bond","link": "https://www.alphaflow.com/?glossary=bond","glink": "bond","desc": "Bonds are debt and are issued for a period of more than one year. The US government, local governments, water districts, companies and many other types of institutions sell bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principal amount of the loan at a specified time. Interest-bearing bonds pay interest periodically."},{ "title": "Bond agreement","link": "https://www.alphaflow.com/?glossary=bond-agreement","glink": "bond_agreement","desc": "A contract for privately placed debt."},{ "title": "Bond anticipation note","link": "https://www.alphaflow.com/?glossary=bond-anticipation-note","glink": "bond_anticipation_note","desc": "A short-term debt instrument issued by a state or municipality to borrow against the proceeds of an upcoming bond issue."},{ "title": "Bond broker","link": "https://www.alphaflow.com/?glossary=bond-broker","glink": "bond_broker","desc": "A broker on the floor of an exchange or in the over-the-counter market (OTC) who trades bonds."},{ "title": "Bond Buyer","link": "https://www.alphaflow.com/?glossary=bond-buyer","glink": "bond_buyer","desc": "A daily publication featuring many essential statistics and index figures relevant to the fixed income markets."},{ "title": "Bond Buyer’s municipal bond index","link": "https://www.alphaflow.com/?glossary=bond-buyers-municipal-bond-index","glink": "bond_buyers_municipal_bond_index","desc": "A municipal bond price tracking index published daily by the Bond Buyer."},{ "title": "Bond counsel","link": "https://www.alphaflow.com/?glossary=bond-counsel","glink": "bond_counsel","desc": "An attorney who prepares the legal opinion concerning a municipal bond issue."},{ "title": "Bond covenant","link": "https://www.alphaflow.com/?glossary=bond-covenant","glink": "bond_covenant","desc": "A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions."},{ "title": "Bond crowd","link": "https://www.alphaflow.com/?glossary=bond-crowd","glink": "bond_crowd","desc": "Members of the stock exchange who transact bond orders on the floor of the exchange."},{ "title": "Bond discount","link": "https://www.alphaflow.com/?glossary=bond-discount","glink": "bond_discount","desc": "The difference by which a bond's market price is lower than its face value. The antithesis of a bond premium, which prevails when the market price of a bond is higher than its face value. See: Original issue discount."},{ "title": "Bond equivalent yield","link": "https://www.alphaflow.com/?glossary=bond-equivalent-yield","glink": "bond_equivalent_yield","desc": "Bond yield calculated on an annual percentage rate method. Differs from annual effective yield."},{ "title": "Bond fund","link": "https://www.alphaflow.com/?glossary=bond-fund","glink": "bond_fund","desc": "A mutual fund that emphasizes income””consistent with risk, rather than growth””by investing in corporate, municipal, or US government debt obligations, or some combination of them."},{ "title": "Bond indenture","link": "https://www.alphaflow.com/?glossary=bond-indenture","glink": "bond_indenture","desc": "Contract that sets forth the promises of a bond issuer and the rights of investors."},{ "title": "Bond indexing","link": "https://www.alphaflow.com/?glossary=bond-indexing","glink": "bond_indexing","desc": "Designing a bond portfolio so that its performance will match the performance of some bond index."},{ "title": "Bond market association","link": "https://www.alphaflow.com/?glossary=bond-market-association","glink": "bond_market_association","desc": "An international trade association of broker/dealers and banks in US government and federal agency securities, municipal securities, mortgage-backed securities, and money market securities."},{ "title": "Bond mutual fund","link": "https://www.alphaflow.com/?glossary=bond-mutual-fund","glink": "bond_mutual_fund","desc": "A mutual fund which primarily or exclusively holds bonds."},{ "title": "Bond of Indemnity","link": "https://www.alphaflow.com/?glossary=bond-of-indemnity","glink": "bond_of_indemnity","desc": "An insurance policy that indemnifies the corporation, the shareholder and the Transfer Agent against any and all claims arising from the replacement by the Transfer Agent of certificates lost or stolen."},{ "title": "Bond option","link": "https://www.alphaflow.com/?glossary=bond-option","glink": "bond_option","desc": "An option to buy or sell a bond by a particular date at a fixed price."},{ "title": "Bond points","link": "https://www.alphaflow.com/?glossary=bond-points","glink": "bond_points","desc": "A conventional unit of measure for bond prices set at $1 and equivalent to 1% of the $100 face value of the bond. A price of 80 means that the bond is selling at 80% of its face or par value."},{ "title": "Bond power","link": "https://www.alphaflow.com/?glossary=bond-power","glink": "bond_power","desc": "A form used in the transfer of registered bonds from one owner to a different owner."},{ "title": "Bond premium","link": "https://www.alphaflow.com/?glossary=bond-premium","glink": "bond_premium","desc": "See: Bond discount"},{ "title": "Bond rating","link": "https://www.alphaflow.com/?glossary=bond-rating","glink": "bond_rating","desc": "A rating based on the possibility of default by a bond issuer. The ratings range from AAA (highly unlikely to default) to D (in default). See: Rating, investment grade."},{ "title": "Bond ratio","link": "https://www.alphaflow.com/?glossary=bond-ratio","glink": "bond_ratio","desc": "The percentage of a company's capitalization represented by bonds. The ratio is calculated by dividing the total bonds due after one year by that same figure plus all other equity. See: Debt-to-equity-ratio."},{ "title": "Bond swap","link": "https://www.alphaflow.com/?glossary=bond-swap","glink": "bond_swap","desc": "The sale of one bond issue and purchase of another bond issue simultaneously. See: Swap; swap order."},{ "title": "Bond value","link": "https://www.alphaflow.com/?glossary=bond-value","glink": "bond_value","desc": "With respect to convertible bonds, the value the security would have if it were not convertible. That is, the market value of the bond minus the value of the conversion option."},{ "title": "Bond-equivalent basis","link": "https://www.alphaflow.com/?glossary=bond-equivalent-basis","glink": "bond_equivalent_basis","desc": "The method used for computing the bond-equivalent yield."},{ "title": "Bondholder","link": "https://www.alphaflow.com/?glossary=bondholder","glink": "bondholder","desc": "A firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority."},{ "title": "BONDPAR","link": "https://www.alphaflow.com/?glossary=bondpar","glink": "bondpar","desc": "A system that monitors and evaluates the performance of a fixed income portfolio, as well as the individual securities held in the portfolio. BONDPAR decomposes the return into the elements beyond the manager's control--such as the interest rate environment and client-imposed duration policy constraints--and those that the management process contributes to, such as interest rate management, sector/quality allocations, and individual bond selection."},{ "title": "Bonds Enabling Annual Retirement Savings","link": "https://www.alphaflow.com/?glossary=bonds-enabling-annual-retirement-savings","glink": "bonds_enabling_annual_retirement_savings","desc": "Holders of BEARS receive the face value of the bonds underlying call option, which is exercised by CUBS (an acronym for Calls Underwritten by Swanbrook). If the calls are exercised by CUBS, BEARS holders receive the total of the exercise price."},{ "title": "Boning","link": "https://www.alphaflow.com/?glossary=boning","glink": "boning","desc": "Charging a lot more for an asset than its worth."},{ "title": "Book","link": "https://www.alphaflow.com/?glossary=book","glink": "book","desc": "A banker or trader's positions."},{ "title": "Book cash","link": "https://www.alphaflow.com/?glossary=book-cash","glink": "book_cash","desc": "A firm's cash balance as reported in its financial statements. Also called ledger cash."},{ "title": "Book profit","link": "https://www.alphaflow.com/?glossary=book-profit","glink": "book_profit","desc": "The cumulative book income plus any gain or loss on disposition of assets."},{ "title": "Book runner","link": "https://www.alphaflow.com/?glossary=book-runner","glink": "book_runner","desc": "The managing underwriter for a new issue. The book runner maintains the book of securities sold."},{ "title": "Book to bill","link": "https://www.alphaflow.com/?glossary=book-to-bill","glink": "book_to_bill","desc": "The book-to-bill ratio is the ratio of orders taken (booked) to products shipped and bills sent (billed). The ratio measures whether the company has more orders than it can deliver (>1), equal amounts (=1), or less (<1). This ratio is of significant interest to investors/ traders in the high-technology sector."},{ "title": "Book to market","link": "https://www.alphaflow.com/?glossary=book-to-market","glink": "book_to_market","desc": "The ratio of book value to market value of equity. A high ratio is often interpreted as a value stock (the market is valuing equity relatively cheaply compared to book value). This is the same as a low price-to-book value ratio. Value managers often form portfolios of securities with high book to market values."},{ "title": "Book value","link": "https://www.alphaflow.com/?glossary=book-value","glink": "book_value","desc": "A company's total assets minus intangible assets and liabilities, such as debt. A company's book value might be higher or lower than its market value."},{ "title": "Book value per share","link": "https://www.alphaflow.com/?glossary=book-value-per-share","glink": "book_value_per_share","desc": "The ratio of stockholder equity to the average number of common shares. Book value per share should not be thought of as an indicator of economic worth, since it reflects accounting valuation (and not necessarily market valuation)."},{ "title": "Book-Entry","link": "https://www.alphaflow.com/?glossary=book-entry","glink": "book_entry","desc": "Registered ownership of stock without the issuance of a corresponding stock certificate, as is the case with dividend reinvestment and direct purchase plans, employee plans and Direct Registration System issuances. Periodic statements of ownership are issued instead of certificates."},{ "title": "Book-entry securities","link": "https://www.alphaflow.com/?glossary=book-entry-securities","glink": "book_entry_securities","desc": "Securities which are not represented by paper certificates but are maintained in computerized records at the Fed in the names of member banks, which in turn keep computer records of the securities they own as well as those they are holding for customers. In the case of other securities where a book-entry has developed, certificates reside in a central clearinghouse or are held by another agent. These securities do not move from holder to holder."},{ "title": "Bootstrap","link": "https://www.alphaflow.com/?glossary=bootstrap","glink": "boot_strap","desc": "Term used to describe the start-up of a company with very little capital."},{ "title": "Bootstrapping","link": "https://www.alphaflow.com/?glossary=bootstrapping","glink": "bootstrapping","desc": "Creating a theoretical spot rate curve using one yield projection as the basis for the yield of the next maturity. Bootstrapping follows the work of Efron. It involves a Monte Carlo approach."},{ "title": "Borrow","link": "https://www.alphaflow.com/?glossary=borrow","glink": "borrow","desc": "To obtain or receive money on loan with the promise or understanding that it will be repaid."},{ "title": "Borrowed reserves","link": "https://www.alphaflow.com/?glossary=borrowed-reserves","glink": "borrowed_reserves","desc": "Funds borrowed from a Federal Reserve Bank by member banks to maintain the required reserve ratios."},{ "title": "Borrower fallout","link": "https://www.alphaflow.com/?glossary=borrower-fallout","glink": "borrower_fallout","desc": "In the mortgage pipeline, the risk that prospective borrowers of loans committed to be closed will elect to withdraw from the contract."},{ "title": "Boston Exchange Automated Communication Order-Routing Network","link": "https://www.alphaflow.com/?glossary=boston-exchange-automated-communication-order-routing-network","glink": "boston_exchange_automated_communication_order_routing_network","desc": "This system permits the automatic execution of trades based on the current stock prices on the consolidated markets at any of the US securities exchanges."},{ "title": "Boston Stock Exchange","link": "https://www.alphaflow.com/?glossary=boston-stock-exchange","glink": "boston_stock_exchange","desc": "The third oldest stock exchange in the United States being founded in 1834. Now known as NASDAQ OMX BX, it was previously known as BSE. NASDAQ OMX acquired the BSE in 2007."},{ "title": "Bot","link": "https://www.alphaflow.com/?glossary=bot","glink": "bot","desc": "1) Shorthand for bought. Antithesis of SL, meaning sold. 2) Also refers to a web-based algorithm (short for robot) that picks off key information that might be useful for trading."},{ "title": "Bottom","link": "https://www.alphaflow.com/?glossary=bottom","glink": "bottom","desc": "Refers to the base support level for market prices of any type. Also used in the context of securities to refer to the lowest market price of a security during a specific time-frame."},{ "title": "Bottom fisher","link": "https://www.alphaflow.com/?glossary=bottom-fisher","glink": "bottom_fisher","desc": "An investor seeking stocks that have fallen to prices at or near their bottom, which he or she believes will trend up in the future."},{ "title": "Bottom-up equity management style","link": "https://www.alphaflow.com/?glossary=bottom-up-equity-management-style","glink": "bottom_up_equity_management_style","desc": "A management style that de-emphasizes the significance of economic and market cycles, focusing instead on the analysis of individual stocks."},{ "title": "Bottomline growth","link": "https://www.alphaflow.com/?glossary=bottomline-growth","glink": "bottomline_growth","desc": "Growth in net profit. Also see topline growth."},{ "title": "Bought deal","link": "https://www.alphaflow.com/?glossary=bought-deal","glink": "bought_deal","desc": "Security issue in which one or two underwriters buy the entire issue. Also known as a guaranteed or fixed-price sale; opposite of a best-efforts sale."},{ "title": "Bounce","link": "https://www.alphaflow.com/?glossary=bounce","glink": "bounce","desc": "A check returned by a bank because it is not payable, usually because of insufficient funds. Also used in the context of securities to refer to the rejection and ensuing reclamation of a security; a stock price's abrupt decline and recovery."},{ "title": "Bourse","link": "https://www.alphaflow.com/?glossary=bourse","glink": "bourse","desc": "French for a stock market."},{ "title": "Boutique","link": "https://www.alphaflow.com/?glossary=boutique","glink": "boutique","desc": "A small, specialized brokerage firm that offers limited services and products to a limited number of clients. Antithesis of financial supermarket."},{ "title": "Box","link": "https://www.alphaflow.com/?glossary=box","glink": "box","desc": "The actual physical location at a brokerage house or bank where securities or other documents are stored for safekeeping. Alternatively, a quotation machine or battery march. Also known as 'the cage.'"},{ "title": "Box spread","link": "https://www.alphaflow.com/?glossary=box-spread","glink": "box_spread","desc": "This strategy refers to a type of option arbitrage in which both a bull spread and a bear spread are implemented for an almost-riskless position. One spread is implemented using put options and the other is implemented with calls. The spreads may both be debit spreads (call bull spread vs. put bear spread) or both credit spreads (call bear spread vs. put bull spread)."},{ "title": "BPS","link": "https://www.alphaflow.com/?glossary=bps","glink": "bps","desc": "See: Basis point."},{ "title": "BR","link": "https://www.alphaflow.com/?glossary=br","glink": "B.R.","desc": "The two-character ISO 3166 country code for BRAZIL."},{ "title": "BRA","link": "https://www.alphaflow.com/?glossary=bra","glink": "B.R.A.","desc": "The three-character ISO 3166 country code for BRAZIL."},{ "title": "Bracket","link": "https://www.alphaflow.com/?glossary=bracket","glink": "bracket","desc": "A term signifying the extent of an underwriter's commitment in a new issue, e.g., major bracket or minor bracket."},{ "title": "Bracket creep","link": "https://www.alphaflow.com/?glossary=bracket-creep","glink": "bracket_creep","desc": "The gradual movement into higher tax brackets when incomes increase as a result of inflation."},{ "title": "Brady bonds","link": "https://www.alphaflow.com/?glossary=brady-bonds","glink": "brady_bonds","desc": "Bonds issued by emerging countries under a debt reduction plan."},{ "title": "Branch","link": "https://www.alphaflow.com/?glossary=branch","glink": "branch","desc": "An operation in a foreign country incorporated in the home country."},{ "title": "BRB","link": "https://www.alphaflow.com/?glossary=brb","glink": "B.R.B.","desc": "The three-character ISO 3166 country code for BARBADOS."},{ "title": "Breadth","link": "https://www.alphaflow.com/?glossary=breadth","glink": "breadth","desc": "The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is independent (based on separate information)."},{ "title": "Breadth of the market","link": "https://www.alphaflow.com/?glossary=breadth-of-the-market","glink": "breadth_of_the_market","desc": "In the context of general equities, percentage of stocks participating in a particular market move. Technical analysts say there was significant breadth if two-thirds of the stocks listed on an exchange move in the same direction during a trading session. See: A/D line."},{ "title": "Break","link": "https://www.alphaflow.com/?glossary=break","glink": "break","desc": "A rapid and sharp price decline. Related: Crash."},{ "title": "Break even","link": "https://www.alphaflow.com/?glossary=break-even","glink": "break_even","desc": "The reduction of a project's net cash flow to zero by altering an input variable such as price or costs."},{ "title": "Break price","link": "https://www.alphaflow.com/?glossary=break-price","glink": "break_price","desc": "Used in the context of general equities. Change one's offering or bid prices to move to a more realistic, tight level where execution is more feasible. Often done to trim one's position, thus 'breaking price' from where the trades occurred (if long, 'break price' downward by a certain amount)."},{ "title": "Break-even analysis","link": "https://www.alphaflow.com/?glossary=break-even-analysis","glink": "break_even_analysis","desc": "An analysis of the level of sales at which a project would make zero profit."},{ "title": "Break-even lease payment","link": "https://www.alphaflow.com/?glossary=break-even-lease-payment","glink": "break_even_lease_payment","desc": "The lease payment at which a party to a prospective lease is indifferent between entering and not entering into a lease arrangement."},{ "title": "Break-even payment rate","link": "https://www.alphaflow.com/?glossary=break-even-payment-rate","glink": "break_even_payment_rate","desc": "The prepayment rate of an MBS coupon that will produce the same cash flow yield (CFY) as that of a predetermined benchmark MBS coupon. Used to identify for coupons higher than the benchmark coupon the prepayment rate that will produce the same cash flow yield (CFY) as that of the benchmark coupon; and for coupons lower than the benchmark coupon the lowest prepayment rate that will do so."},{ "title": "Break-even point","link": "https://www.alphaflow.com/?glossary=break-even-point","glink": "breakeven_point","desc": "Refers to the price at which a transaction produces neither a gain nor a loss. In the context of options, the term has the additional definitions:
1. Long calls and short uncovered calls: strike price plus premium.
2. Long puts and short uncovered puts: strike price minus premium.
3. Short covered call: purchase price of underlying stock minus premium.
4. Short put covered by short stock: short sale price of underlying stock plus premium."},{ "title": "Break-even tax rate","link": "https://www.alphaflow.com/?glossary=break-even-tax-rate","glink": "break_even_tax_rate","desc": "The tax rate at which a party to a prospective transaction is indifferent between entering into and not entering into the transaction."},{ "title": "Break-even time","link": "https://www.alphaflow.com/?glossary=break-even-time","glink": "break_even_time","desc": "Related: Premium payback period."},{ "title": "Breakeven rate","link": "https://www.alphaflow.com/?glossary=breakeven-rate","glink": "breakeven_rate","desc": "The difference in yield between inflation-protected and nominal debt of the same maturity. If the breakeven rate is negative it suggests traders are betting the economy may face deflation in the near future."},{ "title": "Breaking the syndicate","link": "https://www.alphaflow.com/?glossary=breaking-the-syndicate","glink": "breaking_the_syndicate","desc": "Terminating an agreement among underwriters, specifically the investment banking group assembled to underwrite the issue of a security."},{ "title": "Breakout","link": "https://www.alphaflow.com/?glossary=breakout","glink": "breakout","desc": "A rise in a security's price above a resistance level (commonly its previous high price) or a drop below a level of support (commonly the former lowest price.) A breakout is taken to signify a continuing move in the same direction. Can be used by technical analysts as a buy or sell indicator."},{ "title": "Breakpoint","link": "https://www.alphaflow.com/?glossary=breakpoint","glink": "breakpoint","desc": "For mutual funds, the point at which the amount invested reduces the sales charge is called the 'breakpoint.' Each mutual fund may have several breakpoints; the larger the investment, the greater the discount. Note that the actual reduction in the sales charge is known as the 'breakpoint discount'. Also, the term 'breakpointing' is sometimes used to refer to the offering of breakpoint discounts. The practice of soliciting mutual fund purchases just below the breakpoint (to earn more commissions) is considered unethical and in violation of NASD rules. See: right of accumulation."},{ "title": "Breakpoint Sale","link": "https://www.alphaflow.com/?glossary=breakpoint-sale","glink": "breakpoint_sale","desc": "For mutual funds, this refers to the practice of soliciting mutual fund purchases just below the breakpoint (to earn more commissions). The practice is considered unethical and in violation of NASD rules."},{ "title": "Breakup value","link": "https://www.alphaflow.com/?glossary=breakup-value","glink": "breakup_value","desc": "See: Private market value."},{ "title": "Breeden, Douglas T.","link": "https://www.alphaflow.com/?glossary=breeden-douglas-t","glink": "breeden","desc": "Inventor of one of the foundational asset pricing models in finance, the consumption based capital asset pricing model. Chairman of Smith Breeden Associates, and former Dean of the Fuqua School of Business."},{ "title": "Brent crude","link": "https://www.alphaflow.com/?glossary=brent-crude","glink": "brent_crude","desc": "A type of oil sourced from the North Sea often used as a benchmark to price oil. The other well-known classifications are West Texas Intermediate (WTI), Dubai Crude, and OPEC Reference Basket."},{ "title": "Bretton Woods Agreement","link": "https://www.alphaflow.com/?glossary=bretton-woods-agreement","glink": "bretton_woods_agreement","desc": "An agreement signed by the original United Nations members in 1944 that established the International Monetary Fund (IMF) and the post-World War II international monetary system of fixed exchange rates."},{ "title": "Bridge financing","link": "https://www.alphaflow.com/?glossary=bridge-financing","glink": "bridge_financing","desc": "Interim financing of one sort or another used to solidify a position until more permanent financing is arranged."},{ "title": "Bridge loan","link": "https://www.alphaflow.com/?glossary=bridge-loan","glink": "bridge_loan","desc": "A short-term loan that is used until a company secures permanent financing or removes an existing obligation. A bridge loan provides an immediate cash flow. In venture capital, a bridge is usually a short term note (6-12 months) that converts to preferred stock."},{ "title": "Bring it out","link": "https://www.alphaflow.com/?glossary=bring-it-out","glink": "bring_it_out","desc": "In the context of general equities, 'make stock available for sale to indicated buyers.'"},{ "title": "British Bankers Association","link": "https://www.alphaflow.com/?glossary=british-bankers-association","glink": "british_bankers_association","desc": "An association of banks and financial institutions operating in the U.K. The BBA calculates and publishes LIBOR rates."},{ "title": "British clearers","link": "https://www.alphaflow.com/?glossary=british-clearers","glink": "british_clearers","desc": "The large clearing banks that dominate deposit taking and short-term lending in the domestic sterling market."},{ "title": "BRL","link": "https://www.alphaflow.com/?glossary=brl","glink": "brl","desc": "The ISO 4217 currency code for Brazilian Real."},{ "title": "BRN","link": "https://www.alphaflow.com/?glossary=brn","glink": "B.R.N.","desc": "The three-character ISO 3166 country code for BRUNEI DARUSSALAM."},{ "title": "Broad Market","link": "https://www.alphaflow.com/?glossary=broad-market","glink": "broad_market","desc": "Usually refers to indices such as the Wilshire 5000 that track the performance of 5,000 securities, rather than the more narrow measures such as the Dow Jones Industrial Average and the S&P 500."},{ "title": "Broad tape","link": "https://www.alphaflow.com/?glossary=broad-tape","glink": "broad_tape","desc": "An expanded version of the ticker tape, which is displayed on a screen in the board room of a brokerage firm and shows constantly updated financial information and news."},{ "title": "Broad-Base","link": "https://www.alphaflow.com/?glossary=broad-base","glink": "broad_based","desc": "Generally referring to an index, it indicates that the index is composed of a sufficient number of stocks or of stocks in a variety of industry groups. See also: Narrow-Based."},{ "title": "Broken up","link": "https://www.alphaflow.com/?glossary=broken-up","glink": "broken_up","desc": "Used for listed equity securities. Prevented from executing a trade (committed to upstairs) due to exchange priority rules excluding one's order (e.g., higher bid/lower offer on floor, market order to satisfy)."},{ "title": "Broker","link": "https://www.alphaflow.com/?glossary=broker","glink": "broker","desc": "An individual who is paid a commission for executing customer orders. Either a floor broker who executes orders on the floor of the exchange, or an upstairs broker who handles retail customers and their orders. Also, person who acts as an intermediary between a buyer and seller, usually charging a commission. A 'broker' who specializes in stocks, bonds, commodities, or options acts as an agent and must be registered with the exchange where the securities are traded. Antithesis of dealer."},{ "title": "Broker loan rate","link": "https://www.alphaflow.com/?glossary=broker-loan-rate","glink": "broker_loan_rate","desc": "Related: Call money rate."},{ "title": "Broker-dealer","link": "https://www.alphaflow.com/?glossary=broker-dealer","glink": "broker_dealer","desc": "Any person, other than a bank, engaged in the business of buying or selling securities on its own behalf or for others. See: Dealer."},{ "title": "Brokered CD","link": "https://www.alphaflow.com/?glossary=brokered-cd","glink": "brokered_cd","desc": "A certificate of deposit issued by a bank or thrift institution bought by a brokerage firm in bulk for the purpose of reselling to brokerage customers. A broker CD features a higher interest rate, usually 1% higher, and are FDIC insured and do not usually have commissions."},{ "title": "Brokered market","link": "https://www.alphaflow.com/?glossary=brokered-market","glink": "brokered_market","desc": "A market in which an intermediary offers search services to buyers and sellers."},{ "title": "Brokers’ loans","link": "https://www.alphaflow.com/?glossary=brokers-loans","glink": "brokers_loans","desc": "Money borrowed by brokers from banks for uses such as financing specialists's inventories of stock, financing the underwriting of new issues of corporate and municipal securities, and financing customer margin accounts."},{ "title": "Brought over the wall","link": "https://www.alphaflow.com/?glossary=brought-over-the-wall","glink": "brought_over_the_wall","desc": "Compelling a research analyst of an investment bank to work in the underwriting department for a corporate client, therefore allowing for the transmission of insider information. Also called 'Over the Chinese wall'."},{ "title": "Bruise","link": "https://www.alphaflow.com/?glossary=bruise","glink": "bruise","desc": "See: Spaceman"},{ "title": "Brussels Stock Exchange","link": "https://www.alphaflow.com/?glossary=brussels-stock-exchange","glink": "brussels_stock_exchange","desc": "Stock exchange that handles the majority of securities transactions in Belgium."},{ "title": "BS","link": "https://www.alphaflow.com/?glossary=bs","glink": "b.s.","desc": "The two-character ISO 3166 country code for BAHAMAS."},{ "title": "BSD","link": "https://www.alphaflow.com/?glossary=bsd","glink": "bsd","desc": "The ISO 4217 currency code for Bahamas Dollar."},{ "title": "BT","link": "https://www.alphaflow.com/?glossary=bt","glink": "B.T.","desc": "The two-character ISO 3166 country code for BHUTAN."},{ "title": "BTM","link": "https://www.alphaflow.com/?glossary=btm","glink": "btm","desc": "See: Book to market."},{ "title": "BTN (1)","link": "https://www.alphaflow.com/?glossary=btn-1","glink": "btn","desc": "The ISO 4217 currency code for Bhutan Ngultrum."},{ "title": "BTN (2)","link": "https://www.alphaflow.com/?glossary=btn-2","glink": "B.T.N.","desc": "The three-character ISO 3166 country code for BHUTAN."},{ "title": "Bubble theory","link": "https://www.alphaflow.com/?glossary=bubble-theory","glink": "bubble_theory","desc": "A theory under which security prices sometimes move wildly above their true values, or the price falls sharply until the 'bubble bursts'. It is also possible for a bubble to deflate gradually."},{ "title": "Buck","link": "https://www.alphaflow.com/?glossary=buck","glink": "buck","desc": "Slang for one million dollars."},{ "title": "Bucket shop","link": "https://www.alphaflow.com/?glossary=bucket-shop","glink": "bucket_shop","desc": "An illegal brokerage firm that accepts customer orders but does not attain immediate executions. A bucket shop broker promises the customer a certain price, but waits until a price discrepancy is present and the trade is advantageous to the firm and then keeps the difference as profit. Alternatively, the broker may never fill the customer's order but keep the money."},{ "title": "Budapest Stock Exchange","link": "https://www.alphaflow.com/?glossary=budapest-stock-exchange","glink": "budapest_stock_exchange","desc": "Established in 1864, the major securities market of Hungary."},{ "title": "Budget","link": "https://www.alphaflow.com/?glossary=budget","glink": "budget","desc": "A detailed pro forma schedule of financial activity, such as an advertising budget, a sales budget, or a capital budget."},{ "title": "Budget authority","link": "https://www.alphaflow.com/?glossary=budget-authority","glink": "budget_authority","desc": "Broad responsibility conferred by Congress that empower government agencies to spend federal funds. Congress can specify criteria for the spending of these funds. For example, it may stipulate that a given agency must spend within a specific year, number of years, or any time in the future. The basic forms of budget authority are; appropriations, authority to borrow, contract authority, and authority to obligate and expend offsetting receipts and collections. The period of time during which Congress makes funds available may be specified as one-year, multiple years or no year. The available amount may be classified as either definite or indefinite; a specific amount or an unspecified amount can be made available. Authority may also be classified as current or permanent. Permanent authority requires no current action by Congress."},{ "title": "Budget deficit","link": "https://www.alphaflow.com/?glossary=budget-deficit","glink": "budget_deficit","desc": "The amount by which government spending exceeds government revenues."},{ "title": "Budget surplus","link": "https://www.alphaflow.com/?glossary=budget-surplus","glink": "budget_surplus","desc": "The amount by which government revenues exceed government spending."},{ "title": "Buenos Aires Stock Exchange","link": "https://www.alphaflow.com/?glossary=buenos-aires-stock-exchange","glink": "","desc": "Argentina's major securities market."},{ "title": "Buenos Aires Stock Exchange (Bolsa de Comercio de Buenos Aires)","link": "https://www.alphaflow.com/?glossary=buenos-aires-stock-exchange-bolsa-de-comercio-de-buenos-aires","glink": "buenos_aires_stock_exchange","desc": "Argentina's major securities market."},{ "title": "Build a book","link": "https://www.alphaflow.com/?glossary=build-a-book","glink": "build_a_book","desc": "In the context of general equities, develop customer orders to gather demand/supply in order to make a bid or an offer. Also refers to a commissioned salesperson amassing a 'book' of regular clients."},{ "title": "Build Own Transfer","link": "https://www.alphaflow.com/?glossary=build-own-transfer","glink": "build_own","desc": "The transfer of a project back to the party granting the concession, either with or at no cost."},{ "title": "Build-Operate-Transfer (BOT) Approach","link": "https://www.alphaflow.com/?glossary=build-operate-transfer-bot-approach","glink": "bot_approach","desc": "One of the two main approaches in fiancing the large-scale infrastructure projects. Contrary to State-Build-Own-Operate (SBOO) Approach, BOT Approach awards a project to a project company that operates the project for twenty-five to thirty-five years before it is transferred back to the government. BOT Approach is similar to Public-Private-Partnership (PPP) Approach."},{ "title": "Builder buydown loan","link": "https://www.alphaflow.com/?glossary=builder-buydown-loan","glink": "builder_buydown_laon","desc": "A mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder uses cash to buydown the mortgage rate to a lower level than the prevailing market loan rate for some period of time. The typical buydown is 3% of the interest rate amount for the first year, 2% for the second year, and 1% for the third year (also referred to as a 3-2-1 buydown)."},{ "title": "Builders’ All Risk","link": "https://www.alphaflow.com/?glossary=builders-all-risk","glink": "builders_all_risk","desc": "A standard construction insurance package."},{ "title": "Bulge","link": "https://www.alphaflow.com/?glossary=bulge","glink": "bulge","desc": "A short-lived stock price increase. Synonymous with bubble."},{ "title": "Bulge bracket","link": "https://www.alphaflow.com/?glossary=bulge-bracket","glink": "bulge_bracket","desc": "A tier of firms in an underwriting syndicate that have the highest participation level. See: Mezzanine bracket."},{ "title": "Bull","link": "https://www.alphaflow.com/?glossary=bull","glink": "bull","desc": "An investor who thinks the market will rise. Related: Bear."},{ "title": "Bull CD","link": "https://www.alphaflow.com/?glossary=bull-cd","glink": "bull_cd","desc": "A bull CD pays its holder a specified percentage of the increase in return on a specified market index while guaranteeing a minimum rate of return."},{ "title": "Bull market","link": "https://www.alphaflow.com/?glossary=bull-market","glink": "bull_market","desc": "Any market in which prices are in an upward trend."},{ "title": "Bull spread","link": "https://www.alphaflow.com/?glossary=bull-spread","glink": "bull_spread","desc": "A spread strategy used in options and futures trading that is designed to capitalize on expected price appreciation. A bull spread using call options is created by buying a call option on an asset with a certain strike price and selling a call option on the same asset with a higher strike price (same expiration date). A bull spread with put options is created by buying a put option with a low strike and selling a put option with a high strike price (same expiration date). Less frequently, the bull spread is implemented by buying the nearby futures contract and selling the next out contract."},{ "title": "Bull-bear bond","link": "https://www.alphaflow.com/?glossary=bull-bear-bond","glink": "bull_bear_bond","desc": "Bond whose principal repayment is linked to the price of another security. The bonds are issued in two tranches: In the first tranche repayment increases with the price of the other security, and in the second tranche repayment decreases with the price of the other security."},{ "title": "Bulldog bond","link": "https://www.alphaflow.com/?glossary=bulldog-bond","glink": "bulldog_bond","desc": "Foreign bond issue made in London."},{ "title": "Bulldog market","link": "https://www.alphaflow.com/?glossary=bulldog-market","glink": "bulldog_market","desc": "The foreign market in the United Kingdom."},{ "title": "Bullet","link": "https://www.alphaflow.com/?glossary=bullet","glink": "bullet","desc": "A one-time repayment, often after little or no amortization of the loan. See: Balloon Payment."},{ "title": "Bullet contract","link": "https://www.alphaflow.com/?glossary=bullet-contract","glink": "bullet_contract","desc": "A guaranteed investment contract purchased with a single (one-shot) premium. Related: Window contract."},{ "title": "Bullet loan","link": "https://www.alphaflow.com/?glossary=bullet-loan","glink": "bullet_loan","desc": "A bank term loan that calls for no amortization."},{ "title": "Bullet strategy","link": "https://www.alphaflow.com/?glossary=bullet-strategy","glink": "bullet_strategy","desc": "A fixed income strategy in which a portfolio is constructed so that the maturities of its securities are highly concentrated at one point on the yield curve."},{ "title": "Bullion coins","link": "https://www.alphaflow.com/?glossary=bullion-coins","glink": "bullion_coins","desc": "Metal coins consisting of gold, silver, platinum, or palladium that are actively traded. Some examples include the American eagle and the Canadian maple leaf. Their price is directly connected to the underlying price of their metal."},{ "title": "Bullish","link": "https://www.alphaflow.com/?glossary=bullish","glink": "bullish","desc": "Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook."},{ "title": "Bump-up CD","link": "https://www.alphaflow.com/?glossary=bump-up-cd","glink": "bump-up_cd","desc": "A certificate of deposit granting the owner the right to increase its yield one time for the remaining term of the CD. The power is exercised by the owner in the event of an interest rate hike."},{ "title": "Bunching","link": "https://www.alphaflow.com/?glossary=bunching","glink": "bunching","desc": "Describes the act of traders combining round-lot orders for execution at the same time. Bunching can also be used to combine odd-lot orders to save the odd-lot differential for customers. Also used to refer to the pattern on the ticker tape when a series of trades for a security appear consecutively."},{ "title": "Bundesanstalt fà¼r Finanzdienst-leistungsaufsicht","link": "https://www.alphaflow.com/?glossary=bundesanstalt-fur-finanzdienst-leistungsaufsicht","glink": "bundesanstalt_fur_finanzdienst","desc": "Germany's supervisory authority for the German financial markets. German financial regulator."},{ "title": "Bundling, unbundling","link": "https://www.alphaflow.com/?glossary=bundling-unbundling","glink": "bundling_unbundling","desc": "Creation of securities either by combining primitive and derivative securities into one composite hybrid or by separating returns on an asset into classes."},{ "title": "Bureau of Labor Statistics","link": "https://www.alphaflow.com/?glossary=bureau-of-labor-statistics","glink": "bureau_of_labor_statistics_(bls)","desc": "A research agency of the U.S. Department of Labor; it compiles statistics on hours of work, average hourly earnings, employment and unemployment, consumer prices and many other variables."},{ "title": "Burn rate","link": "https://www.alphaflow.com/?glossary=burn-rate","glink": "burn_rate","desc": "Used in venture capital financing to refer to the rate at which a startup company expends capital to finance overhead costs prior to the generation of positive cash flow."},{ "title": "Burnout","link": "https://www.alphaflow.com/?glossary=burnout","glink": "burnout","desc": "Depletion of a tax shelter's benefits. In the context of mortgage backed securities it refers to the percentage of the pool that has prepaid their mortgage."},{ "title": "Business combination","link": "https://www.alphaflow.com/?glossary=business-combination","glink": "business_combination","desc": "See: Merger"},{ "title": "Business Combination laws","link": "https://www.alphaflow.com/?glossary=business-combination-laws","glink": "business_combination_laws","desc": "These laws impose a moratorium on certain kinds of transactions (e.g., asset sales, mergers) between a large shareholder and the firm for a period usually ranging between three and five years after the shareholder's stake passes a pre-specified (minority) threshold. These laws are in place in more than half the U.S. states."},{ "title": "Business cycle","link": "https://www.alphaflow.com/?glossary=business-cycle","glink": "business_cycle","desc": "Repetitive cycles of economic expansion and contractions. The official peaks and troughs of the US cycle are determined by the National Bureau of Economic Research in Cambridge, MA."},{ "title": "Business day","link": "https://www.alphaflow.com/?glossary=business-day","glink": "business_day","desc": "A day in which financial markets are open for trading."},{ "title": "Business failure","link": "https://www.alphaflow.com/?glossary=business-failure","glink": "business_failure","desc": "A business that has terminated operations with a loss to creditors."},{ "title": "Business risk","link": "https://www.alphaflow.com/?glossary=business-risk","glink": "business_risk","desc": "The risk that the cash flow of an issuer will be impaired because of adverse economic conditions, making it difficult for the issuer to meet its operating expenses."},{ "title": "Business segment reporting","link": "https://www.alphaflow.com/?glossary=business-segment-reporting","glink": "business_segment_reporting","desc": "Reporting the results of the separate divisions or subsidiaries of a business."},{ "title": "Bust-up takeover","link": "https://www.alphaflow.com/?glossary=bust-up-takeover","glink": "bust-up_takeover","desc": "A leveraged buyout in which the buyer sells off the assets of the target company to repay the debt that financed the takeover."},{ "title": "Busted convertible","link": "https://www.alphaflow.com/?glossary=busted-convertible","glink": "busted_convertible","desc": "Related: Fixed income equivalent. Mainly applies to convertible securities. Convertible bond selling essentially as a straight bond. Assuming the issuer is 'money good,' or will continue to meet credit obligations, such issues can be highly attractive since the price makes virtually no allowance for the bond's call on the common stock, when most such issues usually carry premiums."},{ "title": "Butterfly","link": "https://www.alphaflow.com/?glossary=butterfly","glink": "butterfly","desc": "In the context of equities, a firm with two divisions may split into two companies and issue original shareholders two shares (one in each of the new companies) for every old share they have."},{ "title": "Butterfly shift","link": "https://www.alphaflow.com/?glossary=butterfly-shift","glink": "butterfly_shift","desc": "A nonparallel shift in the yield curve involving the height of the curve."},{ "title": "Butterfly spread","link": "https://www.alphaflow.com/?glossary=butterfly-spread","glink": "butterfly_spread","desc": "Applies to derivative products. Complex option strategy that involves buying a call option with a relatively low strike price; buying a call option with a relatively high strike price; and selling two call options with an intermediate strike price. Essentially, this is a bear call spread stacked on top of a bull call spread. One can also do this with puts. The investor buys a put with a low strike, buys a put at high strike and sells two puts at intermediate strike price. The payoff diagram resembles the shape of a butterfly."},{ "title": "Buy","link": "https://www.alphaflow.com/?glossary=buy","glink": "buy","desc": "To purchase an asset; taking a long position."},{ "title": "Buy hedge","link": "https://www.alphaflow.com/?glossary=buy-hedge","glink": "buy_hedge","desc": "See: Long hedge"},{ "title": "Buy in","link": "https://www.alphaflow.com/?glossary=buy-in","glink": "buy_in","desc": "To cover, offset, or close out a short position. Related: Evening up, liquidation."},{ "title": "Buy limit order","link": "https://www.alphaflow.com/?glossary=buy-limit-order","glink": "buy_limit_order","desc": "A conditional trading order that indicates a security may be purchased only at the designated price or lower. Related: Sell limit order."},{ "title": "Buy minus order","link": "https://www.alphaflow.com/?glossary=buy-minus-order","glink": "buy_minus_order","desc": "In the context of general equities, rare market or limit order to buy a stated amount of a stock, provided that the price to be obtained is not higher than the last sale if the last sale is a minus or zero-minus tick, and is not higher than the last sale minus the minimum fractional change in the stock if the last sale is a plus or zero-plus tick. (If limit, then the buy cannot occur above the limit, regardless of tick.)"},{ "title": "Buy on close","link": "https://www.alphaflow.com/?glossary=buy-on-close","glink": "buy_on_close","desc": "Buying at the end of the trading session at a price within the closing range."},{ "title": "Buy on margin","link": "https://www.alphaflow.com/?glossary=buy-on-margin","glink": "buy_on_margin","desc": "Borrowing to buy additional shares, using the shares themselves as collateral."},{ "title": "Buy on opening","link": "https://www.alphaflow.com/?glossary=buy-on-opening","glink": "buy_on_opening","desc": "Buying at the beginning of a trading session at a price within the opening range."},{ "title": "Buy on the bad news","link": "https://www.alphaflow.com/?glossary=buy-on-the-bad-news","glink": "buy_on_the_bad_news","desc": "Buying stock shortly after a price drop resulting from bad news from the company. Investors believe that the price has hit bottom and will trend upward. See: Bottom fisher."},{ "title": "Buy order","link": "https://www.alphaflow.com/?glossary=buy-order","glink": "buy_order","desc": "An order to a broker to purchase a specific quantity of a security."},{ "title": "Buy stop order","link": "https://www.alphaflow.com/?glossary=buy-stop-order","glink": "buy_stop_order","desc": "A buy order not to be executed until the market price rises to the stop price. Once the security has broken through that price, the order is then treated as a market order. Also known as a suspended market order. Often used to protect against loss on a short sale."},{ "title": "Buy the book","link": "https://www.alphaflow.com/?glossary=buy-the-book","glink": "buy_the_book","desc": "An order typically from a large institutional investor to a broker to purchase all the shares available at the market from the specialist and other brokers and dealers at the current offer price. The book refers to the record a specialist kept before the advent of computers."},{ "title": "Buy them back","link": "https://www.alphaflow.com/?glossary=buy-them-back","glink": "buy_them_back","desc": "Used for listed equity securities. 'Cover my short position."},{ "title": "Buy write","link": "https://www.alphaflow.com/?glossary=buy-write","glink": "buy_write","desc": "See also Covered Call."},{ "title": "Buy-and-hold strategy","link": "https://www.alphaflow.com/?glossary=buy-and-hold-strategy","glink": "buy_and_hold_strategy","desc": "A passive investment strategy with no active buying and selling of assets from the time the portfolio is created until the end of the investment horizon. Opposite of active strategy."},{ "title": "Buy-and-write strategy","link": "https://www.alphaflow.com/?glossary=buy-and-write-strategy","glink": "buy_and_write_strategy","desc": "An options strategy that calls for the purchase of assets and the writing of covered call options on them."},{ "title": "Buy-side analyst","link": "https://www.alphaflow.com/?glossary=buy-side-analyst","glink": "buy_side_analyst","desc": "A financial analyst employed by a nonbrokerage firm, typically one of the larger money management firms that purchases securities on its own account."},{ "title": "Buyback","link": "https://www.alphaflow.com/?glossary=buyback","glink": "buyback","desc": "The covering of a short position by purchasing a long contract, usually resulting from the short sale of a commodity. See: Short covering, stock buyback. Also used in the context of bonds. The purchase of corporate bonds by the issuing company at a discount in the open market. Also used in the context of corporate finance. When a firm elects to repurchase some of the shares trading in the market."},{ "title": "Buydown","link": "https://www.alphaflow.com/?glossary=buydown","glink": "buydown","desc": "A lump sum payment made to the creditor by the borrower or by a third party to reduce the amount of some or all of the consumer's periodic payments to repay the indebtedness. In the context of project financing, refers to a one-time payment out of liquidated damages to reflect cash flow losses from sustained underperformance."},{ "title": "Buyer credit","link": "https://www.alphaflow.com/?glossary=buyer-credit","glink": "buyer_credit","desc": "A financing provided to a buyer to pay for the supply of goods or services usually by an exporting country or by the supplier company."},{ "title": "Buyer’s market","link": "https://www.alphaflow.com/?glossary=buyers-market","glink": "buyers_market","desc": "Market in which the supply exceeds the demand, creating lower prices. Antithesis of seller's market."},{ "title": "Buyers/sellers on balance","link": "https://www.alphaflow.com/?glossary=buyerssellers-on-balance","glink": "buyers_sellers_on_balance","desc": "Used for listed equity securities. Indicates that at a given time (usually before the opening of a stock market or at expiration time), there are more buyers than sellers in the marketplace, usually with market orders. See: Imbalance of orders."},{ "title": "Buyin management buyout","link": "https://www.alphaflow.com/?glossary=buyin-management-buyout","glink": "buyin_management_buyout","desc": "A form of leveraged buyout in which the bidding team comprises members of the incumbent management team and externally hired managers, often alongside a third-party private equity investor."},{ "title": "Buying climax","link": "https://www.alphaflow.com/?glossary=buying-climax","glink": "buying_climax","desc": "A rapid rise in the price of a stock resulting from heavy buying, which usually creates the market condition for a rapid fall in the price."},{ "title": "Buying power","link": "https://www.alphaflow.com/?glossary=buying-power","glink": "buying_power","desc": "The amount of money available to buy securities, determined by adding the total cash held in brokerage accounts and the amount that could be spent if securities were margined to the limit."},{ "title": "Buying the index","link": "https://www.alphaflow.com/?glossary=buying-the-index","glink": "buying_the_index","desc": "Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the same return."},{ "title": "Buyout","link": "https://www.alphaflow.com/?glossary=buyout","glink": "buyout","desc": "Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy out is effected with borrowed money."},{ "title": "Buyout firm","link": "https://www.alphaflow.com/?glossary=buyout-firm","glink": "buyout_firm","desc": "See Private Equity firm."},{ "title": "BV","link": "https://www.alphaflow.com/?glossary=bv","glink": "B.V.","desc": "The two-character ISO 3166 country code for BOUVET ISLAND."},{ "title": "BVT","link": "https://www.alphaflow.com/?glossary=bvt","glink": "B.V.T.","desc": "The three-character ISO 3166 country code for BOUVET ISLAND."},{ "title": "BW","link": "https://www.alphaflow.com/?glossary=bw","glink": "B.W.","desc": "The two-character ISO 3166 country code for BOTSWANA."},{ "title": "BWA","link": "https://www.alphaflow.com/?glossary=bwa","glink": "B.W.A.","desc": "The three-character ISO 3166 country code for BOTSWANA."},{ "title": "BWP","link": "https://www.alphaflow.com/?glossary=bwp","glink": "bwp","desc": "The ISO 4217 currency code for Botswanan Pula."},{ "title": "BY","link": "https://www.alphaflow.com/?glossary=by","glink": "B.Y.","desc": "The two-character ISO 3166 country code for BELARUS."},{ "title": "BYB","link": "https://www.alphaflow.com/?glossary=byb","glink": "byb","desc": "The ISO 4217 currency code for Belarus Rouble."},{ "title": "Bylaw Amendment Limitations","link": "https://www.alphaflow.com/?glossary=bylaw-amendment-limitations","glink": "bylaw_amendment_limitations","desc": "These provisions limit shareholders' ability to amend the governing documents of the corporation. This might take the form of a supermajority vote requirement for charter or bylaw amendments, total elimination of the ability of shareholders to amend the bylaws, or the ability of directors beyond the provisions of state law to amend the bylaws without shareholder approval."},{ "title": "Bylaws","link": "https://www.alphaflow.com/?glossary=bylaws","glink": "bylaws","desc": "Rules and practices that govern management of an organization."},{ "title": "Bypass trust","link": "https://www.alphaflow.com/?glossary=bypass-trust","glink": "bypass_trust","desc": "An irrevocable trust that is designed to pay trust income (and principal, if needed) to an individual's spouse for the duration of the spouse's lifetime. The bypass trust is not part of the beneficiary spouse's estate and is not subject to federal estate taxes upon his/her death."},{ "title": "BZ","link": "https://www.alphaflow.com/?glossary=bz","glink": "B.Z.","desc": "The two-character ISO 3166 country code for BELIZE."},{ "title": "BZD","link": "https://www.alphaflow.com/?glossary=bzd","glink": "bzd","desc": "The ISO 4217 currency code for Belize Dollar."},{ "title": "C (NASDAQ)","link": "https://www.alphaflow.com/?glossary=c-nasdaq-2","glink": "C","desc": "Fifth letter of a Nasdaq stock descriptor specifying that issue is exempt from Nasdaq listing requirements for a temporary period."},{ "title": "C Class","link": "https://www.alphaflow.com/?glossary=c-class","glink": "c","desc": "A rating within speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated C are the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest. Rating one notch higher is Ca."},{ "title": "C Corporation","link": "https://www.alphaflow.com/?glossary=c-corporation","glink": "c_corporation","desc": "A corporation that elects to be taxed as a corporation. The C corporation pays federal and state income taxes on earnings. When the earnings are distributed to the shareholders as dividends, this income is subject to another round of taxation (shareholder's income). Essentially, the C corporations' earnings are taxed twice. In contrast, the S corporation's earnings are taxed only once."},{ "title": "C Corporations","link": "https://www.alphaflow.com/?glossary=c-corporations","glink": "c_corporations","desc": "C corporations are taxed under the Federal income tax laws and most major companies are treated as C corporations for federal tax purposes. See: S Corporatons"},{ "title": "Ca","link": "https://www.alphaflow.com/?glossary=ca","glink": "ca","desc": "A rating within speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. Rating one notch higher is Caa3. Rating one notch lower is C"},{ "title": "Caa1","link": "https://www.alphaflow.com/?glossary=caa1","glink": "caa1","desc": "A rating within speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated Caa1 are judged to be of poor standing and are subject to very high credit risk. Rating one notch higher is B3. Rating one notch lower is Caa2"},{ "title": "Caa2","link": "https://www.alphaflow.com/?glossary=caa2","glink": "caa2","desc": "A rating within speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated Caa2 are judged to be of poor standing and are subject to very high credit risk. Rating one notch higher is Caa1. Rating one notch lower is Caa3"},{ "title": "Caa3","link": "https://www.alphaflow.com/?glossary=caa3","glink": "caa3","desc": "A rating within speculative grade Moody's Long-term Corporate Obligation Rating. Obligations rated Caa3 are judged to be of poor standing and are subject to very high credit risk. Rating one notch higher is Caa2. Rating one notch lower is Ca"},{ "title": "Cabinet crowd","link": "https://www.alphaflow.com/?glossary=cabinet-crowd","glink": "cabinet_crowd","desc": "NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System."},{ "title": "Cabinet security","link": "https://www.alphaflow.com/?glossary=cabinet-security","glink": "cabinet_security","desc": "A stock or bond listed on a major exchange with low daily traded volume."},{ "title": "Cable","link": "https://www.alphaflow.com/?glossary=cable","glink": "cable","desc": "Exchange rate between British pound sterling and the U.S. dollar."},{ "title": "CAC 40 index","link": "https://www.alphaflow.com/?glossary=cac-40-index","glink": "cac_40_index","desc": "A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse."},{ "title": "CAD","link": "https://www.alphaflow.com/?glossary=cad","glink": "cad","desc": "The ISO 4217 currency code for Canada Dollar."},{ "title": "CADS","link": "https://www.alphaflow.com/?glossary=cads","glink": "cads","desc": "See Cash Available for Debt Service."},{ "title": "CAF","link": "https://www.alphaflow.com/?glossary=caf","glink": "C.A.F.","desc": "The three-character ISO 3166 country code for CENTRAL AFRICAN REPUBLIC."},{ "title": "Cage","link": "https://www.alphaflow.com/?glossary=cage","glink": "cage","desc": "A section of a brokerage firm used for receiving and disbursing funds."},{ "title": "CAGR","link": "https://www.alphaflow.com/?glossary=cagr","glink": "cagr","desc": "See: Compound Annual Growth Rate"},{ "title": "Calendar","link": "https://www.alphaflow.com/?glossary=calendar","glink": "calendar","desc": "List of new issues scheduled to come to market shortly."},{ "title": "Calendar effect","link": "https://www.alphaflow.com/?glossary=calendar-effect","glink": "calendar_effect","desc": "Describes the tendency of stocks to perform differently at different times. For example, a number of researchers have documented that historically, returns tend to be higher in January compared to other months (especially February). Others have documented returns patterns across days of the week and within the day. Some of these patterns are found in volume and volatility as well as returns."},{ "title": "Calendar spread","link": "https://www.alphaflow.com/?glossary=calendar-spread","glink": "calendar_spread","desc": "Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at the same strike prices, but with different expiration date."},{ "title": "Calendar Straddle or Combination","link": "https://www.alphaflow.com/?glossary=calendar-straddle-or-combination","glink": "calendar_straddle_or_combination","desc": "See Calendar Spread."},{ "title": "Call","link": "https://www.alphaflow.com/?glossary=call","glink": "call","desc": "An option that gives the holder the right to buy the underlying asset."},{ "title": "Call an option","link": "https://www.alphaflow.com/?glossary=call-an-option","glink": "call_an_option","desc": "To exercise a call option."},{ "title": "Call date","link": "https://www.alphaflow.com/?glossary=call-date","glink": "call_date","desc": "A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond for a specified call price."},{ "title": "Call feature","link": "https://www.alphaflow.com/?glossary=call-feature","glink": "call_feature","desc": "Part of the indenture agreement between the bond issuer and buyer describing the schedule and price of redemptions prior to maturity."},{ "title": "Call loan","link": "https://www.alphaflow.com/?glossary=call-loan","glink": "call_loan","desc": "A loan repayable on demand. Sometimes used as a synonym for broker loan or broker overnight loan."},{ "title": "Call loan rate","link": "https://www.alphaflow.com/?glossary=call-loan-rate","glink": "call_loan_rate","desc": "See: Call money rate"},{ "title": "Call money rate","link": "https://www.alphaflow.com/?glossary=call-money-rate","glink": "call_money_rate","desc": "Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service charge."},{ "title": "Call option","link": "https://www.alphaflow.com/?glossary=call-option","glink": "call_option","desc": "An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract."},{ "title": "Call premium","link": "https://www.alphaflow.com/?glossary=call-premium","glink": "call_premium","desc": "Premium in price above the par value of a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled maturity date."},{ "title": "Call price","link": "https://www.alphaflow.com/?glossary=call-price","glink": "call_price","desc": "The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a specified call date."},{ "title": "Call protection","link": "https://www.alphaflow.com/?glossary=call-protection","glink": "call_protection","desc": "A feature of some callable bonds that establishes an initial period when the bonds may not be called."},{ "title": "Call provision","link": "https://www.alphaflow.com/?glossary=call-provision","glink": "call_provision","desc": "An embedded option granting a bond issuer the right to buy back all or part of an issue prior to maturity."},{ "title": "Call risk","link": "https://www.alphaflow.com/?glossary=call-risk","glink": "call_risk","desc": "The combination of cash flow uncertainty and reinvestment risk introduced by a call provision."},{ "title": "Call swaption","link": "https://www.alphaflow.com/?glossary=call-swaption","glink": "call_swaption","desc": "A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The writer therefore becomes the fixed-rate receiver/floating-rate payer."},{ "title": "Callability","link": "https://www.alphaflow.com/?glossary=callability","glink": "callability","desc": "Feature of a security that allows the issuer to redeem the security prior to maturity by calling it in, or forcing the holder to sell it back."},{ "title": "Callable","link": "https://www.alphaflow.com/?glossary=callable","glink": "callable","desc": "Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. Bonds are usually called when interest rates fall so significantly that the issuer can save money by issuing new bonds at lower rates."},{ "title": "Called away","link": "https://www.alphaflow.com/?glossary=called-away","glink": "called_away","desc": "Convertible: Redeemed before maturity.
Option: Call or put option exercised against the stockholder.
Sale: Delivery required on a short sale."},{ "title": "CAN","link": "https://www.alphaflow.com/?glossary=can","glink": "C.A.N.","desc": "The three-character ISO 3166 country code for CANADA."},{ "title": "Canadian agencies","link": "https://www.alphaflow.com/?glossary=canadian-agencies","glink": "canadian_agencies","desc": "Agency banks established by Canadian Banks in the U.S."},{ "title": "Canadian Dealing Network","link": "https://www.alphaflow.com/?glossary=canadian-dealing-network","glink": "canadian_dealing_network","desc": "The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991."},{ "title": "Cancel","link": "https://www.alphaflow.com/?glossary=cancel","glink": "cancel","desc": "To void an order to buy or sell from (1) the floor, or (2) the trader/salesperson's scope. In Autex, the indication still remains on record as having once been placed unless it is expunged."},{ "title": "Canceled Certificates","link": "https://www.alphaflow.com/?glossary=canceled-certificates","glink": "canceled_certificates","desc": "Before the issuance of a new certificate, the old certificate is presented to the Transfer Agent and is canceled."},{ "title": "Candlestick chart","link": "https://www.alphaflow.com/?glossary=candlestick-chart","glink": "candlestick_chart","desc": "A popular method of charting price fluctuations that displays an asset's opening, closing, high, and low prices for the period.  Points on a candlestick chart are represented as a box, called the real body, with a vertical line on both the top and bottom.  White-bodied boxes represent upward movement in the price of the asset: the bottom of the body is the opening price and the top of the body is the closing price.  Black-bodied boxes represent downward movement in the price of the asset: the bottom of the body is the closing price and the top of the body is the opening price.  In both cases, the top vertical line shows the high price for the period, and the bottom vertical line shows the low price for the period. See: Real body."},{ "title": "Cap","link": "https://www.alphaflow.com/?glossary=cap","glink": "cap","desc": "An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM). Also, an OTC derivatives contract consisting of a series of European interest rate call options; used to protect an issuer of floating-rate debt from interest rate increases. Each individual call option within the cap is called a caplet. Opposite of a floor."},{ "title": "Cap Rate","link": "https://www.alphaflow.com/?glossary=cap-rate","glink": "","desc": "Rate of return on a real estate investment property based on the income that the property is expected to generate. The capitalization rate is used to estimate the investor's potential return on his or her investment. The capitalization rate of an investment may be calculated by dividing the investment's net operating income (NOI) by the current market value of the property, where NOI is the annual return on the property minus all operating costs. "},{ "title": "Capacity","link": "https://www.alphaflow.com/?glossary=capacity","glink": "capacity","desc": "Credit grantors' measurement of a person's ability to repay loans."},{ "title": "Capacity utilization rate","link": "https://www.alphaflow.com/?glossary=capacity-utilization-rate","glink": "capacity_utilization_rate","desc": "The percentage of the economy's total plant and equipment that is currently in production. Usually, a decrease in this percentage signals an economic slowdown, while an increase signals economic expansion."},{ "title": "Capex","link": "https://www.alphaflow.com/?glossary=capex","glink": "capex","desc": "See: Capital expenditures"},{ "title": "Capital","link": "https://www.alphaflow.com/?glossary=capital","glink": "capital","desc": "Money invested in a firm."},{ "title": "Capital account","link": "https://www.alphaflow.com/?glossary=capital-account","glink": "capital_account","desc": "Net result of public and private international investment and lending activities."},{ "title": "Capital allocation decision","link": "https://www.alphaflow.com/?glossary=capital-allocation-decision","glink": "capital_allocation_decision","desc": "Allocation of invested funds between risk-free assets and the risky portfolio."},{ "title": "Capital appreciation","link": "https://www.alphaflow.com/?glossary=capital-appreciation","glink": "capital_appreciation","desc": "See: Capital growth"},{ "title": "Capital appreciation fund","link": "https://www.alphaflow.com/?glossary=capital-appreciation-fund","glink": "capital_appreciation_fund","desc": "See: Aggressive growth fund"},{ "title": "Capital asset","link": "https://www.alphaflow.com/?glossary=capital-asset","glink": "capital_asset","desc": "A long-term asset, such as land or a building, not purchased or sold in the normal course of business."},{ "title": "Capital asset pricing model","link": "https://www.alphaflow.com/?glossary=capital-asset-pricing-model","glink": "capital_asset_pricing_model","desc": "An economic theory that describes the relationship between risk and expected return, and serves as a model for the pricing of risky securities. The CAPM asserts that the only risk that is priced by rational investors is systematic risk, because that risk cannot be eliminated by diversification. The CAPM says that the expected return of a security or a portfolio is equal to the rate on a risk-free security plus a risk premium multiplied by the asset's systematic risk. Theory was invented by William Sharpe (1964) and John Lintner (1965). The early work of Jack Treynor is was also instrumental in the development of this model."},{ "title": "Capital budget","link": "https://www.alphaflow.com/?glossary=capital-budget","glink": "capital_budget","desc": "A firm's planned capital expenditures."},{ "title": "Capital budgeting","link": "https://www.alphaflow.com/?glossary=capital-budgeting","glink": "capital_budgeting","desc": "The process of choosing the firm's long-term assets."},{ "title": "Capital Builder Account","link": "https://www.alphaflow.com/?glossary=capital-builder-account","glink": "capital_builder_account","desc": "A Merrill Lynch brokerage account that allows investors to access the loan value of his or her eligible securities to buy or sell securities. Excess cash in a CBA can be invested in a money market fund or an insured money market deposit account without losing access to the money."},{ "title": "Capital charge rate","link": "https://www.alphaflow.com/?glossary=capital-charge-rate","glink": "capital_charge_rate","desc": ". The capital charge is the cost of capital times the amount of invested capital. This capital charge is a dollar amount. By capital charge rate is just the cost of capital. In other words, the capital charge rate is the rate or return required on invested capital."},{ "title": "Capital commitments","link": "https://www.alphaflow.com/?glossary=capital-commitments","glink": "capital_commitments","desc": "In the context of private equity, capital commitment is a limited partner's obligation (promise) to provide certain amount of capital to a fund."},{ "title": "Capital expenditures","link": "https://www.alphaflow.com/?glossary=capital-expenditures","glink": "capital_expenditures","desc": "Amount used during a particular period to acquire or improve long-term assets such as property, plant, or equipment."},{ "title": "Capital flight","link": "https://www.alphaflow.com/?glossary=capital-flight","glink": "capital_flight","desc": "The transfer of capital abroad in response to fears of political risk."},{ "title": "Capital formation","link": "https://www.alphaflow.com/?glossary=capital-formation","glink": "capital_formation","desc": "Expansion of capital or capital goods through savings, which leads to economic growth."},{ "title": "Capital gain","link": "https://www.alphaflow.com/?glossary=capital-gain","glink": "capital_gain","desc": "When a stock is sold for a profit, the capital gain is the difference between the net sales price of the securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss."},{ "title": "Capital gains distribution","link": "https://www.alphaflow.com/?glossary=capital-gains-distribution","glink": "capital_gains_distribution","desc": "A distribution to the shareholders of a mutual fund out of profits from selling stocks or bonds, that is subject to capital gains taxes for the shareholders."},{ "title": "Capital gains tax","link": "https://www.alphaflow.com/?glossary=capital-gains-tax","glink": "captial_gains_tax","desc": "The tax levied on profits from the sale of capital assets. A long-term capital gain, which is achieved once an asset is held for at least 12 months, is taxed at a maximum rate of 20% (taxpayers in 28% tax bracket) and 10% (taxpayers in 15% tax bracket). Assets held for less than 12 months are taxed at regular income tax levels, and, since January 1, 2000, assets held for at least five years are taxed at 18% and 8%."},{ "title": "Capital gains yield","link": "https://www.alphaflow.com/?glossary=capital-gains-yield","glink": "capital_gains_yield","desc": "The price change portion of a stock's return."},{ "title": "Capital goods","link": "https://www.alphaflow.com/?glossary=capital-goods","glink": "capital_goods","desc": "Goods used by firms to produce other goods, e.g., office buildings, machinery, equipment."},{ "title": "Capital growth","link": "https://www.alphaflow.com/?glossary=capital-growth","glink": "capital_growth","desc": "The increase in an asset's market price. Also called capital appreciation."},{ "title": "Capital infusion","link": "https://www.alphaflow.com/?glossary=capital-infusion","glink": "capital_infusion","desc": "Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. In the context of venture capital, it can also refer to funds received from a venture capitalist to either get the firm started or to save it from failing due to lack of cash."},{ "title": "Capital International Indexes","link": "https://www.alphaflow.com/?glossary=capital-international-indexes","glink": "capital_international_indexes","desc": "Market indexes maintained by Morgan Stanley that track major stock markets worldwide."},{ "title": "Capital investment","link": "https://www.alphaflow.com/?glossary=capital-investment","glink": "capital_investment","desc": "See: Capital expenditure."},{ "title": "Capital lease","link": "https://www.alphaflow.com/?glossary=capital-lease","glink": "capital_lease","desc": "A lease obligation that has to be capitalized on the balance sheet."},{ "title": "Capital loss","link": "https://www.alphaflow.com/?glossary=capital-loss","glink": "capital_loss","desc": "The difference between the net cost of a security and the sales price, if the security is sold at a loss. Also used in a more general context to refer to the market for stocks, bonds, derivatives and other investments."},{ "title": "Capital market","link": "https://www.alphaflow.com/?glossary=capital-market","glink": "capital_market","desc": "Traditionally, this has referred to the market for trading long-term debt instruments (those that mature in more than one year). That is, the market where capital is raised. More recently, capital markets is used in a more general context to refer to the market for stocks, bonds, derivatives and other investments."},{ "title": "Capital market efficiency","link": "https://www.alphaflow.com/?glossary=capital-market-efficiency","glink": "capital_market_efficiency","desc": "The degree to which the present asset price accurately reflects current information in the market place. See: Efficient market hypothesis."},{ "title": "Capital market imperfections view","link": "https://www.alphaflow.com/?glossary=capital-market-imperfections-view","glink": "capital_market_imperfections_view","desc": "The view that issuing debt is generally valuable, but that the firm's optimal choice of capital structure involves various other views of capital structure ( net corporate/personal tax, agency cost, bankruptcy cost, and pecking order), that result from considerations of asymmetric information, asymmetric taxes, and transaction costs."},{ "title": "Capital market line","link": "https://www.alphaflow.com/?glossary=capital-market-line","glink": "capital_market_line","desc": "The line defined by every combination of the risk-free asset and the market portfolio. The line represents the risk premium you earn for taking on extra risk. Defined by the capital asset pricing model."},{ "title": "Capital market proceeds","link": "https://www.alphaflow.com/?glossary=capital-market-proceeds","glink": "capital_market_proceeds","desc": "Companies often go to the capital market to raise money, usually for new investment projects. They might issue new equity, bonds, or rights. The proceeds refers to the amount raised in the capital market. The net proceeds are after all underwriting costs."},{ "title": "Capital Purchase Program","link": "https://www.alphaflow.com/?glossary=capital-purchase-program","glink": "capital_purchase_program","desc": "A preferred stock and equity warrant purchase program created by US Treasury in October 2008 to stabilize the financial institutions of all sizes throughout U.S. CPP is a part of Troubled Assets Relief Program (TARP).$250 billion was allocated for CPP out of $700 billion TARP fund."},{ "title": "Capital rationing","link": "https://www.alphaflow.com/?glossary=capital-rationing","glink": "capital_rationing","desc": "Placing limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget or parts of it."},{ "title": "Capital requirements","link": "https://www.alphaflow.com/?glossary=capital-requirements","glink": "capital_requirements","desc": "Financing required for the operation of a business, composed of long-term and working capital plus fixed assets."},{ "title": "Capital reserve","link": "https://www.alphaflow.com/?glossary=capital-reserve","glink": "capital_reserve","desc": "Retained earnings that may not be distributed to shareholders as dividends."},{ "title": "Capital shares","link": "https://www.alphaflow.com/?glossary=capital-shares","glink": "capital_shares","desc": "One of two types of shares in a dual-purpose investment company, which entitle the holder to the appreciation or depreciation in the value of a portfolio, as well as the gains from trading in the portfolio. Antithesis of income shares."},{ "title": "Capital stock","link": "https://www.alphaflow.com/?glossary=capital-stock","glink": "capital_stock","desc": "Stock authorized by a firm's charter and having par value, stated value, or no par value. The number and the value of issued shares are usually shown, together with the number of shares authorized, in the capital accounts section of the balance sheet. See: Common stock."},{ "title": "Capital structure","link": "https://www.alphaflow.com/?glossary=capital-structure","glink": "capital_structure","desc": "The makeup of the liabilities and stockholders' equity side of the balance sheet, especially the ratio of debt to equity and the mixture of short and long maturities."},{ "title": "Capital surplus","link": "https://www.alphaflow.com/?glossary=capital-surplus","glink": "capital_surplus","desc": "Amounts of directly contributed equity capital in excess of the par value."},{ "title": "Capital turnover","link": "https://www.alphaflow.com/?glossary=capital-turnover","glink": "capital_turnover","desc": "Calculated by dividing annual sales by average stockholder equity (net worth). The ratio indicates how much a company could grow its current capital investment level. Low capital turnover generally corresponds to high profit margins."},{ "title": "Capital-intensive","link": "https://www.alphaflow.com/?glossary=capital-intensive","glink": "capital_intensive","desc": "Used to describe industries that require large investments in capital assets to produce their goods, such as the automobile industry. These firms require large profit margins and/or low costs of borrowing to survive."},{ "title": "Capitalization","link": "https://www.alphaflow.com/?glossary=capitalization","glink": "capitalization","desc": "The debt and/or equity mix that funds a firm's assets."},{ "title": "Capitalization method","link": "https://www.alphaflow.com/?glossary=capitalization-method","glink": "capitalization_method","desc": "A method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their capitalization."},{ "title": "Capitalization rate","link": "https://www.alphaflow.com/?glossary=capitalization-rate","glink": "capitalization_rate","desc": "The interest rate used to calculate the present value of a number of future payments."},{ "title": "Capitalization ratios","link": "https://www.alphaflow.com/?glossary=capitalization-ratios","glink": "capitalization_ratios","desc": "Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the context of the stability of industry and company earnings and cash flow."},{ "title": "Capitalization table","link": "https://www.alphaflow.com/?glossary=capitalization-table","glink": "capitalization_table","desc": "A table showing the capitalization of a firm, which typically includes the amount of capital obtained from each source - long-term debt and common equity - and the respective capitalization ratios."},{ "title": "Capitalization-Weighted Index","link": "https://www.alphaflow.com/?glossary=capitalization-weighted-index","glink": "capitalization_weighted_index","desc": "A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index. See also Float, Divisor."},{ "title": "Capitalized","link": "https://www.alphaflow.com/?glossary=capitalized","glink": "capitalized","desc": "Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year."},{ "title": "Capitalized interest","link": "https://www.alphaflow.com/?glossary=capitalized-interest","glink": "capitalized_interest","desc": "Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing."},{ "title": "Capped-Style Option","link": "https://www.alphaflow.com/?glossary=capped-style-option","glink": "capped_style_option","desc": "A capped option is an option with an established profit cap or cap price. The cap price is equal to the option's strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option. A capped option is automatically exercised when the underlying security closes at or above (for a call) or at or below (for a put) the Option's cap price."},{ "title": "CAPS","link": "https://www.alphaflow.com/?glossary=caps","glink": "c.a.p.s.","desc": "See: Convertible adjustable preferred stock"},{ "title": "Captive finance company","link": "https://www.alphaflow.com/?glossary=captive-finance-company","glink": "captive_finance_company","desc": "A company, usually a subsidiary that is wholly owned, whose main function is financing consumer purchases from the parent company."},{ "title": "Caput","link": "https://www.alphaflow.com/?glossary=caput","glink": "caput","desc": "An exotic option. It represents a call option on a put option. That is, you purchase the option to buy a put option at a particular price on or before the expiration date."},{ "title": "Car","link": "https://www.alphaflow.com/?glossary=car","glink": "car","desc": "A loose quantity term sometimes used to describe the amount of a commodity underlying one commodity contract; e.g., 'a car of bellies.' Derived from the fact that quantities of the product specified in a contract once corresponded closely to the capacity of a railroad car."},{ "title": "Caracas Stock Exchange","link": "https://www.alphaflow.com/?glossary=caracas-stock-exchange","glink": "caracas_stock_exchange","desc": "Originally established in 1947 and merged with a competitor in 1974 to become the only securities exchange of Venezuela."},{ "title": "CARDs","link": "https://www.alphaflow.com/?glossary=cards","glink": "c.a.r.d.","desc": "See: Certificates of Amortized Revolving Debt"},{ "title": "Cargo","link": "https://www.alphaflow.com/?glossary=cargo","glink": "cargo","desc": "Goods being transported."},{ "title": "Carriage and Insurance Paid To","link": "https://www.alphaflow.com/?glossary=carriage-and-insurance-paid-to","glink": "carriage_and_insruance_paid_to","desc": "Seller is responsible for the payment of freight to carry goods to a named overseas destination. The seller is also responsible for providing cargo insurance at minimum coverage against the buyer's risk of loss or damage to the goods during transport. The risk of loss or damage is transferred from the seller to the buyer once the goods are delivered into the carrier's custody. This term may be used for any mode of transport."},{ "title": "Carriage Paid To","link": "https://www.alphaflow.com/?glossary=carriage-paid-to","glink": "carriage_paid_to","desc": "Seller is responsible for the payment of freight to carry goods to a named overseas destination. The risk of loss or damage is transferred from the seller to the buyer when the goods have been delivered into the carrier's custody. This term may be used for any mode of transport."},{ "title": "Carried interest","link": "https://www.alphaflow.com/?glossary=carried-interest","glink": "carried_interest","desc": "In private equity fund or hedge fund, carried interest is a share of the profits of a successful partnership that is paid to the manager of the partnership as a form of compensation. Carried interest is typically up to 20% of the profits and becomes payable once the original investment in the fund has been repaid to the investors, plus a predefined hurdle rate."},{ "title": "Carrot equity","link": "https://www.alphaflow.com/?glossary=carrot-equity","glink": "carrot_equity","desc": "British slang for an equity investment with the added benefit of an opportunity to purchase more equity if the company reaches certain financial goals."},{ "title": "Carry","link": "https://www.alphaflow.com/?glossary=carry","glink": "carry","desc": "Related: Net financing cost."},{ "title": "Carry Trade","link": "https://www.alphaflow.com/?glossary=carry-trade","glink": "carry_trade","desc": "For the bond market, this refers to a trade where you borrow and pay interest in order to buy something else that has higher interest. For example, with a positively sloped term structure (short rates lower than long rates), one might borrow at low short term rates and finance the purchase of long-term bonds. The carry return is the coupon on the bonds minus the interest costs of the short-term borrowing. Of course, if long-term interest rates unexpectedly rose(and long-term bond prices fell as a result), the carry trade could become unprofitable. Indeed, if this occured, there could be a number of investors trying to unwind the carry trade, which would involve selling the long-term bonds. It is possible that this could exacerbate the increase in long-term interest rates, i.e. push the rates even higher. For currency, you buy the currency that has the highest local short term interest rate. For more information on currency, see: Currency Carry Trade."},{ "title": "Carryback","link": "https://www.alphaflow.com/?glossary=carryback","glink": "carryback","desc": "See Loss carryback."},{ "title": "Carryforwards","link": "https://www.alphaflow.com/?glossary=carryforwards","glink": "carryforwards","desc": "Tax losses allowed to be applied to offset future income in some specified number of future years."},{ "title": "Carrying charge","link": "https://www.alphaflow.com/?glossary=carrying-charge","glink": "carrying_charge","desc": "The fee a broker charges for carrying securities on credit, such as on a margin account. Also, any component of a futures basis, such as storage costs, interest charges or insurance costs on the underlying interest."},{ "title": "Carrying costs","link": "https://www.alphaflow.com/?glossary=carrying-costs","glink": "carrying_costs","desc": "Costs that increase with increases in the level of investment in current assets."},{ "title": "Carrying value","link": "https://www.alphaflow.com/?glossary=carrying-value","glink": "carrying_value","desc": "Book value."},{ "title": "Carryover","link": "https://www.alphaflow.com/?glossary=carryover","glink": "carryover","desc": "Funds unused during a financial year which are transferred to the budget for the following year."},{ "title": "CARs","link": "https://www.alphaflow.com/?glossary=cars","glink": "c.a.r.","desc": "See: Certificates of Automobile Receivables"},{ "title": "Cartel","link": "https://www.alphaflow.com/?glossary=cartel","glink": "cartel","desc": "A group of businesses or nations that act together as a single producer to obtain market control and to influence prices in their favor by limiting production of a product. The United States has laws prohibiting cartels."},{ "title": "Carve out","link": "https://www.alphaflow.com/?glossary=carve-out","glink": "carve_out","desc": "Usually occurs when a company decides to IPO one of their subsidiaries or divisions. The company usually only offers a minority share to the equity market. Also known as equity carve out."},{ "title": "Case-Shiller index","link": "https://www.alphaflow.com/?glossary=case-shiller-index","glink": "case_shiller_index","desc": "A family of S&P indices created by Karl Case, Robert Shiller, and Allan Weiss used to measure the nominal value of home prices in the U.S.  The Case-Shiller Indices, which are based on 20 metropolitan statistical areas (MSAs), use data on single-family homes sold more than once (resale homes) and re-sold sale prices to provide a weighted and quality-adjusted assessment of the real estate market.  Calculated each month by Fiserv, Inc., the family of indices consists of 20 MSA indices and two aggregated indices."},{ "title": "Cash","link": "https://www.alphaflow.com/?glossary=cash","glink": "cash","desc": "The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances. Cash equivalents on balance sheets include securities that mature within 90 days (e.g., notes)."},{ "title": "Cash & carry","link": "https://www.alphaflow.com/?glossary=cash-carry","glink": "cash_and_carry","desc": "Applies to derivative products. Combination of a long position in a stock/index/commodity and short position in the underlying futures, which entails a cost of carry on the long position. Also known as cash and carry arbitrage."},{ "title": "Cash account","link": "https://www.alphaflow.com/?glossary=cash-account","glink": "cash_account","desc": "A brokerage account that settles transactions on a cash-rather than credit-basis."},{ "title": "Cash and equivalents","link": "https://www.alphaflow.com/?glossary=cash-and-equivalents","glink": "cash_and_equivalents","desc": "The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as bonds and Banker's Acceptances. Cash equivalents on balance sheets include securities (e.g., notes) that mature within 90 days."},{ "title": "Cash asset ratio","link": "https://www.alphaflow.com/?glossary=cash-asset-ratio","glink": "cash_asset_ratio","desc": "Cash and marketable securities divided by current liabilities. See: Liquidity ratios."},{ "title": "Cash Available for Debt Service","link": "https://www.alphaflow.com/?glossary=cash-available-for-debt-service","glink": "cash_available_for_dedt_service","desc": "Ratio of cash assets to debt service (interest plus nearby principal). Used in evaluating the risk of a project or firm. The higher the ratio the less likely the firm or project will fail to meet its debt obligations."},{ "title": "Cash balance pension plan","link": "https://www.alphaflow.com/?glossary=cash-balance-pension-plan","glink": "cash_balance_pension_plan","desc": "A cash balance pension plan is a defined-benefit plan that is maintained on an individual account basis. The employer contributes to a participant's account with a set percentage of annual compensation plus interest charges. The company holds all ownership of profits and losses in the portfolio."},{ "title": "Cash basis","link": "https://www.alphaflow.com/?glossary=cash-basis","glink": "cash_basis","desc": "Refers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out."},{ "title": "Cash budget","link": "https://www.alphaflow.com/?glossary=cash-budget","glink": "cash_budget","desc": "A forecasted summary of a firm's expected cash inflows and cash outflows as well as its expected cash and loan balances."},{ "title": "Cash commodity","link": "https://www.alphaflow.com/?glossary=cash-commodity","glink": "cash_commodity","desc": "The actual physical commodity, as distinguished from a futures contract."},{ "title": "Cash conversion cycle","link": "https://www.alphaflow.com/?glossary=cash-conversion-cycle","glink": "cash_conversion_cycle","desc": "The length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable."},{ "title": "Cash cow","link": "https://www.alphaflow.com/?glossary=cash-cow","glink": "cash_cow","desc": "A company that pays out most of its earnings per share to stockholders as dividends. Or, a company or division of a company that generates a steady and significant amount of free cash flow."},{ "title": "Cash cycle","link": "https://www.alphaflow.com/?glossary=cash-cycle","glink": "cash_cycle","desc": "In general, the time between cash disbursement and cash collection. In net working capital management, it can be thought of as the operating cycle less the accounts payable payment period."},{ "title": "Cash deficiency agreement","link": "https://www.alphaflow.com/?glossary=cash-deficiency-agreement","glink": "cash_deficiency_agreement","desc": "An agreement to invest cash in a project to the extent required to cover any cash deficiency the project may experience."},{ "title": "Cash delivery","link": "https://www.alphaflow.com/?glossary=cash-delivery","glink": "cash_delivery","desc": "The provision of some futures contracts that requires not delivery of underlying assets but settlement according to the cash value of the asset."},{ "title": "Cash discount","link": "https://www.alphaflow.com/?glossary=cash-discount","glink": "cash_discount","desc": "An incentive offered to purchasers of a firm's product for payment within a specified time period, such as ten days."},{ "title": "Cash dividend","link": "https://www.alphaflow.com/?glossary=cash-dividend","glink": "cash_dividend","desc": "A dividend paid in cash to a company's shareholders. The amount is normally based on profitability and is taxable as income. A cash distribution may include capital gains and return of capital in addition to the dividend."},{ "title": "Cash earnings","link": "https://www.alphaflow.com/?glossary=cash-earnings","glink": "cash_earnings","desc": "A firm's cash revenues less cash expenses, which excludes the costs of depreciation."},{ "title": "Cash flow","link": "https://www.alphaflow.com/?glossary=cash-flow","glink": "cash_flow","desc": "In investments, cash flow represents earnings before depreciation, amortization, and non-cash charges. Sometimes called cash earnings. Cash flow from operations (called funds from operations by real estate and other investment trusts) is important because it indicates the ability to pay dividends."},{ "title": "Cash flow after interest and taxes","link": "https://www.alphaflow.com/?glossary=cash-flow-after-interest-and-taxes","glink": "cash_flow_after_interest_and_taxes","desc": "Net income plus depreciation."},{ "title": "Cash flow break-even point","link": "https://www.alphaflow.com/?glossary=cash-flow-break-even-point","glink": "cash_flow_break_even_point","desc": "The point below which the firm will need either to obtain additional financing or to liquidate some of its assets to meet its fixed costs."},{ "title": "Cash flow coverage ratio","link": "https://www.alphaflow.com/?glossary=cash-flow-coverage-ratio","glink": "cash_flow_coverage_ratio","desc": "The number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation."},{ "title": "Cash flow from operations","link": "https://www.alphaflow.com/?glossary=cash-flow-from-operations","glink": "cash_flow_from_operations","desc": "A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses that are deducted in calculating net income."},{ "title": "Cash flow matching","link": "https://www.alphaflow.com/?glossary=cash-flow-matching","glink": "cash_flow_matching","desc": "Also called dedicating a portfolio, this is an alternative to multiperiod immunization that calls for the manager to match the maturity of each element in the liability stream, working backward from the last liability to assure all required cash flows."},{ "title": "Cash flow per common share","link": "https://www.alphaflow.com/?glossary=cash-flow-per-common-share","glink": "cash_flow_per_common_share","desc": "Cash flow from operations minus preferred stock dividends, divided by the number of common shares outstanding."},{ "title": "Cash flow time line","link": "https://www.alphaflow.com/?glossary=cash-flow-time-line","glink": "cash_flow_time_line","desc": "Line depicting the operating activities and cash flows for a firm over a particular period."},{ "title": "Cash in Advance","link": "https://www.alphaflow.com/?glossary=cash-in-advance","glink": "cash_in_advance","desc": "A payment term meaning the buyer pays the seller before shipment is effected."},{ "title": "Cash In Lieu","link": "https://www.alphaflow.com/?glossary=cash-in-lieu","glink": "cash_in_lieu","desc": "In a typical exchange offer, 'old' shares of the target company are exchanged for 'new shares'."},{ "title": "Cash investments","link": "https://www.alphaflow.com/?glossary=cash-investments","glink": "cash_investments","desc": "Short-term debt instruments””such as commercial paper, banker's acceptances, and Treasury bills””that mature in less than one year. Also known as money market instruments or cash reserves."},{ "title": "Cash management","link": "https://www.alphaflow.com/?glossary=cash-management","glink": "cash_management","desc": "Refers to the efficient management of cash in a business in order to put the cash to work more quickly and to keep the cash in applications that produce income, such as the use of lock boxes for payments."},{ "title": "Cash management bill","link": "https://www.alphaflow.com/?glossary=cash-management-bill","glink": "cash_management_bill","desc": "Very short-maturity bills that the Treasury occasionally sells because its cash balances are down and it needs money for a few days."},{ "title": "Cash markets","link": "https://www.alphaflow.com/?glossary=cash-markets","glink": "cash_markets","desc": "Also called spot markets, these are markets that involve the immediate delivery of a security or instrument. Related: Derivative markets."},{ "title": "Cash offer","link": "https://www.alphaflow.com/?glossary=cash-offer","glink": "cash_offer","desc": "Often used in risk arbitrage. Proposal, either hostile or friendly, to acquire a target company through the payment of cash for the stock of the target. Compare to exchange offer."},{ "title": "Cash on delivery","link": "https://www.alphaflow.com/?glossary=cash-on-delivery","glink": "cash_on_delivery","desc": "In the context of securities, this refers to the practice of institutional investors paying the full purchase price for securities in cash."},{ "title": "Cash plus convertible","link": "https://www.alphaflow.com/?glossary=cash-plus-convertible","glink": "cash_plus_convertible","desc": "Convertible bond that requires cash payment upon conversion."},{ "title": "Cash position","link": "https://www.alphaflow.com/?glossary=cash-position","glink": "cash_position","desc": "The percentage of a mutual fund's assets invested in short-term reserves, such as US Treasury bills or other money market instruments."},{ "title": "Cash price","link": "https://www.alphaflow.com/?glossary=cash-price","glink": "cash_price","desc": "Applies to derivative products. See: Spot price."},{ "title": "Cash ratio","link": "https://www.alphaflow.com/?glossary=cash-ratio","glink": "cash_ratio","desc": "The proportion of a firm's assets held as cash."},{ "title": "Cash reserves","link": "https://www.alphaflow.com/?glossary=cash-reserves","glink": "cash_reserves","desc": "See: Cash investments"},{ "title": "Cash sale/settlement","link": "https://www.alphaflow.com/?glossary=cash-salesettlement","glink": "cash_sale_settlement","desc": "Transaction in which a contract is settled on the same day as the trade date, or the next day if the trade occurs after 2:30 p.m. EST and the parties agree to this procedure. Often occurs because a party is strapped for cash and cannot wait until the regular three-business day settlement. See: Settlement date."},{ "title": "Cash Settlement","link": "https://www.alphaflow.com/?glossary=cash-settlement","glink": "cash_settlement","desc": "The process by which the terms of an option contract are fulfilled through the payment or receipt in dollars of the amount by which the option is in-the-money as opposed to delivering or receiving the underlying stock."},{ "title": "Cash settlement contracts","link": "https://www.alphaflow.com/?glossary=cash-settlement-contracts","glink": "cash_settlement_contracts","desc": "Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying."},{ "title": "Cash transaction","link": "https://www.alphaflow.com/?glossary=cash-transaction","glink": "cash_transaction","desc": "A transaction in which exchange is immediate in the form of cash, unlike a forward contract (which calls for future delivery of an asset at an agreed-upon price)."},{ "title": "Cash value life insurance","link": "https://www.alphaflow.com/?glossary=cash-value-life-insurance","glink": "cash_value_life_insurance","desc": "A combination of term life insurance with a savings component. A portion of the premium is used to fund a savings or investment component that the policyholder can access by borrowing against it or by cashing in the policy."},{ "title": "Cash-equivalent items","link": "https://www.alphaflow.com/?glossary=cash-equivalent-items","glink": "cash_equivalent_items","desc": "Examples include Treasury bills and Banker's Acceptances."},{ "title": "Cash-liabilities ratio","link": "https://www.alphaflow.com/?glossary=cash-liabilities-ratio","glink": "cash_liabilities_ratio","desc": "Used as a measure of liquidity in a corporation. Calculated as the ratio of cash and cash equivalents to current liabilities."},{ "title": "Cash-on-Cash","link": "https://www.alphaflow.com/?glossary=cash-on-cash","glink": "","desc": "The ratio of annual before-taxcash flow to the total amount of cash invested, expressed as a percentage. It is often used to evaluate the cash flow from income-producing assets."},{ "title": "Cash-on-cash return","link": "https://www.alphaflow.com/?glossary=cash-on-cash-return","glink": "cash_on_cash_return","desc": "A method used to find the return on investments when there is no active secondary market. The yield is determined by dividing the annual cash income by the total investment. See: Current yield or yield to maturity."},{ "title": "Cash-out Laws","link": "https://www.alphaflow.com/?glossary=cash-out-laws","glink": "cash_out_laws","desc": "These laws enable shareholders to sell their stakes to a 'controlling' shareholder at a price based on the highest price of recently acquired shares. This works something like Fair-Price provisions extended to nontakeover situations. A few states have these laws."},{ "title": "Cash-surrender value","link": "https://www.alphaflow.com/?glossary=cash-surrender-value","glink": "cash_surrender_value","desc": "The amount an insurance company will pay if the policyholder tenders or cashes in a whole life insurance policy."},{ "title": "Cashbook","link": "https://www.alphaflow.com/?glossary=cashbook","glink": "cashbook","desc": "An accounting book that is composed of cash receipts plus disbursements. This balance is posted to the cash account in the ledger."},{ "title": "Cashed-Based","link": "https://www.alphaflow.com/?glossary=cashed-based","glink": "cash_based","desc": "Refering to an option or future that is settled in cash when exercised or assigned. No physical entity, either stock or commodity, is received or delivered."},{ "title": "Cashier’s check","link": "https://www.alphaflow.com/?glossary=cashiers-check","glink": "cashiers_check","desc": "A check drawn directly on a customer's account, making the bank the primary obligor, and assuring firm that the amount will be paid."},{ "title": "Cashout","link": "https://www.alphaflow.com/?glossary=cashout","glink": "cashout","desc": "Occurs when a firm runs out of cash and cannot readily sell marketable securities."},{ "title": "Casualty loss","link": "https://www.alphaflow.com/?glossary=casualty-loss","glink": "casualty_loss","desc": "A financial loss caused by damage, destruction, or loss of property as a result of an unexpected or unusual event."},{ "title": "Casualty-insurance","link": "https://www.alphaflow.com/?glossary=casualty-insurance","glink": "casualty_insurance","desc": "Insurance protecting a firm or homeowner against loss of property, damage, and other liabilities."},{ "title": "Catastrophe bond","link": "https://www.alphaflow.com/?glossary=catastrophe-bond","glink": "catastrophe_bond","desc": "Also known as cat bonds, these are used as a way for insurance agents to transfer risks to investors. They are often attractive to investors because the risks (like that of an earthquake) are uncorrelated with the business cycle - and, hence, provide natural diversification. Cat bond is typically structured so that if a major natural catastrophe hits, the principal initially paid by the investors is forgiven and used by the sponsor (the insurer) to pay its claims to policyholders."},{ "title": "Catastrophe call","link": "https://www.alphaflow.com/?glossary=catastrophe-call","glink": "catastrophe_call","desc": "Early redemption of a municipal revenue bond because a catastrophe has destroyed the project that provided the revenue source backing the bond."},{ "title": "Cats and dogs","link": "https://www.alphaflow.com/?glossary=cats-and-dogs","glink": "cats_and_dogs","desc": "Speculative stocks with short histories of sales, earnings, and dividend payments."},{ "title": "Caveat emptor, caveat subscriptor","link": "https://www.alphaflow.com/?glossary=caveat-emptor-caveat-subscriptor","glink": "caveat_emptor_caveat_subscriptor","desc": "Latin expressions for 'buyer beware' and 'seller beware,' which warn of overly risky, inadequately protected markets."},{ "title": "CAX","link": "https://www.alphaflow.com/?glossary=cax","glink": "cax","desc": "The ISO 4217 currency code for Canadian Cent."},{ "title": "CBD","link": "https://www.alphaflow.com/?glossary=cbd","glink": "cbd","desc": "See: Cash In Advance."},{ "title": "CC","link": "https://www.alphaflow.com/?glossary=cc","glink": "C.C.","desc": "The two-character ISO 3166 country code for COCOS (KEELING) ISLANDS."},{ "title": "CCK","link": "https://www.alphaflow.com/?glossary=cck","glink": "C.C.K.","desc": "The three-character ISO 3166 country code for COCOS (KEELING) ISLANDS."},{ "title": "CCO","link": "https://www.alphaflow.com/?glossary=cco","glink": "C.C.O.","desc": "Chief Compliance Officer."},{ "title": "CCP","link": "https://www.alphaflow.com/?glossary=ccp","glink": "ccp","desc": "See: Central Counterparty Clearing House"},{ "title": "CCR","link": "https://www.alphaflow.com/?glossary=ccr","glink": "C.C.R.","desc": "See: Counterparty Credit Risk."},{ "title": "CDO squared","link": "https://www.alphaflow.com/?glossary=cdo-squared","glink": "cdo_squared","desc": "A CDO in which the underlying asset pool contains tranches of other CDOs."},{ "title": "CDS","link": "https://www.alphaflow.com/?glossary=cds","glink": "c.d.s.","desc": "See:Credit Default Swap."},{ "title": "Cease-and-desist order","link": "https://www.alphaflow.com/?glossary=cease-and-desist-order","glink": "cease-and-desist_order","desc": "An order issued after notice and opportunity for hearing, requiring a depository institution, a holding company or a depository institution official to terminate unlawful, unsafe or unsound banking practices. Cease-and-desist orders are issued by the appropriate federal regulatory agencies under the Financial Institutions Supervisory Act and can be enforced directly by the courts."},{ "title": "CEBS","link": "https://www.alphaflow.com/?glossary=cebs","glink": "cebs","desc": "See: Committee European Banking Supervisors."},{ "title": "Cede & Co.","link": "https://www.alphaflow.com/?glossary=cede-co","glink": "cede","desc": "Nominee name for The Depository Trust Company, a large clearing house that holds shares in its name for banks, brokers and institutions in order to expedite the sale and transfer of stock."},{ "title": "CEDEL","link": "https://www.alphaflow.com/?glossary=cedel","glink": "cedel","desc": "A centralized clearing system for Eurobonds."},{ "title": "Ceiling","link": "https://www.alphaflow.com/?glossary=ceiling","glink": "ceiling","desc": "The highest price, interest rate, or other numerical factor allowable in a financial transaction."},{ "title": "Centillion","link": "https://www.alphaflow.com/?glossary=centillion","glink": "centillion","desc": "A unit of quantity equal to 10303 (1 followed by 303 zeros)."},{ "title": "Central bank","link": "https://www.alphaflow.com/?glossary=central-bank","glink": "central_bank","desc": "A country's main bank whose responsibilities include the issue of currency, the administration of monetary policy, open market operations, and engaging in transactions designed to facilitate healthy business interactions. See: Federal Reserve System."},{ "title": "Central bank intervention","link": "https://www.alphaflow.com/?glossary=central-bank-intervention","glink": "central_bank_intervention","desc": "The buying or selling of currency, foreign or domestic, by central banks in order to influence market conditions or exchange rate movements."},{ "title": "Central bank liquidity swap","link": "https://www.alphaflow.com/?glossary=central-bank-liquidity-swap","glink": "central_bank_liquidity_swap","desc": "Announced by the Federal Reserve on December 12, 2007, the Fed made temporary agreements with 14 central banks around the world to provide liquidity in U.S. dollars to overseas markets. The agreements terminated on Feb. 1, 2010."},{ "title": "Central Counterparty Clearing House","link": "https://www.alphaflow.com/?glossary=central-counterparty-clearing-house","glink": "central_counterparty_clearing_house","desc": "An organization in European countries that helps facilitate trading done in European derivatives and equities market."},{ "title": "Central Limit Theorem","link": "https://www.alphaflow.com/?glossary=central-limit-theorem","glink": "central_limit_theorem","desc": "The Law of Large Numbers states that as a sample of independent, identically distributed random numbers approaches infinity, its probability density function approaches the normal distribution. See: Normal Distribution."},{ "title": "Centralized cash flow management","link": "https://www.alphaflow.com/?glossary=centralized-cash-flow-management","glink": "centralized_cash_flow_management","desc": "Provision of consolidated cash management decisions to all MNC units from one location, usually at the parent's headquarters."},{ "title": "Cents per share","link": "https://www.alphaflow.com/?glossary=cents-per-share","glink": "cents_per_share","desc": "The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned."},{ "title": "Certainty equivalent","link": "https://www.alphaflow.com/?glossary=certainty-equivalent","glink": "certainty_equivalent","desc": "An amount that would be accepted today (risk free) in lieu of a chance to receive a possibly higher, but uncertain, amount."},{ "title": "Certainty Equivalent Return","link": "https://www.alphaflow.com/?glossary=certainty-equivalent-return","glink": "certainty_equivalent_return","desc": "The certain (zero risk) return an investor would trade for a given (larger) return with an associated risk. For example, a particular investor might trade an uncertain expected 4% active return with 6% risk, for a certain active return of 1.5%. Used as a way to incorporate individual investor risk tolerances into financial decisions."},{ "title": "Certificate","link": "https://www.alphaflow.com/?glossary=certificate","glink": "certificate","desc": "A formal document used to record a fact and used as proof of the fact, such as stock certificates, that evidence ownership of stock in a corporation."},{ "title": "Certificate of Accrual on Treasury Securities","link": "https://www.alphaflow.com/?glossary=certificate-of-accrual-on-treasury-securities","glink": "certificate_of_accrual_on_treasury_securities","desc": "Refers to a zero-coupon US Treasury issue that is sold at a deep discount from the face value and pays no coupon interest during its lifetime, but returns the full face value at maturity."},{ "title": "Certificate of deposit","link": "https://www.alphaflow.com/?glossary=certificate-of-deposit","glink": "certificate_of_deposit","desc": "Also called a time deposit this is a certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. A CD has a maturity date and a specified interest rate, and can be issued in any denomination. The duration can be up to five years."},{ "title": "Certificate of Origin","link": "https://www.alphaflow.com/?glossary=certificate-of-origin","glink": "certificate_of_origin","desc": "A document certifying the country of origin for goods sold internationally."},{ "title": "Certificateless municipals","link": "https://www.alphaflow.com/?glossary=certificateless-municipals","glink": "certificateless_municipals","desc": "Municipal bonds with one certificate which is valid for the entire issue, and having no individual certificates, easing transactions. See: Book-entry securities."},{ "title": "Certificates of Amortized Revolving Debt","link": "https://www.alphaflow.com/?glossary=certificates-of-amortized-revolving-debt","glink": "certificates_of_amortized_revolving_debt","desc": "Pass-through securities backed by credit card receivables."},{ "title": "Certificates of Automobile Receivables","link": "https://www.alphaflow.com/?glossary=certificates-of-automobile-receivables","glink": "certificates_of_automobile_receivables","desc": "Pass-through securities backed by automobile loan receivables."},{ "title": "Certified check","link": "https://www.alphaflow.com/?glossary=certified-check","glink": "certified_check","desc": "A bank guaranteed check for which funds are immediately withdrawn, and for which the bank is legally liable."},{ "title": "Certified Financial Planner","link": "https://www.alphaflow.com/?glossary=certified-financial-planner","glink": "certified_financial_planner","desc": "A person who has passed examinations accredited by the Certified Financial Planner Board of Standards, showing that the person is able to manage a client's banking, estate, insurance, investment, and tax affairs."},{ "title": "Certified financial statements","link": "https://www.alphaflow.com/?glossary=certified-financial-statements","glink": "certified_financial_statements","desc": "Financial statements that include an accountant's opinion."},{ "title": "Certified Public Accountant","link": "https://www.alphaflow.com/?glossary=certified-public-accountant","glink": "certified_public_accountant","desc": "An accountant who has met certain standards, including experience, age, and licensing, and passed exams in a particular state."},{ "title": "Certified Treasury Professional","link": "https://www.alphaflow.com/?glossary=certified-treasury-professional","glink": "certified_treasury_professional","desc": "Certification in corporate treasury management offered by Association for Financial Professionals (AFP)."},{ "title": "CF","link": "https://www.alphaflow.com/?glossary=cf","glink": "C.F.","desc": "The two-character ISO 3166 country code for CENTRAL AFRICAN REPUBLIC."},{ "title": "CFAT","link": "https://www.alphaflow.com/?glossary=cfat","glink": "c.f.a.t.","desc": "See: Cash flow after taxes"},{ "title": "CFD","link": "https://www.alphaflow.com/?glossary=cfd","glink": "c.f.d.","desc": "See: Contract for Difference "},{ "title": "CG","link": "https://www.alphaflow.com/?glossary=cg","glink": "C.G.","desc": "The two-character ISO 3166 country code for The Congo."},{ "title": "CH","link": "https://www.alphaflow.com/?glossary=ch","glink": "C.H.","desc": "The two-character ISO 3166 country code for SWITZERLAND."},{ "title": "Chain base index","link": "https://www.alphaflow.com/?glossary=chain-base-index","glink": "chain_base_index","desc": "For this type of index, a value in any specific time period is based on the value of the same entity in the preceding period.  Changes in values can be compared between sequential time periods. This differs from a fixed base index in which values in any period are based on the initial value. See: Fixed base index, Index number"},{ "title": "Chair of the board","link": "https://www.alphaflow.com/?glossary=chair-of-the-board","glink": "chairman_of_the_board","desc": "Highest-ranking member of a Board of Directors, who presides over its meetings and who is often the most powerful officer of a corporation."},{ "title": "Changes in financial position","link": "https://www.alphaflow.com/?glossary=changes-in-financial-position","glink": "changes_in_financial_position","desc": "Sources and uses of funds provided from operations that alter a company's cash flow position: depreciation, deferred taxes, other sources, and capital expenditures."},{ "title": "CHAP","link": "https://www.alphaflow.com/?glossary=chap","glink": "c.h.a.p.","desc": "See: Clearing House Automated Payments System"},{ "title": "Chapter 11 Proceedings","link": "https://www.alphaflow.com/?glossary=chapter-11-proceedings","glink": "chapter_11_proceedings","desc": "Provisions of the Bankruptcy Reform Act under which the debtor firm is reorganized by a court because the estimated value of the reorganized firm exceeds the expected proceeds from its liquidation."},{ "title": "Chapter 12","link": "https://www.alphaflow.com/?glossary=chapter-12","glink": "chapter_12","desc": "A section of the U.S. Bankruptcy Code that deals with agricultural bankruptcies. It is simpler, more streamlined, and less expensive than Chapter 11."},{ "title": "Chapter 13","link": "https://www.alphaflow.com/?glossary=chapter-13","glink": "chapter_13","desc": "A section of the U.S. Bankruptcy Code that deals with reorganization of debt of wage-earning individuals, including the opportunity to save their homes from foreclosure."},{ "title": "Chapter 22","link": "https://www.alphaflow.com/?glossary=chapter-22","glink": "chapter_22","desc": "A colloquial term that refers to a second Chapter 11 filing by a corporation."},{ "title": "Chapter 33","link": "https://www.alphaflow.com/?glossary=chapter-33","glink": "chapter_33","desc": "A colloquial term that refers to a third Chapter 11 filing by a corporation."},{ "title": "Chapter 7 Proceedings","link": "https://www.alphaflow.com/?glossary=chapter-7-proceedings","glink": "chapter_7_proceedings","desc": "Provisions of the Bankruptcy Reform Act under which the debtor firm's assets are liquidated by a court because reorganization would fail to establish a profitable business."},{ "title": "Chapter 9","link": "https://www.alphaflow.com/?glossary=chapter-9","glink": "chapter_9","desc": "A section of the U.S. Bankruptcy Code that deals with reorganization of a municipality's debt. Also known as Municipal reorganization."},{ "title": "Characteristic line","link": "https://www.alphaflow.com/?glossary=characteristic-line","glink": "characteristic_line","desc": "The market model applied to a single security; a regression of security returns on the benchmark return. The slope of the regression line is a security's beta."},{ "title": "Characteristic portfolio","link": "https://www.alphaflow.com/?glossary=characteristic-portfolio","glink": "characterisitc_portfolio","desc": "A portfolio which efficiently represents a particular asset characteristic. For a given characteristic, it is the minimum risk portfolio, with portfolio characteristic equal to 1. For example, the characteristic portfolio of asset betas is the benchmark. It is the minimum risk beta = 1 portfolio."},{ "title": "Charge","link": "https://www.alphaflow.com/?glossary=charge","glink": "charge","desc": "The document evidencing mortgage security required by Crown Law (law derived from English law). A Fixed Charge refers to a defined set of assets and is usually registered. A Floating Charge refers to other assets which change from time to time (ie. cash, inventory, etc.), which become a Fixed Charge after a default."},{ "title": "Charge back","link": "https://www.alphaflow.com/?glossary=charge-back","glink": "charge_back","desc": "A transaction where the card holder bank reverses a previous transaction between a merchant and a consumer in case of a dispute. The bank reimburses the consumer by withdrawing the transaction amount from the merchant's account"},{ "title": "Charge off","link": "https://www.alphaflow.com/?glossary=charge-off","glink": "charge_off","desc": "See: Bad debt"},{ "title": "Charitable remainder trust","link": "https://www.alphaflow.com/?glossary=charitable-remainder-trust","glink": "charitable_remainder_trust","desc": "An irrevocable trust that pays income to a designated person or persons until the grantor's death, when the income is passed on to a designated charity. A charitable lead trust by contrast allows the charity to receive income during the grantor's life, and the remaining income to pass to designated family members upon the grantor's death."},{ "title": "Charter","link": "https://www.alphaflow.com/?glossary=charter","glink": "charter","desc": "See: Articles of incorporation"},{ "title": "Charter Amendment Limitations","link": "https://www.alphaflow.com/?glossary=charter-amendment-limitations","glink": "charter_amendment_limitations","desc": "These provisions limit shareholders' ability to amend the governing documents of the corporation. This might take the form of a supermajority vote requirement for charter or bylaw amendments, total elimination of the ability of shareholders to amend the bylaws, or the ability of directors beyond the provisions of state law to amend the bylaws without shareholder approval."},{ "title": "Chartered Financial Analyst","link": "https://www.alphaflow.com/?glossary=chartered-financial-analyst","glink": "chartered_financial_analyst","desc": "An experienced financial analyst who has passed examinations in economics, financial accounting, portfolio management, security analysis, and standards of conduct given by the Institute of Chartered Financial Analysts."},{ "title": "Chartists","link": "https://www.alphaflow.com/?glossary=chartists","glink": "chartists","desc": "A technical analyst who charts the patterns of stocks, bonds, and commodities to find trends in patterns of trading used to advise clients. Related: Technical analysts."},{ "title": "Chasing the market","link": "https://www.alphaflow.com/?glossary=chasing-the-market","glink": "chasing_the_market","desc": "Purchasing a security at a higher price than expected because prices are rapidly climbing, or selling a security at a lower level when prices are quickly falling."},{ "title": "Chastity bonds","link": "https://www.alphaflow.com/?glossary=chastity-bonds","glink": "chastity_bonds","desc": "Bonds redeemable at par value in the case of a takeover."},{ "title": "Chattel Mortgage","link": "https://www.alphaflow.com/?glossary=chattel-mortgage","glink": "chattel_mortgage","desc": "A loan agreement that grants to the lender a lien on property other than real estate. Chattel is personal or movable property."},{ "title": "Chatter","link": "https://www.alphaflow.com/?glossary=chatter","glink": "chatter","desc": "See: Whipsawed"},{ "title": "CHE","link": "https://www.alphaflow.com/?glossary=che","glink": "C.H.E.","desc": "The three-character ISO 3166 country code for SWITZERLAND."},{ "title": "Cheapest to deliver issue","link": "https://www.alphaflow.com/?glossary=cheapest-to-deliver-issue","glink": "cheapest_to_deliver_issue","desc": "The acceptable Treasury security with the highest implied repo rate; the rate that a seller of a futures contract can earn by buying an issue and then delivering it at the settlement date."},{ "title": "Check","link": "https://www.alphaflow.com/?glossary=check","glink": "check","desc": "A bill of exchange representing a draft on a bank from deposited funds that pays a certain sum of money to a certain person or party."},{ "title": "Check clearing","link": "https://www.alphaflow.com/?glossary=check-clearing","glink": "check_clearing","desc": "The movement of a check from the depository institution at which it was deposited back to the institution on which it was written; the movement of funds in the opposite direction and the corresponding credit and debit to the involved accounts. The Federal Reserve operates a nationwide check-clearing system."},{ "title": "Checking Account","link": "https://www.alphaflow.com/?glossary=checking-account","glink": "checking_account","desc": "A deposit account held with a financial institution that allows for withdrawals through checks, automated teller machines, or debit cards. Typically pays no interest or lower interest rate as compared to Savings account"},{ "title": "Checking the market","link": "https://www.alphaflow.com/?glossary=checking-the-market","glink": "checking_the_market","desc": "Searching for bid and offer prices from market makers to find the best deal."},{ "title": "Checkwriting","link": "https://www.alphaflow.com/?glossary=checkwriting","glink": "checkwriting","desc": "Free checkwriting privileges offered with nonretirement accounts for select mutual funds."},{ "title": "CHF","link": "https://www.alphaflow.com/?glossary=chf","glink": "chf","desc": "The ISO 4217 currency code for Swiss Franc."},{ "title": "Chicago Board of Trade","link": "https://www.alphaflow.com/?glossary=chicago-board-of-trade","glink": "chicago_board_of_trade","desc": "The second largest futures exchange in the US, and a pioneer in the development of financial futures and options. CBOT merged with Chicago Mercantile Exchange (CME) in July 2007 and is now operated as a unit of the CME group."},{ "title": "Chicago Board Options Exchange","link": "https://www.alphaflow.com/?glossary=chicago-board-options-exchange","glink": "chicago_board_options_exchange","desc": "A securities exchange created in the early 1970s for the public trading of standardized option contracts. Primary place for the trading of stock options, foreign currency options, and index options (S&P 100, 500, and OTC 250 index)"},{ "title": "Chicago Mercantile Exchange","link": "https://www.alphaflow.com/?glossary=chicago-mercantile-exchange","glink": "chicago_mercantile_exchange","desc": "Chicago Mercantile Exchange (CME) is the largest futures exchange in the United States and the second largest exchange in the world for the trading of futures and options on futures. Founded in 1898 as a not-for-profit corporation, in November 2000 CME became the first U.S. financial exchange to demutualize and become a shareholder-owned corporation. Its futures and options on futures trade on CME's trading floors, on its GLOBEX electronic trading platform and through privately negotiated transactions. CME has four major product areas based on interest rates (including Eurodollar futures, the world's most actively traded futures contract), stock indexes (such as the (S&P 500 and Nasdaq-100 futures), foreign exchange and commodities."},{ "title": "Chicago Stock Exchange","link": "https://www.alphaflow.com/?glossary=chicago-stock-exchange","glink": "chicago_stock_exchange","desc": "A major exchange trading only stocks, with 90% of trades taking place on an automated execution system, called MAX."},{ "title": "Chief Executive Officer","link": "https://www.alphaflow.com/?glossary=chief-executive-officer","glink": "chief_executive_officer","desc": "A title held often by the Chairperson of the Board, or the president. The person principally responsible for the activities of a company."},{ "title": "Chief Financial Officer","link": "https://www.alphaflow.com/?glossary=chief-financial-officer","glink": "chief_financial_officer","desc": "The officer of a firm responsible for handling the financial affairs of a company."},{ "title": "Chief Operating Officer","link": "https://www.alphaflow.com/?glossary=chief-operating-officer","glink": "chief_operating_officer","desc": "The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president."},{ "title": "China National Offshore Oil Corporation","link": "https://www.alphaflow.com/?glossary=china-national-offshore-oil-corporation","glink": "","desc": "One of the three major national oil companies of China. 70% owned by the government of China. A subsidiary is listed in Hong Kong and New York"},{ "title": "China National Offshore Oil Corporation (Cnooc)","link": "https://www.alphaflow.com/?glossary=china-national-offshore-oil-corporation-cnooc","glink": "china_national_offshore_oil_corporation","desc": "One of the three major national oil companies of China. 70% owned by the government of China. A subsidiary is listed in Hong Kong and New York"},{ "title": "Chinese hedge","link": "https://www.alphaflow.com/?glossary=chinese-hedge","glink": "chinese_hedge","desc": "Applies mainly to convertible securities. Trading hedge in which one is short the convertible and long the underlying common, in the hope that the convertible's premium will fall. Antithesis of set-up."},{ "title": "Chinese wall","link": "https://www.alphaflow.com/?glossary=chinese-wall","glink": "chinese_wall","desc": "Communication barrier between financiers at a firm (investment bankers) and traders. This barrier is erected to prevent the sharing of inside information that bankers are likely to have."},{ "title": "CHL","link": "https://www.alphaflow.com/?glossary=chl","glink": "C.H.L.","desc": "The three-character ISO 3166 country code for CHILE."},{ "title": "CHN","link": "https://www.alphaflow.com/?glossary=chn","glink": "C.H.N.","desc": "The three-character ISO 3166 country code for CHINA."},{ "title": "Choice market","link": "https://www.alphaflow.com/?glossary=choice-market","glink": "choice_market","desc": "Applies mainly to international equities. Locked market in London terminology."},{ "title": "Chooser option","link": "https://www.alphaflow.com/?glossary=chooser-option","glink": "chooser_option","desc": "An option that gives its holder the right to choose at a pre-specified time (before maturity) whether the option is a call or a put."},{ "title": "Churning","link": "https://www.alphaflow.com/?glossary=churning","glink": "churning","desc": "Excessive trading of a client's account in order to increase the broker's commissions."},{ "title": "CI","link": "https://www.alphaflow.com/?glossary=ci","glink": "C.I.","desc": "The two-character ISO 3166 country code for COTE D'IVOIRE."},{ "title": "Cincinnati Stock Exchange","link": "https://www.alphaflow.com/?glossary=cincinnati-stock-exchange","glink": "cincinnati_stock_exchange","desc": "Stock exchange based in Cincinnati that is the only fully automated stock exchange in the US. It has no trading floor, but handles all members' transactions using computers."},{ "title": "Circle","link": "https://www.alphaflow.com/?glossary=circle","glink": "circle","desc": "Underwriters, actual or potential, often seek out and 'circle' investor interest in a new issue before final pricing. The customer circled has basically made a commitment to purchase the issue if it is available at an agreed-upon price. If the actual price is other than that stipulated, the customer supposedly has first offer at the actual price."},{ "title": "Circuit breakers","link": "https://www.alphaflow.com/?glossary=circuit-breakers","glink": "circuit_breakers","desc": "Measures instituted by exchanges to stop trading temporarily when the market has fallen by a certain percentage in a specified period. They are intended to prevent a market free fall by permitting buy and sell orders to rebalance."},{ "title": "Circus swap","link": "https://www.alphaflow.com/?glossary=circus-swap","glink": "circus_swap","desc": "A fixed-rate currency swap against floating US dollar LIBOR payments. An acronym that stands for Combined Interest Rate and CUrrency Swap."},{ "title": "Citizen bonds","link": "https://www.alphaflow.com/?glossary=citizen-bonds","glink": "citizen_bonds","desc": "Certificateless municipals that can be registered on stock exchanges and are listed in newspapers."},{ "title": "City code on takeovers and mergers","link": "https://www.alphaflow.com/?glossary=city-code-on-takeovers-and-mergers","glink": "city_code_on_takeovers_and_mergers","desc": "See: Dawn raid"},{ "title": "CIV","link": "https://www.alphaflow.com/?glossary=civ","glink": "C.I.V.","desc": "The three-character ISO 3166 country code for COTE D'IVOIRE."},{ "title": "CK","link": "https://www.alphaflow.com/?glossary=ck","glink": "C.K.","desc": "The two-character ISO 3166 country code for COOK ISLANDS."},{ "title": "CL","link": "https://www.alphaflow.com/?glossary=cl","glink": "C.L.","desc": "The two-character ISO 3166 country code for CHILE."},{ "title": "Claim dilution","link": "https://www.alphaflow.com/?glossary=claim-dilution","glink": "claim_dilution","desc": "A decrease in the likelihood that one or more of a firm's claimants will be fully repaid, including time value of money considerations."},{ "title": "Claimant","link": "https://www.alphaflow.com/?glossary=claimant","glink": "claimant","desc": "A party to an explicit or implicit contract."},{ "title": "Class","link": "https://www.alphaflow.com/?glossary=class","glink": "class","desc": "In the case of derivative products, options of the same type-put or call-with the same underlying security. See: Series. In general, refers to a category of assets such as: domestic equity, fixed income, etc."},{ "title": "Class A/Class B shares","link": "https://www.alphaflow.com/?glossary=class-aclass-b-shares","glink": "class_a_class_b_shares","desc": "See: Classified stock"},{ "title": "Class action","link": "https://www.alphaflow.com/?glossary=class-action","glink": "class_action","desc": "A legal complaint filed by a lawyer or group of lawyers for a group of petitioners with an identical grievance, often with an award proportionate to the number of shareholders involved."},{ "title": "Class C","link": "https://www.alphaflow.com/?glossary=class-c","glink": "","desc": "A rating within speculative grade Moody's Long-term Corporate Obligation Rating.
Obligations rated C are the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest.
Rating one notch higher is Ca."},{ "title": "Class of Options","link": "https://www.alphaflow.com/?glossary=class-of-options","glink": "class_of_options","desc": "Option contracts of the smae type (call or put) and Style (American, European or Capped) that cover the same underlying security."},{ "title": "Classified Board","link": "https://www.alphaflow.com/?glossary=classified-board","glink": "classified_board","desc": "Also known as Staggered Board: is one in which the directors are placed into different classes and serve overlapping terms. Since only part of the board can be replaced each year, an outsider who gains control of a corporation may have to wait a few years before being able to gain control of the board. This slow replacement makes a classified board an effective delays of takeovers. Sometimes known as a delay provision."},{ "title": "Classified stock","link": "https://www.alphaflow.com/?glossary=classified-stock","glink": "classified_stock","desc": "The division of stock into more than one class of common stock, usually called Class A and Class B. The specific features of each class, which are set out in the charter and bylaws, usually give certain advantages to the Class A shares, such as increased voting power."},{ "title": "Claused Bill of Lading","link": "https://www.alphaflow.com/?glossary=claused-bill-of-lading","glink": "claused_bill_of_lading","desc": "A bill of lading with a notation that indicates damage or shortage. Also called foul bill of lading and are the opposite of clean bills of lading."},{ "title": "Clawback","link": "https://www.alphaflow.com/?glossary=clawback","glink": "clawback","desc": "A dividend clawback is an arrangement whereby the equity owners commit to use dividends they have received in the past to finance the cash needs of the project or corporation in the future. Clawback has a more general definition. For example, premiums paid on an insurance policy may be refunded (or clawed back) if the policy is cancelled in a certain time frame. Such an arrangement is specified in the contract and referred to as a clawback provision."},{ "title": "Clean","link": "https://www.alphaflow.com/?glossary=clean","glink": "clean","desc": "In the context of general equities, block trade that matches buy or sell orders/interests, sparing the block trader any inventory risk (no net position and hence none available for additional customers). Natural. Antithesis of open."},{ "title": "Clean Bill of Lading","link": "https://www.alphaflow.com/?glossary=clean-bill-of-lading","glink": "clean_bill_of_lading","desc": "A bill of lading bearing no findings of damage or shortage."},{ "title": "Clean opinion","link": "https://www.alphaflow.com/?glossary=clean-opinion","glink": "clean_opinion","desc": "An auditor's opinion reflecting an unqualified acceptance of a company's financial statements."},{ "title": "Clean price","link": "https://www.alphaflow.com/?glossary=clean-price","glink": "clean_price","desc": "Bond price excluding accrued interest."},{ "title": "Clean Report of Findings","link": "https://www.alphaflow.com/?glossary=clean-report-of-findings","glink": "clean_report_of_findings","desc": "A report issued by an inspection firm, indicating that price has been verified, that the goods have been inspected prior to shipment, and that both conform to buyer specifications."},{ "title": "Clean up","link": "https://www.alphaflow.com/?glossary=clean-up","glink": "clean_up","desc": "In the context of general equities, purchase/sale of all the remaining supply of stock, or the last piece of a block, in a trade-leaving a net zero position."},{ "title": "Clean-up merger","link": "https://www.alphaflow.com/?glossary=clean-up-merger","glink": "clean_up_merger","desc": "Consolidation of the acquired firm into the acquiring firm after the merger. Also called take-out merger."},{ "title": "Clear","link": "https://www.alphaflow.com/?glossary=clear","glink": "clear","desc": "To settle a trade by the seller delivering securities and the buyer delivering funds in the proper form. A trade that does not clear is said to fail. Comparison of the details of a transaction between broker/dealers prior to settlement; final exchange of securities for cash on delivery."},{ "title": "Clear a position","link": "https://www.alphaflow.com/?glossary=clear-a-position","glink": "clear_a_position","desc": "To eliminate a long or short position, leaving no ownership or obligation."},{ "title": "Clear title","link": "https://www.alphaflow.com/?glossary=clear-title","glink": "clear_title","desc": "Title to ownership that is untainted by any claims on the property or disputed interests, and therefore available for sale. This is usually checked through a title search by a title company."},{ "title": "Clearing corporations","link": "https://www.alphaflow.com/?glossary=clearing-corporations","glink": "clearing_corporations","desc": "Organizations that are affiliated with exchanges and are used to complete securities transactions by taking care of validation, delivery, and settlement."},{ "title": "Clearing House Automated Payments System","link": "https://www.alphaflow.com/?glossary=clearing-house-automated-payments-system","glink": "clearing_house_automated_payments_system","desc": "A computerized clearing system for sterling funds that began operations in 1984. It includes 14 member banks, nearly 450 participating banks, and is one of the clearing companies within the structure of the Association for Payment Clearing Services (APACS)."},{ "title": "Clearing House Electronic Subregister System","link": "https://www.alphaflow.com/?glossary=clearing-house-electronic-subregister-system","glink": "clearing_house_electronic_subregister_system","desc": "CHESS is the automatic transfer and settlement system for the majority of Australian Stock Exchange (ASX) listed securities."},{ "title": "Clearing house funds","link": "https://www.alphaflow.com/?glossary=clearing-house-funds","glink": "clearing_house_funds","desc": "Funds from the Federal Reserve System, requiring three days to clear, that are passed to and from banks."},{ "title": "Clearing House Interbank Payments System","link": "https://www.alphaflow.com/?glossary=clearing-house-interbank-payments-system","glink": "clearing_house_interbank_payments_system","desc": "An international wire transfer system for high-value payments operated by a group of major banks."},{ "title": "Clearing member","link": "https://www.alphaflow.com/?glossary=clearing-member","glink": "clearing_member","desc": "A member firm of a clearing house. Each clearing member must also be a member of the exchange. Not all members of the exchange, however, are members of the clearing organization. All trades of a non-clearing member must be registered with, and eventually settled through, a clearing member."},{ "title": "Clearing Member Trade Agreement","link": "https://www.alphaflow.com/?glossary=clearing-member-trade-agreement","glink": "clearing_member_trade_agreement","desc": "An agreement that allows a client to execute derivative trades through different brokers yet consolidate positions for clearing purposes at one brokerage firm."},{ "title": "Clearinghouse","link": "https://www.alphaflow.com/?glossary=clearinghouse","glink": "clearinghouse","desc": "An adjunct to a futures exchange through which transactions executed on its floor where trades are settled by a process of matching purchases and sales. A clearing organization is also charged with the proper conduct of delivery procedures and the adequate financing of the entire operation."},{ "title": "CLF","link": "https://www.alphaflow.com/?glossary=clf","glink": "clf","desc": "The ISO 4217 currency code for Chile Unidades de Fomento."},{ "title": "Clientele effect","link": "https://www.alphaflow.com/?glossary=clientele-effect","glink": "clientele_effect","desc": "Describes the tendency of funds or investments to be followed by groups of investors who have similar preferences for a firm which follows a particular financing policy, such as the amount of leverage it uses."},{ "title": "Clone fund","link": "https://www.alphaflow.com/?glossary=clone-fund","glink": "clone_fund","desc": "A new fund set up in a fund family to emulate another successful fund."},{ "title": "Close","link": "https://www.alphaflow.com/?glossary=close","glink": "close","desc": "The close is the period at the end of the trading session. Sometimes used to refer to closing price. Related: Opening."},{ "title": "Close a position","link": "https://www.alphaflow.com/?glossary=close-a-position","glink": "close_a_position","desc": "In the context of general equities, eliminate an investment from one's portfolio, by either selling a long position or covering a short position."},{ "title": "Close market","link": "https://www.alphaflow.com/?glossary=close-market","glink": "close_market","desc": "An market in which there is a narrow spread between bid and offer prices, due to a high volume of trading and many competing market makers."},{ "title": "Close-end credit","link": "https://www.alphaflow.com/?glossary=close-end-credit","glink": "closed-end_credit","desc": "An agreement in which advanced credit plus any finance charges are expected to be repaid in full over a definite time. Most real estate and automobile loans are closed-end agreements."},{ "title": "Closed corporation","link": "https://www.alphaflow.com/?glossary=closed-corporation","glink": "closed_corporation","desc": "A corporation whose shares are owned by just a few people, having no public market."},{ "title": "Closed fund","link": "https://www.alphaflow.com/?glossary=closed-fund","glink": "closed_fund","desc": "A mutual fund that is no longer issuing shares, mainly because it has grown too large."},{ "title": "Closed out","link": "https://www.alphaflow.com/?glossary=closed-out","glink": "closed_out","desc": "Position that is liquidated when the client does not meet a margin call or cover a short sale."},{ "title": "Closed-end fund","link": "https://www.alphaflow.com/?glossary=closed-end-fund","glink": "closed_end_fund","desc": "An investment company that issues shares like any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net asset value. Related: Open-end fund."},{ "title": "Closed-end management company","link": "https://www.alphaflow.com/?glossary=closed-end-management-company","glink": "closed_end_management_company","desc": "An investment company that has only a set number of shares of the mutual fund that it manages, and does not create new shares if demand increases. Antithesis of an open-end management company."},{ "title": "Closed-end mortgage","link": "https://www.alphaflow.com/?glossary=closed-end-mortgage","glink": "closed_end_mortgage","desc": "Mortgage against which no additional debt may be issued."},{ "title": "Closely held","link": "https://www.alphaflow.com/?glossary=closely-held","glink": "closely_held","desc": "A corporation whose voting stock is owned by only a few shareholders."},{ "title": "Closely held company","link": "https://www.alphaflow.com/?glossary=closely-held-company","glink": "closely_held_company","desc": "A company who has a small group of controlling shareholders. In contrast, a widely-held firm has many shareholders. It is difficult or impossible to wage a proxy battle for any closely-held firm."},{ "title": "Closing costs","link": "https://www.alphaflow.com/?glossary=closing-costs","glink": "closing_costs","desc": "All the expenses involved in transferring ownership of real estate."},{ "title": "Closing price","link": "https://www.alphaflow.com/?glossary=closing-price","glink": "closing_price","desc": "Price of the last transaction of a particular stock completed during a day's trading session on an exchange."},{ "title": "Closing purchase","link": "https://www.alphaflow.com/?glossary=closing-purchase","glink": "closing_purchase","desc": "A transaction in which the purchaser's intention is to reduce or eliminate a short position in a stock, or in a given series of options."},{ "title": "Closing quote","link": "https://www.alphaflow.com/?glossary=closing-quote","glink": "closing_quote","desc": "The last bid and offer prices of a particular stock at the close of a day's trading session on an exchange."},{ "title": "Closing range","link": "https://www.alphaflow.com/?glossary=closing-range","glink": "closing_range","desc": "Also known as the range. The high and low prices, or bids and offers, recorded during the period designated as the official close. Related: Settlement price."},{ "title": "Closing sale","link": "https://www.alphaflow.com/?glossary=closing-sale","glink": "closing_sale","desc": "A transaction in which the seller's intention is to reduce or eliminate a long position in a stock, or a given series of options."},{ "title": "Closing tick","link": "https://www.alphaflow.com/?glossary=closing-tick","glink": "closing_tick","desc": "The net of the number of stocks whose closing prices are higher than their previous trades (uptick) against the number of stocks whose closing prices were lower than their previous trades (downtick). A positive closing tick indicates 'buying at the close', or a bullish market; a negative closing tick indicates 'selling at the close,' or a bearish market. See: TRIN."},{ "title": "Closing transaction","link": "https://www.alphaflow.com/?glossary=closing-transaction","glink": "closing_transaction","desc": "Applies to derivative products. Buy or sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening transaction."},{ "title": "Closing TRIN","link": "https://www.alphaflow.com/?glossary=closing-trin","glink": "closing_trin","desc": "See: TRIN"},{ "title": "Cloud on title","link": "https://www.alphaflow.com/?glossary=cloud-on-title","glink": "cloud_on_title","desc": "Any claim or encumbrance, usually discovered in a title search, that may impair the title to a property, and make its validity questionable. See: bad title."},{ "title": "CLP","link": "https://www.alphaflow.com/?glossary=clp","glink": "clp","desc": "The ISO 4217 currency code for Chilean Peso."},{ "title": "Club","link": "https://www.alphaflow.com/?glossary=club","glink": "club","desc": "A group of underwriters who do not need to proceed to form a syndicate."},{ "title": "Cluster analysis","link": "https://www.alphaflow.com/?glossary=cluster-analysis","glink": "cluster_analysis","desc": "A statistical technique that identifies clusters of stocks whose returns are highly correlated within each cluster and relatively uncorrelated across clusters. Cluster analysis has identified groupings such as growth, cyclical, stable, and energy stocks."},{ "title": "CM","link": "https://www.alphaflow.com/?glossary=cm","glink": "C.M.","desc": "The two-character ISO 3166 country code for CAMEROON."},{ "title": "CMBS","link": "https://www.alphaflow.com/?glossary=cmbs","glink": "c.m.b.s.","desc": "See: Commercial Mortgage Backed Securities"},{ "title": "CMO REIT","link": "https://www.alphaflow.com/?glossary=cmo-reit","glink": "cmo_reit","desc": "A very risky type of Real Estate Investment Trust investing in the residual cash flows of Collateralized Mortgage Obligation (CMOs). CMO cash flows are derived from the difference between the rates paid by the mortgage loan holders and the lower, shorter-term rates paid to CMO investors."},{ "title": "CMR","link": "https://www.alphaflow.com/?glossary=cmr","glink": "C.M.R.","desc": "The three-character ISO 3166 country code for CAMEROON."},{ "title": "CN","link": "https://www.alphaflow.com/?glossary=cn","glink": "C.N.","desc": "The two-character ISO 3166 country code for CHINA."},{ "title": "CNOOC","link": "https://www.alphaflow.com/?glossary=cnooc","glink": "cnooc","desc": "See: China National Offshore Oil Corporation"},{ "title": "CNY","link": "https://www.alphaflow.com/?glossary=cny","glink": "cny","desc": "The ISO 4217 currency code for Chinese Renminbi (Yuan)."},{ "title": "CO","link": "https://www.alphaflow.com/?glossary=co","glink": "C.O.","desc": "The two-character ISO 3166 country code for COLOMBIA."},{ "title": "Co-agent","link": "https://www.alphaflow.com/?glossary=co-agent","glink": "coagent","desc": "An institution appointed by the issuer as co-transfer agent accepts and transfers certificates and sends daily activity journals to the primary record-keeping agent. A co-agent does not maintain security holder records, but is used to facilitate the transfer of stock in a geographic region not easily accessible to the issuer or its principal transfer agent."},{ "title": "Co-financing","link": "https://www.alphaflow.com/?glossary=co-financing","glink": "co_financing","desc": "A type of financing in which the different lenders agree to fund under the same documentation and security packages but may have different interest rates, repayment profiles, and terms."},{ "title": "Co-manager","link": "https://www.alphaflow.com/?glossary=co-manager","glink": "co_manager","desc": "A second-tier Participant, ranked by size of participation."},{ "title": "Coattail investing","link": "https://www.alphaflow.com/?glossary=coattail-investing","glink": "coattail_investing","desc": "A risky trading practice of making trades similar to those of other successful investors, usually institutional investors."},{ "title": "COD transaction","link": "https://www.alphaflow.com/?glossary=cod-transaction","glink": "cod_transaction","desc": "See: Delivery versus payment"},{ "title": "Code of procedure","link": "https://www.alphaflow.com/?glossary=code-of-procedure","glink": "code_of_procedure","desc": "The guide of the National Association of Securities Dealers used to adjudicate complaints filed against NASD members."},{ "title": "Coefficient of determination","link": "https://www.alphaflow.com/?glossary=coefficient-of-determination","glink": "coefficient_of_determination","desc": "A measure of the goodness of fit of the relationship between the dependent and independent variables in a regression analysis; for instance, the percentage of variation in the return of an asset explained by the market portfolio return. Also known as R-square."},{ "title": "Coefficient of Variation","link": "https://www.alphaflow.com/?glossary=coefficient-of-variation","glink": "coefficient_of_variations","desc": "A measure of investment risk that defines risk as the standard deviation per unit of expected return."},{ "title": "Coface","link": "https://www.alphaflow.com/?glossary=coface","glink": "coface","desc": "The French Export Credit Agency."},{ "title": "Coffee, Sugar & Cocoa Exchange","link": "https://www.alphaflow.com/?glossary=coffee-sugar-cocoa-exchange","glink": "coffee_sugar_and_cocoa_exchange","desc": "The historic New York-based commodity exchange trading futures and options. In June 2004, the CS&CE merged with the New York Cotton Exchange (NYCE) to form the New York Board of Trade. As a result of this merger, all previous exchanges and subsidiaries ceased to exist, including the Coffee, Sugar, & Cocoa Exchange, the New York Cotton Exchange, the Citrus Associates of the New York Cotton Exchange, the New York Futures Exchange (NYFE), and the FINEX Exchange. All markets are now referred to as the New York Board of Trade or NYBOT."},{ "title": "Cofinancing agreements","link": "https://www.alphaflow.com/?glossary=cofinancing-agreements","glink": "cofinancing_agreements","desc": "Joint participation of the World Bank and other agencies or lenders in providing funds to developing countries."},{ "title": "COG","link": "https://www.alphaflow.com/?glossary=cog","glink": "C.O.G.","desc": "The three-character ISO 3166 country code for The Congo."},{ "title": "Coherent Market Hypothesis","link": "https://www.alphaflow.com/?glossary=coherent-market-hypothesis","glink": "coherent_market_hypothesis","desc": "A hypothesis that the probability density function of the market may be determined by a combination of group sentiment and fundamental bias. Depending on combinations of these two factors, the market can be in one of four states: random walk, unstable transition, chaos, or coherence."},{ "title": "Coincident indicators","link": "https://www.alphaflow.com/?glossary=coincident-indicators","glink": "coincident_indicators","desc": "Economic indicators that give an indication of the current status of the economy."},{ "title": "Coinsurance effect","link": "https://www.alphaflow.com/?glossary=coinsurance-effect","glink": "coinsurance_effect","desc": "Refers to the fact that the merger of two firms lessens the probability of default on either firm's debt."},{ "title": "COK","link": "https://www.alphaflow.com/?glossary=cok","glink": "C.O.K.","desc": "The three-character ISO 3166 country code for COOK ISLANDS."},{ "title": "COL","link": "https://www.alphaflow.com/?glossary=col","glink": "C.O.L.","desc": "The three-character ISO 3166 country code for COLOMBIA."},{ "title": "COLAs","link": "https://www.alphaflow.com/?glossary=colas","glink": "colas","desc": "See: Cost of living adjustments"},{ "title": "Cold-calling","link": "https://www.alphaflow.com/?glossary=cold-calling","glink": "cold_calling","desc": "Calling potential new customers in the hope of selling stocks, bonds or other financial products and receiving commissions."},{ "title": "Collar","link": "https://www.alphaflow.com/?glossary=collar","glink": "collar","desc": "Refers to the ceiling and floor of the price fluctuation of an underlying asset. A collar is usually set up with options, swaps, or by other agreements. In corporate finance, the collar strategy of buying puts and selling calls is often used to mitigate the risk of a concentrated position in (sometimes) restricted stock. When the restricted owner can't sell the stock, but needs to diversify the risk, a collar transaction is one of the few tools available. Many corporate executives who receive chunks of their compensation in restricted stock need to employ this strategy to mitigate the diversification risk in their overall portfolio."},{ "title": "Collateral","link": "https://www.alphaflow.com/?glossary=collateral","glink": "collateral","desc": "In the context of project financing, additional security pledged to support the project financing."},{ "title": "Collateral trust bonds","link": "https://www.alphaflow.com/?glossary=collateral-trust-bonds","glink": "collateral_trust_bonds","desc": "A bond in which the issuer (often a holding company) grants investors a lien on stocks, notes, bonds, or other financial asset as security. Compare mortgage bond."},{ "title": "Collateralized Bond Obligation","link": "https://www.alphaflow.com/?glossary=collateralized-bond-obligation","glink": "collateralized_bond_obligation","desc": "Investment-grade bonds backed by a collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk bond involved. CBOs backed by highly risky junk bonds receive higher interest rates than other CBOs."},{ "title": "Collateralized Debt Obligation","link": "https://www.alphaflow.com/?glossary=collateralized-debt-obligation","glink": "collateralized_debt_obligation","desc": "A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations,"},{ "title": "Collateralized loan obligation","link": "https://www.alphaflow.com/?glossary=collateralized-loan-obligation","glink": "collateralized_loan_obligation","desc": "A security backed by a pool of commercial or personal loans , structured so that there are several classes of bondholders with varying maturities, called tranches. Similar in structure to Collateralized Mortgage Obligations."},{ "title": "Collateralized mortgage obligation","link": "https://www.alphaflow.com/?glossary=collateralized-mortgage-obligation","glink": "collateralized_mortgage_obligation","desc": "A security backed by a pool of pass-through rates, structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. Related: mortgage pass-through security."},{ "title": "Collecting Bank","link": "https://www.alphaflow.com/?glossary=collecting-bank","glink": "collecting_bank","desc": "A bank that assists in obtaining payment in accordance with draft payment terms."},{ "title": "Collection","link": "https://www.alphaflow.com/?glossary=collection","glink": "collection","desc": "The presentation of a negotiable instrument for payment, or the conversion of any accounts receivable into cash."},{ "title": "Collection float","link": "https://www.alphaflow.com/?glossary=collection-float","glink": "collection_float","desc": "The period between the time is a check is deposited in an account and the time funds are made available."},{ "title": "Collection fractions","link": "https://www.alphaflow.com/?glossary=collection-fractions","glink": "collection_fractions","desc": "The percentage of a given month's sales collected during the month of sale and each month following the month of sale."},{ "title": "Collection period","link": "https://www.alphaflow.com/?glossary=collection-period","glink": "collection_period","desc": "See: Collection ratio"},{ "title": "Collection policy","link": "https://www.alphaflow.com/?glossary=collection-policy","glink": "collection_policy","desc": "Procedures a firm follows in attempting to collect accounts receivables."},{ "title": "Collection ratio","link": "https://www.alphaflow.com/?glossary=collection-ratio","glink": "collection_ratio","desc": "The ratio of a company's accounts receivable to its average daily sales, which gives the average number of days it takes the company to convert receivables into cash."},{ "title": "Collective Action Clause","link": "https://www.alphaflow.com/?glossary=collective-action-clause","glink": "collective_action_clause","desc": "CAC allows bondholders to agree on debt restructuring even when some bondholders are against restructuring as long as majority agrees."},{ "title": "Collective wisdom","link": "https://www.alphaflow.com/?glossary=collective-wisdom","glink": "collective_wisdom","desc": "The combination of all the individual opinions about a stock's or security's value."},{ "title": "Colombo Stock Exchange","link": "https://www.alphaflow.com/?glossary=colombo-stock-exchange","glink": "colombo_stock_exchange","desc": "Established in 1984, the only public stock exchange of Sri Lanka."},{ "title": "COLT","link": "https://www.alphaflow.com/?glossary=colt","glink": "","desc": "Computerized OTC traders
assistance system that provides for trade entry and position monitoring, among other
functions."},{ "title": "COLT (Continuous on-line trading system)","link": "https://www.alphaflow.com/?glossary=colt-continuous-on-line-trading-system","glink": "colt","desc": "Computerized OTC traders assistance system that provides for trade entry and position monitoring, among other functions."},{ "title": "COM","link": "https://www.alphaflow.com/?glossary=com","glink": "C.O.M.","desc": "The three-character ISO 3166 country code for COMOROS."},{ "title": "Comanager","link": "https://www.alphaflow.com/?glossary=comanager","glink": "comanager","desc": "A bank that ranks just below a lead manager in a syndicated Eurocredit or international bond issue. Comanagers may assist the lead manager bank in the pricing and issue of the instrument."},{ "title": "Combination","link": "https://www.alphaflow.com/?glossary=combination","glink": "combination","desc": "Applies to derivative products. Arrangement of options involving two long or two short positions with different expiration dates or strike (exercise) prices. See: Straddle."},{ "title": "Combination annuity","link": "https://www.alphaflow.com/?glossary=combination-annuity","glink": "combination_annuity","desc": "See: Hybrid annuity"},{ "title": "Combination bond","link": "https://www.alphaflow.com/?glossary=combination-bond","glink": "combination_bond","desc": "A bond backed by the government unit issuing it as well as by revenue from the project that is to be financed by the bond."},{ "title": "Combination matching","link": "https://www.alphaflow.com/?glossary=combination-matching","glink": "combination_matching","desc": "Also called horizon-matching, a variation of multiperiod immunization and cash flow-matching in which a portfolio is created that is always duration-matched and also cash-matched in the first few years."},{ "title": "Combination order","link": "https://www.alphaflow.com/?glossary=combination-order","glink": "combination_order","desc": "See: Alternative order"},{ "title": "Combination strategy","link": "https://www.alphaflow.com/?glossary=combination-strategy","glink": "combination_strategy","desc": "A strategy in which a put and call with different strike prices and the same expiration are either both bought or both sold. Related: Straddle"},{ "title": "Combined financial statement","link": "https://www.alphaflow.com/?glossary=combined-financial-statement","glink": "combined_financial_statement","desc": "A financial statement that merges the assets, liabilities, net worth, and operating figures of two or more affiliated companies. A combined statement is distinguished from a consolidated financial statement of a company and subsidiaries, which must reconcile investment and capital accounts."},{ "title": "Come in","link": "https://www.alphaflow.com/?glossary=come-in","glink": "come_in","desc": "In the context of general equities, a fall in price."},{ "title": "Come out of the trade","link": "https://www.alphaflow.com/?glossary=come-out-of-the-trade","glink": "come_out_of_the_trade","desc": "In the context of general equities, trader's position in a security that results from executing a trade (or the expectations thereof). Antithesis of going into the trade."},{ "title": "Comeout","link": "https://www.alphaflow.com/?glossary=comeout","glink": "comeout","desc": "In the context of general equities, the opening. Antithesis of the close.ublic utilities, service, and industrial companies. Does not include loans secured by real estate."},{ "title": "COMEX","link": "https://www.alphaflow.com/?glossary=comex","glink": "comex","desc": "A division of the New York Mercantile Exchange (NYMEX). Formerly known as the Commodity Exchange, COMEX is the leading US market for metals futures and options trading."},{ "title": "Comfort letter","link": "https://www.alphaflow.com/?glossary=comfort-letter","glink": "comfort_letter","desc": "A letter from an independent auditor included in a preliminary prospectus stating that, while a full audit has not been undertaken, the auditor has done a 'review' sufficient to assure that financial statement information in the preliminary prospectus is correctly prepared to the best of the auditor's knowledge. The auditor in effect states that, had a full audit been done, they are comfortable that the audited financial statements would not be materially different from the ones presented in the preliminary prospectus."},{ "title": "Comisià³n Nacional del Mercado de Valores","link": "https://www.alphaflow.com/?glossary=comision-nacional-del-mercado-de-valores","glink": "comision_nacional_del_mercado_de_valores","desc": "Spain's supervisory authority for the Spanish financial markets. Spain's financial regulator."},{ "title": "Comissà£o do Mercado de Valores Mobilià¡rios","link": "https://www.alphaflow.com/?glossary=comissao-do-mercado-de-valores-mobiliarios","glink": "comissao_do_mercado_de_valores_mobiliarios","desc": "Portugal's supervisory authority for the Portugese financial markets. Portugal's financial regulator."},{ "title": "Commercial and Industrial Loan","link": "https://www.alphaflow.com/?glossary=commercial-and-industrial-loan","glink": "","desc": "Loan made to a business or corporation and not to an individual. This type of loan is usually short-term floating loan and is almost always backed with a collateral."},{ "title": "Commercial and Industrial Loan (C&I Loan)","link": "https://www.alphaflow.com/?glossary=commercial-and-industrial-loan-ci-loan","glink": "commercial_and_industrial_loans","desc": "Loan made to a business or corporation and not to an individual. This type of loan is usually short-term floating loan and is almost always backed with a collateral."},{ "title": "Commercial and Industrial Loans","link": "https://www.alphaflow.com/?glossary=commercial-and-industrial-loans","glink": "commercial_and_industrial_loans","desc": "Loans made to corporations and other business enterprises (not to individuals) for commercial or industrial purposes. Non-financial issuers include p"},{ "title": "Commercial bank","link": "https://www.alphaflow.com/?glossary=commercial-bank","glink": "commercial_bank","desc": "Bank that offers a broad range of deposit accounts, including checking, savings and time deposits and extends loans to individuals and business. Commercial banks can be contrasted with investment banking firms, such as brokerage firms, which generally are involved in arranging for the sale of corporate or municipal securities."},{ "title": "Commercial draft","link": "https://www.alphaflow.com/?glossary=commercial-draft","glink": "commercial_draft","desc": "Demand for payment."},{ "title": "Commercial Futures Trading Commission","link": "https://www.alphaflow.com/?glossary=commercial-futures-trading-commission","glink": "commercial_futures_trading_commission","desc": "Independent federal agency that regulates trading in futures and options."},{ "title": "Commercial hedgers","link": "https://www.alphaflow.com/?glossary=commercial-hedgers","glink": "commercial_hedgers","desc": "Companies that take futures positions in commodities so that they can guarantee prices at which they will buy raw materials or sell their products."},{ "title": "Commercial invoice","link": "https://www.alphaflow.com/?glossary=commercial-invoice","glink": "commerical_invoice","desc": "Bill for merchandise sold."},{ "title": "Commercial letters of credit","link": "https://www.alphaflow.com/?glossary=commercial-letters-of-credit","glink": "commerical_letters_of_credit","desc": "Trade-related agreement that a certain amount of bank funds is available to an entity."},{ "title": "Commercial loan","link": "https://www.alphaflow.com/?glossary=commercial-loan","glink": "commercial_loan","desc": "A short-term loan, typically 90 days, used by a company to finance seasonal working capital needs."},{ "title": "Commercial Mortgage Backed Securities","link": "https://www.alphaflow.com/?glossary=commercial-mortgage-backed-securities","glink": "commercial_mortgage_backed_securities","desc": "Similar to MBS but backed by loans secured with commercial rather than residential property. Commercial property includes multi-family, retail, office, etc., They are not standardized so there are a lot of details associated with structure, credit enhancement, diversification, etc., that need to be understood when valuing these instruments."},{ "title": "Commercial paper","link": "https://www.alphaflow.com/?glossary=commercial-paper","glink": "commercial_paper","desc": "Short-term promissory notes either unsecured or backed by assets such as loans or mortgages issued by a corporation. The maturity of commercial paper is typically less than 270 days; the most common maturity range is 30 to 50 days or less. They are usually sold, like Treasury bills, at a discount."},{ "title": "Commercial Paper Funding Facility","link": "https://www.alphaflow.com/?glossary=commercial-paper-funding-facility","glink": "commercial_paper_funding_facility","desc": "In 2008, the Federal Reserve offered to purchase highly rated, three-month commercial paper in response to difficulty companies had raising money in the commercial paper market. The goals were to persuade investors to lend to top-tier companies and give borrowers a backstop if funds can't be obtained in the open market. The CPFF began operations on Oct. 27, 2008, and closed on Feb. 1, 2010."},{ "title": "Commercial property","link": "https://www.alphaflow.com/?glossary=commercial-property","glink": "commercial_property","desc": "Real estate that produces some sort of income-producing property."},{ "title": "Commercial real estate loans","link": "https://www.alphaflow.com/?glossary=commercial-real-estate-loans","glink": "commercial_real_estate_loans","desc": "Loans secured with commercial rather than residential property."},{ "title": "Commercial risk","link": "https://www.alphaflow.com/?glossary=commercial-risk","glink": "commercial_risk","desc": "The risk that a debtor will be unable to pay its debts because of business events, such as bankruptcy."},{ "title": "Commingling","link": "https://www.alphaflow.com/?glossary=commingling","glink": "commingling","desc": "In the context of securities, this involves mixing customer-owned securities with brokerage firm-owned securities. This process is referred to as rehypothecation, which is the use of customers' collateral to secure their loans. This is legal with customer consent, although some securities and collateral must be kept separately."},{ "title": "Commission","link": "https://www.alphaflow.com/?glossary=commission","glink": "commission","desc": "The fee paid to a broker to execute a trade, based on number of shares, bonds, options, and/or their dollar value. In 1975, deregulation led to the establishment of discount brokers, who charge lower commissions than full service brokers. Full service brokers offer advice and usually have a staff of analysts who follow specific industries. Discount brokers simply execute a client's order and usually do not offer an opinion on a stock. Also known as a round-turn. Commissions are known as round-turn only in futures trading, since the commission is assessed only after liquidation of the position."},{ "title": "Commission Bancaire, Financiere et des Assurances","link": "https://www.alphaflow.com/?glossary=commission-bancaire-financiere-et-des-assurances","glink": "commission_bancaire_financiere_assurances","desc": "Belgium's supervisory authority for the Belgian financial markets. Belgium's financial regulator."},{ "title": "Commission broker","link": "https://www.alphaflow.com/?glossary=commission-broker","glink": "commission_broker","desc": "A broker on the floor of an exchange who acts as agent for a particular brokerage house and buys and sells stocks for the brokerage house on a commission basis."},{ "title": "Commission de Surveillance du Secteur Financier","link": "https://www.alphaflow.com/?glossary=commission-de-surveillance-du-secteur-financier","glink": "commission_de_surveillance_du_secteur_financier","desc": "Luxembourg's supervisory authority for the Luxembourg financial markets. Luxembourg's financial regulator."},{ "title": "Commission house","link": "https://www.alphaflow.com/?glossary=commission-house","glink": "commission_house","desc": "A firm that buys and sells futures contracts for customer accounts. Related: futures commission merchant, omnibus account."},{ "title": "Commission-only compensation","link": "https://www.alphaflow.com/?glossary=commission-only-compensation","glink": "commission_only_compensation","desc": "Payment to a financial advisers of only commissions on investments purchased when the client implements the recommended financial plan."},{ "title": "Commissione Nazionale per le Società  e la Borsa","link": "https://www.alphaflow.com/?glossary=commissione-nazionale-per-le-societa-e-la-borsa","glink": "commissione_nationale_per_le_societa_e_la_borsa","desc": "Italy's supervisory authority for the Italian financial markets. Italian financial regulator."},{ "title": "Commitment","link": "https://www.alphaflow.com/?glossary=commitment","glink": "commitment","desc": "Describes a trader's obligation to accept or make delivery on a futures contract. Related: Open interest."},{ "title": "Committee of European Banking Supervisors","link": "https://www.alphaflow.com/?glossary=committee-of-european-banking-supervisors","glink": "committee_european_banking_supervisors","desc": "The Committee of European Banking Supervisors (CEBS) gives advice to the European Commission on policy and regulatory issues related to banking supervision. CEBS is composed of high level representatives from the banking supervisory authorities and central banks of the European Union."},{ "title": "Committee on Uniform Securities Identification Procedures","link": "https://www.alphaflow.com/?glossary=committee-on-uniform-securities-identification-procedures","glink": "committee_on_uniform_securities_identification_procedures","desc": "Committee that assigns identifying numbers and codes for all securities. These 'CUSIP' numbers and symbols are used when recording all buy or sell orders."},{ "title": "Commodities Exchange Center","link": "https://www.alphaflow.com/?glossary=commodities-exchange-center","glink": "commodities_exchange_center","desc": "The location of five New York futures exchanges: Commodity Exchange, Inc. (COMEX); the New York Mercantile Exchange (NYMEX); New York Cotton Exchange, Coffee, Sugar & Cocoa Exchange (CS&CE), and New York Futures Exchange (NYFE)."},{ "title": "Commodity","link": "https://www.alphaflow.com/?glossary=commodity","glink": "commodity","desc": "A commodity is food, metal, or another fixed physical substance that investors buy or sell, usually via futures contracts."},{ "title": "Commodity Bundle","link": "https://www.alphaflow.com/?glossary=commodity-bundle","glink": "commodity_bundle","desc": "One unit of the collection of the complete set of goods produced and sold in the world market."},{ "title": "Commodity Channel Index","link": "https://www.alphaflow.com/?glossary=commodity-channel-index","glink": "commodity_channel_index","desc": "An index used in technical analysis. High values mean a potential future correction (downward movement in underlying asset) and low values potentially forecast a rally. Details in Donald Lambert's October 1980 article in Commodities Magazine."},{ "title": "Commodity futures contract","link": "https://www.alphaflow.com/?glossary=commodity-futures-contract","glink": "commodity_futures_contract","desc": "An agreement to buy a specific amount of a commodity at a specified price on a particular date in the future, allowing a producer to guarantee the price of a product or raw material used in production."},{ "title": "Commodity Futures Trading Commission","link": "https://www.alphaflow.com/?glossary=commodity-futures-trading-commission","glink": "commodity_futures_trading_commission","desc": "An agency created by the US Congress in 1974 to regulate exchange trading in futures."},{ "title": "Commodity indices","link": "https://www.alphaflow.com/?glossary=commodity-indices","glink": "commodity_indices","desc": "Indices measuring the price and performance of physical commodities, often by the price of futures contracts for the commodities that are listed on commodity exchanges."},{ "title": "Commodity paper","link": "https://www.alphaflow.com/?glossary=commodity-paper","glink": "commodity_paper","desc": "A loan or advance secured by commodities."},{ "title": "Commodity Research Bureau","link": "https://www.alphaflow.com/?glossary=commodity-research-bureau","glink": "commodity_research_bureau","desc": "Produces a popular price index of 17 commodities which is often used to track inflationary trends in the economy."},{ "title": "Commodity Trading Advisor","link": "https://www.alphaflow.com/?glossary=commodity-trading-advisor","glink": "commodity_trading_advisor","desc": "An investment manager that focuses on long and short trading in the futures markets. The trades are often intraday trades. Sometimes referred to as Managed Futures."},{ "title": "Commodity-backed bond","link": "https://www.alphaflow.com/?glossary=commodity-backed-bond","glink": "commodity_back_bond","desc": "A bond with interest payments tied to the price of an underlying commodity."},{ "title": "Common code","link": "https://www.alphaflow.com/?glossary=common-code","glink": "common_code","desc": "A nine-digit identification code issued jointly by CEDEL and Euroclear. As of January 1991 common codes replaced the earlier separate CEDEL and Euroclear codes."},{ "title": "Common factor","link": "https://www.alphaflow.com/?glossary=common-factor","glink": "common_factor","desc": "An element of return that influences many assets. According to multiple factor risk models, the factors determine correlations between asset returns. Common factors include size (often measured by market capitalization), valuation measures such as price to book value ratio and dividend yield, industries and risk indices."},{ "title": "Common market","link": "https://www.alphaflow.com/?glossary=common-market","glink": "common_market","desc": "An agreement between two or more countries that permits the free movement of capital and labor as well as goods and services."},{ "title": "Common shares","link": "https://www.alphaflow.com/?glossary=common-shares","glink": "common_shares","desc": "In general, a public corporation has two types of shares, common and preferred. The common shares usually entitle the shareholders to vote at shareholders meetings. The common shares have a discretionary dividend."},{ "title": "Common stock","link": "https://www.alphaflow.com/?glossary=common-stock","glink": "common_stock","desc": "Securities that represent equity ownership in a company. Common shares let an investor vote on such matters as the election of directors. They also give the holder a share in a company's profits via dividend payments or the capital appreciation of the security. Units of ownership of a public corporation with junior status to the claims of secured/unsecured creditors, bondholders and preferred shareholders in the event of liquidation."},{ "title": "Common stock equivalent","link": "https://www.alphaflow.com/?glossary=common-stock-equivalent","glink": "common_stock_equivalent","desc": "A convertible security that is traded like an equity issue because the optioned common stock is trading above the conversion price."},{ "title": "Common stock fund","link": "https://www.alphaflow.com/?glossary=common-stock-fund","glink": "common_stock_fund","desc": "A mutual fund investing only in common stock."},{ "title": "Common stock market","link": "https://www.alphaflow.com/?glossary=common-stock-market","glink": "common_stock_market","desc": "The market for trading equities, not including preferred stock."},{ "title": "Common stock ratios","link": "https://www.alphaflow.com/?glossary=common-stock-ratios","glink": "common_stock_ratios","desc": "Ratios that are designed to measure the relative claims of stockholders to earnings (cash flow per share), and equity (book value per share) of a firm."},{ "title": "Common stock/other equity","link": "https://www.alphaflow.com/?glossary=common-stockother-equity","glink": "common_stock_other_equity","desc": "Value of outstanding common shares at par, plus accumulated retained earnings. Also called shareholders' equity."},{ "title": "Common-base-year analysis","link": "https://www.alphaflow.com/?glossary=common-base-year-analysis","glink": "common_base_year_analysis","desc": "The representing of accounting information over multiple years as percentages of amounts in an initial year."},{ "title": "Common-size analysis","link": "https://www.alphaflow.com/?glossary=common-size-analysis","glink": "common_size_analysis","desc": "The representing of balance sheet items as percentages of assets and of income statement items as percentages of sales."},{ "title": "Common-size statement","link": "https://www.alphaflow.com/?glossary=common-size-statement","glink": "common_size_statement","desc": "A statement in which all items are expressed as a percentage of a base figure, useful for purposes of analyzing trends and changing relationship among financial statement items. For example, all items in each year's income statement could be presented as a percentage of net sales."},{ "title": "Commonwealth Development Corp","link": "https://www.alphaflow.com/?glossary=commonwealth-development-corp","glink": "commonwealth_development","desc": "A British development finance institute."},{ "title": "Community Reinvestment Act","link": "https://www.alphaflow.com/?glossary=community-reinvestment-act","glink": "community_reinvestment_act_(cra)","desc": "Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations."},{ "title": "Comnmunity Bank","link": "https://www.alphaflow.com/?glossary=comnmunity-bank","glink": "community_bank","desc": "A smaller bank that is regulated by the Office of the Comptroller of Currency (OCC).Currently, there is no official definition of Community Bank, i.e. in terms of asset size."},{ "title": "Companion bonds","link": "https://www.alphaflow.com/?glossary=companion-bonds","glink": "companion_bonds","desc": "A class of a Collateralized Mortgage Obligation (CMO) whose principal is paid off first when the underlying mortgages are prepaid due to falling interest rates. When interest rates rise, there will be lower prepayments of the principal; companion bonds therefore absorb most of the prepayment risk of a CMO."},{ "title": "Company","link": "https://www.alphaflow.com/?glossary=company","glink": "company","desc": "A proprietorship, partnership, corporation, or other form of enterprise that engages in business."},{ "title": "Company doctor","link": "https://www.alphaflow.com/?glossary=company-doctor","glink": "company_doctor","desc": "An executive, usually appointed from outside, brought in to turn a company around and make it profitable."},{ "title": "Company-specific risk","link": "https://www.alphaflow.com/?glossary=company-specific-risk","glink": "company_specific_risk","desc": "Related: Unsystematic risk"},{ "title": "Comparative advantage","link": "https://www.alphaflow.com/?glossary=comparative-advantage","glink": "comparative_advantage","desc": "Theory suggesting that specialization by countries can increase worldwide production."},{ "title": "Comparative credit analysis","link": "https://www.alphaflow.com/?glossary=comparative-credit-analysis","glink": "comparative_credit_analysis","desc": "Comparing a firm to others that have a desired target debt rating in order to deduce an appropriate financial ratio target."},{ "title": "Comparative statements","link": "https://www.alphaflow.com/?glossary=comparative-statements","glink": "comparative_statements","desc": "Financial statements for different periods, that allow the comparison of figures to illustrate trends in a company's performance."},{ "title": "Comparison","link": "https://www.alphaflow.com/?glossary=comparison","glink": "comparison","desc": "Short for 'comparison ticket,' a memorandum between two brokers that confirms the details of a transaction to be carried out."},{ "title": "Comparison universe","link": "https://www.alphaflow.com/?glossary=comparison-universe","glink": "comparison_universe","desc": "A group of money managers of similar investment style used to assess relative performance of a portfolio manager."},{ "title": "Compensating balance","link": "https://www.alphaflow.com/?glossary=compensating-balance","glink": "compensating_balance","desc": "An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided."},{ "title": "Compensation","link": "https://www.alphaflow.com/?glossary=compensation","glink": "compensation","desc": "Arrangement under which the delivery of goods to a party is paid for by buying back a certain amount of the product from the recipient of the goods."},{ "title": "Compensation trade","link": "https://www.alphaflow.com/?glossary=compensation-trade","glink": "compensation_trade","desc": "The form of countertrade in which an incoming investment is repaid from the revenues generated by that investment."},{ "title": "Compensatory Financing Facility","link": "https://www.alphaflow.com/?glossary=compensatory-financing-facility","glink": "compensatory_financing_facility","desc": "Entity that attempts to reduce the impact of export instability on country economies."},{ "title": "Competence","link": "https://www.alphaflow.com/?glossary=competence","glink": "competence","desc": "Sufficient ability or fitness for one's needs. The necessary abilities to be qualified to achieve a certain goal or complete a project."},{ "title": "Competition","link": "https://www.alphaflow.com/?glossary=competition","glink": "competition","desc": "Intra- or intermarket rivalry between or among businesses trying to obtain a larger piece of the same market share."},{ "title": "Competition ahead","link": "https://www.alphaflow.com/?glossary=competition-ahead","glink": "competition_ahead","desc": "Often used in risk arbitrage. Situation whereby another OTC market maker has transacted with investment bank at the stated market level before the bid/offer has been made."},{ "title": "Competitive bidders","link": "https://www.alphaflow.com/?glossary=competitive-bidders","glink": "competitive_bidders","desc": "One of two categories of bidders on Treasury securities: competitive and noncompetitive. Competitive bidders are usually financial institutions."},{ "title": "Competitive bidding","link": "https://www.alphaflow.com/?glossary=competitive-bidding","glink": "competitive_bidding","desc": "A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell."},{ "title": "Competitive offering","link": "https://www.alphaflow.com/?glossary=competitive-offering","glink": "competitive_offering","desc": "An offering of securities through competitive bidding."},{ "title": "Complementary Financing","link": "https://www.alphaflow.com/?glossary=complementary-financing","glink": "complementary_financing","desc": "A type of financing in which different lenders agree to fund under similar yet parallel documentation and a pro rata security package."},{ "title": "Complete","link": "https://www.alphaflow.com/?glossary=complete","glink": "complete","desc": "In the context of general equities, to fill an order."},{ "title": "Complete capital market","link": "https://www.alphaflow.com/?glossary=complete-capital-market","glink": "complete_captial_market","desc": "A market in which there is a distinctive marketable security for each and every possible outcome."},{ "title": "Complete portfolio","link": "https://www.alphaflow.com/?glossary=complete-portfolio","glink": "complete_portfolio","desc": "The entire portfolio, including risky and risk-free assets."},{ "title": "Completion","link": "https://www.alphaflow.com/?glossary=completion","glink": "completion","desc": "In the context of project financing, occurs after a Completion Test, when the project's cash flows become the primary method of repayment. Prior to completion, the primary source of repayment is usually from the sponsors or from the turnkey contractor."},{ "title": "Completion bonding","link": "https://www.alphaflow.com/?glossary=completion-bonding","glink": "completion_bonding","desc": "Insurance that a construction contract will be completed successfully."},{ "title": "Completion risk","link": "https://www.alphaflow.com/?glossary=completion-risk","glink": "completion_risk","desc": "The risk that a project will not be brought into operation successfully or be able to pass its completion test."},{ "title": "Completion test","link": "https://www.alphaflow.com/?glossary=completion-test","glink": "completion_test","desc": "A test of the project's ability to perform as planned and generate the expected cash flows. After the completion test, the project can move from recourse to project financing."},{ "title": "Completion undertaking","link": "https://www.alphaflow.com/?glossary=completion-undertaking","glink": "completion_undertaking","desc": "An undertaking either (1) to complete a project so that it meets certain specified performance criteria on or before a certain specified date, or (2) to repay project debt if the completion test cannot be met."},{ "title": "Complex system","link": "https://www.alphaflow.com/?glossary=complex-system","glink": "complex_system","desc": "A system that cannot be fully understood simply by understanding the function of each component part."},{ "title": "Complexity Theory","link": "https://www.alphaflow.com/?glossary=complexity-theory","glink": "complexity_theory","desc": "The theory that processes with a large number of seemingly independent agents can spontaneously organize themselves into a coherent system."},{ "title": "Compliance department","link": "https://www.alphaflow.com/?glossary=compliance-department","glink": "compliance_department","desc": "A department in all organized stock exchanges to ensure that all companies, traders, and brokerage firms comply with Securities and Exchange Commission and exchange rules and regulations."},{ "title": "Composite depreciation","link": "https://www.alphaflow.com/?glossary=composite-depreciation","glink": "composite_depreciation","desc": "Method of depreciation where a single average depreciation rate is applied to a group of dissimilar assets with different service lives. See also Group depreciation."},{ "title": "Composite tape","link": "https://www.alphaflow.com/?glossary=composite-tape","glink": "composite_tape","desc": "See: Tape"},{ "title": "Composition","link": "https://www.alphaflow.com/?glossary=composition","glink": "composition","desc": "Voluntary arrangement to restructure a firm's debt, under which payment is reduced."},{ "title": "Compound Annual Growth Rate","link": "https://www.alphaflow.com/?glossary=compound-annual-growth-rate","glink": "compound_annual_growth_rate","desc": "Annual return calculated based on each year's previous balances where each previous balance includes both the original principal and all interest accrued from prior years. Best defined by example. If you invest $100 today and make 5% in the first year and reinvest ($105) and make 8% in the second year, the compound annual growth rate is 6.489%. The calculation is $100x1.05x1.08=$113.4 which is what you end up with at the end of year two. The average return is [square root(113.4/100) -1]= 0.06489 or 6.489%. Note 1. If we had three compounding periods we would take the cubic root (power of 1/3). Note 2. If we had invested at exactly 6.489 in both periods, we get $100x1.06489x1.06489=$113.4. Note 3. The example is directed to a return - but CAGR could be applied to earnings growth, GDP growth, etc."},{ "title": "Compound Annual Return","link": "https://www.alphaflow.com/?glossary=compound-annual-return","glink": "compound_annual_return","desc": "See: Compound Annual Growth Rate"},{ "title": "Compound growth rate","link": "https://www.alphaflow.com/?glossary=compound-growth-rate","glink": "compound_growth_rate","desc": "See: Compound Annual Growth Rate"},{ "title": "Compound interest","link": "https://www.alphaflow.com/?glossary=compound-interest","glink": "compound_interest","desc": "Interest paid on previously earned interest as well as on the principal."},{ "title": "Compound option","link": "https://www.alphaflow.com/?glossary=compound-option","glink": "compound_option","desc": "Option on an option."},{ "title": "Compounding","link": "https://www.alphaflow.com/?glossary=compounding","glink": "compounding","desc": "The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period."},{ "title": "Compounding frequency","link": "https://www.alphaflow.com/?glossary=compounding-frequency","glink": "compounding_frequency","desc": "The number of compounding periods in a year. For example, quarterly compounding has a compounding frequency of 4."},{ "title": "Compounding period","link": "https://www.alphaflow.com/?glossary=compounding-period","glink": "compounding_period","desc": "The length of the time period that elapses before interest compounds (a quarter in the case of quarterly compounding)."},{ "title": "Comprehensive due diligence investigation","link": "https://www.alphaflow.com/?glossary=comprehensive-due-diligence-investigation","glink": "comprehensive_due_diligence_investigation","desc": "The investigation of a firm's business in conjunction with a securities offering to determine whether the firm's business and financial situation and its prospects are adequately disclosed in the prospectus for the offering."},{ "title": "Comprehensive Income","link": "https://www.alphaflow.com/?glossary=comprehensive-income","glink": "comprehensive_income","desc": "Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events from non-owner sources. It includes all non-owner changes in equity (in contrast to net income which does not include some changes in equity). Financial Accounting Standards Board (FASB) issued the Statement of Financial Accounting Standards No. 130 (SFAS 130), Reporting Comprehensive Income. For fiscal years beginning after December 15, 1997, SFAS 130 requires the disclosure of both net income and a more 'comprehensive’ measure of income which includes four items recorded as owners’ equity under previous FASB pronouncements: adjustments to unrealized gains and losses on available-for-sale marketable securities (SFAS 115), foreign currency translation adjustments (SFAS 52), minimum required pension liability adjustments (SFAS 87), and changes in the market values of certain futures contracts qualifying as hedges (SFAS 80)."},{ "title": "Comptroller","link": "https://www.alphaflow.com/?glossary=comptroller","glink": "comptroller","desc": "The corporate manager responsible for the firm's accounting activities. Sometimes referred to as the contoller (which means the same thing)."},{ "title": "Comptroller of the Currency","link": "https://www.alphaflow.com/?glossary=comptroller-of-the-currency","glink": "comptroller_of_the_currency","desc": "Short for. the Office of the Comptroller of the Currency (OCC). This federal agency regulates, watches over, and charters national banks (not state banks) and also is in charge of foreign banks conducting business in the U.S. The OCC is headed by the Comptroller of the Currency who is appointed by the President."},{ "title": "Computerized market timing system","link": "https://www.alphaflow.com/?glossary=computerized-market-timing-system","glink": "computerized_market_timing_system","desc": "A computer system that compiles large amounts of trading data in search of patterns and trends to make buy and sell recommendations."},{ "title": "Concave","link": "https://www.alphaflow.com/?glossary=concave","glink": "concave","desc": "See the discussion of negative convexity."},{ "title": "Concentration account","link": "https://www.alphaflow.com/?glossary=concentration-account","glink": "concentration_account","desc": "A single centralized account into which funds collected at regional locations (lockboxes) are transferred."},{ "title": "Concentration Banks","link": "https://www.alphaflow.com/?glossary=concentration-banks","glink": "concentration_banks","desc": "A small number of large banks a firm contracts with to periodically collect the firm's deposit balances from a group of smaller banks."},{ "title": "Concentration services","link": "https://www.alphaflow.com/?glossary=concentration-services","glink": "concentration_services","desc": "Movement of cash from different lockbox locations into a single concentration account from which disbursements and investments are made."},{ "title": "Concession","link": "https://www.alphaflow.com/?glossary=concession","glink": "concession","desc": "The per-share or per-bond compensation of a selling group for participating in a corporate underwriting."},{ "title": "Concession agreement","link": "https://www.alphaflow.com/?glossary=concession-agreement","glink": "concession_agreement","desc": "An understanding between a company and the host government that specifies the rules under which the company can operate locally."},{ "title": "Conditional call","link": "https://www.alphaflow.com/?glossary=conditional-call","glink": "conditional_call","desc": "Applies mainly to convertible securities. Circumstances under which a company can effect an earlier call, usually stated as percentage of a stock's trading price during a particular period, such as 140% of the exercise price during a 40-day trading span."},{ "title": "Conditional call options","link": "https://www.alphaflow.com/?glossary=conditional-call-options","glink": "conditional_call_options","desc": "A protective guarantee that, in the event a high yield bond is called, the issuing corporation will replace the bond with a noncallable bond of the same life and terms as the bond that is being called."},{ "title": "Conditional sales contracts","link": "https://www.alphaflow.com/?glossary=conditional-sales-contracts","glink": "conditional_sales_contracts","desc": "Similar to equipment trust certificates, except that the lender is either the equipment manufacturer or a bank or finance company to which the manufacturer has sold the conditional sales contract."},{ "title": "Condor","link": "https://www.alphaflow.com/?glossary=condor","glink": "condor","desc": "Applies to derivative products. Option strategy consisting of both puts and calls at different strike prices to capitalize on a narrow range of volatility. The payoff diagram takes the shape of a bird."},{ "title": "Conduit bond","link": "https://www.alphaflow.com/?glossary=conduit-bond","glink": "conduit_bond","desc": "A conduit bond is a type of municipal bond sold by a governmental entity for the purpose of making proceeds available to a private entity usually in furtherance of a public purpose. An example would be bonds in connection with not-for-profit hospitals or affordable housing. The governmental issuer is typically not responsible in the event of default."},{ "title": "Conduit theory","link": "https://www.alphaflow.com/?glossary=conduit-theory","glink": "conduit_theory","desc": "A theory that because investment companies are merely conduits for capital gains, dividends, and interest, which are in fact passed through to shareholders, the investment company should not be taxed at the corporate level."},{ "title": "Confidence indicator","link": "https://www.alphaflow.com/?glossary=confidence-indicator","glink": "confidence_indicator","desc": "A measure of investors' faith in the economy and the securities market. A low or deteriorating level of confidence is considered by many technical analysts as a bearish sign."},{ "title": "Confidence letter","link": "https://www.alphaflow.com/?glossary=confidence-letter","glink": "confidence_letter","desc": "Statement by an investment bank that it is highly confident that the financing for its client/acquirer's takeover can and will be obtained. Often used in risk arbitrage."},{ "title": "Confidence level","link": "https://www.alphaflow.com/?glossary=confidence-level","glink": "confidence_level","desc": "In risk analysis, the degree of assurance that a specified failure rate is not exceeded."},{ "title": "Confirmation","link": "https://www.alphaflow.com/?glossary=confirmation","glink": "confirmation","desc": "The written statement that follows any 'trade' in the securities markets. Confirmation is issued immediately after a trade is executed. It spells out settlement date, terms, commission, etc."},{ "title": "Confirmed Letter of Credit","link": "https://www.alphaflow.com/?glossary=confirmed-letter-of-credit","glink": "confirmed_letter_of_credit","desc": "A letter of credit which a bank other than the bank that opened it agrees to honor as though they had themselves issued it. This additional confirmation is in addition to the obligation of the bank which issued the letter of credit."},{ "title": "Confirming Bank","link": "https://www.alphaflow.com/?glossary=confirming-bank","glink": "confirming_bank","desc": "The bank which has confirmed a letter of credit opened by another bank."},{ "title": "Conflict between bondholders and stockholders","link": "https://www.alphaflow.com/?glossary=conflict-between-bondholders-and-stockholders","glink": "conflict_between_bondholders_and_stockholders","desc": "Bondholders and stockholders may have interests in a corporation that conflict. Sources of conflict include dividends, distortion of investment, and underinvestment. Protective covenants in bond documents work to resolve these conflicts."},{ "title": "Conforming loans","link": "https://www.alphaflow.com/?glossary=conforming-loans","glink": "conforming_loans","desc": "Mortgage loans that meet the qualifications of Freddie Mac or Fannie Mae, which are bought from lenders and issued as pass-through securities."},{ "title": "Conglomerate","link": "https://www.alphaflow.com/?glossary=conglomerate","glink": "conglomerate","desc": "A firm engaged in two or more unrelated businesses."},{ "title": "Conglomerate merger","link": "https://www.alphaflow.com/?glossary=conglomerate-merger","glink": "conglomerate_merger","desc": "A merger involving two or more firms that are in unrelated businesses."},{ "title": "Consensus forecast","link": "https://www.alphaflow.com/?glossary=consensus-forecast","glink": "consensus_forecast","desc": "The mean of all financial analysts' forecasts for a company."},{ "title": "Conservator","link": "https://www.alphaflow.com/?glossary=conservator","glink": "conservator","desc": "An entity given legal responsibility for overseeing, protecting, or preserving the interests and affairs of another entity deemed incapable often doing so. See: Bailout, Conservatorship"},{ "title": "Conservatorship","link": "https://www.alphaflow.com/?glossary=conservatorship","glink": "conservatorship","desc": "An enentity either set up by the government or by court order that takes control of an organization that is unable to function on its own (due to legal or financial distress). See: Convservator"},{ "title": "Consignee","link": "https://www.alphaflow.com/?glossary=consignee","glink": "consignee","desc": "The party named in the bill of lading to whom delivery is promised and/or title is passed."},{ "title": "Consignment","link": "https://www.alphaflow.com/?glossary=consignment","glink": "consignment","desc": "Transfer of goods to a seller while title to the merchandise is retained by the owner."},{ "title": "Consol","link": "https://www.alphaflow.com/?glossary=consol","glink": "consol","desc": "A government bond with no maturity . Popular in Great Britain. The formula for valuing these bonds is simple. The consol payment divided by yield to maturity is the price of the bond."},{ "title": "Consolidated financial statement","link": "https://www.alphaflow.com/?glossary=consolidated-financial-statement","glink": "consolidated_financial_statement","desc": "A financial statement that shows all the assets, liabilities, and operating accounts of a parent company and its subsidiaries."},{ "title": "Consolidated mortgage bond","link": "https://www.alphaflow.com/?glossary=consolidated-mortgage-bond","glink": "consolidated_mortgage_bond","desc": "A bond that covers several units of property, sometimes refinancing mortgages on the properties."},{ "title": "Consolidated Supervised Entities (CSE) Program","link": "https://www.alphaflow.com/?glossary=consolidated-supervised-entities-cse-program","glink": "consolidated_supervised_entities_program","desc": "A Securities and Exchange Commission program created in 2004 and terminated in 2008 that provided voluntary supervision for the five largest investment bank conglomerates."},{ "title": "Consolidated tape","link": "https://www.alphaflow.com/?glossary=consolidated-tape","glink": "consolidated_tape","desc": "Used for listed equity securities. Combined ticker tapes of the NYSE and the curb. Network A covers the NYSE-listed securities and is used to identify the originating market. Network B does the same for AMEX-listed securities and also reports on securities listed on regional stock exchanges. See: tape."},{ "title": "Consolidated tax return","link": "https://www.alphaflow.com/?glossary=consolidated-tax-return","glink": "consolidated_tax_return","desc": "A tax return combining the reports of affiliated companies, that are at least 80% owned by a parent company."},{ "title": "Consolidation","link": "https://www.alphaflow.com/?glossary=consolidation","glink": "consolidation","desc": "The combining of two or more firms to form an entirely new entity."},{ "title": "Consolidation loan","link": "https://www.alphaflow.com/?glossary=consolidation-loan","glink": "consolidation_loan","desc": "A loan that is used to combine and finance payments on other loans."},{ "title": "Consortium","link": "https://www.alphaflow.com/?glossary=consortium","glink": "consortium","desc": "A group of companies that cooperate and share resources in order to achieve a common objective."},{ "title": "Consortium banks","link": "https://www.alphaflow.com/?glossary=consortium-banks","glink": "consortium_banks","desc": "A merchant banking subsidiary set up by several banks that may or may not be of the same nationality. Consortium banks are common in the Euromarket and are active in loan syndication."},{ "title": "Constant dollar","link": "https://www.alphaflow.com/?glossary=constant-dollar","glink": "constant_dollar","desc": "Condition in which inflation or escalation is not applicable. Prices and costs are deescalated or reescalated to a single point in time."},{ "title": "Constant dollar accounting","link": "https://www.alphaflow.com/?glossary=constant-dollar-accounting","glink": "constant_dollar_accounting","desc": "See General Price Level Accounting."},{ "title": "Constant Proportion Portfolio Insurance","link": "https://www.alphaflow.com/?glossary=constant-proportion-portfolio-insurance","glink": "constant_proportion_portfolio_insurance","desc": "A trading strategy that sets a floor on a portfolio value by investing in a risky and a riskless asset such that if the risky asset falls to its lowest expected value, the portfolio value will be at the floor. The weights are altered as the asset values change. This limits the downside risk while maintaining a potential upside through the exposure to the risky asset. This is analogous to buying a put option on the portfolio. Also see Portfolio Insurance."},{ "title": "Constant ratio plan","link": "https://www.alphaflow.com/?glossary=constant-ratio-plan","glink": "constant_ratio_plan","desc": "Maintaining a predetermined ratio between stock and fixed income investments through regular adjustments of distribution of funds into different investments. See: formula investing."},{ "title": "Constant yield method","link": "https://www.alphaflow.com/?glossary=constant-yield-method","glink": "constant_yield_method","desc": "Allocation of annual interest on a zero-coupon security for income tax use."},{ "title": "Constant-dollar plan","link": "https://www.alphaflow.com/?glossary=constant-dollar-plan","glink": "constant_dollar_plan","desc": "Method of purchasing securities by investing a fixed amount of money at set intervals. The investor buys more shares when the price is low and fewer shares when the price is high, thus reducing the average cost."},{ "title": "Constant-growth model","link": "https://www.alphaflow.com/?glossary=constant-growth-model","glink": "constant_growth_model","desc": "Also called the Gordon-Shapiro model, an application of the dividend discount model that assumes (1) a fixed growth rate for future dividends, and (2) a single discount rate."},{ "title": "Construction loan","link": "https://www.alphaflow.com/?glossary=construction-loan","glink": "construction_loan","desc": "A short-term loan to finance building costs."},{ "title": "Constructive receipt","link": "https://www.alphaflow.com/?glossary=constructive-receipt","glink": "constructive_receipt","desc": "The date a taxpayer receives dividends or other income, for use in the determination of taxes."},{ "title": "Consular Invoice","link": "https://www.alphaflow.com/?glossary=consular-invoice","glink": "consular_invoice","desc": "A document prepared by the shipper and certified in the country of origin by a consul of the country of importation. It shows the transaction details and origin of the goods."},{ "title": "Consumer Advisory Council","link": "https://www.alphaflow.com/?glossary=consumer-advisory-council","glink": "consumer_advisory_council_(cac)","desc": "A statutory body established by Congress in 1976. The Council, with 30 members who represent a broad range of consumer and creditor interests, advises the Federal Reserve Board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters on which the Board seeks its advice."},{ "title": "Consumer credit","link": "https://www.alphaflow.com/?glossary=consumer-credit","glink": "consumer_credit","desc": "Credit a firm grants to consumers for the purchase of goods or services. Also called retail credit."},{ "title": "Consumer Credit Protection Act of 1968","link": "https://www.alphaflow.com/?glossary=consumer-credit-protection-act-of-1968","glink": "consumer_credit_protection_act_of_1968","desc": "Federal legislation establishing rules for the disclosure of the terms of a loan to protect borrowers. See: Truth in lending."},{ "title": "Consumer debenture","link": "https://www.alphaflow.com/?glossary=consumer-debenture","glink": "consumer_debenture","desc": "An investment note issued directly to the public by a financial institution."},{ "title": "Consumer durables","link": "https://www.alphaflow.com/?glossary=consumer-durables","glink": "consumer_durables","desc": "Consumer products that are expected to last three years or more, such as an automobile or a home appliance."},{ "title": "Consumer finance company","link": "https://www.alphaflow.com/?glossary=consumer-finance-company","glink": "consumer_finance_company","desc": "See: Finance company"},{ "title": "Consumer goods","link": "https://www.alphaflow.com/?glossary=consumer-goods","glink": "consumer_goods","desc": "Goods not used in production but bought for personal or household use such as food, clothing, and entertainment."},{ "title": "Consumer interest","link": "https://www.alphaflow.com/?glossary=consumer-interest","glink": "consumer_interest","desc": "Interest paid on consumer loans; e.g., interest on credit cards and retail purchases."},{ "title": "Consumer Price Index","link": "https://www.alphaflow.com/?glossary=consumer-price-index","glink": "consumer_price_index","desc": "The CPI, as it is called, measures the prices of consumer goods and services and is a measure of the pace of US inflation. The US Department of Labor publishes the CPI every month."},{ "title": "Consumption tax","link": "https://www.alphaflow.com/?glossary=consumption-tax","glink": "consumption_tax","desc": "See: Value-added tax"},{ "title": "Contagion","link": "https://www.alphaflow.com/?glossary=contagion","glink": "contagion","desc": "Refers to an increase in correlation of asset returns that is more than expected. Sometimes also called excess correlation. For example, during the East Asian crisis that began in July 1997 when the Thai currency devalued, many emerging markets as far away as South America became increasingly correlated. Contagion is difficult to identify because you need some sort of measure of the expected correlation. It is complicated because correlations are known to change through time, for example, see Erb, Harvey and Viskanta's article in the 1994 Financial Analysts Journal. In periods of negative returns, correlations (and volatility) are known to increase, so what might appear to be excessive correlations may not be contagion."},{ "title": "Contango","link": "https://www.alphaflow.com/?glossary=contango","glink": "contango","desc": "A market condition in which futures prices are higher in the distant delivery months."},{ "title": "Contingency","link": "https://www.alphaflow.com/?glossary=contingency","glink": "contingency","desc": "An additional amount or percentage added to any cash flow item (ie. Capex). Care is needed to ensure it is either to be spent or to remain as a cushion."},{ "title": "Contingency graph","link": "https://www.alphaflow.com/?glossary=contingency-graph","glink": "contingency_graph","desc": "A plot of the net profit to a speculator in currency options under various exchange rate scenarios."},{ "title": "Contingency order","link": "https://www.alphaflow.com/?glossary=contingency-order","glink": "contingency_order","desc": "In the context of general equities, order to buy one security, if the trader can sell another, usually given that certain price limits or conditions reach a certain level. Swap, switch order."},{ "title": "Contingent","link": "https://www.alphaflow.com/?glossary=contingent","glink": "contingent","desc": "In context of liabilities, those liabilities that do not yet appear on the balance sheet (ie. guarantees, supports, lawsuit settlements). For support or recourse, the trigger may occur at any time in the future."},{ "title": "Contingent claim","link": "https://www.alphaflow.com/?glossary=contingent-claim","glink": "contingent_claim","desc": "A claim that can be made only if one or more specified outcomes occur."},{ "title": "Contingent conversion trigger","link": "https://www.alphaflow.com/?glossary=contingent-conversion-trigger","glink": "contingent_conversion_trigger","desc": "Used in the context of convertible instruments. The price of the stock must exceed the trigger price before the bond holder can convert to common stock at a pre-established conversion price. The trigger price exceeds the conversion price. In addition, after a certain number of years, the convertible instrument usually specifies that both the conversion price and the contingent conversion trigger will increase every year by, for example, a rate equal to LIBOR."},{ "title": "Contingent convertible capital instruments","link": "https://www.alphaflow.com/?glossary=contingent-convertible-capital-instruments","glink": "contingent_covertible_capital_instruments","desc": "Capital instruments that act as bonds but convert to equity if the issuing bank comes under extreme stress, such as core capital ratio falling below a predetermined level."},{ "title": "Contingent debt","link": "https://www.alphaflow.com/?glossary=contingent-debt","glink": "contingent_debt","desc": "A contingent debt is an unusual kind of debt that is dependent on uncertain future developments. A contigent debt is not a definitive liability as it is based on the outcome of a future event (for example, such as a court verdict)."},{ "title": "Contingent deferred sales charge","link": "https://www.alphaflow.com/?glossary=contingent-deferred-sales-charge","glink": "contingent_deferred_sales_charge","desc": "The formal name for the load of a back-end load fund."},{ "title": "Contingent immunization","link": "https://www.alphaflow.com/?glossary=contingent-immunization","glink": "contingent_immunization","desc": "An arrangement in which the money manager pursues an active bond portfolio strategy until an adverse investment experience drives the then-available potential return down to the safety net level. When that point is reached, the money manager is obligated to pursue an immunization strategy to lock in the safety-net level return."},{ "title": "Contingent order","link": "https://www.alphaflow.com/?glossary=contingent-order","glink": "contingent_order","desc": "An order which can be executed only if another event occurs; i.e. 'sell Oct 45 call 7-1/4 with stock 52 or lower'."},{ "title": "Contingent pension liability","link": "https://www.alphaflow.com/?glossary=contingent-pension-liability","glink": "contingent_pension_liability","desc": "Under ERISA, a firm is liable to its pension plan participants for up to 39% of the net worth of the firm."},{ "title": "Contingent Voting Power","link": "https://www.alphaflow.com/?glossary=contingent-voting-power","glink": "contingent_voting_power","desc": "Enables preferred stockholders to vote when the company fails to satisfy the agreement between itself and the preferred stockholders."},{ "title": "Continuous compounding","link": "https://www.alphaflow.com/?glossary=continuous-compounding","glink": "continuous_compounding","desc": "The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned constantly, and at each instant, the interest that accrues immediately begins earning interest on itself."},{ "title": "Continuous net settlement","link": "https://www.alphaflow.com/?glossary=continuous-net-settlement","glink": "continuous_net_settlement","desc": "Method of securities clearing and settlement using a clearing house, which matches transactions to securities available, resulting in one net receive or deliver position at the end of the day."},{ "title": "Continuous random variable","link": "https://www.alphaflow.com/?glossary=continuous-random-variable","glink": "continuous_random_variable","desc": "A random value that can take any fractional value within specified ranges, as contrasted with a discrete variable."},{ "title": "Contra broker","link": "https://www.alphaflow.com/?glossary=contra-broker","glink": "contra_broker","desc": "The broker on the buy side of a sell order or the sell side of a buy order."},{ "title": "Contract","link": "https://www.alphaflow.com/?glossary=contract","glink": "contract","desc": "A term of reference describing a unit of trading for a financial or commodity future. Also, the actual bilateral agreement between the buyer and seller of a transaction as defined by an exchange."},{ "title": "Contract for Difference","link": "https://www.alphaflow.com/?glossary=contract-for-difference","glink": "contract_for_difference","desc": "Also known as CFD. This is an agreement between buyer and seller to exchange the difference between the current value of the asset and the initial value of the asset when the contract is initiated. For example, suppose the initial price of share XYZ is $100 and a CFD for 1000 shares is exchanged. Both the buyer and seller must post some margin. If the price goes to $105, then the buyer gets $5,000 from the seller. If the price goes to $95, the buyer pays the seller $5,000. This contract avoids ownership of the stock and all the associated transactions issues (like stamp taxes). The contract also allows for leverage (typically 10:1) because the margin that must be posted is only a fraction of the value of the underlying asset. These contracts can also be on the difference of two assets' prices. They can also be on the difference of a single asset of different maturities (like a bond or futures contracts). CFDs are sometimes known as spread trading."},{ "title": "Contract month","link": "https://www.alphaflow.com/?glossary=contract-month","glink": "contract_month","desc": "The month in which futures contracts may be satisfied by making or accepting a delivery."},{ "title": "Contractual Claim","link": "https://www.alphaflow.com/?glossary=contractual-claim","glink": "contractual_claim","desc": "An amount that by legal agreement must be paid periodically to the buyer of a security; contractual claim may also specify the time at which the principal must be repaid and other details."},{ "title": "Contractual Intermediary","link": "https://www.alphaflow.com/?glossary=contractual-intermediary","glink": "contractual_intermediary","desc": "Holder of an indirect claim through a legal agreement that specifies that the individual must make periodic, fixed payments to the intermediary in exchange for the right to receive payments from the intermediary in the future."},{ "title": "Contractual plan","link": "https://www.alphaflow.com/?glossary=contractual-plan","glink": "contractual_plan","desc": "A plan in which fixed dollar amounts of mutual fund shares are purchased through periodic investments, usually featuring some sort of additional incentive for the fixed period payments."},{ "title": "Contramarket stock","link": "https://www.alphaflow.com/?glossary=contramarket-stock","glink": "contramarket_stock","desc": "In the context of general equities, stock that tends to go against the trend of the market as a whole, such as a commodities-related stock or one in an industry out of favor with investors in a bull market."},{ "title": "Contrarian","link": "https://www.alphaflow.com/?glossary=contrarian","glink": "contrarian","desc": "An investment style that leads one to buy assets that have performed poorly and sell assets that have performed well. There are two possible reasons this strategy might work. The first is a mean-reversion argument; that is, if the asset has deviated from its usual level, it should eventually return to that usual level. The second reason has to do with overreaction. Investors might have overreacted to bad news sending the asset price lower than it should be."},{ "title": "Contrarian investing","link": "https://www.alphaflow.com/?glossary=contrarian-investing","glink": "contrarian_investing","desc": "Ignoring market trends by buying securities that the investor considers undervalued and out of favor with other investors."},{ "title": "Contributed capital","link": "https://www.alphaflow.com/?glossary=contributed-capital","glink": "contributed_capital","desc": "See: Paid-in capital"},{ "title": "Contributed surplus","link": "https://www.alphaflow.com/?glossary=contributed-surplus","glink": "contributed_surplus","desc": "Total assets minus the sum of total liabilities, the par value of issued stock, and retained earnings. Contributed surplus identifies the portion of a company's income that comes from non-operational sources, or the portion of total profit other than profit earned through operations.  One example of contributed surplus is the income a company receives from selling shares above their stated par value. See: Retained earnings, Capital surplus"},{ "title": "Contribution","link": "https://www.alphaflow.com/?glossary=contribution","glink": "contribution","desc": "Money placed in an individual retirement account (IRA), an employer-sponsored retirement plan, or other retirement plan for a particular tax year. Contributions may be deductible or nondeductible, depending on the type of account."},{ "title": "Contribution margin","link": "https://www.alphaflow.com/?glossary=contribution-margin","glink": "contribution_margin","desc": "The difference between variable revenue and variable cost."},{ "title": "Control","link": "https://www.alphaflow.com/?glossary=control","glink": "control","desc": "50% of the outstanding votes plus one vote."},{ "title": "Control Limits","link": "https://www.alphaflow.com/?glossary=control-limits","glink": "control_limits","desc": "The upper and lower limits on the acceptable level of cash that minimizes the sum of the opportunity cost of excessive cash and the cost of marketable security transactions."},{ "title": "Control parameters","link": "https://www.alphaflow.com/?glossary=control-parameters","glink": "control_parameters","desc": "In a nonlinear dynamic system, the coefficient of the order parameter; the determinant of the influence of the order parameter on the total system. See: Order Parameter."},{ "title": "Control person","link": "https://www.alphaflow.com/?glossary=control-person","glink": "control_person","desc": "See: Affiliated person"},{ "title": "Control stock","link": "https://www.alphaflow.com/?glossary=control-stock","glink": "control_stock","desc": "The shares owned by the controlling shareholders of a corporation. Sometimes refers to stock that has voting rights rather than stock that carries no voting rights. In a situation where all stock has voting rights, it sometimes refers to the shareholdings of one investors or a group of investors that effectively control the firm."},{ "title": "Control-share Acquisition Laws","link": "https://www.alphaflow.com/?glossary=control-share-acquisition-laws","glink": "control_share_acquisition_laws","desc": "See Supermajority."},{ "title": "Controlled commodities","link": "https://www.alphaflow.com/?glossary=controlled-commodities","glink": "controlled_commodities","desc": "Commodities regulated by the Commodities Exchange Act of 1936 in order to prevent fraud and manipulation in commodities futures markets."},{ "title": "Controlled disbursement","link": "https://www.alphaflow.com/?glossary=controlled-disbursement","glink": "controlled_disbursement","desc": "A service that provides for a single presentation of checks each day (typically in the early part of the day)."},{ "title": "Controlled foreign corporation","link": "https://www.alphaflow.com/?glossary=controlled-foreign-corporation","glink": "controlled_foreign_corporation","desc": "A foreign corporation whose voting stock is more than 50% owned by US stockholders, each of whom owns at least 10% of the voting power."},{ "title": "Controller","link": "https://www.alphaflow.com/?glossary=controller","glink": "controller","desc": "The corporate manager responsible for the firm's accounting activities. Sometimes referred to as the comptroller (which means the same thing)."},{ "title": "Convenience yield","link": "https://www.alphaflow.com/?glossary=convenience-yield","glink": "convenience_yield","desc": "The extra advantage that firms derive from holding the commodity rather than a futures position."},{ "title": "Convention statement","link": "https://www.alphaflow.com/?glossary=convention-statement","glink": "convention_statement","desc": "An annual statement filed by a life insurance company in each state where it does business in compliance with that state's regulations. The statement and supporting documents show, among other things, the assets, liabilities, and surplus of the reporting company."},{ "title": "Conventional mortgage","link": "https://www.alphaflow.com/?glossary=conventional-mortgage","glink": "conventional_mortgage","desc": "A loan based on the credit of the borrower and on the collateral for the mortgage."},{ "title": "Conventional option","link": "https://www.alphaflow.com/?glossary=conventional-option","glink": "conventional_option","desc": "An option contract arranged on the trading floor and traded regularly. The opposite of exotic option."},{ "title": "Conventional pass-throughs","link": "https://www.alphaflow.com/?glossary=conventional-pass-throughs","glink": "conventional_pass_throughs","desc": "Also called private-label pass-throughs, any mortgage pass-through security not guaranteed by government agencies. Compare agency pass-throughs."},{ "title": "Conventional project","link": "https://www.alphaflow.com/?glossary=conventional-project","glink": "conventional_project","desc": "A project with a negative initial cash flow (cash outflow), which is expected to be followed by one or more future positive cash flows (cash inflows)."},{ "title": "Convergence","link": "https://www.alphaflow.com/?glossary=convergence","glink": "convergence","desc": "The movement of the price of a futures contract toward the price of the underlying cash commodity. At the start, the contract price is usually higher because of time value. But as the contract nears expiration, and time value decreases, the futures price and the cash price converge. More generally, convergence trading involves taking two related assets that have different prices with the expectation that prices will converge (the cheaper asset is purchased and the more expensive is sold short)."},{ "title": "Conversion","link": "https://www.alphaflow.com/?glossary=conversion","glink": "conversion","desc": "In the context of securities, refers to the exchange of a convertible security such as a bond into stock.

In the context of mutual funds, refers to the free exchange of mutual fund shares from one fund to another in a single family.

"},{ "title": "Conversion factors","link": "https://www.alphaflow.com/?glossary=conversion-factors","glink": "conversion_factors","desc": "Rules set by the Chicago Board of Trade for determining the invoice price of each acceptable deliverable Treasury issue against the Treasury Bond futures contract."},{ "title": "Conversion feature","link": "https://www.alphaflow.com/?glossary=conversion-feature","glink": "conversion_feature","desc": "Specification of the right to transform a particular investment to another form of investment, such as switching between mutual funds or converting preferred stock or bonds to common stock."},{ "title": "Conversion parity","link": "https://www.alphaflow.com/?glossary=conversion-parity","glink": "conversion_parity","desc": "See: Market conversion price"},{ "title": "Conversion parity price","link": "https://www.alphaflow.com/?glossary=conversion-parity-price","glink": "conversion_parity_price","desc": "Related: Market conversion price"},{ "title": "Conversion parity/value","link": "https://www.alphaflow.com/?glossary=conversion-parityvalue","glink": "conversion_parity_value","desc": "Applies mainly to convertible securities. Common stock price at which a convertible bond can become exchangeable for common shares of equal value; value of a convertible bond based solely on the market value of the underlying equity. Par value plus conversion ratio. See bond value, investment value, parity."},{ "title": "Conversion Period","link": "https://www.alphaflow.com/?glossary=conversion-period","glink": "conversion_period","desc": "The time period during which an investor can exchange a convertible security for common stock."},{ "title": "Conversion premium","link": "https://www.alphaflow.com/?glossary=conversion-premium","glink": "conversion_premium","desc": "The extent by which the conversion price of a convertible security exceeds the prevailing common stock price at the time the convertible security is issued. In general usage, the conversion premium is the amount by which the convertible security trades above its conversted value. For example, if a $1,000 par bond is trading at $1,100, it is convertible into 50 shares, and the shares are trading at $21, the converted value is 50 X 20.50 = $1,025, and the conversion premium is $75."},{ "title": "Conversion price","link": "https://www.alphaflow.com/?glossary=conversion-price","glink": "conversion_price","desc": "Applies mainly to convertible securities. Dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock, as specified when the convertible is issued."},{ "title": "Conversion ratio","link": "https://www.alphaflow.com/?glossary=conversion-ratio","glink": "conversion_ratio","desc": "Applies mainly to convertible securities. Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred stock when a conversion takes place. It is determined at the time of issue and is expressed either as a ratio or as a conversion price from which the ratio can be figured by dividing the par value of the convertible by the conversion price."},{ "title": "Conversion value","link": "https://www.alphaflow.com/?glossary=conversion-value","glink": "conversion_value","desc": "The value of a convertible security if it is converted immediately. Also called parity value or converted value."},{ "title": "Converted put","link": "https://www.alphaflow.com/?glossary=converted-put","glink": "converted_put","desc": "See Synthetic Put."},{ "title": "Convertibility","link": "https://www.alphaflow.com/?glossary=convertibility","glink": "convertibiltiy","desc": "The ability to exchange a currency without government restrictions or controls."},{ "title": "Convertible","link": "https://www.alphaflow.com/?glossary=convertible","glink": "convertible","desc": "A financial instrument that can be exchanged for another security or equity interest at a pre-agreed time and exchange ratio."},{ "title": "Convertible 100","link": "https://www.alphaflow.com/?glossary=convertible-100","glink": "convertible_100","desc": "Goldman Sachs index of the 100 convertibles of greatest institutional importance. Weighted by issue size, it measures the performance of its components against that of their underlying common stock and against other broad market indexes as well."},{ "title": "Convertible adjustable preferred stock","link": "https://www.alphaflow.com/?glossary=convertible-adjustable-preferred-stock","glink": "","desc": "The interest rate on
caps is adjustable and is pegged to Treasury security rates. They can be exchanged
at par value for common stock or cash after the
next period's dividend
rates are revealed."},{ "title": "Convertible adjustable preferred stock (Caps)","link": "https://www.alphaflow.com/?glossary=convertible-adjustable-preferred-stock-caps","glink": "convertible_adjustable_preferred_stock","desc": "The interest rate on caps is adjustable and is pegged to Treasury security rates. They can be exchanged at par value for common stock or cash after the next period's dividend rates are revealed."},{ "title": "Convertible arbitrage","link": "https://www.alphaflow.com/?glossary=convertible-arbitrage","glink": "convertible_arbitrage","desc": "A practice, usually of buying a convertible bond and shorting a percentage of the equivalent underlying common shares, to create a positive cash flow position (with expected returns above the riskless rate) in a static environment and benefit from capital appreciation should the convertible's premium rise. This form of investing is far from riskless and requires constant monitoring. See: Chinese hedge and setup"},{ "title": "Convertible bond","link": "https://www.alphaflow.com/?glossary=convertible-bond","glink": "convertible_bond","desc": "General debt obligation of a corporation that can be exchanged for a set number of common shares of the issuing corporation at a prestated conversion price."},{ "title": "Convertible eurobond","link": "https://www.alphaflow.com/?glossary=convertible-eurobond","glink": "convertible_eurobond","desc": "A eurobond that can be converted into another asset, often through exercise of attached warrants."},{ "title": "Convertible exchangeable preferred stock","link": "https://www.alphaflow.com/?glossary=convertible-exchangeable-preferred-stock","glink": "convertible_exchangeable_preferred_stock","desc": "Convertible preferred stock that may be exchanged, at the issuer's option, into convertible bonds that have the same conversion features as the convertible preferred stock."},{ "title": "Convertible preferred stock","link": "https://www.alphaflow.com/?glossary=convertible-preferred-stock","glink": "convertible_preferred_stock","desc": "Preferred stock that can be converted into common stock at the option of the holder. See also: participating convertible preferred stock."},{ "title": "Convertible price","link": "https://www.alphaflow.com/?glossary=convertible-price","glink": "convertible_price","desc": "The contractually specified price per share at which a convertible security can be converted into shares of common stock."},{ "title": "Convertible security","link": "https://www.alphaflow.com/?glossary=convertible-security","glink": "convertible_security","desc": "A security that can be converted into common stock at the option of the securityholder; includes convertible bonds and convertible preferred stock."},{ "title": "Convex","link": "https://www.alphaflow.com/?glossary=convex","glink": "convex","desc": "Refers to a non-linear asset pricing relationship. See convexity."},{ "title": "Convexity","link": "https://www.alphaflow.com/?glossary=convexity","glink": "convexity","desc": "This concept is best described with respect to a bond. Consider a graph of the bonds price (y-axis) and the bond yield (x-axis). If this graph was a straight line (downward sloping), there would be no convexity. It would be a simple linear relationship between bond price and yield (yield up, price down). However, bonds are non-linear functions of yields partly because irrespective of their how high their yield is, they cannot have negative price. Hence, the bond price is not a straight line, but a curve that is upward (like a bowl). So, if rates increase, the simple linear straightline will tell you (incorrectly) that the bond price drops too much). Essentially, the convexity is the second derivative whereas the linear relationship is the first-derivative (of bond price with respect to yield). If the asset price drops less than predicted by the linear relationship, it is known to have positive convexity (commonly referred in the bond market simply as ”˜convexity'). However, if the asset price drops by more than predicted by the linear relationship, it is known to have negative convexity (rather than the common usage in mathematics of concavity). Convexity is also associated with options which (by definition) have non-linear payoffs."},{ "title": "Cook the books","link": "https://www.alphaflow.com/?glossary=cook-the-books","glink": "cook_the_books","desc": "To deliberately falsify the financial statements of a company. This is an illegal practice."},{ "title": "Cooling-off period","link": "https://www.alphaflow.com/?glossary=cooling-off-period","glink": "cooling_off_period","desc": "The period of time between the filing of a preliminary prospectus with the Securities and Exchange Commission and the actual public offering of the securities."},{ "title": "Cooperative","link": "https://www.alphaflow.com/?glossary=cooperative","glink": "cooperative","desc": "An organization owned by its members. Examples are agriculture cooperatives that assist farmers in selling their products more efficiently and apartment buildings owned by the residents who have full control of the property."},{ "title": "COP","link": "https://www.alphaflow.com/?glossary=cop","glink": "cop","desc": "The ISO 4217 currency code for Colombian Peso."},{ "title": "Copenhagen Stock Exchange","link": "https://www.alphaflow.com/?glossary=copenhagen-stock-exchange","glink": "copenhagen_stock_exchange","desc": "The only securities exchange in Denmark. It features electronic trading of stocks, bonds, futures, and options."},{ "title": "Core capital","link": "https://www.alphaflow.com/?glossary=core-capital","glink": "core_capital","desc": "The capital required of a thrift institution, which must be at least 2% of assets to meet the rules of the Federal Home Loan Bank."},{ "title": "Core competence","link": "https://www.alphaflow.com/?glossary=core-competence","glink": "core_competency","desc": "Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty."},{ "title": "Core inflation","link": "https://www.alphaflow.com/?glossary=core-inflation","glink": "core_inflation","desc": "Core inflation for the Consumer Price Index, the Producer Price Index or the Personal Consumption Expenditure Deflator removes the volatile food and energy prices. The Headline inflation includes these components."},{ "title": "Cornering the market","link": "https://www.alphaflow.com/?glossary=cornering-the-market","glink": "cornering_the_market","desc": "Purchasing a security or commodity in such volume as to achieve control over its price. An illegal practice."},{ "title": "Corporate acquisition","link": "https://www.alphaflow.com/?glossary=corporate-acquisition","glink": "corporate_acquisition","desc": "The acquisition of one firm by another firm."},{ "title": "Corporate bonds","link": "https://www.alphaflow.com/?glossary=corporate-bonds","glink": "corporate_bonds","desc": "Debt obligations issued by corporations."},{ "title": "Corporate charter","link": "https://www.alphaflow.com/?glossary=corporate-charter","glink": "corporate_charter","desc": "A legal document creating a corporation."},{ "title": "Corporate equivalent yield","link": "https://www.alphaflow.com/?glossary=corporate-equivalent-yield","glink": "corporate_equivalent_yield","desc": "A comparison of the after-tax yield of government bonds selling at a discount and corporate bonds selling at par."},{ "title": "Corporate finance","link": "https://www.alphaflow.com/?glossary=corporate-finance","glink": "corporate_finance","desc": "One of the three areas of the discipline of finance. It deals with the operation of the firm (both the investment decision and the financing decision) from the firm's point of view."},{ "title": "Corporate financial management","link": "https://www.alphaflow.com/?glossary=corporate-financial-management","glink": "corporate_financial_management","desc": "The application of financial principles within a corporation to create and maintain value through decision-making and proper resource management."},{ "title": "Corporate financial planning","link": "https://www.alphaflow.com/?glossary=corporate-financial-planning","glink": "corporate_financial_planning","desc": "Financial planning conducted by a firm that encompasses preparation of both long-and short-term financial plans."},{ "title": "Corporate financing committee","link": "https://www.alphaflow.com/?glossary=corporate-financing-committee","glink": "corporate_financing_committee","desc": "A committee of the NASD that reviews underwriters' SEC-required documents to ensure that proposed markups are fair and in the public interest."},{ "title": "Corporate income fund","link": "https://www.alphaflow.com/?glossary=corporate-income-fund","glink": "corporate_income_fund","desc": "A unit investment trust featuring a fixed portfolio of high-grade securities and other investments, usually with monthly distribution of income."},{ "title": "Corporate processing float","link": "https://www.alphaflow.com/?glossary=corporate-processing-float","glink": "corporate_processing_float","desc": "The time that elapses between receipt of payment from a customer and the deposit of the customer's check in the firm's bank account; the time required to process customer payments."},{ "title": "Corporate repurchase","link": "https://www.alphaflow.com/?glossary=corporate-repurchase","glink": "corporate_repurchase","desc": "Active buying by a corporation of its own stock in the marketplace. Reasons for repurchase include putting idle cash to use, raising EPS, creating support for a stock price, increasing internal control (shark repellant), or stock for ESOP or pension plans. Repurchase is subject to rules, such as that buying must be on a zero minus or a minus tick, after the opening and before 3:30 p.m."},{ "title": "Corporate restructuring","link": "https://www.alphaflow.com/?glossary=corporate-restructuring","glink": "corporate_restructuring","desc": "See restructuring."},{ "title": "Corporate social responsibility","link": "https://www.alphaflow.com/?glossary=corporate-social-responsibility","glink": "corporate_social_responsibility","desc": "A form of corporate self-regulation where businesses monitor and ensure that their activities are aligned with the social, economic, and environmental expectations. CSR-focused businesses proactively promote the public interest and encourage community growth and development. CSR is the deliberate inclusion of public interest into corporate decision making. CSR is wide spread in Europe and has recently gained popularity in the U.S."},{ "title": "Corporate tax view","link": "https://www.alphaflow.com/?glossary=corporate-tax-view","glink": "corporate_tax_view","desc": "The argument that double (corporate and individual) taxation of equity returns makes debt a cheaper financing method."},{ "title": "Corporate taxable equivalent","link": "https://www.alphaflow.com/?glossary=corporate-taxable-equivalent","glink": "corporate_taxable_equivalent","desc": "Rate of return required on a par bond to produce the same after-tax yield to maturity that the quoted premium or discount bond would generate."},{ "title": "Corporate Trust","link": "https://www.alphaflow.com/?glossary=corporate-trust","glink": "corporate_trust","desc": "The function of servicing and maintaining records for debt securities issued by a corporation."},{ "title": "Corporation","link": "https://www.alphaflow.com/?glossary=corporation","glink": "corporation","desc": "A legal entity that is separate and distinct from its owners. A corporation is allowed to own assets, incur liabilities, and sell securities, among other things."},{ "title": "Corpus","link": "https://www.alphaflow.com/?glossary=corpus","glink": "corpus","desc": "See: Principal"},{ "title": "Correction","link": "https://www.alphaflow.com/?glossary=correction","glink": "correction","desc": "Reverse movement, usually downward, in the price of an individual stock, bond, commodity, or index. If prices have been rising on the market as a whole, and then fall dramatically, this is known as a correction within an upward trend. Antithesis of a technical rally. See: Dip, break."},{ "title": "Correlation","link": "https://www.alphaflow.com/?glossary=correlation","glink": "correlation","desc": "Statistical measure of the degree to which the movements of two variables (stock/option/convertible prices or returns) are related. See: Correlation coefficient."},{ "title": "Correlation coefficient","link": "https://www.alphaflow.com/?glossary=correlation-coefficient","glink": "correlation_coefficient","desc": "A standardized statistical measure of the dependence of two random variables, defined as the covariance divided by the product of the standard deviations of two variables."},{ "title": "Correlation Dimension","link": "https://www.alphaflow.com/?glossary=correlation-dimension","glink": "correlation_dimension","desc": "An estimate of the Fractal Dimension which measures the probability that two points chosen at random will be within a certain distance of each other, and examines how this probability changes as the distance is increased. White noise will fill its space since its components are uncorrelated, and its correlation dimension is equal to whatever dimension it is placed in. A dependent system will be held together by its correlations and retain its dimension whatever embedding dimension it is placed in, as long as it is greater than its fractal dimension."},{ "title": "Correlation Integral","link": "https://www.alphaflow.com/?glossary=correlation-integral","glink": "correlation_integral","desc": "The probability that two points are within a certain distance from one another. Used in the calculation of the correlation dimension."},{ "title": "Correspondent","link": "https://www.alphaflow.com/?glossary=correspondent","glink": "correspondent","desc": "A financial organization that performs services (acts as an intermediary) in a market for another organization that does not have access to that market."},{ "title": "Correspondent bank","link": "https://www.alphaflow.com/?glossary=correspondent-bank","glink": "correspondent_bank","desc": "Bank that accepts deposits of, and performs services for, another bank (called a respondent bank); in most cases, the two banks are in different cities."},{ "title": "Cosigner","link": "https://www.alphaflow.com/?glossary=cosigner","glink": "cosigner","desc": "A term referring to a person, other than the principal borrower, who signs for a loan. The cosigner(s) assumes equal liability for the loan."},{ "title": "Cost","link": "https://www.alphaflow.com/?glossary=cost","glink": "cost","desc": "The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to the sale proceeds to determine capital gain or loss."},{ "title": "Cost accounting","link": "https://www.alphaflow.com/?glossary=cost-accounting","glink": "cost_accounting","desc": "A branch of accounting that provides information to help the management of a firm evaluate production costs and efficiency."},{ "title": "Cost and Freight","link": "https://www.alphaflow.com/?glossary=cost-and-freight","glink": "cost_and_freight","desc": "Seller is responsible for the payment of freight to carry goods to a named destination, as agreed with the buyer. This should be used with ocean shipments only, as the point where risk and responsibility pass from seller to buyer is the rail of the carrying vessel."},{ "title": "Cost basis","link": "https://www.alphaflow.com/?glossary=cost-basis","glink": "cost_basis","desc": "The original price of an asset, used to determine capital gains."},{ "title": "Cost center","link": "https://www.alphaflow.com/?glossary=cost-center","glink": "cost_center","desc": "Any division, department, or subsidiary of a company that has expenses but is not directly producing revenues."},{ "title": "Cost company arrangement","link": "https://www.alphaflow.com/?glossary=cost-company-arrangement","glink": "cost_company_arrangement","desc": "Arrangement whereby the shareholders of a project receive output free of charge but agree to pay all operating and financing charges of the project."},{ "title": "Cost Insurance and Freight","link": "https://www.alphaflow.com/?glossary=cost-insurance-and-freight","glink": "cost_insurance_and_freight","desc": "Seller is responsible for the payment of freight to carry goods to a named destination, as agreed with the buyer. The seller is also responsible for providing cargo insurance at minimum coverage against the buyer's risk of loss or damage to the goods during transport. This term should be used with ocean shipments only, as the point where risk and responsibility pass from seller to buyer is the rail of the carrying vessel."},{ "title": "Cost of capital","link": "https://www.alphaflow.com/?glossary=cost-of-capital","glink": "cost_of_capital","desc": "The required return for a capital budgeting project."},{ "title": "Cost of carry","link": "https://www.alphaflow.com/?glossary=cost-of-carry","glink": "cost_of_carry","desc": "Out-of-pocket costs incurred while an investor has an investment position. Examples include interest on long positions in margin account, dividend lost on short margin positions, and incidental expenses. Related: Net financing cost."},{ "title": "Cost of equity","link": "https://www.alphaflow.com/?glossary=cost-of-equity","glink": "cost_of_equity","desc": "The required rate of return for an investment of 100% equity."},{ "title": "Cost of funds","link": "https://www.alphaflow.com/?glossary=cost-of-funds","glink": "cost_of_funds","desc": "Interest rate associated with borrowing money."},{ "title": "Cost of goods sold","link": "https://www.alphaflow.com/?glossary=cost-of-goods-sold","glink": "cost_of_goods_sold","desc": "The total cost of buying raw materials, and paying for all the factors that go into producing finished goods."},{ "title": "Cost of lease financing","link": "https://www.alphaflow.com/?glossary=cost-of-lease-financing","glink": "cost_of_lease_financing","desc": "A lease's internal rate of return."},{ "title": "Cost of limited partner capital","link": "https://www.alphaflow.com/?glossary=cost-of-limited-partner-capital","glink": "cost_of_limited_partner_capital","desc": "The discount rate that equates the after-tax inflows with outflows for capital raised from limited partners."},{ "title": "Cost of living adjustments","link": "https://www.alphaflow.com/?glossary=cost-of-living-adjustments","glink": "cost_of_living_adjustments","desc": "Cost of living adjustments refer to Social Security's general benefit increases based on increases in the cost of living, measured by the Consumer Price Index"},{ "title": "Cost records","link": "https://www.alphaflow.com/?glossary=cost-records","glink": "cost_records","desc": "The records maintained by an investor of the prices at which securities transactions are made, so that capital gains can be computed."},{ "title": "Cost Recovery Period","link": "https://www.alphaflow.com/?glossary=cost-recovery-period","glink": "cost_recovery_period","desc": "The number of years it takes to fully depreciate a capital asset. This time period is based on classification of the depreciable life of an asset."},{ "title": "Cost-benefit ratio","link": "https://www.alphaflow.com/?glossary=cost-benefit-ratio","glink": "cost_benefit_ratio","desc": "The net present value of an investment divided by the investment's initial cost. Also called the profitability index."},{ "title": "Cost-of-carry market","link": "https://www.alphaflow.com/?glossary=cost-of-carry-market","glink": "cost_of_carry_market","desc": "Applies to derivative products. Futures contracts trade in a 'cost-of-carry market' where the underlying commodity can be stored, insured, and converted into the future easily and inexpensively. Arbitrageurs, because of the ease of switching from the spot commodity to futures, will keep these markets in line with prevailing interest rates."},{ "title": "Cost-plus contract","link": "https://www.alphaflow.com/?glossary=cost-plus-contract","glink": "cost_plus_contract","desc": "A contract in which the selling price is based on the total cost of production plus a fixed percentage or fixed amount."},{ "title": "Cost-push inflation","link": "https://www.alphaflow.com/?glossary=cost-push-inflation","glink": "cost_push_inflation","desc": "Inflation caused by rising prices, usually from increased raw material or labor costs that push up the costs of production. Related: Demand-pull inflation."},{ "title": "Council of Economic Advisers","link": "https://www.alphaflow.com/?glossary=council-of-economic-advisers","glink": "council_of_economic_advisers","desc": "A group of economists appointed by the President of the United States to provide economic counsel and help prepare the president's budget presentation to Congress."},{ "title": "Countercyclical stocks","link": "https://www.alphaflow.com/?glossary=countercyclical-stocks","glink": "countercyclical_stocks","desc": "Stocks whose price tends to rise when the economy is in recession or the market is bearish, and vice versa."},{ "title": "Counterpart items","link": "https://www.alphaflow.com/?glossary=counterpart-items","glink": "counterpart_items","desc": "In the balance of payments, counterpart items are analogous to unrequited transfers in the current account. They arise through the double-entry system in balance of payments accounting and refer to adjustments in reserves owing to monetization or demonetization of gold, allocation or cancellation of SDRs, and revaluation of the various components of total reserves."},{ "title": "Counterparties","link": "https://www.alphaflow.com/?glossary=counterparties","glink": "counterparties","desc": "The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position."},{ "title": "Counterparty","link": "https://www.alphaflow.com/?glossary=counterparty","glink": "counterparty","desc": "The other participant, including intermediaries, in a swap or contract."},{ "title": "Counterparty credit risk","link": "https://www.alphaflow.com/?glossary=counterparty-credit-risk","glink": "counterparty_credit_risk","desc": "See Counterparty risk."},{ "title": "Counterparty risk","link": "https://www.alphaflow.com/?glossary=counterparty-risk","glink": "counterparty_risk","desc": "The risk that the other party to an agreement will default. In an options contract, the risk to the option buyer that the option writer will not buy or sell the underlying as agreed."},{ "title": "Counterpurchase","link": "https://www.alphaflow.com/?glossary=counterpurchase","glink": "counterpurchase","desc": "Exchange of goods between two parties under two distinct contracts expressed in monetary terms."},{ "title": "Countertrade","link": "https://www.alphaflow.com/?glossary=countertrade","glink": "counertrade","desc": "See: barter"},{ "title": "Country allocations","link": "https://www.alphaflow.com/?glossary=country-allocations","glink": "country_allocations","desc": "The percentages of a fund's net assets distributed to securities of various countries. These percentages serve as an indicator of a fund's diversification and its vulnerability to fluctuations in foreign financial markets or currency exchange rates."},{ "title": "Country beta","link": "https://www.alphaflow.com/?glossary=country-beta","glink": "country_beta","desc": "Covariance of a national economy's rate of return and the rate of return of the world economy divided by the variance of the world economy."},{ "title": "Country diversification","link": "https://www.alphaflow.com/?glossary=country-diversification","glink": "country_diversification","desc": "Investment of a global or international portfolio's assets in securities of various countries."},{ "title": "Country economic risk","link": "https://www.alphaflow.com/?glossary=country-economic-risk","glink": "country_economic_risk","desc": "Developments in a national economy that can affect the outcome of an international financial transaction."},{ "title": "Country financial risk","link": "https://www.alphaflow.com/?glossary=country-financial-risk","glink": "country_financial_risk","desc": "Centers around the ability of a national economy to generate enough foreign exchange to meet payments of interest and principal on its foreign debt."},{ "title": "Country risk","link": "https://www.alphaflow.com/?glossary=country-risk","glink": "county_risk","desc": "The general level of political, financial, and economic uncertainty in a country which impacts the value of the country's bonds and equities. See:Sovereign risk."},{ "title": "Country selection","link": "https://www.alphaflow.com/?glossary=country-selection","glink": "country_selection","desc": "A type of active international management that measures the contribution to performance attributable to investing in the better-performing stock markets of the world."},{ "title": "Coupon","link": "https://www.alphaflow.com/?glossary=coupon","glink": "coupon","desc": "The contractual interest obligation a bond or debenture issuer covenants to pay to its debtholders."},{ "title": "Coupon bond","link": "https://www.alphaflow.com/?glossary=coupon-bond","glink": "coupon_bond","desc": "A bond featuring coupons that must be presented to the issuer in order to receive interest payments."},{ "title": "Coupon equivalent yield","link": "https://www.alphaflow.com/?glossary=coupon-equivalent-yield","glink": "coupon_equivalent_yield","desc": "True interest cost expressed on the basis of a 365-day year."},{ "title": "Coupon pass","link": "https://www.alphaflow.com/?glossary=coupon-pass","glink": "coupon_pass","desc": "Canvassing by the desk of primary dealers to determine the inventory and maturities of their Treasury securities. The desk then decides whether to buy or sell certain issues (coupons) in order to add or withdraw reserves."},{ "title": "Coupon payments","link": "https://www.alphaflow.com/?glossary=coupon-payments","glink": "coupon_payments","desc": "A bond's interest payments."},{ "title": "Coupon rate","link": "https://www.alphaflow.com/?glossary=coupon-rate","glink": "coupon_rate","desc": "In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid twice a year."},{ "title": "Coupon-equivalent rate","link": "https://www.alphaflow.com/?glossary=coupon-equivalent-rate","glink": "coupon_equivalent_rate","desc": "See: Equivalent bond yield"},{ "title": "Covariance","link": "https://www.alphaflow.com/?glossary=covariance","glink": "covariance","desc": "A statistical measure of the degree to which random variables move together. A positive covariance implies that one variable is above (below) its mean value when the other variable is above (below) its mean value."},{ "title": "Covenant","link": "https://www.alphaflow.com/?glossary=covenant","glink": "covenant","desc": "An agreed action to be undertaken (Positive) or not done (Negative). A breach of a covenant is a default."},{ "title": "Covenant defeasance","link": "https://www.alphaflow.com/?glossary=covenant-defeasance","glink": "covenant_defeasance","desc": "Covenant defeasance allows the issuer to remove the bond's covenants by placing the remaining payments with a trustee in escrow to be paid out on schedule."},{ "title": "Cover","link": "https://www.alphaflow.com/?glossary=cover","glink": "cover","desc": "The amount above UNITY of a debt service ratio."},{ "title": "Coverage","link": "https://www.alphaflow.com/?glossary=coverage","glink": "coverage","desc": "See: Fixed-charge coverage"},{ "title": "Coverage initiated","link": "https://www.alphaflow.com/?glossary=coverage-initiated","glink": "coverage_initiated","desc": "Usually refers to the fact that analysts begin following a particular security. This usually happens when there is enough trading in it to warrant attention by the investment community."},{ "title": "Coverage ratios","link": "https://www.alphaflow.com/?glossary=coverage-ratios","glink": "coverage_ratios","desc": "Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed-charge coverage ratio."},{ "title": "Covered","link": "https://www.alphaflow.com/?glossary=covered","glink": "covered","desc": "A written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security. That is, a short call is covered if the underlying stock is owned, and a short put is covered (for margin purposes) if the underlying stock is also short in the account. In addition, a short call is covered if the account is also long another call on the same security, with a striking price equal to or less than the striking price of the short call. A short put is covered if there is also a long put in the account with a striking price equal to or greater than the striking price of the short put."},{ "title": "Covered call","link": "https://www.alphaflow.com/?glossary=covered-call","glink": "covered_call","desc": "A short call option position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not have to be bought at the market price, if the holder of that option decides to exercise it."},{ "title": "Covered call writing strategy","link": "https://www.alphaflow.com/?glossary=covered-call-writing-strategy","glink": "covered_call_writing_strategy","desc": "A strategy that involves writing a call option on securities that the investor owns. See: Covered or hedge option strategies."},{ "title": "Covered foreign currency loan","link": "https://www.alphaflow.com/?glossary=covered-foreign-currency-loan","glink": "covered_foreign_currency_loan","desc": "A loan denominated in a currency other than that of the borrower's home country, for which repayment terms are prearranged through the use of a forward currency contract."},{ "title": "Covered interest arbitrage","link": "https://www.alphaflow.com/?glossary=covered-interest-arbitrage","glink": "covered_interest_arbitrage","desc": "Occurs when a portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars."},{ "title": "Covered Interest Rate Parity","link": "https://www.alphaflow.com/?glossary=covered-interest-rate-parity","glink": "covered_interest_rate_parity","desc": "The principle that the yields from interest-bearing foreign and domestic investments should be equal when the currency market is used to predetermine the domestic currency payoff from a foreign investment. For example, suppose interest on 90 U.K. Treasury bills is 4% but only 1% in U.S. When the U.S. investor tries to take advantage of the higher yield, they translate U.S. dollars to Sterling to buy the Treasury bill and then sell 90-days forward Sterling (so they can translate the principal and interest back to U.S. dollars). Covered Interest Parity ensures that the return to this transaction is 1%. If it was different, there would be arbritrage."},{ "title": "Covered option","link": "https://www.alphaflow.com/?glossary=covered-option","glink": "covered_option","desc": "Option position that is offset by an equal and opposite position in the underlying security. Antithesis of naked option."},{ "title": "Covered or hedge option strategies","link": "https://www.alphaflow.com/?glossary=covered-or-hedge-option-strategies","glink": "covered_or_hedge_option_strategies","desc": "Strategies that involve a position in an option as well as a position in the underlying stock, designed so that one position will help offset any unfavorable price movement in the other, including covered call writing and protective put buying. Related: Naked strategies"},{ "title": "Covered position","link": "https://www.alphaflow.com/?glossary=covered-position","glink": "covered_position","desc": "Use of an option in a trading strategy in the underlying asset which is already owned."},{ "title": "Covered put","link": "https://www.alphaflow.com/?glossary=covered-put","glink": "covered_put","desc": "A put option position in which the option writer also is short the corresponding stock or has deposited, in a cash account, cash or cash equivalents equal to the exercise price of the option. This limits the option writer's risk because money or stock is already set aside. In the event that the holder of the put option decides to exercise the option, the writer's risk is more limited than it would be on an uncovered or naked put option."},{ "title": "Covered straddle","link": "https://www.alphaflow.com/?glossary=covered-straddle","glink": "covered_straddle","desc": "An option strategy in which one call and one put with the same strike price and expiration are written against 100 shares of the underlying stock. In actually, this is not a 'covered' strategy because assignment on the short put would require purchase of stock on margin. This method is also known as a covered combination."},{ "title": "Covered straddle write","link": "https://www.alphaflow.com/?glossary=covered-straddle-write","glink": "covered_straddle_write","desc": "The term used to describe the strategy in which an investor owns the underlying security and also writes a straddle on that security. This is not really a covered position."},{ "title": "Covered writer","link": "https://www.alphaflow.com/?glossary=covered-writer","glink": "covered_writer","desc": "An investor who writes options only on stock that he or she owns, so that option premiums may be collected."},{ "title": "Covering","link": "https://www.alphaflow.com/?glossary=covering","glink": "covering","desc": "Using forward currency contracts to predetermine the domestic currency amount of an expected future foreign receipt or payment. Also, the buying back ('covering') of a short position."},{ "title": "CPP","link": "https://www.alphaflow.com/?glossary=cpp","glink": "cpp","desc": "See: Capital Purchase Program"},{ "title": "CPPI","link": "https://www.alphaflow.com/?glossary=cppi","glink": "c.p.p.i.","desc": "See: Constant Proportion Portfolio Insurance."},{ "title": "CPV","link": "https://www.alphaflow.com/?glossary=cpv","glink": "C.P.V.","desc": "The three-character ISO 3166 country code for CAPE VERDE."},{ "title": "CR","link": "https://www.alphaflow.com/?glossary=cr","glink": "C.R.","desc": "The two-character ISO 3166 country code for COSTA RICA."},{ "title": "Cram-down deal","link": "https://www.alphaflow.com/?glossary=cram-down-deal","glink": "cram_down_deal","desc": "A merger in which stockholders are forced to accept undesirable terms, such as junk bonds instead of cash or equity, due to the absence of any better alternatives."},{ "title": "Cramdown","link": "https://www.alphaflow.com/?glossary=cramdown","glink": "cramdown","desc": "The ability of the bankruptcy court to confirm a plan of reorganization over the objections of some classes of creditors. This often involves resetting the amount of principal that the bond holders are owed. Related is a mortgage cramdown. Here the home owner cannot pay the mortgage because of financial distress and, indeed, the mortgage could be a higher value than the house. A cramdown resets (lower) the principal amount of the mortgage. This may allow the homeowner to stay in the house (avoid foreclosure)."},{ "title": "Crash","link": "https://www.alphaflow.com/?glossary=crash","glink": "crash","desc": "Dramatic loss in market value. The last great crash was in 1929. Some refer to October 1987 as a crash but the market return for the entire year of 1987 was positive."},{ "title": "Crawling peg","link": "https://www.alphaflow.com/?glossary=crawling-peg","glink": "crawling_peg","desc": "An automatic system for revising the exchange rate. It involves establishing a par value around which the rate can vary up to a given percent. The par value is revised regularly according to a formula determined by the authorities."},{ "title": "CRB","link": "https://www.alphaflow.com/?glossary=crb","glink": "crb","desc": "See: Commodity Research Bureau."},{ "title": "CRC","link": "https://www.alphaflow.com/?glossary=crc","glink": "crc","desc": "The ISO 4217 currency code for Costa Rican Colon."},{ "title": "CRE","link": "https://www.alphaflow.com/?glossary=cre","glink": "cre","desc": "See: Commercial Real Estate Loans."},{ "title": "Credible signal","link": "https://www.alphaflow.com/?glossary=credible-signal","glink": "credible_signal","desc": "A signal that provides accurate information; a signal that can distinguish among senders."},{ "title": "Credit","link": "https://www.alphaflow.com/?glossary=credit","glink": "credit","desc": "Money loaned."},{ "title": "Credit analysis","link": "https://www.alphaflow.com/?glossary=credit-analysis","glink": "credit_analysis","desc": "Evaluating information on companies and bond issues in order to estimate the ability of the issuer to live up to its future contractual obligations. Related: Default risk."},{ "title": "Credit balance","link": "https://www.alphaflow.com/?glossary=credit-balance","glink": "credit_balance","desc": "The surplus in a cash account with a broker after purchases have been paid for, plus the extra cash from the sale of securities."},{ "title": "Credit bureau","link": "https://www.alphaflow.com/?glossary=credit-bureau","glink": "credit_bureau","desc": "An agency that researches the credit history of consumers so that creditors can make decisions about granting of loans."},{ "title": "Credit card","link": "https://www.alphaflow.com/?glossary=credit-card","glink": "credit_card","desc": "Any card, plate or coupon book that may be used repeatedly to borrow money or buy goods and services on credit."},{ "title": "Credit crunch","link": "https://www.alphaflow.com/?glossary=credit-crunch","glink": "credit_crunch","desc": "A shortage of available credit for businesses and consumers. This situation could arise when lenders are reluctant to lend because of uncertainty of defaults or are willing to lend only at high interest rates thus making it difficult for businesses and consumers to secure credit. The term became popular the financial crisis that began in 2007 when a large number of homeowners either defaulted or were expected to default on mortgages, leading to great stress on the market in which these securitized loans were traded. The ensuing constriction in liquidity caused lenders to cut back on loans resulting in a credit crunch."},{ "title": "Credit default swap","link": "https://www.alphaflow.com/?glossary=credit-default-swap","glink": "credit_default_swap","desc": "A credit derivative contract between two parties where the buyer makes periodic payments (over the maturity period of the CDS) to the seller in exchange for a commitment to a payoff if a third party defaults. Generally used as insurance against default on a credit asset but can also be used for speculation."},{ "title": "Credit derivative","link": "https://www.alphaflow.com/?glossary=credit-derivative","glink": "credit_derivative","desc": "Financial instruments in which the payoffs depend on the credit risk of companies or government entities, other than the counterparties to the credit derivative transaction itself."},{ "title": "Credit enhancement","link": "https://www.alphaflow.com/?glossary=credit-enhancement","glink": "credit_enhancement","desc": "The purchase of the financial guarantee of a large insurance company to raise funds. In the context of project financing, the issuance of a guarantee or additional collateral to reinforce the credit strength of a project financing. Also, the reduction of counterparty risk on a swap transaction through such measures as bilateral netting."},{ "title": "Credit history","link": "https://www.alphaflow.com/?glossary=credit-history","glink": "credit_history","desc": "A record of how a person has borrowed and repaid debt."},{ "title": "Credit insurance","link": "https://www.alphaflow.com/?glossary=credit-insurance","glink": "credit_insurance","desc": "Insurance against abnormal losses due to unpaid accounts receivable."},{ "title": "Credit linked security","link": "https://www.alphaflow.com/?glossary=credit-linked-security","glink": "credit_linked_security","desc": "A note whose cash flow depends upon a credit event or credit measure of a referenced entity or asset such as default, credit spread, or rating change. The manager would purchase such a note to hedge against possible down grades, or loan defaults that would guarantee payment into the portfolio of the manager even if moneys on referenced assets are reduced."},{ "title": "Credit market","link": "https://www.alphaflow.com/?glossary=credit-market","glink": "credit_market","desc": "Market for trading credit-related products. Most of this market involves non-exchange traded contracts, that is, over the counter trading."},{ "title": "Credit period","link": "https://www.alphaflow.com/?glossary=credit-period","glink": "credit_period","desc": "The length of time for which a firm's customer is granted credit."},{ "title": "Credit Policy Delay","link": "https://www.alphaflow.com/?glossary=credit-policy-delay","glink": "credit_policy_delay","desc": "The period between the sale of goods for a credit and the payment for those goods. This lag is determined largely by the selling firm's credit policy."},{ "title": "Credit quality","link": "https://www.alphaflow.com/?glossary=credit-quality","glink": "credit_quality","desc": "A measure of a bond issuer's ability to repay interest and principal in a timely manner. Rating agencies assign letter designations such as AAA, AA, and so forth. The lower the rating, the higher the probability of default."},{ "title": "Credit rating","link": "https://www.alphaflow.com/?glossary=credit-rating","glink": "credit_rating","desc": "An evaluation of an individual's or company's ability to repay obligations or its likelihood of not defaulting See: Creditworthiness."},{ "title": "Credit Rating Agencies","link": "https://www.alphaflow.com/?glossary=credit-rating-agencies","glink": "credit_rating_agencies","desc": "Firms that compile information on and issue public credit ratings for a large number of companies."},{ "title": "Credit risk","link": "https://www.alphaflow.com/?glossary=credit-risk","glink": "credit_risk","desc": "The risk that an issuer of debt securities or a borrower may default on its obligations, or that the payment may not be made on a negotiable instrument. Related: Default risk."},{ "title": "Credit scoring","link": "https://www.alphaflow.com/?glossary=credit-scoring","glink": "credit_scoring","desc": "A statistical technique that combines several financial characteristics to form a single score to represent a customer's creditworthiness."},{ "title": "Credit spread","link": "https://www.alphaflow.com/?glossary=credit-spread","glink": "credit_spread","desc": "Applies to derivative products. Difference in the value of two options, when the value of the one sold exceeds the value of the one bought. One sells a 'credit spread.' Antithesis of a debit spread Related: Quality spread."},{ "title": "Credit Standards","link": "https://www.alphaflow.com/?glossary=credit-standards","glink": "credit_standards","desc": "The guidelines a company follows to determine whether a credit applicant is creditworthy."},{ "title": "Credit Terms","link": "https://www.alphaflow.com/?glossary=credit-terms","glink": "credit_terms","desc": "The conditions under which credit will be extended to a customer. The components of credit terms are: cash discount, credit period, net period."},{ "title": "Credit union","link": "https://www.alphaflow.com/?glossary=credit-union","glink": "credit_union","desc": "A not-for-profit institution that is operated as a cooperative and offers financial services such as low-interest loans to its members."},{ "title": "Credit Valuation Adjustments","link": "https://www.alphaflow.com/?glossary=credit-valuation-adjustments","glink": "credit_valuation_adjustments","desc": "Market value of counterparty credit risk. In other words, it is the difference between the true portfolio value (that takes into account the possibility of a counterparty's default) and the risk-free portfolio value."},{ "title": "Credit watch","link": "https://www.alphaflow.com/?glossary=credit-watch","glink": "credit_watch","desc": "A warning by a bond rating firm indicating that a company's credit rating may change after the current review is concluded."},{ "title": "Crediting rate","link": "https://www.alphaflow.com/?glossary=crediting-rate","glink": "crediting_rate","desc": "The interest rate offered on an investment type insurance policy."},{ "title": "Creditor","link": "https://www.alphaflow.com/?glossary=creditor","glink": "creditor","desc": "Lender of money."},{ "title": "Creditor’s committee","link": "https://www.alphaflow.com/?glossary=creditors-committee","glink": "creditors_committee","desc": "A group representing firms that have claims on a company facing bankruptcy or extreme financial difficulty."},{ "title": "Creditworthiness","link": "https://www.alphaflow.com/?glossary=creditworthiness","glink": "creditworthiness","desc": "Eligibility of an individual or firm to borrow money."},{ "title": "Creeping expropriation","link": "https://www.alphaflow.com/?glossary=creeping-expropriation","glink": "creeping","desc": "The act of a government squeezing a project by taxes, regulation, access, or changes in law."},{ "title": "Creeping tender offer","link": "https://www.alphaflow.com/?glossary=creeping-tender-offer","glink": "creeping_tender_offer","desc": "The process by which a group attempting to circumvent certain provisions of the Williams Act gradually acquires shares of a target company in the open market."},{ "title": "CREST","link": "https://www.alphaflow.com/?glossary=crest","glink": "crest","desc": "CREST is CrestCo's real-time settlement system for UK and Irish shares and other corporate securities. CrestCo has provided settlement systems for government bonds and money market instruments in the UK since 1990."},{ "title": "CRI","link": "https://www.alphaflow.com/?glossary=cri","glink": "C.R.I.","desc": "The three-character ISO 3166 country code for COSTA RICA."},{ "title": "Crisp Sets","link": "https://www.alphaflow.com/?glossary=crisp-sets","glink": "crisp_sets","desc": "The fuzzy set term for traditional set theory. That is, an object either belongs to a set, or does not."},{ "title": "Critical Levels","link": "https://www.alphaflow.com/?glossary=critical-levels","glink": "critical_levels","desc": "Values of control parameters where the nature of a nonlinear dynamic system changes. The system can bifurcate, or make the transition from stable to turbulent behavior. An example is the straw that breaks the camel's back."},{ "title": "Cross","link": "https://www.alphaflow.com/?glossary=cross","glink": "cross","desc": "Securities transaction in which the same broker acts as agent for both sides of the trade; a legal practice only if the broker first offers the securities publicly at a price higher than the bid."},{ "title": "Cross hedging","link": "https://www.alphaflow.com/?glossary=cross-hedging","glink": "cross_hedging","desc": "Applies to derivative products. Hedging with a futures contract that is different from the underlying being hedged. Use of a hedging instrument different from the security being hedged. Hedging instruments are usually selected to have the highest price correlation to the underlying."},{ "title": "Cross rates","link": "https://www.alphaflow.com/?glossary=cross-rates","glink": "cross_rates","desc": "The exchange rate between two currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency. Foreign exchange rate between two currencies other than the US dollar, the currency in which most exchanges are usually quoted."},{ "title": "Cross-border bonds","link": "https://www.alphaflow.com/?glossary=cross-border-bonds","glink": "crossborder_bonds","desc": "Bonds that firms issue in the international market."},{ "title": "Cross-border factoring","link": "https://www.alphaflow.com/?glossary=cross-border-factoring","glink": "cross_border_factoring","desc": "Concluding a transaction by a network of factors across borders. The exporter's factor can contact correspondent factors in other countries to handle the collection of accounts receivable."},{ "title": "Cross-border risk","link": "https://www.alphaflow.com/?glossary=cross-border-risk","glink": "cross_border_risk","desc": "Describes the volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent."},{ "title": "Cross-Collateral","link": "https://www.alphaflow.com/?glossary=cross-collateral","glink": "cross_collateral","desc": "An agreement among project participants to pool collateral, to allow recourse to each other's collateral."},{ "title": "Cross-default","link": "https://www.alphaflow.com/?glossary=cross-default","glink": "cross_default","desc": "A provision under which default on one debt obligation triggers default on another debt obligation."},{ "title": "Cross-holdings","link": "https://www.alphaflow.com/?glossary=cross-holdings","glink": "cross_holdings","desc": "The holding by one corporation of shares in another firm. One needs to allow for cross-holdings when aggregating capitalizations of firms. Ignoring cross-holdings leads to double-counting."},{ "title": "Cross-sectional analysis","link": "https://www.alphaflow.com/?glossary=cross-sectional-analysis","glink": "cross_sectional_analysis","desc": "Assessment of relationships among a cross-section of firms, countries, or some other variable at one particular time."},{ "title": "Cross-sectional approach","link": "https://www.alphaflow.com/?glossary=cross-sectional-approach","glink": "cross_sectional_approach","desc": "A statistical methodology applied to a set of firms at a particular time."},{ "title": "Cross-Sectional Ratio Analysis","link": "https://www.alphaflow.com/?glossary=cross-sectional-ratio-analysis","glink": "cross_section_ratio_analysis","desc": "A method of analysis that compares a firm's ratios with some chosen industry benchmark. The benchmark usually chosen is the average ratio value for all firms in an industry for the time period under study."},{ "title": "Cross-share holdings","link": "https://www.alphaflow.com/?glossary=cross-share-holdings","glink": "cross_share_holdings","desc": "Often used in risk arbitrage. Corporations' or governments' equity share ownership in another corporation's shares."},{ "title": "Crossed market","link": "https://www.alphaflow.com/?glossary=crossed-market","glink": "crossed_market","desc": "In the context of general equities, happens when the inside market consists of a highest bid price that is higher than the lowest offer price. See: Overlap the market."},{ "title": "Crossed trade","link": "https://www.alphaflow.com/?glossary=crossed-trade","glink": "crossed_trade","desc": "The prohibited practice of offsetting buy and sell orders without recording the trade on the exchange, thus not allowing other traders to take advantage of a more favorable price."},{ "title": "Crossover rate","link": "https://www.alphaflow.com/?glossary=crossover-rate","glink": "crossover_rate","desc": "The return at which two alternative projects have the same net present value."},{ "title": "Crowd trading","link": "https://www.alphaflow.com/?glossary=crowd-trading","glink": "crowd_trading","desc": "Used for listed equity securities. Group of exchange members with a defined area of function tending to congregate around a trading post pending execution of orders. Includes specialists, floor traders, odd-lot dealers, and other brokers as well as smaller groups with specialized functions. See: Priority."},{ "title": "Crowding out","link": "https://www.alphaflow.com/?glossary=crowding-out","glink": "crowding_out","desc": "Heavy federal borrowing that drives interest rates up and prevents businesses and consumers from borrowing when they would like to."},{ "title": "Crown jewel","link": "https://www.alphaflow.com/?glossary=crown-jewel","glink": "crown_jewel","desc": "A particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. Often used in risk arbitrage. The most desirable entities within a diversified corporation as measured by asset value, earning power, and business prospects; in takeover attempts, these entities typically are the main objective of the acquirer and may be sold by a takeover target to make the rest of the company less attractive. See: Scorched earth policy."},{ "title": "Crown Law","link": "https://www.alphaflow.com/?glossary=crown-law","glink": "crown_law","desc": "A law derived from English law (ie. England, Ireland, Canada, PNG, Australia, Hong Kong, Singapore, India, Malaysia)."},{ "title": "CSR","link": "https://www.alphaflow.com/?glossary=csr","glink": "csr","desc": "See: Corporate social responsibility"},{ "title": "CTA","link": "https://www.alphaflow.com/?glossary=cta","glink": "c.t.a.","desc": "See: Cumulative Translation Adjustment. Also refers to Commodity Trading Advisor."},{ "title": "CTD","link": "https://www.alphaflow.com/?glossary=ctd","glink": "CTD","desc": "See: Cheapest to deliver issue"},{ "title": "CU","link": "https://www.alphaflow.com/?glossary=cu","glink": "C.U.","desc": "The two-character ISO 3166 country code for CUBA."},{ "title": "CUB","link": "https://www.alphaflow.com/?glossary=cub","glink": "C.U.B.","desc": "The three-character ISO 3166 country code for CUBA."},{ "title": "Cum dividend","link": "https://www.alphaflow.com/?glossary=cum-dividend","glink": "cum_dividend","desc": "With dividend; said of a stock whose buyer is eligible to receive a declared dividend. Stocks are usually 'cum dividend' for trades made on or before the third trading day preceding the record date, when the register of eligible holders is closed for that dividend period. Antithesis of ex-dividend."},{ "title": "Cum rights","link": "https://www.alphaflow.com/?glossary=cum-rights","glink": "cum_rights","desc": "With rights."},{ "title": "Cumulative abnormal return","link": "https://www.alphaflow.com/?glossary=cumulative-abnormal-return","glink": "cumulative_abnormal_return","desc": "Sum of the differences between the expected return on a stock (systematic risk multiplied by the realized market return) and the actual return often used to evaluate the impact of news on a stock price."},{ "title": "Cumulative Auction Market Preferred Stocks","link": "https://www.alphaflow.com/?glossary=cumulative-auction-market-preferred-stocks","glink": "cumulative_auction_market_preferred_stocks","desc": "Stands for Cumulative Auction Market Preferred Stocks, Oppenheimer & Company's Dutch Auction preferred stock product."},{ "title": "Cumulative dividend feature","link": "https://www.alphaflow.com/?glossary=cumulative-dividend-feature","glink": "cumulative_dividend_feature","desc": "A requirement that any missed preferred or preference stock dividends be paid in full before any dividend payment on common shares is made."},{ "title": "Cumulative preferred stock","link": "https://www.alphaflow.com/?glossary=cumulative-preferred-stock","glink": "cumulative_preferred_stock","desc": "Preferred stock whose dividends accrue, should the issuer not make timely dividend payments. Related: Non-cumulative preferred stock."},{ "title": "Cumulative probability distribution","link": "https://www.alphaflow.com/?glossary=cumulative-probability-distribution","glink": "cumulative_probability_distribution","desc": "A function that shows the probability that the random variable will attain a value less than or equal to each value that the random variable can take on."},{ "title": "Cumulative total return","link": "https://www.alphaflow.com/?glossary=cumulative-total-return","glink": "cumulative_total_return","desc": "The actual performance of a fund over a particular period."},{ "title": "Cumulative Translation Adjustment (CTA) account","link": "https://www.alphaflow.com/?glossary=cumulative-translation-adjustment-cta-account","glink": "cumulative_translation_adjustment_account","desc": "An entry in a translated balance sheet in which gains and/or losses from translation have been accumulated over a period of years. The C.T.A. account is required under the FASB No. 52 rule."},{ "title": "Cumulative voting","link": "https://www.alphaflow.com/?glossary=cumulative-voting","glink": "cumulative_voting","desc": "A system of voting for directors of a corporation in which shareholder's total number of votes is equal to the number of shares held times the number of candidates."},{ "title": "CUP","link": "https://www.alphaflow.com/?glossary=cup","glink": "cup","desc": "The ISO 4217 currency code for Cuban Peso."},{ "title": "Cure","link": "https://www.alphaflow.com/?glossary=cure","glink": "cure","desc": "To make good a default."},{ "title": "Currency","link": "https://www.alphaflow.com/?glossary=currency","glink": "currency","desc": "Money."},{ "title": "Currency appreciation","link": "https://www.alphaflow.com/?glossary=currency-appreciation","glink": "currency_appreciation","desc": "An increase in the value of one currency relative to another currency. Appreciation occurs when, because of a change in exchange rates, a unit of one currency buys more units of another currency."},{ "title": "Currency arbitrage","link": "https://www.alphaflow.com/?glossary=currency-arbitrage","glink": "currency_arbitrage","desc": "Taking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market."},{ "title": "Currency basket","link": "https://www.alphaflow.com/?glossary=currency-basket","glink": "currency_basket","desc": "The value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market value of another currency. It is also referred to as a currency cocktail."},{ "title": "Currency Board","link": "https://www.alphaflow.com/?glossary=currency-board","glink": "currency_board","desc": "Entity charged with maintaining the value of a local currency with respect to some other specified currency."},{ "title": "Currency call option","link": "https://www.alphaflow.com/?glossary=currency-call-option","glink": "currency_call_option","desc": "Contract that gives the holder the right to purchase a specific currency at a specified price (exchange rate) within a specific period of time."},{ "title": "Currency Carry Trade","link": "https://www.alphaflow.com/?glossary=currency-carry-trade","glink": "currency_carry_trade","desc": "A carry trade where you borrow and pay interest in order to buy something else that has higher interest. For currencies, it might be that you borrow in Yen (where the interest rate might be low) and use the proceeds to purchase U.S. dollar long term debt. While the trade might produce a positive return, it is risky in two dimensions. First, U.S. rates could increase diminishing the value of the bond you purchased. Second, the exchange rate could take an unfavorable move effectively increasing your borrowing costs. Related: Carry Trade."},{ "title": "Currency depreciation","link": "https://www.alphaflow.com/?glossary=currency-depreciation","glink": "currencey_depreciation","desc": "A decline in the value of one currency relative to another currency. Depreciation occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency."},{ "title": "Currency devaluation","link": "https://www.alphaflow.com/?glossary=currency-devaluation","glink": "currencey_devaluation","desc": "A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold."},{ "title": "Currency diversification","link": "https://www.alphaflow.com/?glossary=currency-diversification","glink": "currency_diversification","desc": "Using more than one currency as an investing or financing strategy. Exposure to a diversified currency portfolio typically entails less exchange rate risk than if all the portfolio exposure were in a single foreign currency."},{ "title": "Currency Exchange Risk","link": "https://www.alphaflow.com/?glossary=currency-exchange-risk","glink": "currency_exchange_risk","desc": "Uncertainty about the rate at which revenues or costs denominated in one currency can be converted into another currency."},{ "title": "Currency future","link": "https://www.alphaflow.com/?glossary=currency-future","glink": "currency_future","desc": "A financial future contract for the delivery of a specified foreign currency."},{ "title": "Currency futures contract","link": "https://www.alphaflow.com/?glossary=currency-futures-contract","glink": "currency_futures_contract","desc": "Contract specifying a standard volume of a particular currency to be exchanged on a specific settlement date."},{ "title": "Currency hedge","link": "https://www.alphaflow.com/?glossary=currency-hedge","glink": "currency_hedge","desc": "Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks)."},{ "title": "Currency in circulation","link": "https://www.alphaflow.com/?glossary=currency-in-circulation","glink": "currency_in_circulation","desc": "Paper money, coins, and demand deposits that constitute all the money circulating in the economy."},{ "title": "Currency no longer issued","link": "https://www.alphaflow.com/?glossary=currency-no-longer-issued","glink": "currency_no_longer_issued","desc": "Old and new series gold and silver certificates, Federal Reserve notes, national bank notes, and 1890 Series Treasury notes."},{ "title": "Currency option","link": "https://www.alphaflow.com/?glossary=currency-option","glink": "currency_option","desc": "An option to buy or sell a foreign currency."},{ "title": "Currency overvaluation","link": "https://www.alphaflow.com/?glossary=currency-overvaluation","glink": "currency_overvaluation","desc": "Applies mainly to international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); (2) currency value exceeding purchasing power parity."},{ "title": "Currency put option","link": "https://www.alphaflow.com/?glossary=currency-put-option","glink": "currency_put_option","desc": "Contract that gives the holder the right to sell a particular currency at a specified price (exchange rate) within a specified period of time."},{ "title": "Currency revaluation","link": "https://www.alphaflow.com/?glossary=currency-revaluation","glink": "currencey_revaluation","desc": "A deliberate upward adjustment in the official exchange rate established, or pegged, by government against a specified standard, such as another currency or gold."},{ "title": "Currency risk","link": "https://www.alphaflow.com/?glossary=currency-risk","glink": "currency_risk","desc": "Related: Exchange rate risk"},{ "title": "Currency risk sharing","link": "https://www.alphaflow.com/?glossary=currency-risk-sharing","glink": "current_risk_sharing","desc": "An agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction."},{ "title": "Currency selection","link": "https://www.alphaflow.com/?glossary=currency-selection","glink": "currency_selection","desc": "Asset allocation in which the investor chooses among investments denominated in different currencies."},{ "title": "Currency swap","link": "https://www.alphaflow.com/?glossary=currency-swap","glink": "currency_swap","desc": "An agreement to swap a series of specified payment obligations denominated in one currency for a series of specified payment obligations denominated in a different currency. Usually fixed for fixed."},{ "title": "Current account","link": "https://www.alphaflow.com/?glossary=current-account","glink": "current_account","desc": "Net flow of goods, services, and unilateral transactions (gifts) between countries."},{ "title": "Current account balance","link": "https://www.alphaflow.com/?glossary=current-account-balance","glink": "current_account balance","desc": "The difference between the nation's total exports of goods, services and transfers and its total imports of them. Current account balance calculations exclude transactions in financial assets and liabilities."},{ "title": "Current assets","link": "https://www.alphaflow.com/?glossary=current-assets","glink": "current_assets","desc": "Value of cash, accounts receivable, inventories, marketable securities and other assets that could be converted to cash in less than 1 year."},{ "title": "Current coupon","link": "https://www.alphaflow.com/?glossary=current-coupon","glink": "current_coupon","desc": "A bond selling at or close to par, that is, a bond with a coupon close to the yields currently offered on new bonds of a similar maturity and credit risk."},{ "title": "Current Coupon Bond","link": "https://www.alphaflow.com/?glossary=current-coupon-bond","glink": "current_coupon_bonds","desc": "Bonds on which the coupon is set approximately equal to the bonds' yield to maturity at the time of their issuance."},{ "title": "Current dollar","link": "https://www.alphaflow.com/?glossary=current-dollar","glink": "current_dollar","desc": "Refers to the use of actual or real prices and costs. Escalation or inflation effects are included."},{ "title": "Current income","link": "https://www.alphaflow.com/?glossary=current-income","glink": "current_income","desc": "Regular series of cash flows that is routinely received from investments in the form of dividends, interest, and other income sources."},{ "title": "Current income bonds","link": "https://www.alphaflow.com/?glossary=current-income-bonds","glink": "current_income_bonds","desc": "Bonds paying semiannual interest to holders. Interest is not included in the accrued discount."},{ "title": "Current issue","link": "https://www.alphaflow.com/?glossary=current-issue","glink": "current_issue","desc": "In Treasury securities, the most recently auctioned issue. Trading is more active in current issues than in off-the-run issues. Also known as on-the-run issue."},{ "title": "Current liabilities","link": "https://www.alphaflow.com/?glossary=current-liabilities","glink": "current_liabilities","desc": "Amount owed for salaries, interest, accounts payable and other debts due within 1 year."},{ "title": "Current market value","link": "https://www.alphaflow.com/?glossary=current-market-value","glink": "current_market_value","desc": "The value of a client's portfolio at today's market price, as listed in a brokerage statement."},{ "title": "Current maturity","link": "https://www.alphaflow.com/?glossary=current-maturity","glink": "current_maturity","desc": "Current time to maturity on an outstanding debt instrument."},{ "title": "Current order","link": "https://www.alphaflow.com/?glossary=current-order","glink": "current_order","desc": "In the context of periodic repayment schedules, the next periodic principal repayment."},{ "title": "Current production rate","link": "https://www.alphaflow.com/?glossary=current-production-rate","glink": "current_production_rate","desc": "The highest interest rate permissible on current Government National Mortgage Association, mortgage-backed securities."},{ "title": "Current rate method","link": "https://www.alphaflow.com/?glossary=current-rate-method","glink": "current_rate_method","desc": "The translation of all foreign currency balance sheet and income statement items at the current exchange rate."},{ "title": "Current ratio","link": "https://www.alphaflow.com/?glossary=current-ratio","glink": "current_ratio","desc": "Indicator of short-term debt-paying ability. Determined by dividing current assets by current liabilities. The higher the ratio, the more liquid the company."},{ "title": "Current yield","link": "https://www.alphaflow.com/?glossary=current-yield","glink": "current_yield","desc": "For bonds or notes, the coupon rate divided by the market price of the bond."},{ "title": "Current-coupon issues","link": "https://www.alphaflow.com/?glossary=current-coupon-issues","glink": "current_coupon_issues","desc": "Related: Benchmark issues"},{ "title": "Current/noncurrent method","link": "https://www.alphaflow.com/?glossary=currentnoncurrent-method","glink": "current_noncurrent_method","desc": "The translation of all of a foreign subsidiary's current assets and liabilities into home currency at the current exchange rate while noncurrent assets and liabilities are translated at the historical exchange rate; that is, the rate in effect at the time the asset was acquired or the liability incurred."},{ "title": "Cushion","link": "https://www.alphaflow.com/?glossary=cushion","glink": "cushion","desc": "In the context of project financing, the extra amount of net cash flow remaining after expected debt service."},{ "title": "Cushion bonds","link": "https://www.alphaflow.com/?glossary=cushion-bonds","glink": "cushion_bonds","desc": "High-coupon bonds trading at a premium that tend to fall in price much less than comparable bonds when interest rates rise (hence the cushion effect), because of their high coupons."},{ "title": "Cushion theory","link": "https://www.alphaflow.com/?glossary=cushion-theory","glink": "cushion_theory","desc": "The theory that a stock with many short positions taken in it will rise, because these positions must be covered by the stock."},{ "title": "CUSIP number","link": "https://www.alphaflow.com/?glossary=cusip-number","glink": "cusip_number","desc": "Unique number given to a security to distinguish it from other stocks and registered bonds. See: Committee on Uniform Securities Identification Procedures."},{ "title": "Custodial fees","link": "https://www.alphaflow.com/?glossary=custodial-fees","glink": "custodial_fees","desc": "Fees charged by an institution that holds securities in safekeeping for an investor."},{ "title": "Custodian","link": "https://www.alphaflow.com/?glossary=custodian","glink": "custodian","desc": "Either (1) a bank, agent, trust company, or other organization responsible for safeguarding financial assets, or (2) the individual who oversees the mutual fund assets of a minor's custodial account."},{ "title": "Custodian bank","link": "https://www.alphaflow.com/?glossary=custodian-bank","glink": "custodian_bank","desc": "Applies mainly to international equities. Bank or other financial institution that keeps custody of stock certificates and other assets of a mutual fund, individual, or corporate client. See: Depository Trust Company (DTC)"},{ "title": "Customary payout ratios","link": "https://www.alphaflow.com/?glossary=customary-payout-ratios","glink": "customary_payout_ratios","desc": "A range of payout ratios that is typical according to an analysis of comparable firms."},{ "title": "Customer’s loan consent","link": "https://www.alphaflow.com/?glossary=customers-loan-consent","glink": "customers_loan_consent","desc": "Agreement signed by a margin customer that allows a broker to borrow margin securities up to the level of the customer's debit balance to help cover other customers' short positions."},{ "title": "Customers’ net debit balance","link": "https://www.alphaflow.com/?glossary=customers-net-debit-balance","glink": "customers_net_debit_balance","desc": "The total amount of credit given by NYSE member firms to finance customers purchasing securities."},{ "title": "Customized benchmarks","link": "https://www.alphaflow.com/?glossary=customized-benchmarks","glink": "customized_benchmarks","desc": "A benchmark that is designed to meet a client's requirements and long-term objectives."},{ "title": "Customs Broker","link": "https://www.alphaflow.com/?glossary=customs-broker","glink": "customs_broker","desc": "An individual or firm licensed by customs authorities to enter and clear imported goods through customs. The broker represents the importer in dealings with the customs authorities."},{ "title": "Customs union","link": "https://www.alphaflow.com/?glossary=customs-union","glink": "customs_union","desc": "An agreement by two or more countries to erect a common external tariff and to abolish restrictions on trade among members."},{ "title": "Cut Off Date","link": "https://www.alphaflow.com/?glossary=cut-off-date","glink": "cut_off_date","desc": "The date prescribed in the unclaimed property law in most states for determining the items of property that must be turned over to the state. See: Escheat."},{ "title": "Cutoff point","link": "https://www.alphaflow.com/?glossary=cutoff-point","glink": "cutoff_point","desc": "The lowest rate of return acceptable on investments."},{ "title": "CV","link": "https://www.alphaflow.com/?glossary=cv","glink": "C.V.","desc": "The two-character ISO 3166 country code for CAPE VERDE."},{ "title": "CVA","link": "https://www.alphaflow.com/?glossary=cva","glink": "C.V.A.","desc": "See: Credit Valuation Adjustments"},{ "title": "CVE","link": "https://www.alphaflow.com/?glossary=cve","glink": "cve","desc": "The ISO 4217 currency code for Cape Verde Islands Escudo."},{ "title": "CX","link": "https://www.alphaflow.com/?glossary=cx","glink": "C.X.","desc": "The two-character ISO 3166 country code for CHRISTMAS ISLAND."},{ "title": "CXR","link": "https://www.alphaflow.com/?glossary=cxr","glink": "C.X.R.","desc": "The three-character ISO 3166 country code for CHRISTMAS ISLAND."},{ "title": "CY","link": "https://www.alphaflow.com/?glossary=cy","glink": "C.Y.","desc": "The two-character ISO 3166 country code for CYPRUS."},{ "title": "Cycles","link": "https://www.alphaflow.com/?glossary=cycles","glink": "cycles","desc": "A full orbital period."},{ "title": "Cyclical stock","link": "https://www.alphaflow.com/?glossary=cyclical-stock","glink": "cyclical_stock","desc": "Stock that tends to rise quickly when the economy turns up and fall quickly when the economy turns down. Examples are housing, automobiles, and paper."},{ "title": "Cyclical unemployment","link": "https://www.alphaflow.com/?glossary=cyclical-unemployment","glink": "cyclical_unemployment","desc": "Unemployment caused by a low level of aggregate demand associated with recession in the business cycle."},{ "title": "CYM","link": "https://www.alphaflow.com/?glossary=cym","glink": "C.Y.M.","desc": "The three-character ISO 3166 country code for CAYMAN ISLANDS."},{ "title": "CYP (1)","link": "https://www.alphaflow.com/?glossary=cyp-1","glink": "cyp","desc": "The ISO 4217 currency code for Cyprus Pound."},{ "title": "CYP (2)","link": "https://www.alphaflow.com/?glossary=cyp-2","glink": "C.Y.P.","desc": "The three-character ISO 3166 country code for CYPRUS."},{ "title": "CZ","link": "https://www.alphaflow.com/?glossary=cz","glink": "C.Z.","desc": "The two-character ISO 3166 country code for CZECH REPUBLIC."},{ "title": "CZE","link": "https://www.alphaflow.com/?glossary=cze","glink": "C.Z.E.","desc": "The three-character ISO 3166 country code for CZECH REPUBLIC."},{ "title": "CZK","link": "https://www.alphaflow.com/?glossary=czk","glink": "czk","desc": "The ISO 4217 currency code for Czech Republic Koruna."},{ "title": "D (NASDAQ)","link": "https://www.alphaflow.com/?glossary=d-nasdaq","glink": "D","desc": "Fifth letter of a NASDAQ stock symbol specifying that it is a new issue, such as the result of a reverse split."},{ "title": "D/A","link": "https://www.alphaflow.com/?glossary=da","glink": "da","desc": "See: Documents Against Acceptance"},{ "title": "D/P","link": "https://www.alphaflow.com/?glossary=dp","glink": "dp","desc": "Abbreviation for Documents Against Payment."},{ "title": "Daily average revenue trades","link": "https://www.alphaflow.com/?glossary=daily-average-revenue-trades","glink": "daily_average_revenue_trades","desc": "A metric in the brokerage industry that measures the number of trades per day that the broker generates revenue through commissions or fees."},{ "title": "Daily price limit","link": "https://www.alphaflow.com/?glossary=daily-price-limit","glink": "daily_price_limit","desc": "The level within many commodity, futures, and options markets are allowed to rise or fall in a day. Exchanges usually impose a daily price limit on each contract."},{ "title": "Daisy chain","link": "https://www.alphaflow.com/?glossary=daisy-chain","glink": "daisy_chain","desc": "Manipulation of the market by traders to create the illusion of active volume to attract investors."},{ "title": "Danish FSA","link": "https://www.alphaflow.com/?glossary=danish-fsa","glink": "danish_fsa","desc": "See: Finanstilsynet."},{ "title": "Data room","link": "https://www.alphaflow.com/?glossary=data-room","glink": "data_room","desc": "A secure (physical or online) location containing confidential documents to provide investment banks and potential acquirers with necessary information for due diligence."},{ "title": "Date of issue","link": "https://www.alphaflow.com/?glossary=date-of-issue","glink": "date_of_issue","desc": "Used in the context of bonds to refer to the date on which a bond is issued and when interest beings to accrue to the bondholder. Used in the context of stocks to refer to the date trading begins on a new stock issued to the public."},{ "title": "Date of payment","link": "https://www.alphaflow.com/?glossary=date-of-payment","glink": "date_of_payment","desc": "Date dividend checks are mailed."},{ "title": "Date of record","link": "https://www.alphaflow.com/?glossary=date-of-record","glink": "date_of_record","desc": "Date on which holders of record in a firm's stock ledger are designated as the recipients of either dividends or stock rights."},{ "title": "Dated date","link": "https://www.alphaflow.com/?glossary=dated-date","glink": "dated_date","desc": "The date one uses to calculate accrued interest on various debt instruments, specifically bonds."},{ "title": "Dates convention","link": "https://www.alphaflow.com/?glossary=dates-convention","glink": "dates_convention","desc": "Treating cash flows as being received on exact dates-date 0, date 1, and so forth-as opposed to the end-of-year convention."},{ "title": "Dating","link": "https://www.alphaflow.com/?glossary=dating","glink": "dating","desc": "Credit extension beyond normal terms of a credit supplier."},{ "title": "Dawn raid","link": "https://www.alphaflow.com/?glossary=dawn-raid","glink": "dawn_raid","desc": "A term of British origin used to describe the purchase of all available shares of a target company at the market's open by a raider. A dawn raid is a surprise technique that allows the raider to gain a substantial share of the target company before the target company knows what is happening."},{ "title": "Day around order","link": "https://www.alphaflow.com/?glossary=day-around-order","glink": "day_around_order","desc": "A day order that supersedes ( cancels and replaces) the previous order by altering its size or price limit."},{ "title": "Day count convention","link": "https://www.alphaflow.com/?glossary=day-count-convention","glink": "day_count_convention","desc": "A convention for determining the number of days between two dates and the number of days in a year, which are used for calculating interest accrued on bonds and other interest rate dependent securities. Also see actual/actual, actual/360, 30/360."},{ "title": "Day loan","link": "https://www.alphaflow.com/?glossary=day-loan","glink": "day_loan","desc": "A loan from a bank to a broker prior to the delivery of securities. Upon the delivery of the securities, a day loan becomes a regular broker call loan for which securities serve as collateral."},{ "title": "Day of deposit to day of withdrawal account","link": "https://www.alphaflow.com/?glossary=day-of-deposit-to-day-of-withdrawal-account","glink": "day_of_deposit_to_day_of_withdrawal_account","desc": "A bank account that pays interest according to the number of days that the money is actually on deposit."},{ "title": "Day order","link": "https://www.alphaflow.com/?glossary=day-order","glink": "day_order","desc": "In the context of general equities, request from a customer to either buy or sell stock, that, if not canceled or executed the day it is placed, expires automatically. All orders are day orders unless otherwise specified. Traders often make calls before the opening to check for renewals."},{ "title": "Day trade","link": "https://www.alphaflow.com/?glossary=day-trade","glink": "day_trade","desc": "Also known as a 'daylight trade.' The purchase and sale or the short sale and cover of the same security in a margin account on the same day."},{ "title": "Day trading","link": "https://www.alphaflow.com/?glossary=day-trading","glink": "day_trading","desc": "Establishing and liquidating the same position or positions within one day's trading."},{ "title": "Days in receivables","link": "https://www.alphaflow.com/?glossary=days-in-receivables","glink": "days_in_receivables","desc": "Average collection period."},{ "title": "Days’ sales in inventory ratio","link": "https://www.alphaflow.com/?glossary=days-sales-in-inventory-ratio","glink": "days_sales_in_inventory_ratio","desc": "The average number of days' worth of sales that is held in inventory."},{ "title": "Days’ sales outstanding","link": "https://www.alphaflow.com/?glossary=days-sales-outstanding","glink": "days_sales_outstanding","desc": "Average collection period."},{ "title": "DE","link": "https://www.alphaflow.com/?glossary=de","glink": "D.E.","desc": "The two-character ISO 3166 country code for GERMANY."},{ "title": "De facto","link": "https://www.alphaflow.com/?glossary=de-facto","glink": "de_facto","desc": "Existing in actual fact although not by official recognition."},{ "title": "Dead cat bounce","link": "https://www.alphaflow.com/?glossary=dead-cat-bounce","glink": "dead_cat_bounce","desc": "A small upmove in a bear market."},{ "title": "Deal flow","link": "https://www.alphaflow.com/?glossary=deal-flow","glink": "deal_flow","desc": "In investment banking, the rate at which new deals are referred to a brokerage firm."},{ "title": "Deal stock","link": "https://www.alphaflow.com/?glossary=deal-stock","glink": "deal_stock","desc": "Stock subject to merger or acquisition, either publicly announced or rumored."},{ "title": "Dealer","link": "https://www.alphaflow.com/?glossary=dealer","glink": "dealer","desc": "An entity that stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). Individual or firm acting as a principal in a securities transaction. Principals are market makers in securities, and thus trade for their own account and risk. Antithesis of broker. See: Agency."},{ "title": "Dealer loan","link": "https://www.alphaflow.com/?glossary=dealer-loan","glink": "dealer_loan","desc": "Overnight, collateralized loan from a money market bank made to a dealer financing his position by borrowing."},{ "title": "Dealer market","link": "https://www.alphaflow.com/?glossary=dealer-market","glink": "dealer_market","desc": "Where traders specializing in particular commodities buy and sell assets for their own accounts."},{ "title": "Dealer options","link": "https://www.alphaflow.com/?glossary=dealer-options","glink": "dealer_options","desc": "Over-the-counter options, such as those offered by government and mortgage-backed securities dealers."},{ "title": "Dealer’s spread","link": "https://www.alphaflow.com/?glossary=dealers-spread","glink": "dealers_spread","desc": "See: markdown; underwriting spread."},{ "title": "Dealing desk","link": "https://www.alphaflow.com/?glossary=dealing-desk","glink": "","desc": "Personnel at an international bank who trade spot
and forward foreign exchange."},{ "title": "Dealing desk (Trading desk)","link": "https://www.alphaflow.com/?glossary=dealing-desk-trading-desk","glink": "dealing_desk","desc": "Personnel at an international bank who trade spot and forward foreign exchange."},{ "title": "Dear money","link": "https://www.alphaflow.com/?glossary=dear-money","glink": "dear_money","desc": "British term for tight money."},{ "title": "Death cross","link": "https://www.alphaflow.com/?glossary=death-cross","glink": "death_cross","desc": "A bearish signal generated when the 50-day(short-term) moving average crosses below the 200-day(long-term) moving average. See also golden cross."},{ "title": "Death play","link": "https://www.alphaflow.com/?glossary=death-play","glink": "death_play","desc": "A stock strategy that buys stock on the belief that a key executive will die, the company will be dissolved, and shares will command a higher price at their private market value."},{ "title": "Death Spiral Convertible","link": "https://www.alphaflow.com/?glossary=death-spiral-convertible","glink": "death_spiral_covertible","desc": "Used by companies that are in such bad shape, that there is no other way to get financing. This instrument is similar to a convertible bond, but convertible at a discount to the share price at issuance and for a fixed dollar amount rather than a specific number of shares. The further the stock falls, the more shares you get. Popular in the mid to late 1990s. Also known as toxic convertibles or floorless convertibles."},{ "title": "Death Valley Curve","link": "https://www.alphaflow.com/?glossary=death-valley-curve","glink": "death_valley_curve","desc": "In venture capital, refers to the period before a new company starts generating revenues, when it is difficult for the company to raise money."},{ "title": "Death-backed bonds","link": "https://www.alphaflow.com/?glossary=death-backed-bonds","glink": "death-backed_bonds","desc": "Bonds backed by loans of a policyholder against a life insurance policy. The policyholder will repay the loans while alive or with the benefits from the insurance policy upon death."},{ "title": "Debenture","link": "https://www.alphaflow.com/?glossary=debenture","glink": "debenture","desc": "Any debt obligation backed strictly by the borrower's integrity, e.g. an unsecured bond. A debenture is documented in an indenture."},{ "title": "Debenture bond","link": "https://www.alphaflow.com/?glossary=debenture-bond","glink": "debenture_bond","desc": "An unsecured bond whose holder has the claim of a general creditor on all assets of the issuer not pledged specifically to secure other debt. Compare subordinated debenture bond and collateral trust bonds."},{ "title": "Debenture stock","link": "https://www.alphaflow.com/?glossary=debenture-stock","glink": "debenture_stock","desc": "A type of stock that makes fixed payments at scheduled intervals of time. Debenture stock differs from a debenture in that it has the status of equity, not debt, in liquidation."},{ "title": "Debit","link": "https://www.alphaflow.com/?glossary=debit","glink": "debit","desc": "An expense, or money paid out from an account. A debit transaction is one which the net cost is greater than the net sale proceeds. See also Credit."},{ "title": "Debit balance","link": "https://www.alphaflow.com/?glossary=debit-balance","glink": "debit_balance","desc": "The amount that is owed to a broker by a margin customer for loans the customer uses to buy securities."},{ "title": "Debit card","link": "https://www.alphaflow.com/?glossary=debit-card","glink": "debit_card","desc": "A card that resembles a credit card but which debits a transaction account (checking account) with the transfers occurring contemporaneously with the customer's purchases. A debit card may be machine readable, allowing for the activation of an automated teller machine or other automated payments equipment."},{ "title": "Debit spread","link": "https://www.alphaflow.com/?glossary=debit-spread","glink": "debit_spread","desc": "Applies to derivative products. Difference in the value of two options, when the value of the option bought exceeds the value of the one sold. One buys a 'debit spread.' Antithesis of a credit spread."},{ "title": "Debt","link": "https://www.alphaflow.com/?glossary=debt","glink": "debt","desc": "Money borrowed."},{ "title": "Debt bomb","link": "https://www.alphaflow.com/?glossary=debt-bomb","glink": "debt_bomb","desc": "A default on debt and obligations by a major financial_institution that disrupts the stability of the economic system."},{ "title": "Debt capacity","link": "https://www.alphaflow.com/?glossary=debt-capacity","glink": "debt_capacity","desc": "Ability to borrow. The amount a firm can borrow up to the point where the firm value no longer increases."},{ "title": "Debt ceiling","link": "https://www.alphaflow.com/?glossary=debt-ceiling","glink": "debt_ceiling","desc": "See: Debt limit"},{ "title": "Debt displacement","link": "https://www.alphaflow.com/?glossary=debt-displacement","glink": "debt_displacement","desc": "The amount of borrowing that leasing displaces. Firms that do a lot of leasing are curtailed in their debt capacity."},{ "title": "Debt instrument","link": "https://www.alphaflow.com/?glossary=debt-instrument","glink": "debt_instrument","desc": "An asset requiring fixed dollar payments, such as a government or corporate bond."},{ "title": "Debt leverage","link": "https://www.alphaflow.com/?glossary=debt-leverage","glink": "debt_leverage","desc": "Amplification of the return earned on equity when an investment or firm is financed partially with borrowed money."},{ "title": "Debt limit","link": "https://www.alphaflow.com/?glossary=debt-limit","glink": "debt_limit","desc": "The maximum amount that a municipality can borrow."},{ "title": "Debt limitation","link": "https://www.alphaflow.com/?glossary=debt-limitation","glink": "debt_limitation","desc": "A bond covenant that restricts the firm's ability to incur additional indebtedness in some way."},{ "title": "Debt market","link": "https://www.alphaflow.com/?glossary=debt-market","glink": "debt_market","desc": "The market for trading debt instruments."},{ "title": "Debt outstanding subject to limitation","link": "https://www.alphaflow.com/?glossary=debt-outstanding-subject-to-limitation","glink": "debt_outstanding_subject_to_limitation","desc": "Obligations incurred by the Treasury subject to the statutory limit set by Congress. Until World War 1, a specific amount of debt was authorized for each separate security issue. Beginning with the Second Liberty Loan Act of 1917, the nature of the limitation was modified until, in 1941, it developed into an overall limit on the outstanding Federal debt. The statuatory limit may change from year to year."},{ "title": "Debt ratio","link": "https://www.alphaflow.com/?glossary=debt-ratio","glink": "debt_ratio","desc": "Total debt divided by total assets."},{ "title": "Debt relief","link": "https://www.alphaflow.com/?glossary=debt-relief","glink": "debt_relief","desc": "Reducing the principal and/or interest payments on Less developed country loans."},{ "title": "Debt restructuring","link": "https://www.alphaflow.com/?glossary=debt-restructuring","glink": "debt_restructuring","desc": "Modification of the terms of a loan to provide relief to a debtor who could otherwise default on payments. The restructuring may involve extending the period of repayment, reducing the total amount owed, or exchanging a portion of the debt for equity in the debtor company. Also see extension, composition, debt-for-equity swap."},{ "title": "Debt retirement","link": "https://www.alphaflow.com/?glossary=debt-retirement","glink": "debt_retirement","desc": "The complete repayment of debt. See: Sinking fund."},{ "title": "Debt securities","link": "https://www.alphaflow.com/?glossary=debt-securities","glink": "debt_securities","desc": "IOUs created through loan-type transactions-commercial paper, bank CDs, bills, bonds, and other instruments."},{ "title": "Debt service","link": "https://www.alphaflow.com/?glossary=debt-service","glink": "debt_service","desc": "Interest payment plus repayments of principal to creditors (retirement of debt)."},{ "title": "Debt service coverage","link": "https://www.alphaflow.com/?glossary=debt-service-coverage","glink": "debt_service_coverage","desc": "The ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt."},{ "title": "Debt service parity approach","link": "https://www.alphaflow.com/?glossary=debt-service-parity-approach","glink": "debt_service_parity_approach","desc": "Payment alternatives that provide the firm with the exact same schedule of after-tax debt payments (including both interest and principal)."},{ "title": "Debt swap","link": "https://www.alphaflow.com/?glossary=debt-swap","glink": "debt_swap","desc": "A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local equity. Also called a debt-equity swap."},{ "title": "Debt-for-equity swap","link": "https://www.alphaflow.com/?glossary=debt-for-equity-swap","glink": "debt_for_equity_swap","desc": "A swap agreement to exchange equity/returns for debt returns or the converse over a prearranged length of time."},{ "title": "Debt-service coverage ratio","link": "https://www.alphaflow.com/?glossary=debt-service-coverage-ratio","glink": "debt_service_coverage_ratio","desc": "Earnings before interest and income taxes, divided by interest expense plus the quantity of principal repayments divided by one minus the tax rate."},{ "title": "Debt/EBITDA ratio","link": "https://www.alphaflow.com/?glossary=debtebitda-ratio","glink": "debt_ebitda_ratio","desc": "This ratio typically is used to gain a sense for how many periods a company would have to operate at the same level of earnings in order to pay off its current level of debt.  Although useful, this metric does not include the effects of excess cash or capital expenditures on a company's finances, and so should be used with caution when evaluating a company, as not all of the risk is accounted for within the ratio. See: Debt, Earnings before interest, taxes, depreciation, and amortization (EBITDA), Payback period"},{ "title": "Debt/equity ratio","link": "https://www.alphaflow.com/?glossary=debtequity-ratio","glink": "debt_equity_ratio","desc": "Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders. Determined by dividing long-term debt by common stockholder equity."},{ "title": "Debtholder","link": "https://www.alphaflow.com/?glossary=debtholder","glink": "debtholder","desc": "See: Bondholder"},{ "title": "Debtor","link": "https://www.alphaflow.com/?glossary=debtor","glink": "debtor","desc": "Borrower of money."},{ "title": "Debtor in possession","link": "https://www.alphaflow.com/?glossary=debtor-in-possession","glink": "debtor_in_possession","desc": "A firm that continues to operate under the Chapter 11 bankruptcy process."},{ "title": "Debtor-in-possession financing","link": "https://www.alphaflow.com/?glossary=debtor-in-possession-financing","glink": "debtor_in_possession_financing","desc": "New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims."},{ "title": "Decile rank","link": "https://www.alphaflow.com/?glossary=decile-rank","glink": "decile_rank","desc": "Performance over time, rated on a scale of 1-10. 1 indicates that a mutual fund's return is in the top 10% of funds being compared; while 3 means the return is in the top 30%."},{ "title": "Decillion","link": "https://www.alphaflow.com/?glossary=decillion","glink": "decillion","desc": "A unit of quantity equal to 1033 (1 followed by 33 zeros)."},{ "title": "Decimal trading","link": "https://www.alphaflow.com/?glossary=decimal-trading","glink": "decimal_trading","desc": "The quotation and trading of stock or bond prices in decimals, as opposed to the quotation of prices in fractions."},{ "title": "Decimalization","link": "https://www.alphaflow.com/?glossary=decimalization","glink": "decimalization","desc": "The quotation and trading of stock or bond prices in decimals, as opposed to fractions such as eighths."},{ "title": "Decision Break-Point Analysis","link": "https://www.alphaflow.com/?glossary=decision-break-point-analysis","glink": "decision_break_point_analysis","desc": "A type of sensitivity analysis that indicates the value at which a key variable will result in a negative NPV for an investment project."},{ "title": "Decision tree","link": "https://www.alphaflow.com/?glossary=decision-tree","glink": "decision_tree","desc": "Schematic way of representing alternative sequential decisions and the possible outcomes from these decisions."},{ "title": "Declaration","link": "https://www.alphaflow.com/?glossary=declaration","glink": "declare","desc": "The Board of Directors motion to authorize dividend payments."},{ "title": "Declaration date","link": "https://www.alphaflow.com/?glossary=declaration-date","glink": "declaration_date","desc": "The date on which a firm's directors meet and announce the date and amount of the next dividend."},{ "title": "Dedicated capital","link": "https://www.alphaflow.com/?glossary=dedicated-capital","glink": "dedicated_capital","desc": "Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value."},{ "title": "Dedicating a portfolio","link": "https://www.alphaflow.com/?glossary=dedicating-a-portfolio","glink": "dedicating_a_portfolio","desc": "Related: Cash flow matching"},{ "title": "Dedication strategy","link": "https://www.alphaflow.com/?glossary=dedication-strategy","glink": "dedication_strategy","desc": "Refers to multiperiod cash-flow matching."},{ "title": "Deductible","link": "https://www.alphaflow.com/?glossary=deductible","glink": "deductible","desc": "An amount or period which must be deducted before an insurance payout or settlement is calculated."},{ "title": "Deductible contribution","link": "https://www.alphaflow.com/?glossary=deductible-contribution","glink": "deductible_contribution","desc": "Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes."},{ "title": "Deduction","link": "https://www.alphaflow.com/?glossary=deduction","glink": "deduction","desc": "An expense that is allowable as a reduction of gross taxable income by the IRS e.g., charity donations."},{ "title": "Deductive reasoning","link": "https://www.alphaflow.com/?glossary=deductive-reasoning","glink": "deductive_reasoning","desc": "Using known facts to draw a conclusion about a specific situation."},{ "title": "Deed of trust","link": "https://www.alphaflow.com/?glossary=deed-of-trust","glink": "deed_of_trust","desc": "See: Indenture"},{ "title": "Deep in the money","link": "https://www.alphaflow.com/?glossary=deep-in-the-money","glink": "deep_in_the_money","desc": "A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price. Often substantially below is defined as more than one strike price below (for calls)/above (for puts) the current value of the underlying security."},{ "title": "Deep out of the money","link": "https://www.alphaflow.com/?glossary=deep-out-of-the-money","glink": "deep_out_of_the_money","desc": "A call option with an exercise price substantially above the market price. Also put option with an exercise price substantially below the underlying stock's market price. Often substantially below is defined as more than one strike price below (for calls)/above (for puts) the current value of the underlying security."},{ "title": "Deep-discount bond","link": "https://www.alphaflow.com/?glossary=deep-discount-bond","glink": "deep_discount_bond","desc": "A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero-coupon bond."},{ "title": "Default","link": "https://www.alphaflow.com/?glossary=default","glink": "default","desc": "The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. A breach of a covenant. In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved."},{ "title": "Default interest","link": "https://www.alphaflow.com/?glossary=default-interest","glink": "default_interest","desc": "A higher interest rate payable after default."},{ "title": "Default premium","link": "https://www.alphaflow.com/?glossary=default-premium","glink": "default_premium","desc": "A differential in promised yield that compensates the investor for the risk inherent in purchasing a corporate bond that entails some risk of default. Often the premium is measured as the yield over and above a government bond yield of similar coupon and maturity."},{ "title": "Default risk","link": "https://www.alphaflow.com/?glossary=default-risk","glink": "default_risk","desc": "The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies)."},{ "title": "Defeasance","link": "https://www.alphaflow.com/?glossary=defeasance","glink": "defeasance","desc": "The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. Both the borrower's debt and the offsetting cash or bonds are removed from the balance sheet. In securities trading, where a clearing house becomes counterparty to each side of a trade, after the trade has been agreed. This is necessary to facilitate netting, and reduce counterparty risk exposure. The term has become popular recently, because of the growth of central counterparty clearing services in European cash equities markets."},{ "title": "Defensive securities","link": "https://www.alphaflow.com/?glossary=defensive-securities","glink": "defensive_securities","desc": "Low-risk stocks or bonds that will provide a predictable and safe return on an investor's money."},{ "title": "Deferred account","link": "https://www.alphaflow.com/?glossary=deferred-account","glink": "deferred_account","desc": "A type of account that delays taxes on that account until some later date. An example is an IRA account."},{ "title": "Deferred annuities","link": "https://www.alphaflow.com/?glossary=deferred-annuities","glink": "deferred_annuities","desc": "Tax-advantaged life insurance products. Deferred annuities offer deferral of taxes with the option of withdrawing one's funds in the form of a life annuity."},{ "title": "Deferred call","link": "https://www.alphaflow.com/?glossary=deferred-call","glink": "deferred_call","desc": "A provision that prohibits the company from calling the bond before a certain date. During this period the bond is said to be call protected."},{ "title": "Deferred charge","link": "https://www.alphaflow.com/?glossary=deferred-charge","glink": "deferred_charge","desc": "An expenditure treated as an asset that carries forward until it becomes pertinent to the business at hand, e.g., the underwriting fees on a corporate bond issue, which the corporation capitalizes as a deferred charge and then amortizes over the life of the bond issue."},{ "title": "Deferred compensation","link": "https://www.alphaflow.com/?glossary=deferred-compensation","glink": "deferred_compensation","desc": "An amount that has been earned but is not actually paid until a later date, typically through a payment plan, pension, or stock option plan."},{ "title": "Deferred equity","link": "https://www.alphaflow.com/?glossary=deferred-equity","glink": "deferred_equity","desc": "A common term for convertible bonds, which recognizes their equity component and the expectation that the bond will ultimately be converted into shares of common stock."},{ "title": "Deferred futures","link": "https://www.alphaflow.com/?glossary=deferred-futures","glink": "deferred_futures","desc": "The most distant months of a futures contract."},{ "title": "Deferred interest bond","link": "https://www.alphaflow.com/?glossary=deferred-interest-bond","glink": "deferred_interest_bond","desc": "A bond that pays interest at a later date, usually in one lump sum, effectively reinvesting interest earned over the life of the bond. See: Zero coupon bond."},{ "title": "Deferred nominal life annuity","link": "https://www.alphaflow.com/?glossary=deferred-nominal-life-annuity","glink": "deferred_nominal_life_annuity","desc": "A monthly fixed-dollar payment beginning at retirement age. It is nominal because the payment is fixed in a dollar amount at any particular time, up to and including retirement."},{ "title": "Deferred payment annuity","link": "https://www.alphaflow.com/?glossary=deferred-payment-annuity","glink": "deferred_payment_annuity","desc": "An annuity that stipulates payments be made to the annuitant at a later date, such as when the annuitant reaches a certain age."},{ "title": "Deferred strike option","link": "https://www.alphaflow.com/?glossary=deferred-strike-option","glink": "deferred_strike_option","desc": "An option where the strike price can be specified as the underlying asset price any time before maturity. After the strike is specified, the option becomes a vanilla option until maturity of the option."},{ "title": "Deferred tax expense","link": "https://www.alphaflow.com/?glossary=deferred-tax-expense","glink": "deferred_taxes","desc": "A non-cash expense that provides a source of free cash flow. Amount allocated during the period to cover tax liabilities that have not yet been paid."},{ "title": "Deficiency","link": "https://www.alphaflow.com/?glossary=deficiency","glink": "deficiency","desc": "The amount by which a project's cash flow is not adequate to meet debt service."},{ "title": "Deficiency Agreement","link": "https://www.alphaflow.com/?glossary=deficiency-agreement","glink": "deficiency_agreement","desc": "An agreement that calls on the sponsor or another party to provide the shortfall when cash flow, working capital, or revenues are below agreed levels or are insufficient to meet debt service."},{ "title": "Deficiency letter","link": "https://www.alphaflow.com/?glossary=deficiency-letter","glink": "deficiency_letter","desc": "Notification from the SEC to a prospective issuer of securities that revisions or additions need to be made to the preliminary prospectus."},{ "title": "Deficit","link": "https://www.alphaflow.com/?glossary=deficit","glink": "deficit","desc": "An excess of liabilities over assets, of losses over profits, or of expenditure over income."},{ "title": "Deficit spending","link": "https://www.alphaflow.com/?glossary=deficit-spending","glink": "deficit_spending","desc": "When government spending overwhelms government revenue resulting in government borrowing."},{ "title": "Defined asset fund","link": "https://www.alphaflow.com/?glossary=defined-asset-fund","glink": "defined_asset_fund","desc": "A unit investment trust consisting of a fixed portfolio of securities, including blue chips, REITs, or high-yielding stocks on a major exchange such as the NYSE or FTSE."},{ "title": "Defined benefit plan","link": "https://www.alphaflow.com/?glossary=defined-benefit-plan","glink": "defined_benefit_plan","desc": "A pension plan obliging the sponsor to make specified dollar payments to qualifying employees at retirement. The pension obligations are effectively the debt obligation of the plan sponsor. Related: Defined contribution plan"},{ "title": "Defined contribution plan","link": "https://www.alphaflow.com/?glossary=defined-contribution-plan","glink": "defined_contribution_plan","desc": "A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan"},{ "title": "Defined event","link": "https://www.alphaflow.com/?glossary=defined-event","glink": "defined_event","desc": "The definition applicable to the trigger of a loss in an insurance policy, particularly political risk insurance."},{ "title": "Deflation","link": "https://www.alphaflow.com/?glossary=deflation","glink": "deflation","desc": "Decline in the prices of goods and services. Antithesis of inflation."},{ "title": "Deflator","link": "https://www.alphaflow.com/?glossary=deflator","glink": "deflator","desc": "A statistical factor used to convert current dollar purchasing power into inflation-adjusted purchasing power. Enables the comparison of prices while accounting for inflation in two different time periods."},{ "title": "Delayed issuance pool","link": "https://www.alphaflow.com/?glossary=delayed-issuance-pool","glink": "delayed_issuance_pool","desc": "Refers to mortgage backed securities (MBS) that at the time of issuance were collateralized by seasoned loans originated prior to the MBS pool issue date."},{ "title": "Delayed opening","link": "https://www.alphaflow.com/?glossary=delayed-opening","glink": "delayed_opening","desc": "Postponement of the start of trading in a stock until correction of a gross imbalance in buy and sell orders. Such an imbalance is likely to follow on the heels of a significant event such as a takeover offer. See: Suspended trading."},{ "title": "Delayed settlement/delivery","link": "https://www.alphaflow.com/?glossary=delayed-settlementdelivery","glink": "delayed_settlement_delivery","desc": "In the context of general equities, transaction in which a contract is settled in excess of five full business days. Seller's option. See: Dividend play, settlement."},{ "title": "Delinquency","link": "https://www.alphaflow.com/?glossary=delinquency","glink": "delinquency","desc": "Failure to make a payment on a debt or obligation by the specified due date."},{ "title": "Delisting","link": "https://www.alphaflow.com/?glossary=delisting","glink": "delisting","desc": "Removal of a company's security from listing on an exchange because the firm has not abided by specific regulations."},{ "title": "Deliver","link": "https://www.alphaflow.com/?glossary=deliver","glink": "deliver","desc": "The sale of a futures or forward contract may require the seller to deliver the commodity during the delivery month, if the short position is not offset prior to that time."},{ "title": "Deliverable bills","link": "https://www.alphaflow.com/?glossary=deliverable-bills","glink": "deliverable_bills","desc": "The Treasury bills that fulfill a set of guidelines set forth by the exchange on which the bills are traded."},{ "title": "Deliverable instrument","link": "https://www.alphaflow.com/?glossary=deliverable-instrument","glink": "deliverable_instrument","desc": "The asset in a forward contract that will be delivered in the future at an agreed-upon price."},{ "title": "Delivered at Frontier","link": "https://www.alphaflow.com/?glossary=delivered-at-frontier","glink": "delivered_at_frontier","desc": "Seller must supply the goods at his or her own risk and expense delivered to a named place (usually a border location) by a specified time. The buyer is responsible for the importation. This is normally is used with rail, truck, or multi-modal shipments."},{ "title": "Delivered Duty Paid","link": "https://www.alphaflow.com/?glossary=delivered-duty-paid","glink": "delievered_duty_paid","desc": "Seller must supply the goods at his or her own risk and expense to a named place in the country of importation. The seller is responsible for importation, payment of duty, and on carriage to the location agreed upon with the buyer."},{ "title": "Delivered Duty Unpaid","link": "https://www.alphaflow.com/?glossary=delivered-duty-unpaid","glink": "delievered_duty_unpaid","desc": "Seller fulfills the contract obligations when the goods have arrived at a named place in the importing country. The seller bears all the costs and risk except for import duties and other customs clearance costs."},{ "title": "Delivered Ex Quay","link": "https://www.alphaflow.com/?glossary=delivered-ex-quay","glink": "delivered_ex_quay","desc": "Seller fulfills the contract obligations to deliver when the goods are made available to the buyer at the wharf of the destination port. A DEQ can further specify 'Duty Paid' or 'Duty Unpaid.' If 'Duty Paid' is specified, the seller is responsible for all risks and costs, including duty, to the wharf of the destination port. If 'Duty Unpaid' is specified, the buyer is to clear the goods and pay duty. Since unloading costs are included in the ocean freight charged by most ship lines. This is most often used for charter shipments."},{ "title": "Delivered Ex Ship","link": "https://www.alphaflow.com/?glossary=delivered-ex-ship","glink": "delivered_ex_ship","desc": "Seller fulfills the contract obligations when the goods have been made available to the buyer on board a ship at the named port of destination. The seller must bear all costs and risks associated in bringing the goods to the named port of destination. The buyer is responsible for all costs necessary to unload the goods and clear them through customs. Unloading costs are included the ocean freight charged by most ship lines. The DES is most often used for charter shipments."},{ "title": "Delivery","link": "https://www.alphaflow.com/?glossary=delivery","glink": "delivery","desc": "The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract."},{ "title": "Delivery date","link": "https://www.alphaflow.com/?glossary=delivery-date","glink": "delivery_date","desc": "Date by which a seller must fulfill the obligations of a forward or futures contract."},{ "title": "Delivery notice","link": "https://www.alphaflow.com/?glossary=delivery-notice","glink": "delivery_notice","desc": "The written notice given by the seller of its intention to make delivery against an open, short futures position on a particular date. Related: Notice day."},{ "title": "Delivery options","link": "https://www.alphaflow.com/?glossary=delivery-options","glink": "delivery_options","desc": "The options available to the seller of an interest rate futures contract, including the quality option, the timing option, and the wild card option. Delivery options mean that the buyer is uncertain of which Treasury bond will be delivered or when it will be delivered."},{ "title": "Delivery points","link": "https://www.alphaflow.com/?glossary=delivery-points","glink": "delivery_points","desc": "Locations designated by futures exchanges at which the financial instrument or commodity covered by a futures contract may be delivered in fulfillment of such a contract."},{ "title": "Delivery price","link": "https://www.alphaflow.com/?glossary=delivery-price","glink": "delivery_price","desc": "The price fixed by the clearinghouse at which deliveries on futures are invoiced; also the price at which the futures contract is settled when deliveries are made."},{ "title": "Delivery versus payment","link": "https://www.alphaflow.com/?glossary=delivery-versus-payment","glink": "delivery_versus_payment","desc": "A in which the buyer's payment for securities is due at transaction the time of delivery (usually to a bank acting as agent for the buyer) upon receipt of the securities. The payment may be made by bank wire, check, or direct credit to an account."},{ "title": "Delphi technique","link": "https://www.alphaflow.com/?glossary=delphi-technique","glink": "delphi_technique","desc": "Collection of independent opinions without group discussion by the analysts providing the opinions; used for various sorts of evaluations (such as country risk assessment)."},{ "title": "Delta","link": "https://www.alphaflow.com/?glossary=delta","glink": "delta","desc": "The ratio of the change in price of an option to the change in price of the underlying asset. Also called the hedge ratio. Applies to derivative products. For a call option on a stock, a delta of 0.50 means that for every $1.00 that the stock goes up, the option price rises by $0.50. As options near expiration, in-the-money call option contracts approach a delta of 1.0, while in-the-money put options approach a delta of -1. See: hedge ratio, neutral hedge. Call deltas range from 0.00 to +1.00; put deltas range from 0.00 to -1.00. If the call delta is 0.69, the put delta is -0.31 (call delta minus 1 equals put delta; 0.69 -1 =-0.31)."},{ "title": "Delta cross-hedge","link": "https://www.alphaflow.com/?glossary=delta-cross-hedge","glink": "delta_cross_hedge","desc": "A futures hedge that has both maturity and currency mismatches with an underlying exposure."},{ "title": "Delta hedge","link": "https://www.alphaflow.com/?glossary=delta-hedge","glink": "delta_hedge","desc": "A dynamic hedging strategy using options that calls for constant adjustment of the number of options used, as a function of the delta of the option."},{ "title": "Delta neutral","link": "https://www.alphaflow.com/?glossary=delta-neutral","glink": "delta_neutral","desc": "Describes value of a portfolio not affected by changes in the value of the asset on which the options are written."},{ "title": "Delta Spread","link": "https://www.alphaflow.com/?glossary=delta-spread","glink": "delta_spread","desc": "A ratio spread that is established as a neutral position by utilizing the deltas of the options involved. The neutral ratio is determined by dividing the delta of the purchased option by the delta of the written option. See also Ratio Spread and Delta."},{ "title": "DEM","link": "https://www.alphaflow.com/?glossary=dem","glink": "dem","desc": "The ISO 4217 currency code for Deutschemark."},{ "title": "Demand deposits","link": "https://www.alphaflow.com/?glossary=demand-deposits","glink": "demand_deposits","desc": "Checking accounts that pay no interest and from which funds can be withdrawn upon demand."},{ "title": "Demand line of credit","link": "https://www.alphaflow.com/?glossary=demand-line-of-credit","glink": "demand_line_of_credit","desc": "A bank line of credit that enables a customer to borrow on a daily or on-demand basis."},{ "title": "Demand loan","link": "https://www.alphaflow.com/?glossary=demand-loan","glink": "demand_loan","desc": "A loan which can be called by the lender at any time and carries no set maturity date."},{ "title": "Demand master notes","link": "https://www.alphaflow.com/?glossary=demand-master-notes","glink": "demand_master_notes","desc": "Short-term securities that are repayable immediately upon the holder's demand."},{ "title": "Demand shock","link": "https://www.alphaflow.com/?glossary=demand-shock","glink": "demand_shock","desc": "An event that affects the demand for goods and services in an economy."},{ "title": "Demand-pull inflation","link": "https://www.alphaflow.com/?glossary=demand-pull-inflation","glink": "demand_pull_inflation","desc": "A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation."},{ "title": "Demonetization","link": "https://www.alphaflow.com/?glossary=demonetization","glink": "demonetization","desc": "Government withdrawal of a form of currency from circulation e.g. a particular note, coinage, or precious metal."},{ "title": "Demutualization","link": "https://www.alphaflow.com/?glossary=demutualization","glink": "demutualization","desc": "Refers to the process that has come about as the result of many not-for-profit exchanges (mutual companies owned by groups of members) converting to for-profit and then shareholder companies in order to go public."},{ "title": "Denomination","link": "https://www.alphaflow.com/?glossary=denomination","glink": "denomination","desc": "Corresponds to the face value of currency units, coins, and securities. An international transaction may be denominated in US dollars, for example, or in British pounds."},{ "title": "Dependent","link": "https://www.alphaflow.com/?glossary=dependent","glink": "dependent","desc": "Acceptance of a capital budgeting project contingent on the acceptance of another project."},{ "title": "Dependent variable","link": "https://www.alphaflow.com/?glossary=dependent-variable","glink": "dependent_variable","desc": "Term used in regression analysis to represent the element or condition that is dependent on values of one or more other independent variables."},{ "title": "Deposit insurance","link": "https://www.alphaflow.com/?glossary=deposit-insurance","glink": "deposit_insurance","desc": "See: FDIC: Federal Deposit Insurance Corporation"},{ "title": "Depositary","link": "https://www.alphaflow.com/?glossary=depositary","glink": "depositary","desc": "An agent appointed for a Tender or Exchange Offer who accepts certificates from shareholders, processes them and assures that the appropriate cash or new securities are properly remitted to the tendering party."},{ "title": "Depository institution","link": "https://www.alphaflow.com/?glossary=depository-institution","glink": "depository_institution","desc": "A financial institution that obtains its funds mainly through deposits from the public. This includes commercial banks, savings and loan associations, savings banks and credit unions."},{ "title": "Depository Institutions Deregulation and Monetary Control Act","link": "https://www.alphaflow.com/?glossary=depository-institutions-deregulation-and-monetary-control-act","glink": "depository_institutions_deregulation_and_monetary_control_act","desc": "The 1980 federal legislation that ended the regulation of the banking industry."},{ "title": "Depository preferred","link": "https://www.alphaflow.com/?glossary=depository-preferred","glink": "depository_preferred","desc": "Device enabling an issuer to circumvent an arbitrary corporate limit on the number of preferred shares issuable. Applies mainly to convertible securities."},{ "title": "Depository receipt","link": "https://www.alphaflow.com/?glossary=depository-receipt","glink": "depositary_receipt","desc": "See: ADR American Depository Receipt"},{ "title": "Depository transfer check","link": "https://www.alphaflow.com/?glossary=depository-transfer-check","glink": "depository_transfer_check","desc": "Check made out directly by a local bank to a particular firm or person."},{ "title": "Depository Trust and Clearing Corporation","link": "https://www.alphaflow.com/?glossary=depository-trust-and-clearing-corporation","glink": "depository_trust_and_clearing_corporation","desc": "The Depository Trust and Clearing Corporation (DTCC), through its subsidiaries, provides post-trade clearance, settlement, custody and information services for equities, corporate and municipal debt, money market instruments, American depositary receipts, exchange-traded funds, unit investment trusts, mutual funds, insurance products and other securities. The National Securities Clearing Corporation (NSCC) subsidiary, which acts as a central counterparty (CCP), provides trade guarantee, netting and risk management services for equity and debt transactions from all U.S. stock exchanges and markets. The Depository Trust Company(DTC) subsidiary has custody of and provides asset servicing for millions of securities issues of issuers from the U.S. and over 60 other countries. DTC serves as a major clearinghouse for institutional post-trade settlement. DTCC's two subsidiary businesses have Standard and Poors' highest rating: AAA."},{ "title": "Depository Trust Company","link": "https://www.alphaflow.com/?glossary=depository-trust-company","glink": "depository_trust_company","desc": "DTC is the world's largest central securities depository. It accepts deposits of over 2 million equity and debt securities issues (valued at $23 trillion) from over 65 countries for custody, executes book-entry deliveries (valued at over $116 trillion in 2000) records book-entry pledges of those securities, and processes related income distributions DTC is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law, a registered clearing agency with the Securities and Exchange Commission, and is owned by the Depository Trust and Clearing Corporation (DTCC), which is in turn owned primarily by most of the major banks, broker-dealers, and exchanges on Wall Street."},{ "title": "Depreciate","link": "https://www.alphaflow.com/?glossary=depreciate","glink": "depreciate","desc": "To allocate the purchase cost of an asset over its life."},{ "title": "Depreciated cost","link": "https://www.alphaflow.com/?glossary=depreciated-cost","glink": "deprieciated_cost","desc": "In terms of economics: The measure of capital consumption during production, e.g., machine and equipment wear.
In terms of finance: The process of amortization of fixed assets (equipment) to spread the cost over the depreciable life of the assets."},{ "title": "Depreciation","link": "https://www.alphaflow.com/?glossary=depreciation","glink": "depreciation","desc": "A non-cash expense (also known as non-cash charge) that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets. To be clear, this is an accounting expense not a real expense that demands cash. The sum of depreciation expenses of prior years leads to the balance sheet item Accumulated Depreciation."},{ "title": "Depreciation tax shield","link": "https://www.alphaflow.com/?glossary=depreciation-tax-shield","glink": "depreciation_tax_shield","desc": "The value of the tax write-off on depreciation of plant and equipment."},{ "title": "Depressed market","link": "https://www.alphaflow.com/?glossary=depressed-market","glink": "depressed_market","desc": "Market in which supply overwhelms demand, leading to weak and lower prices."},{ "title": "Depressed price","link": "https://www.alphaflow.com/?glossary=depressed-price","glink": "depressed_stock","desc": "In the context of stocks, stock whose market price is low in comparison to stocks in its sector."},{ "title": "Depression","link": "https://www.alphaflow.com/?glossary=depression","glink": "depression","desc": "An extended period of depressed economic activity, typically a number of years, and potentially consisting of at least one and maybe two or more recessions, during which one or more of GDP, output, income, or employment, especially the latter, fail to rise above their level at the beginning of the period, even if GDP or output do recover fully much earlier in the period. The Great Depression of the 1930's contained two distinct recessions with significant recoveries of GDP and output after each, but with an ongoing very high level of unemployment and loss of income. The National Bureau of Economic Research's Business Cycle Dating Committee dates U.S. business cycles. There is no definition of depression on their website. It is popularly believed that a decrease of real GDP of 10% or greater would indicate a depression."},{ "title": "Deregulation","link": "https://www.alphaflow.com/?glossary=deregulation","glink": "deregulation","desc": "The reduction of government's role in controlling markets, which lead to freer markets, and presumably a more efficient marketplace."},{ "title": "Derivative","link": "https://www.alphaflow.com/?glossary=derivative","glink": "derivative","desc": "A financial contract whose value is based on, or 'derived' from, a traditional security (such as a stock or bond), an asset (such as a commodity), or a market index."},{ "title": "Derivative instruments","link": "https://www.alphaflow.com/?glossary=derivative-instruments","glink": "derivative_instruments","desc": "Contracts such as options and futures whose price is derived from the price of an underlying financial asset."},{ "title": "Derivative markets","link": "https://www.alphaflow.com/?glossary=derivative-markets","glink": "derivative_markets","desc": "Markets for derivative instruments."},{ "title": "Derivative security","link": "https://www.alphaflow.com/?glossary=derivative-security","glink": "derivative_security","desc": "A financial security such as an option or future whose value is derived in part from the value and characteristics of another security, the underlying asset."},{ "title": "Descending tops","link": "https://www.alphaflow.com/?glossary=descending-tops","glink": "descending_tops","desc": "A chart pattern which in which each successive peak in a security's price is lower than the preceding peak over a period of time. Antithesis of ascending tops."},{ "title": "Descriptor","link": "https://www.alphaflow.com/?glossary=descriptor","glink": "descriptor","desc": "A variable describing assets, used as an element of a risk index. For example, a volatility risk index, distinguishing high volatility assets from low volatility assets, could consist of several descriptors based on short term volatility, long term volatility, systematic and residual volatility, etc."},{ "title": "Design risk","link": "https://www.alphaflow.com/?glossary=design-risk","glink": "design_risk","desc": "The risk associated with the impact on project cash flow from deficiencies in design or engineering. Also known as engineering risk."},{ "title": "Designated order turnaround system","link": "https://www.alphaflow.com/?glossary=designated-order-turnaround-system","glink": "designated_order_turnaround","desc": "Computerized order entry system that allows orders to buy or sell large baskets of stock to be transmitted immediately to the specialist on the exchange, where execution will occur quickly, depending on the basket size. Also used for odd-lot transactions to occur at the prices and quantities available. See: AOS."},{ "title": "Desk","link": "https://www.alphaflow.com/?glossary=desk","glink": "desk","desc": "The New York Federal Reserve Bank's trading desk (or securities department) where all transactions of the Federal Reserve System are executed in the money market or the government securities market."},{ "title": "Detachable warrant","link": "https://www.alphaflow.com/?glossary=detachable-warrant","glink": "detachable_warrant","desc": "A warrant entitles the holder to buy a given number of shares of stock at a stipulated price. A detachable warrant is one that may be sold separately from the package it may have originally been issued with (usually a bond)."},{ "title": "Determinism","link": "https://www.alphaflow.com/?glossary=determinism","glink": "determinism","desc": "Fully ordained in advance. A deterministic chaos system is one that gives random looking results, even though the results are generated from a system of equations."},{ "title": "Deterministic models","link": "https://www.alphaflow.com/?glossary=deterministic-models","glink": "deterministic_models","desc": "Liability-matching models that assume that the liability payments and the asset cash flows are known with certainty. Related: Stochastic models."},{ "title": "Detrend","link": "https://www.alphaflow.com/?glossary=detrend","glink": "detrend","desc": "To remove the general drift, tendency, or bent of a set of statistical data as related to time. Often accomplished by regressing a variable or a time index and perhaps the square of the time index and capturing the residuals. A stochastic detrend would be to subtract a moving-average (say for five years) from the value of the variable."},{ "title": "DEU","link": "https://www.alphaflow.com/?glossary=deu","glink": "D.E.U.","desc": "The three-character ISO 3166 country code for GERMANY."},{ "title": "Deutsche Börse","link": "https://www.alphaflow.com/?glossary=deutsche-borse","glink": "deutsche_borse","desc": "Germany's major securities market, including the Frankfurt Stock Exchange."},{ "title": "Deutsche Börse AG","link": "https://www.alphaflow.com/?glossary=deutsche-borse-ag","glink": "dbag","desc": "Deutsche Börse AG (DBAG) is the operating company for the German cash and derivatives markets. It has four subsidiaries: Deutsche Börse Clearing AG, Deutsche Börse Systems AG, Frankfurter Wertpapierbörse (FWB), and the derivatives market, EUREX Deutschland (formerly the Deutsche Terminbörse )."},{ "title": "Deutsche Terminbörse","link": "https://www.alphaflow.com/?glossary=deutsche-terminborse","glink": "dtb","desc": "Formerly the German financial futures and options market. Merged with the Swiss Options and Financial Futures Exchange (SOFFEX) in 1998 to form EUREX, the European derivatives exchange."},{ "title": "Devaluation","link": "https://www.alphaflow.com/?glossary=devaluation","glink": "devaluation","desc": "A decrease in the spot price of a currency. Often initiated by a government announcement."},{ "title": "Diagonal spread","link": "https://www.alphaflow.com/?glossary=diagonal-spread","glink": "diagonal_spread","desc": "An options strategy requiring a long and a short position in the same class of option at different strike prices and different expiration dates. For example, buying an XYZ April 50 call and selling an XYZ July 55 call. See: Calendar spread; vertical spread."},{ "title": "Dialing and smiling","link": "https://www.alphaflow.com/?glossary=dialing-and-smiling","glink": "dialing_and_smiling","desc": "See: Cold calling"},{ "title": "Dialing for dollars","link": "https://www.alphaflow.com/?glossary=dialing-for-dollars","glink": "dialing_for_dollars","desc": "A term used to describe the practice of cold calling, but which has negative implications as it is frequently applied to salespeople selling speculative or fraudulent investments."},{ "title": "Diamonds","link": "https://www.alphaflow.com/?glossary=diamonds","glink": "diamonds","desc": "Units of interest in the diamonds trust, a unit investment trust that serves as an index to the Dow Jones Industrial Average in that its holdings consist of the 30 component stocks of the Dow."},{ "title": "Diaspora Bond","link": "https://www.alphaflow.com/?glossary=diaspora-bond","glink": "diaspora_bond","desc": "A sovereign bond that targets investors that have emmigrated to other countries and the relatives of those emmigrants. For example, the government of Greece tries to sell a government bond to Americans of Greek origin."},{ "title": "Diff","link": "https://www.alphaflow.com/?glossary=diff","glink": "diff","desc": "Short version of Euro rate differential, which is a Chicago Mercantile Exchange Futures contract that is founded on the interest rate spread between the U.S. dollar and the British pound, the German mark, or the Japanese yen."},{ "title": "Difference check","link": "https://www.alphaflow.com/?glossary=difference-check","glink": "difference_check","desc": "The difference in interest payments that is paid to a swap counterparty to close out a deal."},{ "title": "Difference from S&P","link": "https://www.alphaflow.com/?glossary=difference-from-sp","glink": "difference_from_S&P","desc": "A mutual fund's return minus the change in the Standard & Poor's 500 index for the same time period. A notation of -5.00 means the fund return is 5 percentage points less than the gain in the S&P, while 0.00 means that the fund and the S&P have the same return."},{ "title": "Differential","link": "https://www.alphaflow.com/?glossary=differential","glink": "differential","desc": "A small charge added to the purchase price and subtracted from the selling price by the dealer for odd-lot quantities."},{ "title": "Differential disclosure","link": "https://www.alphaflow.com/?glossary=differential-disclosure","glink": "differential_disclosure","desc": "The practice of reporting conflicting or markedly different information in official corporate statements including annual and quarterly reports and 10-Ks and 10-Qs."},{ "title": "Differential swap","link": "https://www.alphaflow.com/?glossary=differential-swap","glink": "differential_swap","desc": "Swap between two LIBOR rates of interest, e.g., yen LIBOR for dollar LIBOR Payments are in one currency."},{ "title": "Diffusion process","link": "https://www.alphaflow.com/?glossary=diffusion-process","glink": "diffusion_process","desc": "A conception of the way a stock's price changes that assumes that the price takes on all intermediate values."},{ "title": "Digits deleted","link": "https://www.alphaflow.com/?glossary=digits-deleted","glink": "digits_deleted","desc": "Designation on securities exchange tape meaning that because the tape has been delayed, some digits have been dropped (e.g., 26 1/2 becomes 6 1/2)."},{ "title": "Dilution","link": "https://www.alphaflow.com/?glossary=dilution","glink": "dilution","desc": "Diminution in the proportion of income to which each share is entitled. Issing new shares often causes dillution."},{ "title": "Dilution protection","link": "https://www.alphaflow.com/?glossary=dilution-protection","glink": "dilution_protection","desc": "Standard provision that changes the conversion ratio in the case of a stock dividend or extraordinary distribution to avoid dilution of a convertible bondholder's potential equity position. Adjustment usually requires a split or stock dividend in excess of 5% or issuance of stock below book value."},{ "title": "Dilutive effect","link": "https://www.alphaflow.com/?glossary=dilutive-effect","glink": "dilutive_effect","desc": "Result of a transaction that decreases earnings per common share (EPS)."},{ "title": "Dim sum bond","link": "https://www.alphaflow.com/?glossary=dim-sum-bond","glink": "dim_sum_bond","desc": "Unofficial name for bonds denominated in Chinese yuan and issued in Hong Kong. China's domestic debt market is closed to foreign investors, but foreign investors can invest in dim sum bonds."},{ "title": "Dip","link": "https://www.alphaflow.com/?glossary=dip","glink": "dip","desc": "Slight drop in securities prices after a sustained uptrend. Analysts often advise investors to buy on dips, meaning to buy when a price is momentarily weak. See: Correction, break, crash."},{ "title": "Direct Claim","link": "https://www.alphaflow.com/?glossary=direct-claim","glink": "direct_claim","desc": "A financial claim issued by a deficit unit to acquire funds for investment in real assets."},{ "title": "Direct costs of financial distress","link": "https://www.alphaflow.com/?glossary=direct-costs-of-financial-distress","glink": "direct_costs_of_financial_distress","desc": "Costs such as fees or penalties incurred as a result of bankruptcy or liquidation proceedings."},{ "title": "Direct deposit","link": "https://www.alphaflow.com/?glossary=direct-deposit","glink": "direct_deposit","desc": "A method of payment which electronically credits your checking or savings account."},{ "title": "Direct deposit service","link": "https://www.alphaflow.com/?glossary=direct-deposit-service","glink": "direct_deposit_service","desc": "A service that electronically transfers all or part of any recurring payment””including dividends, paychecks, pensions, and Social Security payments””directly to a shareholder's account."},{ "title": "Direct estimate method","link": "https://www.alphaflow.com/?glossary=direct-estimate-method","glink": "direct_estimate_method","desc": "A method of cash budgeting based on detailed estimates of cash receipts and cash disbursements category by category."},{ "title": "Direct Exchange Rate","link": "https://www.alphaflow.com/?glossary=direct-exchange-rate","glink": "direct_exchange_rate","desc": "The home currency price of one unit of a foreign currency."},{ "title": "Direct foreign investment","link": "https://www.alphaflow.com/?glossary=direct-foreign-investment","glink": "direct_foreign_investment","desc": "Investment in real assets (such as land, buildings, or plants) outside one's own country."},{ "title": "Direct investment","link": "https://www.alphaflow.com/?glossary=direct-investment","glink": "direct_investment","desc": "The purchase of a controlling interest in a company or at least enough interest to have enough influence to direct the course of the company."},{ "title": "Direct lease","link": "https://www.alphaflow.com/?glossary=direct-lease","glink": "direct_lease","desc": "Contract in which a lessor purchases new equipment from the manufacturer and leases it to the lessee."},{ "title": "Direct Loan Program","link": "https://www.alphaflow.com/?glossary=direct-loan-program","glink": "direct_loan_program","desc": "Fixed-rate loans offered by the Ex-Im Bank directly to the foreign buyer to purchase US capital equipment and services."},{ "title": "Direct overhead","link": "https://www.alphaflow.com/?glossary=direct-overhead","glink": "direct_overhead","desc": "A fraction of overhead costs devoted to the manufacturing sector of a firm to cover expenses such as rent and utilities."},{ "title": "Direct paper","link": "https://www.alphaflow.com/?glossary=direct-paper","glink": "direct_paper","desc": "Commercial paper sold directly by the issuer to investors."},{ "title": "Direct participation program","link": "https://www.alphaflow.com/?glossary=direct-participation-program","glink": "direct_participation_program","desc": "An investment program enabling investors to directly participate in the cash flow and tax benefits of the partnership invested in by the investor, typically a form of passive investment."},{ "title": "Direct placement","link": "https://www.alphaflow.com/?glossary=direct-placement","glink": "direct_placement","desc": "Selling a new issue not by offering it for sale publicly, but by placing it with one of several institutional investors. Also known as a private placement."},{ "title": "Direct public offering","link": "https://www.alphaflow.com/?glossary=direct-public-offering","glink": "direct_public_offering","desc": "The process by which a company markets and sells its shares directly to investors rather than through an underwriter."},{ "title": "Direct Purchase Plan","link": "https://www.alphaflow.com/?glossary=direct-purchase-plan","glink": "direct_purchase_plan","desc": "A plan that enables interested first-time individual investors to purchase a company's stock directly from the company or without the direct intervention of a broker. The administrator also ensures the safekeeping of the shares by registering them directly on the books of the company. Eliminates the need for shareholders to hold on to physical certificates."},{ "title": "Direct quote","link": "https://www.alphaflow.com/?glossary=direct-quote","glink": "direct_quote","desc": "For foreign exchange, the number of US dollars needed to buy one unit of a foreign currency."},{ "title": "Direct Registration System","link": "https://www.alphaflow.com/?glossary=direct-registration-system","glink": "direct_registration_system","desc": "A system, sometimes referred to as DRS, that allows electronic direct registration of securities in an investor's name on the books for the transfer agent or issuer, and allows shares to be transferred between a transfer agent and broker electronically. DRS provides investors with a different way of holding their securities in certificate or street form. Under DRS, investors can elect to have their securities registered directly on the issuer’s records in book-entry form. An investor electing to hold a security in a DRS book-entry position will receive a statement from the issuer or its transfer agent verifying ownership of the security. The investor can subsequently transfer electronically the DRS book-entry position to their bank or broker/dealer."},{ "title": "Direct rollover","link": "https://www.alphaflow.com/?glossary=direct-rollover","glink": "direct_rollover","desc": "Movement of tax-deferred retirement plan money from one qualified plan or custodian to another. No immediate tax liabilities or penalties are incurred, but there is an IRS reporting requirement."},{ "title": "Direct search market","link": "https://www.alphaflow.com/?glossary=direct-search-market","glink": "direct_search_market","desc": "Buyers and sellers seek each other directly and transact directly."},{ "title": "Direct stock-purchase programs","link": "https://www.alphaflow.com/?glossary=direct-stock-purchase-programs","glink": "direct_stock_purchase_programs","desc": "Investors purchase securities directly from the issuer."},{ "title": "Direct terms","link": "https://www.alphaflow.com/?glossary=direct-terms","glink": "direct_terms","desc": "The price of a unit of foreign currency in domestic currency terms, such as $.9850/Euro for a US resident. See: Indirect terms."},{ "title": "Director","link": "https://www.alphaflow.com/?glossary=director","glink": "director","desc": "See: Board of directors."},{ "title": "Director Exception","link": "https://www.alphaflow.com/?glossary=director-exception","glink": "director_exception","desc": "A proxy or ballot that withholds its votes from one or more, but not all, individuals on the slate of nominated directors."},{ "title": "Directors’ Duties","link": "https://www.alphaflow.com/?glossary=directors-duties","glink": "directors_duties","desc": "In the context of corporate governance, Directors' Duties refers to stated responsibilities of the company's Board of Directors. These provisions allow directors to consider constituencies other than shareholders when considering a merger. These constituencies may include, for example, employees, host communities, or suppliers. This provision provides boards of directors with legal basis for rejecting a takeover that would have been beneficial to shareholders. A majority of states have Directors Duties Laws."},{ "title": "Directorship","link": "https://www.alphaflow.com/?glossary=directorship","glink": "directorship","desc": "Used in the context of general equities. Stock status whereby a trader may not maintain positions in the security, due to an investment bank employee serving as a director on the corporation's Board of Directors done to avoid conflicts of interest; signified by a flashing 'D' on Quotron. Contrast to restricted."},{ "title": "Dirty float","link": "https://www.alphaflow.com/?glossary=dirty-float","glink": "dirty_float","desc": "A system of floating exchange rates in which a government may intervene to change the direction of the value of the country's currency."},{ "title": "Dirty price","link": "https://www.alphaflow.com/?glossary=dirty-price","glink": "dirty_price","desc": "Bond price including accrued interest, i.e., the price paid by the bond buyer."},{ "title": "Dirty stock","link": "https://www.alphaflow.com/?glossary=dirty-stock","glink": "dirty_stock","desc": "A stock that fails to fulfill prerequisites to attain good delivery status."},{ "title": "Disability income insurance","link": "https://www.alphaflow.com/?glossary=disability-income-insurance","glink": "disability_income_insurance","desc": "An insurance policy that insures a worker in the event of an occupational mishap resulting in disability. Insurance benefits compensate the injured worker for lost pay."},{ "title": "Disbursement float","link": "https://www.alphaflow.com/?glossary=disbursement-float","glink": "disbursement_float","desc": "A decrease in book cash but no immediate change in bank cash, generated by checks written by the firm."},{ "title": "Discharge of bankruptcy","link": "https://www.alphaflow.com/?glossary=discharge-of-bankruptcy","glink": "discharge_of_bankruptcy","desc": "The termination of bankruptcy proceedings, resulting in cancellation of the debtor's obligations."},{ "title": "Discharge of lien","link": "https://www.alphaflow.com/?glossary=discharge-of-lien","glink": "discharge_of_lien","desc": "An order terminating a lien on property."},{ "title": "Disclaimer of opinion","link": "https://www.alphaflow.com/?glossary=disclaimer-of-opinion","glink": "disclaimer_of_opinion","desc": "An auditor's statement that does not express any opinion regarding the company's financial condition."},{ "title": "Disclosure","link": "https://www.alphaflow.com/?glossary=disclosure","glink": "disclosure","desc": "A company's release of all information pertaining to the company's business activity, regardless of how that information may influence investors."},{ "title": "Discontinued operations","link": "https://www.alphaflow.com/?glossary=discontinued-operations","glink": "discontinued_operations","desc": "Divisions of a business that have been sold or written off and that no longer are maintained by the business."},{ "title": "Discount","link": "https://www.alphaflow.com/?glossary=discount","glink": "discount","desc": "Convertible: Difference between gross parity and a given convertible price. Most often invoked when a redemption is expected before the next coupon payment, making it liable for accrued interest. Antithesis of premium.
General: Information that has already been taken into account and is built into a stock or market.
Straight equity: Price lower than that of the last sale or inside market."},{ "title": "Discount Arbitrage","link": "https://www.alphaflow.com/?glossary=discount-arbitrage","glink": "discount_arbitrage","desc": "A riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security. The arbitrageur may either buy a call at a discount and simultaneously sell the underlying security (basic call arbitrage) or may buy a put at a discount and simultaneously buy the underlying security (basic put arbitrage). See also Discount."},{ "title": "Discount bond","link": "https://www.alphaflow.com/?glossary=discount-bond","glink": "discount_bond","desc": "Debt sold for less than its principal value. If a discount bond pays no coupon, it is called a zero coupon bond."},{ "title": "Discount broker","link": "https://www.alphaflow.com/?glossary=discount-broker","glink": "discount_broker","desc": "A brokerage house featuring relatively low commission rates in comparison to a full-service broker."},{ "title": "Discount factor","link": "https://www.alphaflow.com/?glossary=discount-factor","glink": "discount_factor","desc": "Present value of $1 received at a stated future date."},{ "title": "Discount Interest","link": "https://www.alphaflow.com/?glossary=discount-interest","glink": "discount_interest","desc": "Interest at a beginning of the loan. For example if you take out a one-year loan of $100 at a discount interest rate of 10%, you would receive $90 at the outset."},{ "title": "Discount payment","link": "https://www.alphaflow.com/?glossary=discount-payment","glink": "discount_payment","desc": "The difference between the face value and the price paid for a security."},{ "title": "Discount period","link": "https://www.alphaflow.com/?glossary=discount-period","glink": "discount_period","desc": "The period during which a customer can deduct the discount from the net amount of the bill when making payment."},{ "title": "Discount rate","link": "https://www.alphaflow.com/?glossary=discount-rate","glink": "discount_rate","desc": "The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrow, and such borrowing is quite limited because the Fed views it as a privilege to be used to meet short-term liquidity needs, and not a device to increase earnings. In context of NPV or PV calculations, the discount rate is the annual percentage applied. In the context of project financing, the discount rate is often the all-in interest rate or the interest rate plus margin."},{ "title": "Discount securities","link": "https://www.alphaflow.com/?glossary=discount-securities","glink": "discount_securities","desc": "Non-interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., US Treasury bills."},{ "title": "Discount window","link": "https://www.alphaflow.com/?glossary=discount-window","glink": "discount_window","desc": "Facility provided by the Fed enabling member banks to borrow reserves against collateral in the form of government securities or other acceptable paper."},{ "title": "Discount yield","link": "https://www.alphaflow.com/?glossary=discount-yield","glink": "discount_yield","desc": "The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: (discount divided by the face value of the security) multiplied by the (number of days in the year divided by the number of days to maturity)."},{ "title": "Discounted basis","link": "https://www.alphaflow.com/?glossary=discounted-basis","glink": "discounted_basis","desc": "To sell a debt instrument below maturity value, so that the difference makes up all or part of the interest."},{ "title": "Discounted cash flow","link": "https://www.alphaflow.com/?glossary=discounted-cash-flow","glink": "discounted_cash_flow","desc": "Future cash flows multiplied by discount factors to obtain present values."},{ "title": "Discounted dividend model","link": "https://www.alphaflow.com/?glossary=discounted-dividend-model","glink": "discounted_dividend_model","desc": "A formula to estimate the intrinsic value of a firm by figuring the present value of all expected future dividends."},{ "title": "Discounted in/by market","link": "https://www.alphaflow.com/?glossary=discounted-inby-market","glink": "discounted","desc": "Unannounced information that is widely accepted or anticipated, and hence is already taken into account in the pricing of the security/ market (e.g., poor earnings)."},{ "title": "Discounted payback","link": "https://www.alphaflow.com/?glossary=discounted-payback","glink": "discounted_payback","desc": "The length of time needed to recoup the present value of an investment."},{ "title": "Discounted payback period rule","link": "https://www.alphaflow.com/?glossary=discounted-payback-period-rule","glink": "discounted_payback_period_rule","desc": "An investment decision rule in which cash flows are discounted at an interest rate and then one determines how long it takes for the sum of the discounted cash flows to equal the initial investment."},{ "title": "Discounting","link": "https://www.alphaflow.com/?glossary=discounting","glink": "discounting","desc": "Calculating the present value of a future amount. Discounting is opposite to compounding."},{ "title": "Discounting the news","link": "https://www.alphaflow.com/?glossary=discounting-the-news","glink": "discounting_the_news","desc": "An adjustment of a stock's price as speculators bid the price up or down in anticipation of news about the company, whether good or bad."},{ "title": "Discrepancy","link": "https://www.alphaflow.com/?glossary=discrepancy","glink": "discrepancy","desc": "Any deviation from the conditions stipulated in a letters of credit. Discrepancies void letter of credit protection."},{ "title": "Discrete compounding","link": "https://www.alphaflow.com/?glossary=discrete-compounding","glink": "discrete_compounding","desc": "Compounding the time value of money for separate time intervals."},{ "title": "Discrete random variable","link": "https://www.alphaflow.com/?glossary=discrete-random-variable","glink": "discrete_random_variable","desc": "A random variable that can take only a certain specified set of individual possible values-for example, the positive integers 1, 2, 3, . . . For example, stock prices are discrete random variables, because they can only take on certain values, such as $10.00, $10.01 and $10.02 and not $10.005, since stocks have a minimum tick size of $0.01. By way of contrast, stock returns are continuous not discrete random variables, since a stock's return could be any number."},{ "title": "Discrete variable","link": "https://www.alphaflow.com/?glossary=discrete-variable","glink": "discrete_variable","desc": "Variable like 1, 2, 3. Bond ratings are examples of discrete classifications."},{ "title": "Discretion","link": "https://www.alphaflow.com/?glossary=discretion","glink": "discretion","desc": "Freedom given to the floor broker by an investor to use his judgment regarding the execution of an order. Discretion can be limited, as in the case of a limit order that gives the floor broker some distance from the stated limit price to use his judgment in executing the order. Discretion can also be unlimited, as in the case of a market-not-held order. See also: Market Not Held Order."},{ "title": "Discretionary account","link": "https://www.alphaflow.com/?glossary=discretionary-account","glink": "discretionary_account","desc": "Account over which an individual or organization, other than the person in whose name the account is carried, exercises trading authority or control."},{ "title": "Discretionary cash flow","link": "https://www.alphaflow.com/?glossary=discretionary-cash-flow","glink": "discretionary_cash_flow","desc": "Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on."},{ "title": "Discretionary income","link": "https://www.alphaflow.com/?glossary=discretionary-income","glink": "discretionary_income","desc": "The amount of income a consumer has available after purchasing essentials such as food and shelter."},{ "title": "Discretionary order","link": "https://www.alphaflow.com/?glossary=discretionary-order","glink": "discretionary_order","desc": "A type of buy order or sell order that gives the broker the freedom and power to make the execution at any time and price that is seen fit and reasonable, given the investor's goals."},{ "title": "Discretionary Proposition","link": "https://www.alphaflow.com/?glossary=discretionary-proposition","glink": "discretionay_proposition","desc": "A proposal on a proxy card that brokers can cast in favor of management if they have not yet heard from the beneficial holder ten days before the annual meeting. See: Ten-Day Rule"},{ "title": "Discretionary reserves","link": "https://www.alphaflow.com/?glossary=discretionary-reserves","glink": "discretionary_reserves","desc": "Balance sheet accounts representing temporary accumulations of earnings from the current year or the recent past."},{ "title": "Discretionary trust","link": "https://www.alphaflow.com/?glossary=discretionary-trust","glink": "discretionary_trust","desc": "In the context of mutual funds, refers to a mutual fund or unit trust whose management decides on the best way to use the assets without restriction to a specific type of security.
In the context of trusts, refers to a personal trust in which a trustee has the power of decision as to how much income or principal each beneficiary receives."},{ "title": "Discriminate analysis","link": "https://www.alphaflow.com/?glossary=discriminate-analysis","glink": "discriminant_analysis","desc": "A statistical process that links the probability of default to a specified set of financial ratios."},{ "title": "Dishonor","link": "https://www.alphaflow.com/?glossary=dishonor","glink": "dishonor","desc": "A refusal to pay."},{ "title": "Disinflation","link": "https://www.alphaflow.com/?glossary=disinflation","glink": "disinflation","desc": "A decrease in the rate of inflation."},{ "title": "Disintermediation","link": "https://www.alphaflow.com/?glossary=disintermediation","glink": "disintermediation","desc": "Withdrawal of funds from a financial_institution in order to invest them directly."},{ "title": "Disinvestment","link": "https://www.alphaflow.com/?glossary=disinvestment","glink": "disinvestment","desc": "A reduction in capital investment reflected by a decrease in capital goods and a company's decision not to replace depleted capital goods."},{ "title": "Disorderly Market","link": "https://www.alphaflow.com/?glossary=disorderly-market","glink": "disorderly_market","desc": "A characterization of market conditions whereby there is excessive volatility at a time when there is no news. The volatility is often caused by order imbalances. In some markets, shorts trying to cover can cause disorderly conditions. If disorderly conditions arise, sometimes trading is halted."},{ "title": "Disposable income","link": "https://www.alphaflow.com/?glossary=disposable-income","glink": "disposable_income","desc": "The amount of personal income an individual has after taxes and government fees, which can be spent on necessities, or non-essentials, or be saved."},{ "title": "Distress sale","link": "https://www.alphaflow.com/?glossary=distress-sale","glink": "distress_sale","desc": "The selling of assets under adverse conditions, e.g., an investor may have to sell securities to cover a margin call."},{ "title": "Distressed securities","link": "https://www.alphaflow.com/?glossary=distressed-securities","glink": "distressed_securities","desc": "A security of a firm that has declared or is about to declare bankruptcy. In the context of hedge funds, a style of management that focuses on securities of companies that have declared bankruptcy and may be undergoing reorganization. Investment holdings can include bonds as well as stock in these firms."},{ "title": "Distributed","link": "https://www.alphaflow.com/?glossary=distributed","glink": "distributed","desc": "New Treasury issues in dealers' hands are said to be distributed."},{ "title": "Distributing syndicate","link": "https://www.alphaflow.com/?glossary=distributing-syndicate","glink": "distributing_syndicate","desc": "A syndicate consisting of a number of brokerage firms or investment bankers that work together to sell and disperse a large lot of securities."},{ "title": "Distribution","link": "https://www.alphaflow.com/?glossary=distribution","glink": "distribution","desc": "Selling a large lot of a security in such a way that the security price is not heavily influenced."},{ "title": "Distribution area","link": "https://www.alphaflow.com/?glossary=distribution-area","glink": "distribution_area","desc": "An established price range in which a stock has been trading for a significant amount of time. See: Accumulation area."},{ "title": "Distribution by coupon","link": "https://www.alphaflow.com/?glossary=distribution-by-coupon","glink": "distribution_by_coupon","desc": "Classification of a portfolio's securities according to coupon rate””the interest rate that an issuer promises to pay, expressed as an annual percentage of face value."},{ "title": "Distribution by credit quality","link": "https://www.alphaflow.com/?glossary=distribution-by-credit-quality","glink": "distribution_by_credit_quality","desc": "Classification of a portfolio's securities according to credit rating."},{ "title": "Distribution by issuer","link": "https://www.alphaflow.com/?glossary=distribution-by-issuer","glink": "distribution_by_issuer","desc": "Classification of a portfolio's holdings by type of issuer or type of instrument."},{ "title": "Distribution by maturity","link": "https://www.alphaflow.com/?glossary=distribution-by-maturity","glink": "distribution_by_maturity","desc": "An indicator of interest rate risk. In general, the higher the concentration of longer-maturity issues, the more a portfolio's share price will fluctuate in response to changes in interest rates."},{ "title": "Distribution Cost Advantage","link": "https://www.alphaflow.com/?glossary=distribution-cost-advantage","glink": "distribution_cost_advantage","desc": "A source of competitive advantage that depends on the efficient delivery of a product or service to customers."},{ "title": "Distribution period","link": "https://www.alphaflow.com/?glossary=distribution-period","glink": "distribution_period","desc": "The few days between the Board of Directors' declaration of a stock dividend (declaration date) and the date of record, or the date an individual must own shares to be entitled to a dividend."},{ "title": "Distribution plan","link": "https://www.alphaflow.com/?glossary=distribution-plan","glink": "distribution_plan","desc": "A mutual fund's plan to charge distribution costs such as advertising to the investors of the fund."},{ "title": "Distribution schedule","link": "https://www.alphaflow.com/?glossary=distribution-schedule","glink": "distribution_schedule","desc": "The frequency (monthly, quarterly, semiannually, or annually) of a mutual fund's scheduled distributions of dividends or capital gains."},{ "title": "Distribution stock","link": "https://www.alphaflow.com/?glossary=distribution-stock","glink": "distribution_stock","desc": "A small amount of a specific stock that forms part of a larger block of stock that is sold small amount by small amount so as not to disrupt the stock's market price."},{ "title": "Distribution Waterfall","link": "https://www.alphaflow.com/?glossary=distribution-waterfall","glink": "","desc": "The order in which an investment makes distributions. A distribution waterfall is a hierarchy delineating the order in which funds will be distributed, and may ensure that different types of investors have priority of payment compared to others within the same fund."},{ "title": "Distributions","link": "https://www.alphaflow.com/?glossary=distributions","glink": "distributions","desc": "Payments from fund or corporate cash flow. May include dividends from earnings, capital gains from sale of portfolio holdings and return of capital. Fund distributions can be made by check or by investing in additional shares. Funds are required to distribute realized capital gains (if any) to shareholders at least once per year if they are not to be taxed by the fund itself. Some corporations offer Dividend Reinvestment Plans (DRP)."},{ "title": "DITM","link": "https://www.alphaflow.com/?glossary=ditm","glink": "ditm","desc": "See: Deep in the money"},{ "title": "Divergence","link": "https://www.alphaflow.com/?glossary=divergence","glink": "divergence","desc": "When two or more averages or indexes fail to show confirming trends."},{ "title": "Diversifiable risk","link": "https://www.alphaflow.com/?glossary=diversifiable-risk","glink": "diversifiable_risk","desc": "Related: Unsystematic risk"},{ "title": "Diversification","link": "https://www.alphaflow.com/?glossary=diversification","glink": "diversification","desc": "Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk."},{ "title": "Diversified investment company","link": "https://www.alphaflow.com/?glossary=diversified-investment-company","glink": "diversified_investment_company","desc": "An investment vehicle such as a mutual fund that invests in an assortment of securities."},{ "title": "Divestiture","link": "https://www.alphaflow.com/?glossary=divestiture","glink": "divestiture","desc": "A complete asset or investment disposal such as outright sale or liquidation."},{ "title": "Dividend","link": "https://www.alphaflow.com/?glossary=dividend","glink": "dividend","desc": "A portion of a company's profit paid to common and preferred shareholders. A stock selling for $20 a share with an annual dividend of $1 a share yields the investor 5%."},{ "title": "Dividend capture","link": "https://www.alphaflow.com/?glossary=dividend-capture","glink": "dividend_capture","desc": "See: Dividend rollover plan"},{ "title": "Dividend clawback","link": "https://www.alphaflow.com/?glossary=dividend-clawback","glink": "dividend_clawback","desc": "An arrangement under which sponsors of a project agree to contribute as equity any prior dividends received from the project to the extent necessary to cover any cash deficiencies."},{ "title": "Dividend clientele","link": "https://www.alphaflow.com/?glossary=dividend-clientele","glink": "dividend_clientele","desc": "A group of shareholders who prefer that the firm follow a particular dividend policy. Such a preference may be based on comparable tax situations."},{ "title": "Dividend Disbursing Agent","link": "https://www.alphaflow.com/?glossary=dividend-disbursing-agent","glink": "dividend_disbursing_agent","desc": "A commercial bank or financial_institution that disburses dividend to the securityholders. Usually a Transfer Agent is also the Dividend Disbursing Agent."},{ "title": "Dividend Discount Model","link": "https://www.alphaflow.com/?glossary=dividend-discount-model","glink": "dividend_discount_model","desc": "A method to value the common stock of a company that is based on the present value of the expected future dividends."},{ "title": "Dividend Discount Return","link": "https://www.alphaflow.com/?glossary=dividend-discount-return","glink": "dividend_discount_return","desc": "The rate of return which equates the present value of future expected dividends with the current market price of a security."},{ "title": "Dividend distribution","link": "https://www.alphaflow.com/?glossary=dividend-distribution","glink": "dividend_distribution","desc": "See: Dividend income"},{ "title": "Dividend growth model","link": "https://www.alphaflow.com/?glossary=dividend-growth-model","glink": "dividend_growth_model","desc": "An approach that assumes dividends grow at a constant rate in perpetuity. The value of the stock equals next year's dividends divided by the difference between the required rate of return and the assumed constant growth rate in dividends."},{ "title": "Dividend in arrears","link": "https://www.alphaflow.com/?glossary=dividend-in-arrears","glink": "dividend_in_arrears","desc": "Accumulated dividends on cumulative preferred stock that are deemed payable to the current holder."},{ "title": "Dividend income","link": "https://www.alphaflow.com/?glossary=dividend-income","glink": "dividend_income","desc": "Distribution of earnings to shareholders that may be in the form of cash, stock, or property. Mutual fund dividends are paid out of income, usually on a quarterly basis, from interest generated by a fund's investments. Also known as a dividend distribution."},{ "title": "Dividend limitation","link": "https://www.alphaflow.com/?glossary=dividend-limitation","glink": "dividend_limitation","desc": "A bond convenant that restricts in some way the firm's ability to pay cash dividends."},{ "title": "Dividend Order","link": "https://www.alphaflow.com/?glossary=dividend-order","glink": "dividend_order","desc": "A letter or form signed by the shareholder instructing a corporation to issue and forward dividend and/or interest payments to a specific person or entity other than the registered owner, such as a bank or broker."},{ "title": "Dividend payout ratio","link": "https://www.alphaflow.com/?glossary=dividend-payout-ratio","glink": "dividend_payout_ratio","desc": "Percentage of earnings paid out as dividends."},{ "title": "Dividend policy","link": "https://www.alphaflow.com/?glossary=dividend-policy","glink": "dividend_policy","desc": "Standards by which a firm determines the amount of money it will pay as dividends."},{ "title": "Dividend rate","link": "https://www.alphaflow.com/?glossary=dividend-rate","glink": "dividend_rate","desc": "The fixed or floating rate paid on preferred stock based on par value."},{ "title": "Dividend record","link": "https://www.alphaflow.com/?glossary=dividend-record","glink": "dividend_record","desc": "S&P publication stating companies' payment histories and corporate policies."},{ "title": "Dividend Reinvestment Plan","link": "https://www.alphaflow.com/?glossary=dividend-reinvestment-plan","glink": "dividend_reinvestment_plan","desc": "Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. Dividend reinvestment plans allow shareholders to accumulate stock over the long term using dollar cost averaging. The DRP is usually administered by the company without charges to the holder."},{ "title": "Dividend requirement","link": "https://www.alphaflow.com/?glossary=dividend-requirement","glink": "dividend_requirement","desc": "The annual earnings minimum required for payment of dividends on a preferred stock."},{ "title": "Dividend rights","link": "https://www.alphaflow.com/?glossary=dividend-rights","glink": "dividend_rights","desc": "A shareholder's rights to receive per-share dividends identical to those other shareholders receive."},{ "title": "Dividend rollover plan","link": "https://www.alphaflow.com/?glossary=dividend-rollover-plan","glink": "dividend_rollover_plan","desc": "An investment strategy that entails the purchasing before and selling after of a stock right before its ex-dividend date in order to collect the dividends paid out by the stock and capture a trade profit."},{ "title": "Dividend trade roll/play","link": "https://www.alphaflow.com/?glossary=dividend-trade-rollplay","glink": "dividend_trade_roll_play","desc": "Used for listed equity securities. Method of buying and selling stocks around their ex-dividend dates so as to collect the dividend (which is 80% tax-exempt) offset by a fully-taxable capital loss. Predicated on the 80% current exemption that some corporations receive on dividend income."},{ "title": "Dividend yield","link": "https://www.alphaflow.com/?glossary=dividend-yield","glink": "","desc": "Indicated yield represents annual dividends divided by current stock price."},{ "title": "Dividend yield (Funds)","link": "https://www.alphaflow.com/?glossary=dividend-yield-funds","glink": "dividend_yield","desc": "Indicated yield represents return on a share of a mutual fund held over the past 12 months. Assumes fund was purchased a year ago. Reflects effect of sales charges (at current rates), but not redemption charges."},{ "title": "Dividend yield (Stocks)","link": "https://www.alphaflow.com/?glossary=dividend-yield-stocks","glink": "dividend_yield_stocks","desc": "Indicated yield represents annual dividends divided by current stock price."},{ "title": "Dividends payable","link": "https://www.alphaflow.com/?glossary=dividends-payable","glink": "dividends_payable","desc": "The declared dividend dollar amount that a company is obligated to pay."},{ "title": "Dividends per share","link": "https://www.alphaflow.com/?glossary=dividends-per-share","glink": "dividends_per_share","desc": "Dividend paid for the past 12 months divided by the number of common shares outstanding, as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term."},{ "title": "Dividends-received deduction","link": "https://www.alphaflow.com/?glossary=dividends-received-deduction","glink": "dividends_recieved_deduction","desc": "A corporate tax deduction on income allowed by company A that is in ownership of shares of company B and receives dividends on the shares of company B."},{ "title": "Divisional buyout","link": "https://www.alphaflow.com/?glossary=divisional-buyout","glink": "","desc": "A form of leveraged buyout where a business unit, a subsidiary, or a corporate division is acquired."},{ "title": "Divisional buyout (Divisional LBO)","link": "https://www.alphaflow.com/?glossary=divisional-buyout-divisional-lbo","glink": "divisional_buyout","desc": "A form of leveraged buyout where a business unit, a subsidiary, or a corporate division is acquired."},{ "title": "Divisor","link": "https://www.alphaflow.com/?glossary=divisor","glink": "divisor","desc": "Used in construction of stock indices. Suppose there 10 stocks in an index, each worth $10 and the index is at 100. Now suppose that one of the stocks must be replaced with another stock that is worth $20. If no adjustment is made to the divisor, the total value of the index would be110 after the swapping. yet there should be no increase in value because nothing has happened other than switching the two constituents. The solution is to change the divisor; in this case from 1.00 to 1.10. Note that the value of the index, 110/1.1, is now exactly 100 - which is where it was prior to the swap."},{ "title": "DJ","link": "https://www.alphaflow.com/?glossary=dj","glink": "D.J.","desc": "The two-character ISO 3166 country code for DJIBOUTI."},{ "title": "DJF","link": "https://www.alphaflow.com/?glossary=djf","glink": "djf","desc": "The ISO 4217 currency code for Djibouti Franc."},{ "title": "DJI","link": "https://www.alphaflow.com/?glossary=dji","glink": "D.J.I.","desc": "The three-character ISO 3166 country code for DJIBOUTI."},{ "title": "DJIA","link": "https://www.alphaflow.com/?glossary=djia","glink": "djia","desc": "See Dow Jones Industrial Average."},{ "title": "DK","link": "https://www.alphaflow.com/?glossary=dk","glink": "D.K.","desc": "The two-character ISO 3166 country code for DENMARK."},{ "title": "DKK","link": "https://www.alphaflow.com/?glossary=dkk","glink": "dkk","desc": "The ISO 4217 currency code for Danish Krone."},{ "title": "DM (1)","link": "https://www.alphaflow.com/?glossary=dm-1","glink": "D.M.","desc": "The two-character ISO 3166 country code for DOMINICA."},{ "title": "DM (2)","link": "https://www.alphaflow.com/?glossary=dm-2","glink": "deutsche_marks","desc": "Deutsche marks, the former currency of Germany."},{ "title": "DMA","link": "https://www.alphaflow.com/?glossary=dma","glink": "D.M.A.","desc": "The three-character ISO 3166 country code for DOMINICA."},{ "title": "DNK","link": "https://www.alphaflow.com/?glossary=dnk","glink": "D.N.K.","desc": "The three-character ISO 3166 country code for DENMARK."},{ "title": "DO","link": "https://www.alphaflow.com/?glossary=do","glink": "D.O.","desc": "The two-character ISO 3166 country code for DOMINICAN REPUBLIC."},{ "title": "Do Not Increase","link": "https://www.alphaflow.com/?glossary=do-not-increase","glink": "do_not_increase","desc": "A restriction that an investor places on a good til' canceled order to prevent an order increase in the case of a stock dividend or stock split."},{ "title": "Do Not Reduce Order","link": "https://www.alphaflow.com/?glossary=do-not-reduce-order","glink": "do_not_reduce_order","desc": "Limit order to buy or to sell, or a stop limit order to sell that is not to be reduced by the amount of an ordinary cash dividend on the ex-dividend date. A 'do not reduce order' applies only to ordinary cash dividends, and not stock dividends or rights."},{ "title": "Doctrine of sovereign immunity","link": "https://www.alphaflow.com/?glossary=doctrine-of-sovereign-immunity","glink": "doctrine_of_sovereign_immuntiy","desc": "Principle that a nation may not be tried in another country without its consent."},{ "title": "Documentary Collection","link": "https://www.alphaflow.com/?glossary=documentary-collection","glink": "documentary_collection","desc": "A service provided by banks to sellers in obtaining payments. This service is usually transacted by the seller's bank through the buyer's bank, with the latter presenting the shipping documents to the buyer in exchange for payment or for signing a promissory note like instrument called a time draft."},{ "title": "Documentary collections","link": "https://www.alphaflow.com/?glossary=documentary-collections","glink": "documentary_collections","desc": "Trade transactions handled on a draft basis."},{ "title": "Documented discount notes","link": "https://www.alphaflow.com/?glossary=documented-discount-notes","glink": "documented_discount_notes","desc": "Commercial paper backed by normal bank lines of credit plus a letter of credit from a bank stating that it will pay off the paper at maturity if the borrower defaults. Such paper is also referred to as L.O.C. paper. Also known as Bankers' Acceptances."},{ "title": "Documents against acceptance","link": "https://www.alphaflow.com/?glossary=documents-against-acceptance","glink": "documents_against_acceptance","desc": "Shipping documents held by the buyer's bank until the buyer has accepted (signed) the draft."},{ "title": "Documents against payment","link": "https://www.alphaflow.com/?glossary=documents-against-payment","glink": "documents_against_payment","desc": "Shipping documents that are released to the buyer once the buyer has paid for the draft."},{ "title": "Dodd-Frank Wall Street Reform and Consumer Protection Act","link": "https://www.alphaflow.com/?glossary=dodd-frank-wall-street-reform-and-consumer-protection-act","glink": "dodd_frank","desc": "The Act was passed as a response to 2007-2010 financial crisis and brought sweeping changes to financial regulation in the United States. The Act was signed by President Barack Obama on July 21, 2010"},{ "title": "Dogs of the Dow","link": "https://www.alphaflow.com/?glossary=dogs-of-the-dow","glink": "dogs_of_the_dow","desc": "The 10 stocks of the 30 on the Dow Jones Industrial Average with the most depressed prices and consequently the highest yields. The investor buying these stocks speculates that they will bounce back over a one-year period."},{ "title": "Dollar bears","link": "https://www.alphaflow.com/?glossary=dollar-bears","glink": "dollar_bears","desc": "Traders who capitalize on a falling dollar by buying other foreign currencies directly."},{ "title": "Dollar bonds","link": "https://www.alphaflow.com/?glossary=dollar-bonds","glink": "dollar_bonds","desc": "Municipal revenue bonds for which quotes are given in dollar prices. Not to be confused with 'US Dollar' bonds, a common term of reference in the Eurobond market."},{ "title": "Dollar cost averaging","link": "https://www.alphaflow.com/?glossary=dollar-cost-averaging","glink": "dollar_cost_averaging","desc": "See: Constant dollar plan"},{ "title": "Dollar drain","link": "https://www.alphaflow.com/?glossary=dollar-drain","glink": "dollar_drain","desc": "The impact of importing from foreign countries more than exporting to them. The money required to finance the import purchases removes dollars from the importing nation."},{ "title": "Dollar duration","link": "https://www.alphaflow.com/?glossary=dollar-duration","glink": "dollar_duration","desc": "The product of modified duration and the initial price."},{ "title": "Dollar price of a bond","link": "https://www.alphaflow.com/?glossary=dollar-price-of-a-bond","glink": "dollar_price","desc": "Percentage of face value at which a bond is quoted."},{ "title": "Dollar return","link": "https://www.alphaflow.com/?glossary=dollar-return","glink": "dollar_return","desc": "The return realized on a portfolio for any evaluation period, including (1) the change in market value of the portfolio and (2) any distributions made from the portfolio during that period."},{ "title": "Dollar roll","link": "https://www.alphaflow.com/?glossary=dollar-roll","glink": "dollar_roll","desc": "Similar to the reverse repurchase agreement-a simultaneous agreement to sell a security held in a portfolio with purchase of a similar security at a future date at an agreed-upon price."},{ "title": "Dollar safety margin","link": "https://www.alphaflow.com/?glossary=dollar-safety-margin","glink": "dollar_safety_margin","desc": "The dollar equivalent of the safety cushion for a portfolio in a contingent immunization strategy."},{ "title": "Dollar shortage","link": "https://www.alphaflow.com/?glossary=dollar-shortage","glink": "dollar_shortage","desc": "Results when a nation importing US goods cannot pay for them without the aid of the United States."},{ "title": "Dollar-weighted rate of return","link": "https://www.alphaflow.com/?glossary=dollar-weighted-rate-of-return","glink": "dollar_weighted_rate_of_return","desc": "Also called the internal rate of return; the interest rate that makes the present value of the cash flows from all the subperiods in an evaluation period plus the terminal market value of the portfolio equal to the initial market value of the portfolio."},{ "title": "DOM","link": "https://www.alphaflow.com/?glossary=dom","glink": "D.O.M.","desc": "The three-character ISO 3166 country code for DOMINICAN REPUBLIC."},{ "title": "Domestic bonds","link": "https://www.alphaflow.com/?glossary=domestic-bonds","glink": "domestic_bonds","desc": "Bonds issued and traded within the internal market of a country and denominated in the currency of that country."},{ "title": "Domestic corporation","link": "https://www.alphaflow.com/?glossary=domestic-corporation","glink": "domestic_incorporation","desc": "A corporation that is conducting business and is based in the country in which it is established, as opposed to a foreign corporation."},{ "title": "Domestic International Sales Corporation","link": "https://www.alphaflow.com/?glossary=domestic-international-sales-corporation","glink": "domestic_international_sales_corporation","desc": "A U.S. corporation that receives a tax incentive for export activities."},{ "title": "Domestic market","link": "https://www.alphaflow.com/?glossary=domestic-market","glink": "domestic_market","desc": "A nation's internal market representing the mechanisms for issuing and trading securities of entities domiciled within that nation. Compare external market and foreign market."},{ "title": "Domestic series","link": "https://www.alphaflow.com/?glossary=domestic-series","glink": "domestic_series","desc": "Nonmarketable interest and noninterest-bearing securities issued periodically by the Treasury to the Resolution Funding Corporation (RFC) for investment of funds authorized under section 21B of the Federal Home Loan Bank Act."},{ "title": "Don’t fight the tape","link": "https://www.alphaflow.com/?glossary=dont-fight-the-tape","glink": "dont_fight_the_tape","desc": "Phrase advising not to trade against the market trend. If stock prices are rising, do not sell."},{ "title": "Don’t know","link": "https://www.alphaflow.com/?glossary=dont-know","glink": "","desc": "'Don't know the trade.' A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. Also, an unscrupulous claim made by one party denying that the trade had been agreed to and made after the trade goes adversely against that party."},{ "title": "Don’t know (DK, DKed)","link": "https://www.alphaflow.com/?glossary=dont-know-dk-dked","glink": "dont_know","desc": "'Don't know the trade.' A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. Also, an unscrupulous claim made by one party denying that the trade had been agreed to and made after the trade goes adversely against that party."},{ "title": "Donor","link": "https://www.alphaflow.com/?glossary=donor","glink": "donor","desc": "One who gives property or assets to someone else through the vehicle of a trust."},{ "title": "DOP","link": "https://www.alphaflow.com/?glossary=dop","glink": "dop","desc": "The ISO 4217 currency code for Dominican Republic Peso."},{ "title": "DOTM","link": "https://www.alphaflow.com/?glossary=dotm","glink": "dotm","desc": "See: Deep out of the money"},{ "title": "Double auction market","link": "https://www.alphaflow.com/?glossary=double-auction-market","glink": "double_auction_market","desc": "Systems by which listed securities are bought and sold through brokers on the securities exchanges, as distinguished from the OTC market, where trades are negotiated. Unlike the conventional auction with one auctioneer and many buyers, double auction markets consist of many sellers and many buyers."},{ "title": "Double auction system","link": "https://www.alphaflow.com/?glossary=double-auction-system","glink": "double_auction_system","desc": "A market consisting of many sellers and many buyers, as opposed to a conventional auction with one market maker and many buyers."},{ "title": "Double bottom","link": "https://www.alphaflow.com/?glossary=double-bottom","glink": "double_bottom","desc": "A term used in technical analysis to refer to the drop of a stock's price, a rebound, and then a drop back to the same level as the original drop. The pattern looks like the letter W. In technical analysis, this pattern is considered a positive for the stock. The stock has bottomed out and the technical analysts would expect the stock to appreciate afterwards."},{ "title": "Double dip","link": "https://www.alphaflow.com/?glossary=double-dip","glink": "double_dip","desc": "Used for listed equity securities. Dividend roll in which the 'dividend capturer' already owns the stock cum dividend. Also used when tax depreciation is accessed in two countries concurrently. For economics, it refers to two closely dated recessions, e.g. 1980-82."},{ "title": "Double taxation","link": "https://www.alphaflow.com/?glossary=double-taxation","glink": "double_taxation","desc": "Government taxation of the same money twice; specifically, earnings taxed first at the corporate level and then again as dividends at the stockholder level."},{ "title": "Double top","link": "https://www.alphaflow.com/?glossary=double-top","glink": "double_top","desc": "A term used in technical analysis to refer to the rise of a stock's price, a drop, and then a rise back to the same level as the original rise. The pattern looks like the letter M. In technical analysis, this pattern is interpreted negatively suggesting that there is some resistance level (top of the M) whereby the stock can't go higher."},{ "title": "Double up","link": "https://www.alphaflow.com/?glossary=double-up","glink": "double_up","desc": "A stock buying strategy that doubles the risk when the price moves in the opposite direction from the direction the investor hoped for. For example, an investor with confidence in ABC buys 1000 shares at $100 and another 1000 shares when the price declines to $90."},{ "title": "Double witching day","link": "https://www.alphaflow.com/?glossary=double-witching-day","glink": "double_witching_day","desc": "The last trading day before expiry of options and futures on the same underlying asset, resulting in a variety of arbitrage strategies to close out positions."},{ "title": "Double-barreled","link": "https://www.alphaflow.com/?glossary=double-barreled","glink": "double_barreled","desc": "Describes backing of the principal and interest of a smaller municipal revenue bond by a larger municipal entity."},{ "title": "Double-declining-balance depreciation","link": "https://www.alphaflow.com/?glossary=double-declining-balance-depreciation","glink": "double_declining_balance_depreciation","desc": "Method of accelerated depreciation."},{ "title": "Double-declining-balance depreciation method","link": "https://www.alphaflow.com/?glossary=double-declining-balance-depreciation-method","glink": "ddb","desc": "An accounting methodology in which the depreciation rate used is double the rate used under the straight-line method. In addition, the rate is applied to the full purchase cost of the asset, whereas under the straight-line method the rate is applied to the cost net of salvage value."},{ "title": "Double-dip lease","link": "https://www.alphaflow.com/?glossary=double-dip-lease","glink": "double_dip_lease","desc": "A cross-border lease in which the different rules of the lessor's and lessee's countries let both parties be treated as the owner of the leased equipment for tax purposes."},{ "title": "Double-entry bookkeeping","link": "https://www.alphaflow.com/?glossary=double-entry-bookkeeping","glink": "double_entry_bookkeeping","desc": "Accounting method that records each transaction as both a credit and a debit in different accounts."},{ "title": "Double-tax agreement","link": "https://www.alphaflow.com/?glossary=double-tax-agreement","glink": "double_tax_agreement","desc": "Agreement between two countries that taxes paid abroad can be offset against domestic taxes levied on foreign dividends."},{ "title": "Doubling option","link": "https://www.alphaflow.com/?glossary=doubling-option","glink": "doubling_option","desc": "A sinking fund provision that may allow repurchase of twice the required number of bonds at the sinking fund call price."},{ "title": "Dovish","link": "https://www.alphaflow.com/?glossary=dovish","glink": "dovish","desc": "Refers to the tone of language used to describe a situation and the associated implications for actions. For example, if the Federal Reserve bank refers to inflation in a dovish tone, it is unlikely that they would take agressive actions. Similarly, a CEO might use dovish language to describe an important event facing the firm. This indicates that the firm is unlikely to take strong actions. Dovish sometimes means conciliatory. Opposite of hawkish."},{ "title": "Dow dividend theory","link": "https://www.alphaflow.com/?glossary=dow-dividend-theory","glink": "dow_dividend_theory","desc": "See: Dogs of the Dow."},{ "title": "Dow Jones Industrial Average","link": "https://www.alphaflow.com/?glossary=dow-jones-industrial-average","glink": "dow_jones_industrial_average","desc": "The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. The Dow, as it is called, is a barometer of how shares of the largest US companies are performing. There are hundreds of investment indexes around the world for stocks, bonds, currencies, and commodities."},{ "title": "Dow Theory","link": "https://www.alphaflow.com/?glossary=dow-theory","glink": "dow_theory","desc": "Used in the context of general equities. Technical theory that a major trend in the stock market must be confirmed by simultaneous movement of the Dow Jones Industrial Average and the Dow Jones Transportation Average to new highs or lows."},{ "title": "Down market","link": "https://www.alphaflow.com/?glossary=down-market","glink": "down_market","desc": "The period of time after a market top during which a security's price trends downwards."},{ "title": "Down round","link": "https://www.alphaflow.com/?glossary=down-round","glink": "down_round","desc": "Refers to a round of venture capital financing that is raised at a lower firm valuation than the previous round."},{ "title": "Down volume","link": "https://www.alphaflow.com/?glossary=down-volume","glink": "down_volume","desc": "When a stock decreases in value on a particular day, the volume in that stock is considered down volume. Related: Up volume."},{ "title": "Down-and-in option","link": "https://www.alphaflow.com/?glossary=down-and-in-option","glink": "down_and_in_option","desc": "Barrier option (or knock-in option) that causes a plain-vanilla call or put option to come into existence if the underlying asset price falls to a predetermined price level (the barrier price)."},{ "title": "Down-and-out option","link": "https://www.alphaflow.com/?glossary=down-and-out-option","glink": "down_and_out_option","desc": "Barrier option (or knock-out option) that initially is a plain vanilla option, but which ceases to exist if the underlying security falls to a predetermined level (the barrier price)."},{ "title": "Downgrade","link": "https://www.alphaflow.com/?glossary=downgrade","glink": "downgrade","desc": "A negative change in ratings for a stock, or other rated security."},{ "title": "Downside Protection","link": "https://www.alphaflow.com/?glossary=downside-protection","glink": "downside_portection","desc": "Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option. Alternatively, it may be expressed in terms of the distance the stock could fall before the total position becomes a loss (an amount equal to the option premium), or it can be expressed as percentage of the current stock price."},{ "title": "Downside risk","link": "https://www.alphaflow.com/?glossary=downside-risk","glink": "downside_risk","desc": "Risk includes the chance that a security increases or decreases in value unexpectedly. However, most people are concerned with the chance of an unexpected decline - which is known as downside risk."},{ "title": "Downsizing","link": "https://www.alphaflow.com/?glossary=downsizing","glink": "downsizing","desc": "A company's reduction in the number of employees, number of bureaucratic levels, and overall size in an attempt to increase efficiency and profitability."},{ "title": "Downstream","link": "https://www.alphaflow.com/?glossary=downstream","glink": "downstream","desc": "The transfer of corporate activity from the larger parent to the smaller subsidiary."},{ "title": "Downswing","link": "https://www.alphaflow.com/?glossary=downswing","glink": "downswing","desc": "(1) A downward turn in a security's price after a period of flat or rising prices (market top). (2) The period during which a security's price trends downwards."},{ "title": "Downtick","link": "https://www.alphaflow.com/?glossary=downtick","glink": "downtick","desc": "A trade in a particular stock at a price lower than the trade immediately preceding it. On U.S. stock exchanges, you cannot sell a stock short on a downtick."},{ "title": "Downturn","link": "https://www.alphaflow.com/?glossary=downturn","glink": "dowturn","desc": "(1) A period of contraction or decline of economic activity, especially real GDP, but typically employment as well. (2) The transition of an economy from growth to contraction, also known as a peak of economic activity."},{ "title": "Draft","link": "https://www.alphaflow.com/?glossary=draft","glink": "draft","desc": "An unconventional order in writing-signed by a person, usually the exporter, and addressed to the importer-ordering the importer or the importer's agent to pay, on demand (sight draft) or at a fixed future date (time draft) the amount specified on the face of the draft."},{ "title": "Draining reserves","link": "https://www.alphaflow.com/?glossary=draining-reserves","glink": "draining_reserves","desc": "Federal Reserve System's course of action to tighten the money supply by (1) raising a bank's minimum reserve requirements, (2) selling bonds in the open market, (3) raising the rate at which banks borrow from the Fed, or (4) through draw-downs."},{ "title": "Draw a call","link": "https://www.alphaflow.com/?glossary=draw-a-call","glink": "draw_a_call","desc": "In the context of general equities, provoking a customer indication/inquiry/order by calling them up or doing large amount of the volume in a stock."},{ "title": "Draw-down","link": "https://www.alphaflow.com/?glossary=draw-down","glink": "draw_down","desc": "In context of private equity, when investors commit themselves to back a private equity fund, all the funding may not be needed at once and therefore, capital is drawn down at a later date."},{ "title": "Drawback","link": "https://www.alphaflow.com/?glossary=drawback","glink": "drawback","desc": "A tax or duty rebate on imported goods that are exported at a later date."},{ "title": "Drawdown","link": "https://www.alphaflow.com/?glossary=drawdown","glink": "drawdown","desc": "The state in which the borrower obtains some of the project financing, usually progressively according to construction expenditures plus IDC."},{ "title": "Drawee","link": "https://www.alphaflow.com/?glossary=drawee","glink": "drawee","desc": "The party who is directed to pay as specified in a draft."},{ "title": "Drawer","link": "https://www.alphaflow.com/?glossary=drawer","glink": "drawer","desc": "The party initiating a draft."},{ "title": "Drayage","link": "https://www.alphaflow.com/?glossary=drayage","glink": "drayage","desc": "A trucking company freight charge for the pick up or delivery of an ocean container."},{ "title": "Dressing up a portfolio","link": "https://www.alphaflow.com/?glossary=dressing-up-a-portfolio","glink": "dressing_up_a_portfolio","desc": "Money managers' strategy to make transactions for the sole purpose of making a portfolio look good to the investor near the end of a reporting period. See: Window dressing"},{ "title": "Drip feed","link": "https://www.alphaflow.com/?glossary=drip-feed","glink": "drip_feed","desc": "The continual investment of capital in a small and growing company as the company needs it, rather than investing a lump sum at the company's inception."},{ "title": "Drive-by VC","link": "https://www.alphaflow.com/?glossary=drive-by-vc","glink": "drive_by_vc","desc": "A type of venture capitalist. In the usual model, the venture capitalist (VC) is involved in management and monitoring of the startup. A drive-by VC invests in a portfolio of startups and is often quick to exit."},{ "title": "Drop","link": "https://www.alphaflow.com/?glossary=drop","glink": "drop","desc": "Refers to over-the-counter trading. Remove from OTC trading list; hence, no longer making a market in a security."},{ "title": "Drop lock","link": "https://www.alphaflow.com/?glossary=drop-lock","glink": "drop_lock","desc": "The fixing of the interest rate on a floating-rate note or preferred stock if it falls to a specified level."},{ "title": "Drop-dead day","link": "https://www.alphaflow.com/?glossary=drop-dead-day","glink": "drop_dead_day","desc": "The date on which a deadline is final, with no exceptions."},{ "title": "Drop-dead fee","link": "https://www.alphaflow.com/?glossary=drop-dead-fee","glink": "drop_dead_fee","desc": "A term of British origin referring to fee that must be paid if a deal falls through because of financing issues."},{ "title": "Drop, The","link": "https://www.alphaflow.com/?glossary=drop-the","glink": "drop_the","desc": "In a dollar roll transaction, the difference between the sale price of a mortgage-backed pass-through, and its repurchase price on a future date at a predetermined price."},{ "title": "DSCR","link": "https://www.alphaflow.com/?glossary=dscr","glink": "dscr","desc": "See: Debt-service coverage ratio"},{ "title": "Dual banking","link": "https://www.alphaflow.com/?glossary=dual-banking","glink": "dual_banking","desc": "Describes United States custom in which a bank is chartered by the state or federal government."},{ "title": "Dual listing","link": "https://www.alphaflow.com/?glossary=dual-listing","glink": "dual_listing","desc": "Listing of a security on more than one exchange, thus increasing the competition for bid and offer prices, the liquidity of the securities, and the length of time the stock can be traded daily (if listed on both the east and west coasts.) See: Listed security."},{ "title": "Dual syndicate equity offering","link": "https://www.alphaflow.com/?glossary=dual-syndicate-equity-offering","glink": "dual_syndicate_equity_offering","desc": "An international equity placement that splits the offering into two branches - domestic and foreign - and each grantee is handled by a separate lead manager."},{ "title": "Dual trading","link": "https://www.alphaflow.com/?glossary=dual-trading","glink": "dual_trading","desc": "The custom of a trader on the commodities market to deal for its own account and the investor's account at the same time."},{ "title": "Dual-currency issues","link": "https://www.alphaflow.com/?glossary=dual-currency-issues","glink": "dual_currency_issues","desc": "Eurobonds that pay coupon interest in one currency but pay the principal in a different currency."},{ "title": "Dual-purpose fund","link": "https://www.alphaflow.com/?glossary=dual-purpose-fund","glink": "dual_purpose_fund","desc": "A closed-end fund consisting of two classes of shares. The two classes are preferred shares, on which shareholders receive all the dividends and interest from the portfolio, and common shares, on which shareholders receive all the capital gains."},{ "title": "Ducentillion","link": "https://www.alphaflow.com/?glossary=ducentillion","glink": "ducentillion","desc": "A unit of quantity equal to 10603 (1 followed by 603 zeros)."},{ "title": "Due bill","link": "https://www.alphaflow.com/?glossary=due-bill","glink": "due_bill","desc": "An instrument evidencing the obligation of a seller to deliver securities sold to the buyer. Occasionally used in the bill market."},{ "title": "Due date","link": "https://www.alphaflow.com/?glossary=due-date","glink": "due_date","desc": "Date on which a debt must be paid."},{ "title": "Due diligence","link": "https://www.alphaflow.com/?glossary=due-diligence","glink": "due_diligence","desc": "An internal audit of a target firm by an acquiring firm. Offers are often made contingent upon resolution of the due diligence process."},{ "title": "Due diligence meeting","link": "https://www.alphaflow.com/?glossary=due-diligence-meeting","glink": "due_dilligence_meeting","desc": "Meeting legally required to be held by an underwriter to enable brokers to question a new issuer about an upcoming issue."},{ "title": "Due-on-sale clause","link": "https://www.alphaflow.com/?glossary=due-on-sale-clause","glink": "due-on-sale_clause","desc": "A mortgage contract clause stipulating that the borrower pay off the full remaining principal on a mortgage if the mortgaged property is sold before the mortgage is paid off."},{ "title": "Dump","link": "https://www.alphaflow.com/?glossary=dump","glink": "dump","desc": "See: Spaceman"},{ "title": "Dumping","link": "https://www.alphaflow.com/?glossary=dumping","glink": "dumping","desc": "Used in the context of general equities. Offering large amounts of stock with little or no concern for price or market effect."},{ "title": "Duodecillion","link": "https://www.alphaflow.com/?glossary=duodecillion","glink": "duodecillion","desc": "A unit of quantity equal to 1039 (1 followed by 39 zeros)."},{ "title": "Duononagintillion","link": "https://www.alphaflow.com/?glossary=duononagintillion","glink": "duononagintillion","desc": "A unit of quantity equal to 10279 (1 followed by 279 zeros)."},{ "title": "Duooctogintillion","link": "https://www.alphaflow.com/?glossary=duooctogintillion","glink": "duooctogintillion","desc": "A unit of quantity equal to 10249 (1 followed by 249 zeros)."},{ "title": "Duoquadragintillion","link": "https://www.alphaflow.com/?glossary=duoquadragintillion","glink": "duoquadragintillion","desc": "A unit of quantity equal to 10129 (1 followed by 129 zeros)."},{ "title": "Duoquinquagintillion","link": "https://www.alphaflow.com/?glossary=duoquinquagintillion","glink": "duoquinquagintillion","desc": "A unit of quantity equal to 10159 (1 followed by 159 zeros)."},{ "title": "Duoseptuagintillion","link": "https://www.alphaflow.com/?glossary=duoseptuagintillion","glink": "duoseptuagintillion","desc": "A unit of quantity equal to 10219 (1 followed by 219 zeros)."},{ "title": "Duosexagintillion","link": "https://www.alphaflow.com/?glossary=duosexagintillion","glink": "duosexagintillion","desc": "A unit of quantity equal to 10189 (1 followed by 189 zeros)."},{ "title": "Duotrigintillion","link": "https://www.alphaflow.com/?glossary=duotrigintillion","glink": "duotrigintillion","desc": "A unit of quantity equal to 1099 (1 followed by 99 zeros)."},{ "title": "Duovigintillion","link": "https://www.alphaflow.com/?glossary=duovigintillion","glink": "duovigintillion","desc": "A unit of quantity equal to 1069 (1 followed by 69 zeros)."},{ "title": "Duplicate Proxy","link": "https://www.alphaflow.com/?glossary=duplicate-proxy","glink": "duplicate_proxy","desc": "A second proxy received on an account. If the second proxy bears a more recent date than the first proxy, and has a different voting pattern, the second proxy will override the first."},{ "title": "Duplicative portfolio","link": "https://www.alphaflow.com/?glossary=duplicative-portfolio","glink": "duplicative_portfolio","desc": "Mainly applies to derivative products. Basket of stocks that imitates the price movement of another set of securities (e.g., S&P 500 index)."},{ "title": "Dupont system of financial control","link": "https://www.alphaflow.com/?glossary=dupont-system-of-financial-control","glink": "dupont_system_of_financial_control","desc": "Highlights the fact that return on assets (ROA) can be expressed in terms of the profit margin and asset turnover."},{ "title": "Durable merchandise","link": "https://www.alphaflow.com/?glossary=durable-merchandise","glink": "durable_merchandise","desc": "Goods that have a relatively lengthy life (television sets, radios, etc.)."},{ "title": "Duration","link": "https://www.alphaflow.com/?glossary=duration","glink": "duration","desc": "A common gauge of the price sensitivity of a fixed income asset or portfolio to a change in interest rates."},{ "title": "Duration drift","link": "https://www.alphaflow.com/?glossary=duration-drift","glink": "duration_drift","desc": "Change in duration attributable to the passage of time."},{ "title": "Duration matching strategy","link": "https://www.alphaflow.com/?glossary=duration-matching-strategy","glink": "duration_matching_strategy","desc": "An immunization technique that matches asset duration with the duration of the liabilities."},{ "title": "Dutch auction","link": "https://www.alphaflow.com/?glossary=dutch-auction","glink": "dutch_auction","desc": "Auction in which the lowest price necessary to sell the entire offering becomes the price at which all securities offered are sold. This technique has been used in Treasury auctions. Often used in risk arbitrage. Auction system in which the price of an item (stock) is gradually lowered until it meets a responsive bid (government T-bills) or offer (corporate repurchase) and is sold. In a corporate repurchase, a range of prices is set by the company within which shareholders are invited to tender their shares. The tender offer is open for a specific period of time (i.e., 20 days), and the quantity of stock to be purchased is stated as well, subject to proration if more shares are tendered than can be legally purchased under the stated terms (often an additional amount equal to 20% of outstanding shares can be purchased). The price paid is that at which the amount stated to be purchased can be sold. Compare to double auction system."},{ "title": "Dutch Auction Preferred Stock","link": "https://www.alphaflow.com/?glossary=dutch-auction-preferred-stock","glink": "dutch_auction_preferred_stock","desc": "A form of adjustable-rate preferred stock in which the dividend is ascertained in a Dutch Auction process by corporate bidders every seven weeks."},{ "title": "Duty","link": "https://www.alphaflow.com/?glossary=duty","glink": "duty","desc": "A tax on imports, exports, or consumption goods."},{ "title": "Dwarfs","link": "https://www.alphaflow.com/?glossary=dwarfs","glink": "dwarfs","desc": "Fannie Mae issued mortgage-backed securities pools that have an original maturity of 15 years."},{ "title": "Dynamic","link": "https://www.alphaflow.com/?glossary=dynamic","glink": "dynamic","desc": "For option strategies, describing analyses made during the course of changing security prices and during the passage of time. This is as opposed to an analysis made at expiration of the options used in the strategy. A dynamic break-even point is one that changes as time passes. A dynamic follow-up action is one that will change as either the security price changes or the option price changes or time passes."},{ "title": "Dynamic asset allocation","link": "https://www.alphaflow.com/?glossary=dynamic-asset-allocation","glink": "dynamic_asset_allocation","desc": "An asset allocation strategy in which the asset mix is quantitatively shifted in response to changing market conditions, as in a portfolio insurance strategy, for example."},{ "title": "Dynamic hedging","link": "https://www.alphaflow.com/?glossary=dynamic-hedging","glink": "dynamic_hedging","desc": "A strategy that involves rebalancing hedge positions as market conditions change; a strategy that seeks to insure the value of a portfolio using a synthetic put option."},{ "title": "Dynamical Noise","link": "https://www.alphaflow.com/?glossary=dynamical-noise","glink": "dynamical_noise","desc": "When the output of a dynamical system becomes corrupted with noise, and the noisy value is used as input during the next iteration. Also called System Noise. See: Observational Noise."},{ "title": "Dynamical Systems","link": "https://www.alphaflow.com/?glossary=dynamical-systems","glink": "dynamical_systems","desc": "A system of equations where the output of one equation is part of the input for another. A simple version of a dynamical system is linear simultaneous equations. Non-linear simultaneous equations are nonlinear dynamical systems."},{ "title": "DZ","link": "https://www.alphaflow.com/?glossary=dz","glink": "d.z.","desc": "The two-character ISO 3166 country code for ALGERIA."},{ "title": "DZA","link": "https://www.alphaflow.com/?glossary=dza","glink": "d.z.a","desc": "The three-character ISO 3166 country code for ALGERIA."},{ "title": "DZD","link": "https://www.alphaflow.com/?glossary=dzd","glink": "dzd","desc": "The ISO 4217 currency code for Algerian Dinar."},{ "title": "E (NASDAQ)","link": "https://www.alphaflow.com/?glossary=e-nasdaq","glink": "E","desc": "Fifth letter of a Nasdaq stock symbol specifying that an issue has not met the reporting date for the company's SEC regulatory filing requirements."},{ "title": "E-bond","link": "https://www.alphaflow.com/?glossary=e-bond","glink": "e_bond","desc": "E-bonds refer to a joint European sovereign bond (Eurozone common bond) issued by European Debt Agency. Proposal for E-bond was made in late 2010. E-bond is sometimes referred to as a Eurobond. This is confusing because the usual definition of the Eurobond is a bond issued outside the home currency, such as a U.S. dollar bond sold in Europe."},{ "title": "E/EV","link": "https://www.alphaflow.com/?glossary=eev","glink": "E_EV","desc": "See: EBITDA/enterprise value ratio"},{ "title": "Each way","link": "https://www.alphaflow.com/?glossary=each-way","glink": "each_way","desc": "A broker's commission from his or her involvement on both the purchase and the sale side of a security."},{ "title": "Early distribution","link": "https://www.alphaflow.com/?glossary=early-distribution","glink": "early_distribution","desc": "See: Premature distribution"},{ "title": "Early Exercise","link": "https://www.alphaflow.com/?glossary=early-exercise","glink": "","desc": "The exercise or assignment of an option contract before its expiration date."},{ "title": "Early Exercise (assignment)","link": "https://www.alphaflow.com/?glossary=early-exercise-assignment","glink": "early_exercise_(assignment)","desc": "The exercise or assignment of an option contract before its expiration date."},{ "title": "Early stage","link": "https://www.alphaflow.com/?glossary=early-stage","glink": "early_stage","desc": "In context of private equity, the state of a company after the seed stage but before middle state (generating revenues). Typically, a company in early stage will have a core mangement team and a proven concept or product, but no positive cash flow."},{ "title": "Early withdrawal","link": "https://www.alphaflow.com/?glossary=early-withdrawal","glink": "early_withdrawal","desc": "See: Premature distribution"},{ "title": "Early withdrawal penalty","link": "https://www.alphaflow.com/?glossary=early-withdrawal-penalty","glink": "early_withdrawl_penalty","desc": "Penalty paid by the holder of a fixed-term investment penalizing an investor who withdraws money before the agreed-upon maturity date."},{ "title": "Earn-out","link": "https://www.alphaflow.com/?glossary=earn-out","glink": "earn_out","desc": "Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement."},{ "title": "Earned income","link": "https://www.alphaflow.com/?glossary=earned-income","glink": "earned_income","desc": "Compensation earned from employment, which includes wages, salary, tips, and compensation."},{ "title": "Earned income credit","link": "https://www.alphaflow.com/?glossary=earned-income-credit","glink": "earned_income_credit","desc": "A tax credit for taxpayers with children."},{ "title": "Earned surplus","link": "https://www.alphaflow.com/?glossary=earned-surplus","glink": "earned_surplus","desc": "See: Retained earnings"},{ "title": "Earnest money","link": "https://www.alphaflow.com/?glossary=earnest-money","glink": "earnest_money","desc": "Money given to a seller by a buyer to demonstrate the buyer's good faith. If the deal falls through, the deposit is usually forfeited."},{ "title": "Earning asset","link": "https://www.alphaflow.com/?glossary=earning-asset","glink": "earning_asset","desc": "An asset that generates income, e.g., income from rental property."},{ "title": "Earning power","link": "https://www.alphaflow.com/?glossary=earning-power","glink": "earning_power","desc": "Earnings before interest and taxes (EBIT) divided by total assets."},{ "title": "Earnings","link": "https://www.alphaflow.com/?glossary=earnings","glink": "earnings","desc": "Net income for the company during a period."},{ "title": "Earnings before interest after taxes","link": "https://www.alphaflow.com/?glossary=earnings-before-interest-after-taxes","glink": "earnings_before_interest_after_taxes","desc": "A financial measure defined as revenues less cost of goods sold and selling, general and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest plus cash income taxes. Equivalent to EBIT minus cash taxes."},{ "title": "Earnings before interest and, taxes","link": "https://www.alphaflow.com/?glossary=earnings-before-interest-and-taxes","glink": "earnings_before_interest_and_taxes","desc": "A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes."},{ "title": "Earnings before interest, taxes, and depreciation","link": "https://www.alphaflow.com/?glossary=earnings-before-interest-taxes-and-depreciation","glink": "earnings_before_interest_taxes_and_depreciation","desc": "A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. Depreciation expenses are not included in the costs."},{ "title": "Earnings before interest, taxes, depreciation, and amortization","link": "https://www.alphaflow.com/?glossary=earnings-before-interest-taxes-depreciation-and-amortization","glink": "earnings_before_interest_taxes_depreciation_and_amortization","desc": "A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. Depreciation and amortization expenses are not included in the costs."},{ "title": "Earnings before taxes","link": "https://www.alphaflow.com/?glossary=earnings-before-taxes","glink": "earnings_before_taxes","desc": "A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of income taxes."},{ "title": "Earnings momentum","link": "https://www.alphaflow.com/?glossary=earnings-momentum","glink": "earnings_momentum","desc": "An increase in the earnings per share growth rate from one reporting period to the next."},{ "title": "Earnings per share","link": "https://www.alphaflow.com/?glossary=earnings-per-share","glink": "earnings_per_share","desc": "A company's profit divided by its number of common outstanding shares. If a company earning $2 million in one year had 2 million common shares of stock outstanding, its EPS would be $1 per share. In calculating EPS, the company often uses a weighted average of shares outstanding over the reporting term. The one-year (historical or trailing) EPS growth rate is calculated as the percentage change in earnings per share. The prospective EPS growth rate is calculated as the percentage change in this year's earnings and the consensus forecast earnings for next year."},{ "title": "Earnings response coefficient","link": "https://www.alphaflow.com/?glossary=earnings-response-coefficient","glink": "earnings_response_coefficient","desc": "A measure of relation of stock returns to earnings surprises around the time of corporate earnings announcements."},{ "title": "Earnings retention ratio","link": "https://www.alphaflow.com/?glossary=earnings-retention-ratio","glink": "earnings_retention_ratio","desc": "Plowback rate."},{ "title": "Earnings surprises","link": "https://www.alphaflow.com/?glossary=earnings-surprises","glink": "earnings_surprises","desc": "Positive or negative differences from the consensus forecast of earnings by institutions such as First Call or IBES. Negative earnings surprises generally have a greater adverse effect on stock prices than a reciprocal positive earnings surprise."},{ "title": "Earnings yield","link": "https://www.alphaflow.com/?glossary=earnings-yield","glink": "earnings_yield","desc": "The ratio of earnings per share, after allowing for tax and interest payments on fixed interest debt, to the current share price. The inverse of the price-earnings ratio. It is the total twelve months earnings divided by number of outstanding shares, divided by the recent price, multiplied by 100. The end result is shown in percentage terms. We often look at earnings yield because this avoids the problem of zero earnings in the denominator of the price-earning ratio."},{ "title": "Earnings-price ratio","link": "https://www.alphaflow.com/?glossary=earnings-price-ratio","glink": "earnings_price_ratio","desc": "See: Earnings yield"},{ "title": "EASD","link": "https://www.alphaflow.com/?glossary=easd","glink": "e.a.s.d.","desc": "See: European Association of Securities Dealers"},{ "title": "Easy money","link": "https://www.alphaflow.com/?glossary=easy-money","glink": "easy_money","desc": "See: Tight money"},{ "title": "Eating stock","link": "https://www.alphaflow.com/?glossary=eating-stock","glink": "eating_stock","desc": "When an underwriter can't find buyers for a stock and therefore has to buy them for his own account."},{ "title": "EBITDA/enterprise value ratio","link": "https://www.alphaflow.com/?glossary=ebitdaenterprise-value-ratio","glink": "e.b.i.t.d.a._to_enterprise_value_ratio","desc": "A modified measure of the ratio of a company's operating and non-operating profits to the market value of the firm's equity and debt. By providing a simple, though incomplete, ratio of profit to value, EBITDA/EV is often used to estimate the cash return on an investment. See: Enterprise value/EBITDA ratio"},{ "title": "EBRD","link": "https://www.alphaflow.com/?glossary=ebrd","glink": "ebrd","desc": "See: European Bank for Reconstruction and Development"},{ "title": "EC","link": "https://www.alphaflow.com/?glossary=ec","glink": "E.C.","desc": "The two-character ISO 3166 country code for ECUADOR."},{ "title": "ECGD","link": "https://www.alphaflow.com/?glossary=ecgd","glink": "ecgd","desc": "See: Export Credit Guarantee Department"},{ "title": "Eclectic paradigm","link": "https://www.alphaflow.com/?glossary=eclectic-paradigm","glink": "eclectic_paradigm","desc": "A theory that posits three types of advantages benefiting a multinational corporation: ownership-specific, location-specific, and market internalization advantages."},{ "title": "ECN (1)","link": "https://www.alphaflow.com/?glossary=ecn-1","glink": "ecn1","desc": "Electronic Communications Network. Defined under Rule 11Ac1- 1(a)(8) under the U.S. Securities Exchange Act of 1934."},{ "title": "ECN (2)","link": "https://www.alphaflow.com/?glossary=ecn-2","glink": "ecn2","desc": "See: Emerging company marketplace"},{ "title": "Econometrics","link": "https://www.alphaflow.com/?glossary=econometrics","glink": "econometrics","desc": "The quantitative science of modelling the economy. Econometric models help explain and predict variables of interest."},{ "title": "Economic and Monetary Union","link": "https://www.alphaflow.com/?glossary=economic-and-monetary-union","glink": "economic_and_monetary_union","desc": "In the context of the European Union, the EMU is a committment (adapted by most but not all EU countries) to move to economic integration in a number of stages culminating with a common currency."},{ "title": "Economic assumptions","link": "https://www.alphaflow.com/?glossary=economic-assumptions","glink": "economic_assumptions","desc": "General market environment a firm expects to operate in over the life of a financial plan."},{ "title": "Economic bubble","link": "https://www.alphaflow.com/?glossary=economic-bubble","glink": "economic_bubble","desc": "A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset. Bubbles are often hard to detect in real time because there is disagreement over the fundamental value of the asset."},{ "title": "Economic Cycle Research Institute Index","link": "https://www.alphaflow.com/?glossary=economic-cycle-research-institute-index","glink": "economic_cycle_research_institute_index","desc": "An independent research institute that studies business cycles and produces a widely-followed index of leading indicators."},{ "title": "Economic defeasance","link": "https://www.alphaflow.com/?glossary=economic-defeasance","glink": "economic_defeasance","desc": "See: In-substance defeasance"},{ "title": "Economic dependence","link": "https://www.alphaflow.com/?glossary=economic-dependence","glink": "economics_dependence","desc": "When the costs and/or revenues of one project depend on those of another."},{ "title": "Economic earnings","link": "https://www.alphaflow.com/?glossary=economic-earnings","glink": "economic_earnings","desc": "The real flow of cash that a firm could pay out forever in the absence of any change in the firm's productive capacity."},{ "title": "Economic exposure","link": "https://www.alphaflow.com/?glossary=economic-exposure","glink": "economic_exposure","desc": "The extent to which the value of a firm will change because of an exchange rate change."},{ "title": "Economic growth","link": "https://www.alphaflow.com/?glossary=economic-growth","glink": "economic_growth_","desc": "An increase in the nation's capacity to produce goods and services. Usually refers to real GDP growth."},{ "title": "Economic growth rate","link": "https://www.alphaflow.com/?glossary=economic-growth-rate","glink": "economic_growth_rate","desc": "The annual percentage rate of change in the Gross National Product."},{ "title": "Economic income","link": "https://www.alphaflow.com/?glossary=economic-income","glink": "economic_income","desc": "Cash flow plus change in present value."},{ "title": "Economic indicators","link": "https://www.alphaflow.com/?glossary=economic-indicators","glink": "economic_indicators","desc": "The key statistics of the economy that reveal the direction the economy is heading in; for example, the unemployment rate and the inflation rate."},{ "title": "Economic Life","link": "https://www.alphaflow.com/?glossary=economic-life","glink": "economic_life","desc": "The time period over which an asset's NPV is maximized. Economic life can be less than absolute physical life for reasons of technological obsolescence, physical deterioration, or product life cycle."},{ "title": "Economic order quantity","link": "https://www.alphaflow.com/?glossary=economic-order-quantity","glink": "economic_order_quantity","desc": "The order quantity that minimizes total inventory costs."},{ "title": "Economic rents","link": "https://www.alphaflow.com/?glossary=economic-rents","glink": "economic_rents","desc": "Profits in excess of the competitive level."},{ "title": "Economic risk","link": "https://www.alphaflow.com/?glossary=economic-risk","glink": "economic_risk","desc": "In project financing, the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs and its debt service requirements."},{ "title": "Economic shock","link": "https://www.alphaflow.com/?glossary=economic-shock","glink": "economic_shock","desc": "Events that impact the economy which originate from outside it. They are unexpected and unpredictable (e.g., Hurricane Andrew in 1991, the rise in oil prices by OPEC)."},{ "title": "Economic stimulus","link": "https://www.alphaflow.com/?glossary=economic-stimulus","glink": "economic_stimulus","desc": "A plan to boost the economy and achieve positive effects like increased job creation, jumpstart frozen credit markets, restore consumer spending etc. through the use of fiscal policy like government spending and tax measures. This program is controversial because many economists disagree on the stimulus multiplier. The expenditure is stimulative if the multiplier is greater than 1.0 (extra government spending causes add on spending by consumers). However, many economists think that at best, the multiplier is 1.0 (simple replacement of spending that would already occur) and at worst less then 1.0 (government spending focused on less productive targets than consumers would choose)."},{ "title": "Economic surplus","link": "https://www.alphaflow.com/?glossary=economic-surplus","glink": "economic_surplus","desc": "For any entity, the difference between the market value of all its assets and the market value of its liabilities."},{ "title": "Economic union","link": "https://www.alphaflow.com/?glossary=economic-union","glink": "economic_union","desc": "An agreement between two or more countries that allows the free movement of capital, labor, and all goods and services, and involves the harmonization and unification of social, fiscal, and monetary policies."},{ "title": "Economic value added","link": "https://www.alphaflow.com/?glossary=economic-value-added","glink": "economic_value_added","desc": "A method of performance evaluation that adjusts accounting performance for investors' required return on investment. Suppose a division produces a 12% return on capital invested. Given the risk of the division's business line, if investors would usually require 14% on capital invested for this level of risk, the division destroyed shareholder value by the EVA metric. This Stern-Stewart has a trade mark on this term."},{ "title": "Economics","link": "https://www.alphaflow.com/?glossary=economics","glink": "economics","desc": "The study of the economy. See also: Macroeconomics; microeconomics; Keynesian economics, monetarism, and supply-side economics."},{ "title": "Economies of scale","link": "https://www.alphaflow.com/?glossary=economies-of-scale","glink": "economies_of_scale","desc": "The decrease in the marginal cost of production as a firm's extent of operations expands."},{ "title": "Economies of scope","link": "https://www.alphaflow.com/?glossary=economies-of-scope","glink": "economies_of_scope","desc": "Scope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately."},{ "title": "Economies of vertical integration","link": "https://www.alphaflow.com/?glossary=economies-of-vertical-integration","glink": "economies_of_vertical_integretion","desc": "Produced by achieving lower operating costs by owning all components of production and sometimes sales outlets rather than contracting with companies in the outside marketplace."},{ "title": "ECRI Index","link": "https://www.alphaflow.com/?glossary=ecri-index","glink": "ecri_index","desc": "See: Economic Cycle Research Institute Index"},{ "title": "ECS","link": "https://www.alphaflow.com/?glossary=ecs","glink": "ecs","desc": "The ISO 4217 currency code for the Ecuadorian Sucre."},{ "title": "EDC","link": "https://www.alphaflow.com/?glossary=edc","glink": "edc","desc": "See: Export Credit Agency"},{ "title": "EDGAR","link": "https://www.alphaflow.com/?glossary=edgar","glink": "","desc": "The Securities & Exchange Commission uses Electronic Data Gathering and Retrieval to transmit company documents such as 10-Ks, 10-Qs, quarterly reports, and other SEC filings, to investors."},{ "title": "EDGAR (Electronic Data Gathering and Retrieval)","link": "https://www.alphaflow.com/?glossary=edgar-electronic-data-gathering-and-retrieval","glink": "edgar","desc": "The Securities & Exchange Commission uses Electronic Data Gathering and Retrieval to transmit company documents such as 10-Ks, 10-Qs, quarterly reports, and other SEC filings, to investors."},{ "title": "EDGAR Electronic Data Gathering, Analysis and Retrieval System","link": "https://www.alphaflow.com/?glossary=edgar-electronic-data-gathering-analysis-and-retrieval-system","glink": "electronic_data_gathering_anlysis_and_retrieval_system","desc": "The system through which companies electronically file reports and registration statements with the SEC. This requires converting the paper or word-processing document to be filed into a universal ASCII format, a process known as EDGAR-izing the document. The filings can then be accessed by the public through the SEC's Web site on the Internet."},{ "title": "Edge Act corporation","link": "https://www.alphaflow.com/?glossary=edge-act-corporation","glink": "edge_act_corporation","desc": "Corporation chartered by the Federal Reserve to engage in international banking. The Board of Governors acts on applications to establish Edge Act corporations and also examines the corporations and their subsidiaries. Named after Senator Walter Edge of New Jersey, who sponsored the original legislation to permit formation of such organizations. See also: agreement corporation."},{ "title": "Edge corporations","link": "https://www.alphaflow.com/?glossary=edge-corporations","glink": "edge_corporations","desc": "Specialized banking institutions, authorized and chartered by the Federal Reserve Board of Governors in the U.S., that are allowed to engage in transactions of a foreign or international character. They are not subject to restrictions on interstate banking. Foreign banks operating in the U.S. are permitted to organize and own an edge corporation."},{ "title": "Education IRA","link": "https://www.alphaflow.com/?glossary=education-ira","glink": "education_ira","desc": "A type of individual retirement account enabling the contribution of up to $500 per year tax free for each child up to the age of 18 by the parents in the family."},{ "title": "EE","link": "https://www.alphaflow.com/?glossary=ee","glink": "E.E.","desc": "The two-character ISO 3166 country code for ESTONIA."},{ "title": "EEK","link": "https://www.alphaflow.com/?glossary=eek","glink": "eek","desc": "The ISO 4217 currency code for the Estonian Kroon."},{ "title": "Effective annual interest rate","link": "https://www.alphaflow.com/?glossary=effective-annual-interest-rate","glink": "effective_annual_interest_rate","desc": "An annual measure of the time value of money that fully reflects the effects of compounding."},{ "title": "Effective annual yield","link": "https://www.alphaflow.com/?glossary=effective-annual-yield","glink": "effective_annual_yield","desc": "Annualized interest rate on a security computed using compound interest techniques."},{ "title": "Effective call price","link": "https://www.alphaflow.com/?glossary=effective-call-price","glink": "effective_call_price","desc": "The strike price in a market redemption provision plus the accrued interest to the redemption date."},{ "title": "Effective convexity","link": "https://www.alphaflow.com/?glossary=effective-convexity","glink": "effective_convexity","desc": "The convexity of a bond calculated using cash flows that change with yields."},{ "title": "Effective date","link": "https://www.alphaflow.com/?glossary=effective-date","glink": "effective_date","desc": "In an interest rate swap, the date the swap begins accruing interest."},{ "title": "Effective debt","link": "https://www.alphaflow.com/?glossary=effective-debt","glink": "effective_debt","desc": "The total debt owed by a firm to its creditors."},{ "title": "Effective duration","link": "https://www.alphaflow.com/?glossary=effective-duration","glink": "effective_duration","desc": "The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option. Measures the responsiveness of a bond's price - taking into account that expected cash flows will change as interest rates change due to the embedded option."},{ "title": "Effective Interest Rate","link": "https://www.alphaflow.com/?glossary=effective-interest-rate","glink": "effective_interest_rate","desc": "The annual rate at which an investment grows in value when interest is credited more often than once a year."},{ "title": "Effective margin","link": "https://www.alphaflow.com/?glossary=effective-margin","glink": "effective_margin","desc": "Used with SAT performance measures, the amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario."},{ "title": "Effective net worth","link": "https://www.alphaflow.com/?glossary=effective-net-worth","glink": "effective_net_worth","desc": "Net worth plus subordinated debt."},{ "title": "Effective rate","link": "https://www.alphaflow.com/?glossary=effective-rate","glink": "effective_rate","desc": "A measure of the time value of money that fully reflects the effects of compounding."},{ "title": "Effective sale","link": "https://www.alphaflow.com/?glossary=effective-sale","glink": "effective_sale","desc": "A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference created between the last round-lot price and the odd-lot price is referred to as the odd-lot differential."},{ "title": "Effective spread","link": "https://www.alphaflow.com/?glossary=effective-spread","glink": "effective_spread","desc": "The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price."},{ "title": "Effective tax rate","link": "https://www.alphaflow.com/?glossary=effective-tax-rate","glink": "effective_tax_rate","desc": "The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income."},{ "title": "Effective yield","link": "https://www.alphaflow.com/?glossary=effective-yield","glink": "effective_yield","desc": "Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern."},{ "title": "Efficiency","link": "https://www.alphaflow.com/?glossary=efficiency","glink": "efficiency","desc": "The degree and speed with which a market accurately incorporates information into prices."},{ "title": "Efficient capital market","link": "https://www.alphaflow.com/?glossary=efficient-capital-market","glink": "efficient_captial_market","desc": "A market in which new information is very quickly reflected accurately in share prices."},{ "title": "Efficient diversification","link": "https://www.alphaflow.com/?glossary=efficient-diversification","glink": "efficient_diversification","desc": "The organizing principle of portfolio theory, which maintains that any risk-averse investor will search for the highest expected return for any particular level of portfolio risk."},{ "title": "Efficient frontier","link": "https://www.alphaflow.com/?glossary=efficient-frontier","glink": "efficient_frontier","desc": "The combinations of securities portfolios that maximize expected return for any level of expected risk, or that minimizes expected risk for any level of expected return. Pioneered by Harry Markowitz."},{ "title": "Efficient market","link": "https://www.alphaflow.com/?glossary=efficient-market","glink": "efficient_market","desc": "Market in which prices correctly reflect all relevant information."},{ "title": "Efficient Market Hypothesis","link": "https://www.alphaflow.com/?glossary=efficient-market-hypothesis","glink": "efficient_market_hypothesis","desc": "States that all relevant information is fully and immediately reflected in a security's market price, thereby assuming that an investor will obtain an equilibrium rate of return. In other words, an investor should not expect to earn an abnormal return (above the market return) through either technical analysis or fundamental analysis. Three forms of efficient market hypothesis exist: weak form (stock prices reflect all past information in prices), semistrong form (stock prices reflect all past and current publicly available information), and strong form (stock prices reflect all relevant information, including information not yet disclosed to the general public, such as insider information)."},{ "title": "Efficient markets theory","link": "https://www.alphaflow.com/?glossary=efficient-markets-theory","glink": "efficient_markets_theory","desc": "Principle that all assets are correctly priced by the market, and that there are no bargains."},{ "title": "Efficient portfolio","link": "https://www.alphaflow.com/?glossary=efficient-portfolio","glink": "efficient_portfolio","desc": "A portfolio that provides the greatest expected return for a given level of risk (i.e., standard deviation), or, equivalently, the lowest risk for a given expected return."},{ "title": "Efficient set","link": "https://www.alphaflow.com/?glossary=efficient-set","glink": "efficient_set","desc": "Graph representing a set of portfolios that maximize expected return at each level of portfolio risk."},{ "title": "Efficient surface","link": "https://www.alphaflow.com/?glossary=efficient-surface","glink": "efficient_surface","desc": "In mean variance skewness analysis, the set of portfolios that result from investor's preference for higher means, lower variance and higher (positive) skewness. The efficient surface is analogous (in three dimensions, mean, variance and skewness) to the efficient frontier (in two dimensions, mean and variance)."},{ "title": "EFIC","link": "https://www.alphaflow.com/?glossary=efic","glink": "efic","desc": "See: Export Finance Insurance Corp."},{ "title": "EFSF","link": "https://www.alphaflow.com/?glossary=efsf","glink": "EFSF","desc": "See: European Financial Stability Facility"},{ "title": "EFTPOS","link": "https://www.alphaflow.com/?glossary=eftpos","glink": "eftpos","desc": "Acronynm for Electronic Funds Transfer at Point of Sale. Payment is transferred usually from a checking account at the point of sale."},{ "title": "EG","link": "https://www.alphaflow.com/?glossary=eg","glink": "E.G.","desc": "The two-character ISO 3166 country code for EGYPT."},{ "title": "EGP","link": "https://www.alphaflow.com/?glossary=egp","glink": "egp","desc": "The ISO 4217 currency code for the Egyptian Pound."},{ "title": "EGY","link": "https://www.alphaflow.com/?glossary=egy","glink": "E.G.Y.","desc": "The three-character ISO 3166 country code for EGYPT."},{ "title": "EH","link": "https://www.alphaflow.com/?glossary=eh","glink": "E.H.","desc": "The two-character ISO 3166 country code for WESTERN SAHARA."},{ "title": "Eighth[-ed]","link": "https://www.alphaflow.com/?glossary=eighth-ed","glink": "eighth","desc": "Historical term used in the context of general equities. A specialist or another broker is bidding higher or offering lower than we are, often topping or undercutting us by an eighth."},{ "title": "Either-or order","link": "https://www.alphaflow.com/?glossary=either-or-order","glink": "either_or_order","desc": "Used in the context of general equities. See: Alternative order."},{ "title": "Either-way market","link": "https://www.alphaflow.com/?glossary=either-way-market","glink": "either_way_market","desc": "In the interbank Eurodollar deposit market, an either-way market is one in which the bid and offered rates are identical."},{ "title": "Either/or facility","link": "https://www.alphaflow.com/?glossary=eitheror-facility","glink": "either_or_facilitiy","desc": "An agreement permitting a bank customer to borrow either domestic dollars from the bank's head office or Eurodollars from one of its foreign branches."},{ "title": "Elasticity of an option","link": "https://www.alphaflow.com/?glossary=elasticity-of-an-option","glink": "elasticity_of_an_option","desc": "Percentage change in the value of an option given a 1% change in the value of the option's underlying stock. Related: delta."},{ "title": "Elasticity of demand","link": "https://www.alphaflow.com/?glossary=elasticity-of-demand","glink": "elasticity_of_demand","desc": "The degree of buyers' responsiveness to price changes. Elasticity is measured as the percent change in quantity divided by the percent change in price. A large value (greater than 1) of elasticity indicates sensitivity of demand to price, e.g., luxury goods, where a rise in price causes a decrease in demand. Goods with a small value of elasticity (less than 1) have a demand that is insensitive to price, e.g., food, where a rise in price has little or no effect on the quantity demanded by buyers."},{ "title": "Elasticity of supply","link": "https://www.alphaflow.com/?glossary=elasticity-of-supply","glink": "elasticity_of_supply","desc": "The degree of producers' responsiveness to price changes. Elasticity is measured as the percent change in quantity divided by the percent change in price. A large value (greater than 1) of elasticity indicates sensitivity of supply to price, e.g., luxury goods, where a rise in price causes an increase in supply. Goods with a small value of elasticity (less than 1) have a supply that is insensitive to price, e.g., food, where a rise in price has little or no effect on the amount that producers supply."},{ "title": "Elect","link": "https://www.alphaflow.com/?glossary=elect","glink": "elect","desc": "The conversion of a conditional order into a market order."},{ "title": "Election Period","link": "https://www.alphaflow.com/?glossary=election-period","glink": "election_period","desc": "The period of time during which the holder can elect to extend and extendible bond, or to retract a retractable bond."},{ "title": "Electronic data interchange","link": "https://www.alphaflow.com/?glossary=electronic-data-interchange","glink": "electronic_data_interchange","desc": "The direct exchange of information electronically, from one firm's computer to another firm's computer in a structured format."},{ "title": "Electronic depository transfers","link": "https://www.alphaflow.com/?glossary=electronic-depository-transfers","glink": "electronic_depository_transfers","desc": "The transfer of funds between bank accounts through the Automated Clearing House (ACH) system."},{ "title": "Electronic funds transfer","link": "https://www.alphaflow.com/?glossary=electronic-funds-transfer","glink": "electronic_funds_transfer(EFT)","desc": "Transfer of funds electronically rather than by check or cash. The Federal Reserve's Fedwire and automated clearninghouse services are EFT systems."},{ "title": "Electronic Funds Transfer Systems","link": "https://www.alphaflow.com/?glossary=electronic-funds-transfer-systems","glink": "electronic_funds_transfer_systems_(EFTS)","desc": "A variety of systems and technologies for transferring funds (money) electronically rather than by check. Includes Fedwire, automated clearringhouses (ACHs) and other automated systems."},{ "title": "Electronic Queriable Carrier","link": "https://www.alphaflow.com/?glossary=electronic-queriable-carrier","glink": "electronic_queriable_carrier","desc": "A transporter of goods which allows tracking of goods in transit electronically using a waybill number such as United Parcel, Federal Express, etc."},{ "title": "Elephants","link": "https://www.alphaflow.com/?glossary=elephants","glink": "elephants","desc": "A term used to refer to large institutional investors."},{ "title": "Eleven bond index","link": "https://www.alphaflow.com/?glossary=eleven-bond-index","glink": "eleven_bond_index","desc": "An index based on the average yield of 11 municipal bonds that mature in 20 years and carry an average AA rating. The eleven bonds used to calculate the index are also found in the 20 bond index, which serves as a benchmark in tracking municipal bond yields."},{ "title": "Eligible bankers’ acceptances","link": "https://www.alphaflow.com/?glossary=eligible-bankers-acceptances","glink": "eligible-bankers_acceptances","desc": "In the BA market, an acceptance may be referred to as eligible because it is acceptable by the Fed as collateral at the discount window and/or because the accepting bank can sell it without incurring a reserve requirement."},{ "title": "Elliott Wave Theory","link": "https://www.alphaflow.com/?glossary=elliott-wave-theory","glink": "elliott_ware_theory","desc": "Technical market timing strategy that predicts price movements on the basis of historical price wave patterns and their underlying psychological motives. Robert Prechter is a famous Elliott Wave theorist."},{ "title": "Elves","link": "https://www.alphaflow.com/?glossary=elves","glink": "elves","desc": "A term the host uses to refer to guests on the PBS television show, 'Wall Street Week', who are technical analysts attempting to predict the direction of stock prices over the next six months."},{ "title": "Embedded option","link": "https://www.alphaflow.com/?glossary=embedded-option","glink": "embedded_option","desc": "An option that is part of the structure of a bond that gives either the bondholder or the issuer the right to take some action against the other party, as opposed to a bare option, which trades separately from any underlying security."},{ "title": "Emergency fund","link": "https://www.alphaflow.com/?glossary=emergency-fund","glink": "emergency_fund","desc": "A reserve of cash kept available to meet the costs of any unexpected financial emergencies."},{ "title": "Emergency Home Finance Act of 1970","link": "https://www.alphaflow.com/?glossary=emergency-home-finance-act-of-1970","glink": "emergency_home_finance_act_of_1970","desc": "The federal legislation creating the Federal Home Loan Mortgage Corporation, a partially government-run program initiated to stimulate the development of a secondary mortgage market and expand mortgages available to veterans and other groups."},{ "title": "Emerging Company Marketplace","link": "https://www.alphaflow.com/?glossary=emerging-company-marketplace","glink": "emerging_company_marketplace","desc": "A service once offered by the American Stock Exchange to help small growth companies fulfill special listing requirements. The service is no longer available."},{ "title": "Emerging markets","link": "https://www.alphaflow.com/?glossary=emerging-markets","glink": "emerging_markets","desc": "The financial markets of developing economies."},{ "title": "Emerging Markets Free index","link": "https://www.alphaflow.com/?glossary=emerging-markets-free-index","glink": "emerging_markets_free_index","desc": "A Morgan Stanley Capital International index created to track stock markets in selected emerging markets that are open to foreign investment like Argentina, Chile, Jordan, Malaysia, Mexico, Philippines, and Thailand."},{ "title": "Emerging markets fund","link": "https://www.alphaflow.com/?glossary=emerging-markets-fund","glink": "emerging_markets_fund","desc": "A mutual fund that invests primarily in countries with developing economies (that is, those that are becoming industrialized). Emerging markets funds tend to be more volatile than domestic stock funds due to currency fluctuation and political instability. Consequently, fund prices can fluctuate dramatically."},{ "title": "Employee contribution","link": "https://www.alphaflow.com/?glossary=employee-contribution","glink": "employee_contribution","desc": "An employee's own deposit to a company retirement plan."},{ "title": "Employee Retirement Income Security Act","link": "https://www.alphaflow.com/?glossary=employee-retirement-income-security-act","glink": "employee_retirement_income_security_act","desc": "The law that regulates the operation of private pensions and benefit plans."},{ "title": "Employee stock fund","link": "https://www.alphaflow.com/?glossary=employee-stock-fund","glink": "employee_stock_fund","desc": "A firm-sponsored program that enables employees to purchase shares of the firm's common stock on a preferential basis."},{ "title": "Employee stock ownership plan","link": "https://www.alphaflow.com/?glossary=employee-stock-ownership-plan","glink": "employee_stock_ownership_plan","desc": "A company contributes to a trust fund that buys stock on behalf of employees."},{ "title": "Employee Stock Purchase Plan","link": "https://www.alphaflow.com/?glossary=employee-stock-purchase-plan","glink": "employee_stock_purchase_plan","desc": "A plan usually linked to a corporation's payroll deduction system allowing employees to purchase shares at a discount from current market value."},{ "title": "Employer matching contribution","link": "https://www.alphaflow.com/?glossary=employer-matching-contribution","glink": "employer_matching_contribution","desc": "The amount, if any, a company contributes on an employee's behalf to the employee's retirement account, usually tied to the employee's own contribution."},{ "title": "Employment rate","link": "https://www.alphaflow.com/?glossary=employment-rate","glink": "employment_rate","desc": "The percentage of the labor force that is employed. The employment rate is one of the economic indicators that economists examine to help understand the state of the economy. See also: Unemployment rate."},{ "title": "Empty head and pure heart test","link": "https://www.alphaflow.com/?glossary=empty-head-and-pure-heart-test","glink": "empty_head_and_pure_heart_test","desc": "Securities and Exchange Commission rule that allows only the bidder of a tender offer to trade in the stock while possessing inside information."},{ "title": "EMU","link": "https://www.alphaflow.com/?glossary=emu","glink": "e.m.u.","desc": "See: Economic and Monetary Union"},{ "title": "Encumbered","link": "https://www.alphaflow.com/?glossary=encumbered","glink": "encumbered","desc": "A property owned by one party on which a second party reserves the right to make a valid claim, e.g., a bank's holding of a home mortgage encumbers property."},{ "title": "End-of-year convention","link": "https://www.alphaflow.com/?glossary=end-of-year-convention","glink": "end_of_year_convention","desc": "Treating cash flows as if they occur at the end of a year as opposed to the date convention. Under the end-of-year convention, the present is time 0, the end of year 1 occurs one year hence; and so on."},{ "title": "Endogenous uncertainty","link": "https://www.alphaflow.com/?glossary=endogenous-uncertainty","glink": "endogenous_uncertainty","desc": "Describes factors within the control of the firm, such as a decision to reveal information about price or input costs. Converse of exogenous."},{ "title": "Endogenous variable","link": "https://www.alphaflow.com/?glossary=endogenous-variable","glink": "endogenous_variable","desc": "A value determined within the context of a model. Related: Exogenous variable."},{ "title": "Endorse","link": "https://www.alphaflow.com/?glossary=endorse","glink": "endorse","desc": "Transferring asset ownership by signing the back of the asset's certificate."},{ "title": "Endowment","link": "https://www.alphaflow.com/?glossary=endowment","glink": "endowment","desc": "Gift of money or property to a specified institution for a specified purpose."},{ "title": "Endowment funds","link": "https://www.alphaflow.com/?glossary=endowment-funds","glink": "endowment_funds","desc": "Investment funds established for the support of institutions such as colleges, private schools, museums, hospitals, and foundations. The investment income may be used for the operation of the institution and for capital expenditures."},{ "title": "Energy mutual fund","link": "https://www.alphaflow.com/?glossary=energy-mutual-fund","glink": "energy_mutual_fund","desc": "Mutual fund investing in energy stocks only, e.g., oil and gas companies."},{ "title": "Engineering risk","link": "https://www.alphaflow.com/?glossary=engineering-risk","glink": "engineering_risk","desc": "The risk associated with the impact on a project's cash flows from deficiencies in design or engineering. Also known as design risk."},{ "title": "Enhanced indexing","link": "https://www.alphaflow.com/?glossary=enhanced-indexing","glink": "enhanced_indexing","desc": "Also called indexing-plus, an indexing strategy whose objective is to exceed or replicate the total return performance of some predetermined index."},{ "title": "Enhancement","link": "https://www.alphaflow.com/?glossary=enhancement","glink": "enhancement","desc": "An innovation that has a positive impact on one or more of a firm's existing products."},{ "title": "Enterprise","link": "https://www.alphaflow.com/?glossary=enterprise","glink": "enterprise","desc": "A business firm."},{ "title": "Enterprise multiple","link": "https://www.alphaflow.com/?glossary=enterprise-multiple","glink": "enterprise_multiple","desc": "The ratio of the enterprise value to the EBITDA of a corporation. See: Enterprise value/EBITDA (EV/E), Enterprise value"},{ "title": "Enterprise Value","link": "https://www.alphaflow.com/?glossary=enterprise-value","glink": "enterprise_value","desc": "The market capitalization of a firm's equity plus the market value of the firm's debt. Often the value of assets that are non-core are excluded from the final calculation."},{ "title": "Enterprise value/EBITDA ratio","link": "https://www.alphaflow.com/?glossary=enterprise-valueebitda-ratio","glink": "enterprise_value_to_e.b.i.t.d.a._ratio","desc": "The EV/EBITDA ratio, also known as the enterprise multiple, is the ratio of a company's enterprise value to its earnings before non-cash items and is commonly used to value possible takeover targets. Although similar to the P/E ratio, there are two aspects of the EV/E ratio that make it a more accurate measurement of a company's true value: the inclusion of EBITDA in the ratio allows for a comparison of earnings between different industries by omitting the effects of interest and taxes on earnings, which vary between industries; the enterprise value, on the other hand, uses net debt in its calculation, which allows for the EV/E ratio to be used to compare companies with different capitalization structures. See: EBITDA, Enterprise multiple, Takeover"},{ "title": "Entrepreneur","link": "https://www.alphaflow.com/?glossary=entrepreneur","glink": "entrepreneur","desc": "A person starting a new company who takes on the risks associated with starting the enterprise, which may require venture capital to cover start-up costs."},{ "title": "Entropy","link": "https://www.alphaflow.com/?glossary=entropy","glink": "entropy","desc": "The level of disorder in a system."},{ "title": "Environmental fund","link": "https://www.alphaflow.com/?glossary=environmental-fund","glink": "environemental_fund","desc": "A mutual fund that invests strictly in stocks of companies that are environmentally friendly and/or have the goal of environmental betterment. The investors are trying to support and profit from opportunities related to the environmental movement."},{ "title": "Environmental risk","link": "https://www.alphaflow.com/?glossary=environmental-risk","glink": "environmental_risk","desc": "The risk associated with economic or administrative consequences of slow or catastrophic environmental pollution."},{ "title": "Equal dollar swap","link": "https://www.alphaflow.com/?glossary=equal-dollar-swap","glink": "equal_dollar_swap","desc": "Selling common stock/convertibles in one company and reinvesting the proceeds in as many shares of (1) another type of security issued by the company, or (2) another security of the same type but of another company -- as can be bought with the proceeds of the sale. See: Equal shares swap."},{ "title": "Equal percentage contribution rule","link": "https://www.alphaflow.com/?glossary=equal-percentage-contribution-rule","glink": "","desc": "Principle that each asset contributes
the same proportion to the equilibrium portfolio rate premium and risk."},{ "title": "Equal percentage contribution rule (EPCoR)","link": "https://www.alphaflow.com/?glossary=equal-percentage-contribution-rule-epcor","glink": "equal_percentage_contribution_rule","desc": "Principle that each asset contributes the same proportion to the equilibrium portfolio rate premium and risk."},{ "title": "Equal shares swap","link": "https://www.alphaflow.com/?glossary=equal-shares-swap","glink": "equal_shares_swap","desc": "Applies mainly to convertible securities. Selling the underlying common and reinvesting the proceeds in as much of the convertible as can be converted into the number of shares of common just sold. See equal dollar swap."},{ "title": "Equalizing dividend","link": "https://www.alphaflow.com/?glossary=equalizing-dividend","glink": "equalizing_dividend","desc": "Special dividends received by investors of a firm for income the investor lost because the firm altered the dividends payment schedule."},{ "title": "Equilibrium","link": "https://www.alphaflow.com/?glossary=equilibrium","glink": "equilibrium","desc": "The stable state of the system. See: Attractor."},{ "title": "Equilibrium exchange rate","link": "https://www.alphaflow.com/?glossary=equilibrium-exchange-rate","glink": "equilibrium_exchange_rate","desc": "Exchange rate at which demand for a currency is equal to the supply of the currency in the economy."},{ "title": "Equilibrium market price of risk","link": "https://www.alphaflow.com/?glossary=equilibrium-market-price-of-risk","glink": "equilibrium_market_price_of_risk","desc": "The slope of the capital market line (CML). Since the CML represents the expected return offered to compensate for a perceived level of risk, each point on the line is a balanced market condition, or equilibrium. The slope of the line determines the additional expected return needed to compensate for a unit change in risk. The equation of the CML is defined by the capital asset pricing model."},{ "title": "Equilibrium price","link": "https://www.alphaflow.com/?glossary=equilibrium-price","glink": "equilibrium_price","desc": "The price at which the supply of goods matches demand."},{ "title": "Equilibrium rate of interest","link": "https://www.alphaflow.com/?glossary=equilibrium-rate-of-interest","glink": "equilibrium_rate_of_interest","desc": "The interest rate that clears the market. Also called the trade-clearing interest rate."},{ "title": "Equipment leasing partnership","link": "https://www.alphaflow.com/?glossary=equipment-leasing-partnership","glink": "equipment_leasing_partnership","desc": "A limited partnership that receives income and tax benefits such as depreciation costs by purchasing equipment and leasing it to other parties."},{ "title": "Equipment trust certificates","link": "https://www.alphaflow.com/?glossary=equipment-trust-certificates","glink": "equipment_trust_certificates","desc": "Certificates issued by a trust that is formed to purchase an asset and lease it to a lessee. When the last of the certificates has been repaid, title and ownership of the asset transfers to the lessee."},{ "title": "Equitable owner","link": "https://www.alphaflow.com/?glossary=equitable-owner","glink": "equitable_owner","desc": "The beneficiary of a property held in a trust."},{ "title": "Equity","link": "https://www.alphaflow.com/?glossary=equity","glink": "equity","desc": "Ownership interest in a firm. Also, the residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. In real estate, dollar difference between what a property could be sold for and debts claimed against it. In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. Equity is also shorthand for stock market investments."},{ "title": "Equity cap","link": "https://www.alphaflow.com/?glossary=equity-cap","glink": "equity_cap","desc": "An agreement in which one party, for an up-front premium, agrees to pay the other at specific time periods if a designated stock market benchmark tops a predetermined level."},{ "title": "Equity carve out","link": "https://www.alphaflow.com/?glossary=equity-carve-out","glink": "equity_carve_out","desc": "Usually occurs when a company decides to IPO one of their subsidiaries or divisions. The company usually only offers a minority share to the equity market. Also known as carve out."},{ "title": "Equity claim","link": "https://www.alphaflow.com/?glossary=equity-claim","glink": "equity_claim","desc": "Also called a residual claim; a claim to a share of earnings after debt obligations have been satisfied."},{ "title": "Equity collar","link": "https://www.alphaflow.com/?glossary=equity-collar","glink": "equity_collar","desc": "The simultaneous purchase of an equity floor and sale of an equity cap."},{ "title": "Equity contribution agreement","link": "https://www.alphaflow.com/?glossary=equity-contribution-agreement","glink": "equity_contribution_agreement","desc": "An agreement to contribute equity to a project under certain specified conditions."},{ "title": "Equity Distribution","link": "https://www.alphaflow.com/?glossary=equity-distribution","glink": "","desc": "The income that is generated from an investment is given to investors through monthly or quarterly distributions. In this manner, distributions are similar to stock dividends."},{ "title": "Equity floor","link": "https://www.alphaflow.com/?glossary=equity-floor","glink": "equity_floor","desc": "An agreement in which one party agrees to pay the other at specific time periods if a specific stock market benchmark falls below a predetermined level."},{ "title": "Equity funding","link": "https://www.alphaflow.com/?glossary=equity-funding","glink": "equity_funding","desc": "An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund."},{ "title": "Equity injection","link": "https://www.alphaflow.com/?glossary=equity-injection","glink": "equity_injection","desc": "Purchase of shares (either common or preferred) of a (usually ailing) company or institution to provide it with the required capital."},{ "title": "Equity kicker","link": "https://www.alphaflow.com/?glossary=equity-kicker","glink": "equity_kicker","desc": "Stock warrants issued attached to a new debt, preferred or common stock issue to improve the salability of the issue."},{ "title": "Equity market","link": "https://www.alphaflow.com/?glossary=equity-market","glink": "equity_market","desc": "Related: stock market"},{ "title": "Equity multiplier","link": "https://www.alphaflow.com/?glossary=equity-multiplier","glink": "equity_multiplier","desc": "Total assets divided by total common stockholders' equity; the total assets per dollar of stockholders' equity."},{ "title": "Equity options","link": "https://www.alphaflow.com/?glossary=equity-options","glink": "equity_options","desc": "Securities that give the holder the right (but not the obligation) to buy or sell a specified number of shares of stock, at a specified price for a certain (limited) time period. Typically one option equals 100 shares of stock."},{ "title": "Equity REIT","link": "https://www.alphaflow.com/?glossary=equity-reit","glink": "equity_reit","desc": "A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT."},{ "title": "Equity swap","link": "https://www.alphaflow.com/?glossary=equity-swap","glink": "equity_swap","desc": "A swap in which the cash flows exchanged are based on the total return on some stock market index and an interest rate (either a fixed rate or floating rate). Related: Interest rate swap."},{ "title": "Equity-linked Eurobonds","link": "https://www.alphaflow.com/?glossary=equity-linked-eurobonds","glink": "equity_linked_eurobonds","desc": "A Eurobond including a convertibility option or warrant."},{ "title": "Equity-linked policies","link": "https://www.alphaflow.com/?glossary=equity-linked-policies","glink": "equity_linked_policies","desc": "Related: Variable life"},{ "title": "Equityholders","link": "https://www.alphaflow.com/?glossary=equityholders","glink": "equityholders","desc": "Stockholders; those holding shares of the firm's equity."},{ "title": "Equivalent annual annuity","link": "https://www.alphaflow.com/?glossary=equivalent-annual-annuity","glink": "equivalent_annual_annuity","desc": "The amount per year for some number of years that has a present value equal to a given amount."},{ "title": "Equivalent annual benefit","link": "https://www.alphaflow.com/?glossary=equivalent-annual-benefit","glink": "equivalent_annual_benefit","desc": "The annual annuity with the same value as the net present value of an investment project."},{ "title": "Equivalent annual cash flow","link": "https://www.alphaflow.com/?glossary=equivalent-annual-cash-flow","glink": "equivalent_annual_cash","desc": "Annuity with the same net present value as the company's proposed investment."},{ "title": "Equivalent annual cost","link": "https://www.alphaflow.com/?glossary=equivalent-annual-cost","glink": "equivalent_annual_cost","desc": "The cost per year of owning an asset over its entire life."},{ "title": "Equivalent bond yield","link": "https://www.alphaflow.com/?glossary=equivalent-bond-yield","glink": "equivalent_bond_yield","desc": "Effective annual yield on a short-term, noninterest-bearing security calculated for comparison to yields quoted on coupon securities."},{ "title": "Equivalent loan","link": "https://www.alphaflow.com/?glossary=equivalent-loan","glink": "equivalent_loan","desc": "Given the after-tax stream associated with a lease, the maximum amount of conventional debt that the same period-by-period after-tax debt service stream is capable of supporting."},{ "title": "Equivalent taxable yield","link": "https://www.alphaflow.com/?glossary=equivalent-taxable-yield","glink": "equivalent_taxable_yield","desc": "The yield that must be offered on a taxable bond issue to give the same after-tax yield as a tax-exempt issue."},{ "title": "ER","link": "https://www.alphaflow.com/?glossary=er","glink": "E.R.","desc": "The two-character ISO 3166 country code for ERITREA."},{ "title": "ERI","link": "https://www.alphaflow.com/?glossary=eri","glink": "E.R.I.","desc": "The three-character ISO 3166 country code for ERITREA."},{ "title": "Erosion","link": "https://www.alphaflow.com/?glossary=erosion","glink": "erosion","desc": "A negative impact on one or more of a firm's existing assets."},{ "title": "ES","link": "https://www.alphaflow.com/?glossary=es","glink": "E.S.","desc": "The two-character ISO 3166 country code for SPAIN."},{ "title": "Escalator clause","link": "https://www.alphaflow.com/?glossary=escalator-clause","glink": "escalator_clause","desc": "Provision in a contract allowing cost increases to be passed on. In an employment contract, for example an escalator clause may call for wage increases in line with inflation."},{ "title": "Escheat","link": "https://www.alphaflow.com/?glossary=escheat","glink": "escheat","desc": "Reversion of monies or securities to the state in which the securityholder was last known to reside, when no claim by the securityholder has been made after a certain period of time fixed by state law. This is known as the holding period or cut-off date."},{ "title": "Escheat Period","link": "https://www.alphaflow.com/?glossary=escheat-period","glink": "escheat_period","desc": "The period of elapsed time required by applicable state law for property to be presumed abandoned."},{ "title": "Escheatment","link": "https://www.alphaflow.com/?glossary=escheatment","glink": "escheatment","desc": "The process of turning over unclaimed or abandoned property to a state authority. Escheatment laws require mutual funds to turn over uncashed or returned check dollars and/or client account fund shares if the owner cannot be located within a length of time determined by each state."},{ "title": "Escrow","link": "https://www.alphaflow.com/?glossary=escrow","glink": "escrow","desc": "Property or money held by a third party until the agreed upon obligations of a contract are met."},{ "title": "Escrow receipt","link": "https://www.alphaflow.com/?glossary=escrow-receipt","glink": "escrow_receipt","desc": "A document provided by a bank in options trading to guarantee that the underlying security is on deposit and available for potential delivery."},{ "title": "Escrowed to Maturity","link": "https://www.alphaflow.com/?glossary=escrowed-to-maturity","glink": "escrowed_to_maturity","desc": "Holding of the proceeds from a new bond issue to pay off an existing bond issue at its maturation date."},{ "title": "ESH","link": "https://www.alphaflow.com/?glossary=esh","glink": "E.S.H.","desc": "The three-character ISO 3166 country code for WESTERN SAHARA."},{ "title": "ESP (1)","link": "https://www.alphaflow.com/?glossary=esp-1","glink": "esp","desc": "The ISO 4217 currency code for the Spanish Peseta."},{ "title": "ESP (2)","link": "https://www.alphaflow.com/?glossary=esp-2","glink": "E.S.P.","desc": "The three-character ISO 3166 country code for SPAIN."},{ "title": "Essential purpose (or function) bond","link": "https://www.alphaflow.com/?glossary=essential-purpose-or-function-bond","glink": "essential_purpose_bond","desc": "See: Public purpose bond"},{ "title": "EST","link": "https://www.alphaflow.com/?glossary=est","glink": "E.S.T.","desc": "The three-character ISO 3166 country code for ESTONIA."},{ "title": "Estate planning","link": "https://www.alphaflow.com/?glossary=estate-planning","glink": "estate_planning","desc": "The preparation of a plan to carry out an individual's wishes as to the administration and disposition of his/her property before or after his/her death."},{ "title": "Estate tax","link": "https://www.alphaflow.com/?glossary=estate-tax","glink": "estate_tax","desc": "A federal or state tax imposed on an individual's assets inherited by heirs."},{ "title": "Estimated tax","link": "https://www.alphaflow.com/?glossary=estimated-tax","glink": "estimated_tax","desc": "Tax to be paid quarterly on income that is not subject to withholding tax, including self-employed income, investment income, alimony, rent, and capital gains."},{ "title": "ET","link": "https://www.alphaflow.com/?glossary=et","glink": "E.T.","desc": "The two-character ISO 3166 country code for ETHIOPIA."},{ "title": "ETB","link": "https://www.alphaflow.com/?glossary=etb","glink": "etb","desc": "The ISO 4217 currency code for the Ethiopian Birr."},{ "title": "ETH","link": "https://www.alphaflow.com/?glossary=eth","glink": "E.T.H.","desc": "The three-character ISO 3166 country code for ETHIOPIA."},{ "title": "Ethical fund","link": "https://www.alphaflow.com/?glossary=ethical-fund","glink": "ethical_fund","desc": "See: Social conscious mutual fund."},{ "title": "Ethics","link": "https://www.alphaflow.com/?glossary=ethics","glink": "ethics","desc": "Standards of conduct or moral judgment."},{ "title": "Euclidean Geometry","link": "https://www.alphaflow.com/?glossary=euclidean-geometry","glink": "euclidean_geometry","desc": "The Plane geometry learned in high school, based upon a few ideal, smooth, symmetric shapes."},{ "title": "EUR","link": "https://www.alphaflow.com/?glossary=eur","glink": "eur","desc": "The ISO 4217 currency code for Euro."},{ "title": "EUREX","link": "https://www.alphaflow.com/?glossary=eurex","glink": "e.u.r.e.x.","desc": "The European derivatives exchange formed in 1998 by a merger of the Deutsche Terminbörse (DTB) and the Swiss Options and Financial Futures Exchange (SOFFEX)."},{ "title": "Euro","link": "https://www.alphaflow.com/?glossary=euro","glink": "euro","desc": "Originally, the term for a deposit made outside one's home country but denominated in the home country currency. This terminology is confusing now since the new European Currency unit, also called the Euro, was introduced on January 1, 1999."},{ "title": "Euro CDs","link": "https://www.alphaflow.com/?glossary=euro-cds","glink": "euro_cds","desc": "CDs issued by a U.S. bank branch or foreign bank located outside the U.S. Almost all Euro CDs are issued in London."},{ "title": "Euro lines","link": "https://www.alphaflow.com/?glossary=euro-lines","glink": "euro_lines","desc": "Lines of credit granted by banks (foreign or foreign branches of U.S. banks) for Eurocurrencies."},{ "title": "Euro straight","link": "https://www.alphaflow.com/?glossary=euro-straight","glink": "euro_straight","desc": "A fixed-rate coupon Eurobond."},{ "title": "Euro-commercial paper","link": "https://www.alphaflow.com/?glossary=euro-commercial-paper","glink": "euro_commercial_paper","desc": "Short-term notes with maturities up to 360 days that are issued by companies in international money markets."},{ "title": "Euro-medium term note","link": "https://www.alphaflow.com/?glossary=euro-medium-term-note","glink": "","desc": "A nonunderwritten Euronote issued directly to the market. Euro-MTNs are offered continuously rather than all at once as a bond issue is. Most Euro-MTN maturities are under five years."},{ "title": "Euro-medium term note (Euro-MTN)","link": "https://www.alphaflow.com/?glossary=euro-medium-term-note-euro-mtn","glink": "euro_medium_term_note","desc": "A nonunderwritten Euronote issued directly to the market. Euro-MTNs are offered continuously rather than all at once as a bond issue is. Most Euro-MTN maturities are under five years."},{ "title": "Euro-note","link": "https://www.alphaflow.com/?glossary=euro-note","glink": "euro_note","desc": "Short- to medium-term debt instrument sold in the Eurocurrency market."},{ "title": "Euro.NM","link": "https://www.alphaflow.com/?glossary=euro-nm","glink": "euronm","desc": "Created on March 1, 1996, Euro.NM is a pan- network of regulated markets dedicated to growth companies, regardless of their sector of activity or country of origin. Euro.NM member exchanges and their respective new markets consist of the Paris Stock Exchange (Le Nouveau Marché), the Deutsche Börse AG (Neuer Markt),  the Amsterdam Exchanges (NMAX), and the Brussels Stock Exchange (Euro.NM Belgium)."},{ "title": "Eurobank","link": "https://www.alphaflow.com/?glossary=eurobank","glink": "eurobank","desc": "A bank that regularly accepts foreign currency-denominated deposits and makes foreign currency loans."},{ "title": "Eurobond","link": "https://www.alphaflow.com/?glossary=eurobond","glink": "eurobond","desc": "A bond that is (1) underwritten by an international syndicate, (2) issued simultaneously to investors in a number of countries, and (3) issued outside the jurisdiction of any single country. Eurobonds are often bearer bonds."},{ "title": "Euroclear","link": "https://www.alphaflow.com/?glossary=euroclear","glink": "euroclear","desc": "The Euroclear group is the world's largest settlement system for domestic and international securities transactions, covering both bonds and equities for financial institutions located in over 80 countries."},{ "title": "Eurocredit market","link": "https://www.alphaflow.com/?glossary=eurocredit-market","glink": "eurocredit_market","desc": "Comprises banks that accept deposits and provide loans in large denominations and in a variety of currencies. The banks that constitute this market are the same banks that constitute the Eurocurrency market; the difference is that Eurocredit loans are longer-term than so-called Eurocurrency loans."},{ "title": "Eurocredits","link": "https://www.alphaflow.com/?glossary=eurocredits","glink": "eurocredits","desc": "Intermediate-term loans of Eurocurrencies made by banking syndicates to corporate and government borrowers."},{ "title": "Eurocurrency","link": "https://www.alphaflow.com/?glossary=eurocurrency","glink": "eurocurrency","desc": "Instrument issued outside your country, but denominated in your currency. A Eurodollar is a Certificate of Deposit in U.S. dollars issued in some other country (though mainly traded in London). A Euroyen is a CD issued in yen outside Japan."},{ "title": "Eurocurrency deposit","link": "https://www.alphaflow.com/?glossary=eurocurrency-deposit","glink": "eurocurrency_deposit","desc": "A short-term fixed-rate time deposit denominated in a currency other than the local currency (e.g., U.S. dollars deposited in a London bank)."},{ "title": "Eurocurrency market","link": "https://www.alphaflow.com/?glossary=eurocurrency-market","glink": "eurocurrency_market","desc": "The money market for borrowing and lending currencies that are held in the form of deposits in banks located outside the countries where the currencies are issued as legal tender."},{ "title": "Eurodollar","link": "https://www.alphaflow.com/?glossary=eurodollar","glink": "eurodollar","desc": "Refers to a certificate of deposit in U.S. dollars in a bank that is not located in the U.S. Most of the Eurodollar deposits are in London banks, but Eurodeposits may be anywhere other than the U.S. Similarly, a Euroyen or Euro DM deposit represents a CD in yen or DM outside Japan and Germany, respectively."},{ "title": "Eurodollar bonds","link": "https://www.alphaflow.com/?glossary=eurodollar-bonds","glink": "eurodollar_bonds","desc": "Eurobonds denominated in U.S.dollars."},{ "title": "Eurodollar certificate of deposit","link": "https://www.alphaflow.com/?glossary=eurodollar-certificate-of-deposit","glink": "eurodollar_certificate_of_deposit","desc": "A certificate of deposit paying interest and principal in dollars, but issued by a bank outside the United States, usually in Europe."},{ "title": "Eurodollar futures","link": "https://www.alphaflow.com/?glossary=eurodollar-futures","glink": "eurodollar_futures","desc": "A futures contract written on a Eurodollar deposit. The contract locks in an interest rate in the future and is cash settled."},{ "title": "Eurodollar interest rate","link": "https://www.alphaflow.com/?glossary=eurodollar-interest-rate","glink": "eurodollar_interest_rate","desc": "Interest rate earned on a Eurodollar deposit."},{ "title": "Eurodollar obligations","link": "https://www.alphaflow.com/?glossary=eurodollar-obligations","glink": "eurodollar_obligations","desc": "Certificates of deposit issued in U.S. dollars by foreign banks and foreign branches of U.S. banks."},{ "title": "Euroequity issues","link": "https://www.alphaflow.com/?glossary=euroequity-issues","glink": "euroequity_issues","desc": "Securities sold in the Euromarket. That is, securities initially sold to investors simultaneously in several national markets by an international syndicate. Related: External market."},{ "title": "European Association of Securities Dealers Automated Quotation","link": "https://www.alphaflow.com/?glossary=european-association-of-securities-dealers-automated-quotation","glink": "european_association_of_securities_dealers_automated_quotation","desc": "European equivalent of Nasdaq."},{ "title": "European Bank for Reconstruction and Development","link": "https://www.alphaflow.com/?glossary=european-bank-for-reconstruction-and-development","glink": "eurpoean_bank_for_reconstruction_and_development","desc": "Bank targeted at Eastern Europe and the former Soviet Union."},{ "title": "European Banking Authority","link": "https://www.alphaflow.com/?glossary=european-banking-authority","glink": "eu_banking_authority","desc": "The European Banking Authority was established in November 24, 2010 by the European Parliament. EBA took over all existing and ongoing tasks and responsibilities from the Committee of European Banking Supervisors (CEBS). EBA acts as a hub of EU, safeguarding public values related to banking, such as the stability of the financial system, the transparency of markets and financial products and the protection of depositors and investors. See: ESMA and EIOPA"},{ "title": "European Central Bank","link": "https://www.alphaflow.com/?glossary=european-central-bank","glink": "european_central_bank","desc": "Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain."},{ "title": "European Currency Unit","link": "https://www.alphaflow.com/?glossary=european-currency-unit","glink": "european_currency_unit","desc": "An index of foreign exchange consisting of European currencies, originally devised in 1979. Also see Euro."},{ "title": "European exchange rate mechanism","link": "https://www.alphaflow.com/?glossary=european-exchange-rate-mechanism","glink": "european_exchange_rate_mechanism","desc": "The system that countries in the European Union once used to pay exchange rates within bands around an ERM central value."},{ "title": "European Exercise","link": "https://www.alphaflow.com/?glossary=european-exercise","glink": "european_exercise","desc": "A feature of an option that stipulates that the option may only be exercised at its expiration. Therefore, there can be no early assignment with this type of option. Most index options are European-style exercise."},{ "title": "European Financial Stability Facility","link": "https://www.alphaflow.com/?glossary=european-financial-stability-facility","glink": "european_financial_stability_facility","desc": "A special purpose entity formed to preserve financial stability in Europe by providing financial assistance to eurozone states in difficulty. The Facility was agreed by the 27 member states of the EU on May 9, 2010 and can give loans up to a maximum of €440 billion to member states in need."},{ "title": "European Insurance and Occupational Pensions Authority","link": "https://www.alphaflow.com/?glossary=european-insurance-and-occupational-pensions-authority","glink": "eu_insurance_and_occupational_authority","desc": "EIOPA is part of European System of Financial Supervision consisting of three European Supervisory Authorities and the European Systemic Risk Board. It is an independent advisory body to the European Parliament, the Council of the European Union and the European Commission. EIOPA's core responsibilities are to support the stability of the financial system, transparency of markets and financial products as well as the protection of insurance policyholders, pension scheme members and beneficiaries. EIOPA works closely with EBA and ESMA"},{ "title": "European Monetary System","link": "https://www.alphaflow.com/?glossary=european-monetary-system","glink": "european_monetary_system","desc": "A system adopted by European Community members with the aim of promoting stability by limiting exchange-rate fluctuations. The system was originated in 1979 by the nine members of the European Community (EC). The EMS comprised three principal elements: the European Currency Unit (ECU), the monetary unit used in EC transactions; the Exchange Rate Mechanism, ERM, whereby those member states taking part agreed to maintain currency fluctuations within certain agreed limits; and the European Monetary Cooperation Fund, which issues the ECU and oversees the ERM. The 1992 Maastricht Treaty provided for the move to Economic and Monetary Union (EMU), including a European Monetary Institute to coordinate the economic and monetary policy of the EU, a European Central Bank (ECB) to govern these policies, and the presentation of a single European currency."},{ "title": "European option","link": "https://www.alphaflow.com/?glossary=european-option","glink": "european_option","desc": "Option that may be exercised only at the expiration date. Related: American option."},{ "title": "European Options Exchange","link": "https://www.alphaflow.com/?glossary=european-options-exchange","glink": "european_options_exchange","desc": "Now AEX-Optiebeurs. See: Amsterdam Exchanges (AEX)."},{ "title": "European Securities and Markets Authority","link": "https://www.alphaflow.com/?glossary=european-securities-and-markets-authority","glink": "eu_securities_and_markets_authority","desc": "ESMA is an independent EU Authority that safeguards public values related to securities and markets, ensuring integrity, transparency, efficiency and orderly functioning of securities markets, as well as investor protection. ESMA fosters supervisory covergence amongst securities regulators, and across financial sectors by working closely with EBA and EIOPA"},{ "title": "European System of Financial Supervisors","link": "https://www.alphaflow.com/?glossary=european-system-of-financial-supervisors","glink": "esfs","desc": "A supra-national structure established to deal with cross-border aspects of financial stability in Europe post financial crisis in 2008. ESFS brings together existing national supervisors with three new sectoral EU-level authorities (for banking, insurance, and securities markets respectively) and supervise individual (but unnamed) financial institutions important enough to pose a widespread threat if they encounter problems."},{ "title": "European Systemic Risk Council","link": "https://www.alphaflow.com/?glossary=european-systemic-risk-council","glink": "esrc","desc": "A supra-national structure established to deal with cross-border aspects of financial stability in Europe post finanical crisis in 2008. ESRC monitors systemic risks (supervise the macro-prudential system) and address them through coordinated policy responses from EU member states."},{ "title": "European terms","link": "https://www.alphaflow.com/?glossary=european-terms","glink": "european_terms","desc": "A foreign exchange quotation that states the foreign currency price of one U.S. dollar. Opposite of direct quote."},{ "title": "European Union","link": "https://www.alphaflow.com/?glossary=european-union","glink": "european_union","desc": "An economic association of European countries founded by the Treaty of Rome in 1957 as a common market for six nations. It was known as the European Community until January 1, 1994 and currently comprises 28 membercountries. Its goals are a single market for goods and services without any economic barriers, and a common currency with one monetary authority. Not all countries share the common currency. Currently, the Eurozone (countries using the Euro) are 17 countries."},{ "title": "European-style exercise","link": "https://www.alphaflow.com/?glossary=european-style-exercise","glink": "european_style_exercise","desc": "A method of exercising options contracts in which the buyer can only exercise the contract on the last day before expiration."},{ "title": "European-style option","link": "https://www.alphaflow.com/?glossary=european-style-option","glink": "european_style_option","desc": "An option contract that can be exercised only on the expiration date."},{ "title": "European, Australia, and Far East index","link": "https://www.alphaflow.com/?glossary=european-australia-and-far-east-index","glink": "european_australian_far_east_index","desc": "Stock index, computed by Morgan Stanley Capital International."},{ "title": "Euroyen bonds","link": "https://www.alphaflow.com/?glossary=euroyen-bonds","glink": "euroyen_bonds","desc": "Eurobonds denominated in Japanese yen."},{ "title": "Eurozone","link": "https://www.alphaflow.com/?glossary=eurozone","glink": "eurozone","desc": "A subset of the European Union of those countries that use the Euro currency. Currently, there are 17 members of the Eurozone."},{ "title": "Evaluation period","link": "https://www.alphaflow.com/?glossary=evaluation-period","glink": "evaluation_period","desc": "The time interval over which funds assess a money manager's performance."},{ "title": "Even lot","link": "https://www.alphaflow.com/?glossary=even-lot","glink": "even_lot","desc": "See: Round lot"},{ "title": "Evening up","link": "https://www.alphaflow.com/?glossary=evening-up","glink": "evening_up","desc": "Buying or selling to offset an existing market position."},{ "title": "Event anomalies","link": "https://www.alphaflow.com/?glossary=event-anomalies","glink": "event_anomalies","desc": "Occurrences such as earnings surprises or stock splits that seem to present opportunity to generate abnormal returns for those trading on the news."},{ "title": "Event driven","link": "https://www.alphaflow.com/?glossary=event-driven","glink": "event_driven","desc": "In the context of hedge funds, a style of management that combines many different types of hedge fund investing such as merger arbitrage, distressed securities and high yield investing, in conjunction with an important 'event' that is supposed to unlock firm value (like a merger announcement, earnings announcement, or a regulator decision)."},{ "title": "Event risk","link": "https://www.alphaflow.com/?glossary=event-risk","glink": "event_risk","desc": "The risk that the ability of an issuer to make interest and principal payments will change because of rare, discontinuous, and very large, unanticipated changes in the market environment such as (1) a natural or industrial accident or some regulatory change or (2) a takeover, or corporate restructuring."},{ "title": "Event study","link": "https://www.alphaflow.com/?glossary=event-study","glink": "event_study","desc": "A statistical study that examines how the release of information affects prices at a particular time."},{ "title": "Events of default","link": "https://www.alphaflow.com/?glossary=events-of-default","glink": "events_of_default","desc": "Contractually specified events that allow lenders to demand immediate repayment of a debt."},{ "title": "Evergreen","link": "https://www.alphaflow.com/?glossary=evergreen","glink": "evergreen","desc": "A contract that rolls over after each agreed (short-term) period until cancelled by one party."},{ "title": "Evergreen credit","link": "https://www.alphaflow.com/?glossary=evergreen-credit","glink": "evergreen_credit","desc": "Revolving credit without maturity."},{ "title": "Evergreen facility","link": "https://www.alphaflow.com/?glossary=evergreen-facility","glink": "evergreen_facility","desc": "A facility that allows the borrower (with the consent of the lenders) to extend a 364 day revolving facility for another 364 days."},{ "title": "Evergreen funding","link": "https://www.alphaflow.com/?glossary=evergreen-funding","glink": "evergreen_funding","desc": "A British term referring to the gradual injection of capital into a new or existing enterprise."},{ "title": "Ex ante return","link": "https://www.alphaflow.com/?glossary=ex-ante-return","glink": "exante_return","desc": "The expected return or anticipation return of an asset or portfolio."},{ "title": "Ex ante value","link": "https://www.alphaflow.com/?glossary=ex-ante-value","glink": "ex_ante_value","desc": "The forecasted price or value."},{ "title": "Ex post return","link": "https://www.alphaflow.com/?glossary=ex-post-return","glink": "ex_post_return","desc": "Related: Holding-period return "},{ "title": "Ex Works","link": "https://www.alphaflow.com/?glossary=ex-works","glink": "ex_works","desc": "A transaction in which the seller's only responsibility is to make the ordered goods available to the buyer at the seller's premises. The buyer bears the cost and risk in transporting the goods from the seller's premises to destination. Since this includes pre- carriage and export clearance in the seller's country, EXW is not a very practical Incoterm for U.S. exports."},{ "title": "Ex-all","link": "https://www.alphaflow.com/?glossary=ex-all","glink": "exall","desc": "The sale of a security without the privileges associated with the security such as dividends, voting rights, or warrants."},{ "title": "Ex-dividend","link": "https://www.alphaflow.com/?glossary=ex-dividend","glink": "ex_dividend","desc": "This literally means 'without dividend.' The buyer of shares when they are quoted ex-dividend is not entitled to receive a declared dividend. It is the interval between the record date and the payment date during which the stock trades without its dividend-the buyer of a stock selling ex-dividend does not receive the recently declared dividend. Antithesis of cum dividend (with dividend)."},{ "title": "Ex-dividend date","link": "https://www.alphaflow.com/?glossary=ex-dividend-date","glink": "ex_dividend_date","desc": "The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend.) The date set by the NYSE (and generally followed on other U.S. exchanges) is currently two business days before the record date. A stock that has gone ex-dividend is denoted by an x in newspaper listings on that date."},{ "title": "Ex-legal","link": "https://www.alphaflow.com/?glossary=ex-legal","glink": "exlegal","desc": "A municipal bond offered without a law firm's legal opinion. A majority of bonds are issued with legal opinions."},{ "title": "Ex-pit transaction","link": "https://www.alphaflow.com/?glossary=ex-pit-transaction","glink": "expit_transaction","desc": "The closing out of a futures position off the exchange floor. Effected when two hedgers, one long and one short, make a private deal in the cash market, and no longer need their (equal and opposite) futures contracts to hedge. The hedgers contact the exchange and request the contracts be nullified without making a trade on the floor. This must be done (1) to ensure neither contract results in delivery/the requirement to deliver; (2) to properly reflect open interest; and (3) to eliminate the uncertainty of the fill