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- An annual asset-based distribution fee incurred by mutual funds and ETFs charged by US funds and capped by the SEC at 1% of fund asset.[...]
- The exemption allowing qualifying foreign private issuers to have their equity securities traded in the US over-the-counter market without registratio[...]
- Synonym for Securities Act of 1933
- Synonym for Investment Company Act of 1940Back to Top ↑
- Synonym for 30/360
The day-count convention that counts every month as 30 days or 31 days only when the last day is the 31st and the first day is not either the 30th or [...]
Synonym for 30/360
- A tax-qualified, defined-contribution pension account defined in subsection 401(k) of the Internal Revenue Code, under which retirement savings contri[...]Back to Top ↑
- To let an option expire worthless.[...]
- Abbreviation of asset-backed commercial paper
A bankruptcy remote special purpose vehicle (SPV) that is set up by the sponsor of an ABCP program to purchase the receivables and other assets (e.g.,[...]
Synonym for asset-backed commercial paper program
Synonym for asset-backed commercial paper programme
Synonym for at a premium
Synonym for at a premium
Synonym for at a premium
A deduction from total income to arrive at adjusted gross income (AGI).[...]
Abbreviation of asset-backed security
Synonym for servicer
Synonym for true sale
Synonym for true sale
Synonym for banker’s acceptance
A bank to which another bank sends a letter of credit (L/C) on behalf of a client, accepts the L/C by countersigning (endorsing) it, and incurs the ob[...]
An amount charged investors for the maintenance of accounts with mutual funds, commonly when the account value falls below a certain amount.[...]
A natural person who earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects [...]
A swap in which the underlying principal increases over the life of the swap, it allowing a borrower or investor to match swap payments with its cash [...]
The interest that accumulates on the principal amount of a bond or other debt instrument after the debt’s last interest payment, the amount being ea[...]
Expenses indirectly incurred by a fund through its ownership of shares in other investment companies.[...]
Synonym for actual/365
Synonym for actual/365
Synonym for actual/360
Synonym for actual/365 fixed
Synonym for actual/365
Synonym for active management
The application of a portfolio management strategy in which the manager makes investments and asset allocation with the goal of outperforming an inves[...]
An exchange-traded fund that tracks the performance and is generally invested in the component securities of a securities index, such as the S&P 500 s[...]
An investment fund that employs a professional portfolio manager, a co-manager or a team of managers to select assets for the fund portfolio with the [...]
The day-count convention based on the actual number of days in the interest period divided by 360, used in the US money market, the Eurocurrency LIBOR[...]
The day-count convention the counts the actual number of days in the interest period divided by 365 or, if a leap year, 366, used for US T-notes and T[...]
The day-count convention based on the actual number of days in the interest period divided by 365 – it ignoring leap years, used in the money market[...]
Synonym for actual/365
Synonym for actual/365
Synonym for yield basis
A money market instrument that is issued at face value and receives payment of interest when principal is repaid at maturity quoted at an add-on rate [...]
The interest earned on money market add-on instruments that is paid when the principal (face value) is repaid at maturity.[...]
Synonym for above-the-line deduction
An interest rate that is determined by one or more financial institutions that is set internally or based on a published rate, such as the prime rate.[...]
The party that conducts the administrative operations of an ABCP program, including monitoring receivables, the issuance and repayment of the CP, repo[...]
Abbreviation of American depositary receipt
An individual who can influence management decisions in that company, including officers, directors, principal stockholders, and their immediate famil[...]
Abbreviation of available-for-sale
A fund's annualized tax- and load-adjusted total return for a specified time period, where interest income, dividends and capital gains are each taxed[...]
Synonym for tax-equivalent yield
Synonym for secondary market
Synonym for agency security
A bond fund that is invested principally in debt securities issued by a national government agency or government sponsored enterprise (GSE) for a publ[...]
A debt security issued by a national government agency or government sponsored enterprise (GSE) for a public purpose in a variety of structures, coupo[...]
Synonym for paying agent
Synonym for systematic risk
An investment fund that has a relatively risky investment policy and volatile returns, where those with a relatively risky investment policy tend to p[...]
Abbreviation of accrued interest
An investment fund that invests in such untraditional asset classes as global real estate or currencies and such illiquid assets as private debt and/o[...]
The yield (return) on an investment with comparable risk.[...]
A negotiable certificate (receipt) issued by a US depository bank for the shares or bonds of a foreign-based corporation that are held in custody in t[...]
Synonym for American-style option
A currency option exchange rate quote expressed in terms of the amount of USD per unit of the base currency.[...]
An option that can be exercised at any time during its life, up to and including its expiration date, including most traded options and all stock opti[...]
Variation of amortized cost
The amount at which a financial instrument is measured upon initial recognition, equal to its transaction price minus the principal repayments, plus o[...]
interest rate swap in which the notional principal for the interest payments declines during the life of the swap as the principal amount of the swap [...]
Synonym for effective annual rate
Synonym for effective annual rate
Synonym for effective annual rate
Synonym for annual percentage rate
1. The annualized nominal rate without intraperiod compounding, equal to the periodic nominal rate times the number of compounding periods for a year.[...]
Synonym for annual percentage rate
The annualized nominal rate of interest on savings that is compounded every interest payment period – the AER equivalent of APR, it allowing for the[...]
The total return used to compare of the performance of a fund, calculated on a calendar-year and year-to-date basis.[...]
Synonym for annual percentage rate
Yield to maturity quoted on an annual-pay basis as an effective annualized yield (EAY), as is the market convention in those debt capital markets wher[...]
Synonym for annual yield to maturity
A bond that makes a coupon payment once a year (annually) and quoted in terms of its effective annual yield to maturity, including the debt capital ma[...]
Synonym for compounded average annual return
Abbreviation of add-on rate
Synonym for yield to maturity
Synonym for yield to maturity
Synonym for yield to maturity
Abbreviation of annual percentage rate
Abbreviation of arbitrage pricing theory
Abbreviation of annual percentage yield
The range of prices within which there is no opportunity to arbitrage between the cash and futures market.[...]
Synonym for arbitrage band
An asset-pricing theory used to determine the expected return on particular investments, as an alternative to the capital asset pricing model (CAPM), [...]
1. An underwriter of a finance transaction, acting alone or as co-underwriter.
2. A largely ceremonial title awarded to a syndicate's participant len[...]
Synonym for arranger
Synonym for arranger
The amount by which dividends on cumulative preferred stock are due but not yet paid.[...]
An interest rate swap in which the floating rate is set and paid at the end of the settlement period, as opposed to the usual
arrangement that sets th[...]
The selection of securities within an asset class and the distribution of the assets between the different classes in order to maximize the return on [...]
Synonym for balanced fund
In regards to a class of senior security representing indebtedness of an issuer, the ratio which the value of the total assets of such issuer, less al[...]
The spreading of investment risk among a number of different financial assets by holding a combination of assets that are not perfectly positively cor[...]
Synonym for portfolio management
Synonym for management style
A finance professional who reviews and manages a portfolio of assets, analyzes the individual investments, and identifies areas and opportunities for [...]
Synonym for portfolio
The creation and issuance of marketable debt securities either through true-sale securitization or synthetic securitization.[...]
A combination of the purchase of a fixed-interest security, the variable refinancing of the purchase, and the simultaneous purchase of an interest rat[...]
1. The nature of a financial asset, commonly classified according to whether it is debt or equity and the financial market in which it trades.
2. Cla[...]
Commercial paper (CP) issued by a bankruptcy-remote special purpose vehicle (SPV) and whose interest and principal payments are derived from the cash [...]
An arrangement under which a special purpose vehicle (SPV) is established to acquire and hold medium- to long-term financial assets from one or more o[...]
Variation of asset-backed commercial paper program
A marketable security that is issued by a special purpose vehicle (SPV) that buys financial receivables, such as automotive leases and consumer loans,[...]
A fee that is taken out of a mutual fund’s assets to pay for the marketing and distribution of its shares, which include Rule 12b-1 fees.[...]
Synonym for distribution fee
Synonym for unsystematic risk
The returns on a fund weighted by its value at the end of the year in which it achieved the return, where if only if the fund is the same size at the [...]
1. Referring to a financial instrument that is trading at a price below its par or face value.
2. Referring to the forward rate for a given forward m[...]
1. Referring to a financial instrument that is trading at a price above its par or face value.
2. Referring to the forward rate for a given forward m[...]
Referring to a financial instrument that is trading such that its coupon rate equals its required yield to maturity and at a price equal to its par or[...]
The selling of additional newly issued shares by a closed-end fund into the natural trading flow of the market without meaningfully affecting the mark[...]
Describing an option with a strike price that is very close to the current market price of the underlying asset, disregarding premiums, commissions an[...]
Abbreviation of at-the-money
Synonym for at-the-market offering
Synonym for at-the-market offering
Variation of at-the-market offering
An exchange specialist, market making dealer or clearing broker that enters into a contractual relationship with an ETF sponsor to contribute creation[...]
Synonym for available-for-sale
Synonym for available-for-sale security
Synonym for available-for-sale security
Synonym for available-for-sale security
US GAAP designation of a available-for-sale security.[...]
Synonym for available-for-sale security
Synonym for available-for-sale security
A nonderivative financial asset that is not classified as a loan receivable, held-to-maturity security or trading security – it is measured at fair [...]
- Abbreviation of banker’s acceptance
Synonym for deferred sales charge
Synonym for deferred sales charge
A credit facility provided by one or more banks to assure investors that the issuer will have the funds required for repaying maturing commercial pape[...]
A futures/spot market relationship in which the forward price of a commodity is lower than its spot price.[...]
An equity fund that invest in stocks for capital appreciation, in bonds for income and, sometimes, in money market instruments or cash for liquidity, [...]
Abbreviation of bond anticipation note
Synonym for fluctuation band
Synonym for banker’s acceptance
Synonym for yield basis
The annualized discount rate expected from the face value of a money market instrument on an actual/360-day simple interest basis (i.e., without compo[...]
Synonym for investment grade
A negotiable short-term high-quality pure discount money market instrument in the form of a time draft authorized under a letter of credit drawn on a [...]
The isolation of an entity (e.g., SPV) from the bankruptcy or liquidation risk of other parties – asset seller-originator, sponsors, service provide[...]
1. The possibility that a change in interest rate will cause a change in the yield on different rate-sensitive assets, liabilities and off-balance she[...]
An interest rate swap involving the exchange of floating rate interest payments based on two different reference floating rates (e.g., the 3-month EUR[...]
Synonym for fair-value basis
A warrant whose underlying is the shares of a group of different third-party companies, commonly written by banks to generate premium income.[...]
Abbreviation of broker-dealer
Abbreviation of bank discount yield
Synonym for put spread
Synonym for at a discount
Synonym for at a discount
Synonym for at a discount
A deduction or exemption from adjusted gross income (AGI) to determine taxable income.[...]
The basis of measurement for an interest rate, an index or peer group of bond prices or other values used for reference.[...]
Synonym for positive cost of carry
Abbreviation of break-even point
An option that gives the holder the right to exercise the option on any one of a number of agreed periodic dates over the option’s life.[...]
Synonym for single tranche CDO
A measure of an asset’s systematic risk in comparison to the market as a whole, typically being the regression coefficient between historical divide[...]
Synonym for beta
Synonym for systematic risk
Abbreviation of bond equivalent yield
The highest price a broker/dealer is prepared to pay for the purchase of a given amount of a financial asset (e.g., shares, bonds or currency) at any [...]
Synonym for bid
The difference between the highest price a broker/dealer is prepared to pay for a specified number of a financial asset (e.g., shares, bonds or curren[...]
Synonym for bid-ask spread
The separation of a body into two parts, such as the separation of a derivative from its host hybrid security and accounting for both the host and the[...]
Referring to an investment strategy that is neither growth nor value.[...]
The group of persons elected by a firm’s shareholders, usually at an annual meeting, authorized to perform such management functions as setting broa[...]
The governing body of a management company created as a common-law trust, instead of a board of directors, with the fiduciary responsibility to hire t[...]
Abbreviation of Bundesobligation
Abbreviation of board of directors
An intermediate-term security issued by the Treasury of the Republic of France with a maturity of two to five years.[...]
Any secured or unsecured, interest bearing or discount capital market debt instrument, regardless of its issuer and maturity.[...]
A municipal note issued by a governmental unit, usually for capital projects, that are repaid from the proceeds of the issuance of long-term bonds.[...]
Synonym for actual/365 fixed
A bond that is issued with detachable warrants to trade on their own.[...]
The total yield on investments that takes into account the interest applicable on bonds, which is the simple interest (uncompounded) semiannual bond y[...]
An investment fund that invests primarily in bonds or other types of debt securities and classified by its primary underlying assets.[...]
An interest rate futures contract usually on a government note or bond, such as the US Treasury note or Treasury bond.[...]
Synonym for bond futures
Synonym for issue rating
An agent for all holders of a bond, representing the interests of the bond investors in all legal matters and having the responsibility of ensuring th[...]
A detachable warrant that issued with a bond.[...]
A short-term government security issued by the Treasury of France with a maturity of 13, 26 or 52 weeks.[...]
Synonym for stock dividend
A company's assets less its liabilities, which equals its owner's equity.[...]
The value of a company’s equity available to common stockholders (assets – liabilities – preferred stock) per share of outstanding common stock.[...]
Variation of record date
The construction of a zero-coupon fixed-income yield curve from the observed market rates of the most liquid nongovernment instruments in their respec[...]
Synonym for seller
A spread that generates a negative cash flow when opening the transaction, resulting in a net debit position for the holder.[...]
Abbreviation of book value per share
The price of the underlying at which an option’s exercise produces neither a gain nor a loss, it considering premiums but not commissions and other [...]
Synonym for break-even point
One or more investment levels (amounts invested) in an investment fund at which the invested amount reduces the sales charge.[...]
Synonym for breakpoint
A nonstandard interest-rate period outside the standard quoted maturity dates in monthly periods, often for a contract period of a forward transaction[...]
A firm that as agent buys and sells assets on behalf of customers in return for a commission and/or as principal trades in assets for its own accoun[...]
A fee that investors pay brokers with each purchase or sale of shares, often structured as a flat fee charged every time the investor trades.[...]
Abbreviation of bon du Trésor à intérêts annuels normalisés
Abbreviation of bons du Trésor à taux fixe et à intérêts précomptés
Abbreviation of unverzinsliche Schatzanweisung
Synonym for call spread
Referring to a foreign bond issued in the United Kingdom.[...]
Abbreviation of Bundesanleihe
A bond issued by the federal government of Germany with a maturity of 10 to 30 years, comprising the long end of the German Government yield curve.[...]
A capital market note issued by the federal government of Germany with a maturity of five years, representing the middle of the German Government yiel[...]
A note issued by the federal government of Germany with a maturity of two years, having the shortest maturity of the capital market instruments issued[...]
The requirement that an entity determine whether its business model for financial assets is to either (a) hold the instruments with the intention to r[...]
A swap comprised of two spread swaps (e.g., 2-year by 5-year by 10-year).[...]
In the foreign exchange market, the seller of currency.[...]
Synonym for buy/sell-back
An FX swap in which the base currency is bought on the near date and sold on the far date.[...]
A financing arrangement involving the spot purchase and the simultaneous forward sale of a security, in which the interest on the loan is discounted; [...]
1. The party in a repurchase agreement that delivers the cash and repos in a security.
2. The party in an interest rate swap (IRS) that pays a fixed [...]
Abbreviation of book value
- Customary notation for the periodic coupon payment.[...]
- Abbreviation of modified convexity
Synonym for horizontal spread
A contractual arrangement granting its buyer the right to buy the underlying asset from a seller of that option, they being bought by those who antici[...]
A vertical (price) spread in which the long call has one strike price and the short call has a higher strike price.[...]
A bond with an embedded option that grants its issuer the right to buy the bond back from their holders at any of one or more specified call date befo[...]
Synonym for interest rate cap
The negotiated interest rate above which the writer of an interest rate cap pays the buyer the difference in the higher market reference rate (e.g., 3[...]
A model frequently used in portfolio management to determine the theoretically appropriate required rate of return of an asset, it relating the perfor[...]
Synonym for Capital Asset Pricing Model
The gain realized on the sale of an asset equal to the amount of cash and/or value of property received less the adjusted cost basis in the asset.[...]
The distribution of long-term capital gains realized by a fund on its investments, calculated and paid at least annually, to the extent a net capital [...]
Synonym for capital gain distribution
Synonym for capital gain
The date on which the most recent capital gains distributions were paid by the fund and the amount of those distributions, it also showing the price o[...]
The loss realized on the sale of an asset equal to the amount of cash and/or value of property received less the adjusted basis in the asset.[...]
The financial market for the issuing and trading of intermediate- to long-term debt instruments (notes and bonds) and primary equity instruments (stoc[...]
Synonym for capital market debt instrument
Any tradable debt instrument with a maturity greater than one year, including both notes and bonds.[...]
A financial instrument that is issued and traded in the capital market, including intermediate- to long-term debt instruments (notes and bonds) and pr[...]
That portion of a fund’s total return generated by realized and unrealized increases in the value of securities in the portfolio, which may comprise[...]
Synonym for stock dividend
Abbreviation of Capital Asset Pricing Model
Synonym for cost of carry
Synonym for book value
Synonym for cost of carry
Synonym for book value
Synonym for collateralized debt obligation
Synonym for collateralized debt obligation
Synonym for cash trade
A distribution of net income after taxes by a company to its shareholders in the form of cash, commonly expressed as a certain amount of money per sha[...]
The yield used for quoting mortgage-backed securities and other amortizing asset-backed securities that have monthly cash flows, it incorporating a sc[...]
Synonym for spot market
Synonym for dirty price
Synonym for buyer
1. The exchange of the cash value difference between the current market price (spot price) of the underlying asset and the settlement price on the fin[...]
Synonym for seller
A financial transaction that settles on the trade date (T+0), in advance of the spot value date.[...]
Synonym for cash trade
Cash settlement of an option based on the difference between its strike price and the index spot price at the time of exercise.[...]
Abbreviation of clearing broker
Abbreviation of commercial book-entry system
Abbreviation of collateralized bond obligation
Abbreviation of certificate of deposit
Synonym for money market yield
Abbreviation of collateralized debt obligation
Abbreviation of contingent deferred sales charge
Synonym for current expected credit loss model
The principal monetary authority of a nation, it performing such key functions as issuing currency and regulating the supply of credit in the economy.[...]
1. A negotiable unsecured bearer money market instrument issued by a bank evidencing a time (term) deposit with that bank, usually at a fixed rate and[...]
Abbreviation of cash flow yield
Synonym for split accounting
Synonym for security interest
Variation of demand deposit
Tax relief for parents and others who have dependent children, it phasing out where the modified adjusted gross income (MAGI) exceeds a certain level.[...]
Abbreviation of covered interest-rate parity
Referring to the class A shares of a mutual fund.[...]
A class of mutual fund shares that typically carries a front-end load while tending to have a lower annual distribution fee and other annual expenses [...]
A class of mutual fund shares typically having a contingent deferred sales charge (CDSC), rather than a front-end load, and a distribution fee as well[...]
Referring to the class C shares of a mutual fund.[...]
A class of mutual fund shares that typically has a higher annual distribution fee and other annual expenses than the other share classes, while having[...]
A class of mutual fund shares that typically available through the "mutual fund supermarkets" of discount brokers with a fee structure that can vary g[...]
Synonym for class D share
A class of mutual fund shares targeted to institutional investors and subject to very high minimum investment requirements, but no-load – alternativ[...]
A class of mutual fund shares for which a distribution and services fee of no more than 0.25% of fund assets is charges, but no load.[...]
A class of mutual fund shares usually for use in retirement plans such as 401(k) plans, which typically charge a small distribution and services fee, [...]
Synonym for option class
A repurchase transaction, as distinguished from a sell/buy-back (buy/sell-back), which is a similar type of transaction and serves the same economic f[...]
A time deposit with a bank that is not tradable (nonnegotible).[...]
The price of a bond excluding any interest that has accrued on it from the last payment of interest on the bond up to the date when it is traded.[...]
A direct market participant (broker or dealer) and member of a clearing system that deals directly with the clearing organization when clearing and [...]
Abbreviation of collateralized loan obligation
The instructions of a futures position holder to close out an open futures position to the broker where the open position is held.[...]
Referring to a closed-end investment company or fund.[...]
A class share of a closed-end fund that meets certain conditions and has received exemptive relief from the SEC in order to offer multiple share class[...]
Synonym for closed-end investment company
Synonym for closed-end investment company
Any management company other than an open-end company that issues a fixed number of non-redeemable shares through a registered broker-dealer in a sing[...]
Synonym for closed-end investment company
Synonym for closed-end investment company
A new futures or forward position that is opposite an open position, established for the purpose of canceling the open position, which is achieved by [...]
The purchase of an option by its writer with the same underlying, strike price and expiration date as the one previously sold.[...]
The sale of an option by its holder with the same underlying, strike price and expiration date as the one previously bought.[...]
Abbreviation of collateral mortgage obligation
Abbreviation of constant-maturity Treasury
Abbreviation of cost of carry
Abbreviation of contingent convertible bond
Synonym for interest rate collar
A specific asset or group of assets (personal or real property) that has been pledged or title to which has been assigned by a debtor (borrower, issue[...]
A pay-through security for which pass-through mortgage-backed securities (MBSs) or mortgage loans are grouped together in a pool that serves as collat[...]
A corporate bond backed by a portfolio of negotiable securities, usually the transferable shares of one or more of a parent company’s subsidiaries, [...]
A collateralized debt obligation that is backed by corporate bonds.[...]
A structured pay-through security created by a special purpose vehicle (SPV) that buys an originator’s receivables or other financial assets that se[...]
A collateralized debt obligation that is backed by commercial loans.[...]
Synonym for collateral mortgage obligation
A Eurosystem open market transaction for fine-tuning purposes in the form the collection of a fixed-term deposit to absorb liquidity from the market.[...]
Synonym for investment fund
Synonym for investment fund
Synonym for investment fund
Synonym for investment fund
Synonym for combined offering
A public offering in which part of the distribution comprises newly issued shares, with the issuer receiving the sale proceeds, and the rest consistin[...]
A multitiered automated delivery-versus-payment (DVP) system operated by the US Treasury for purchasing, holding and transferring of marketable securi[...]
A negotiable, unsecured typically straight discount bearer money market instrument with a maturity of less than one year, usually issued by large nonb[...]
An ongoing arrangement for the continuous issuance of commercial paper on a tap basis established for several years or open-ended, whereby paper is co[...]
Variation of commercial paper program
A natural resource, raw material or primary agricultural product that can be bought and sold and generally held for consumption, such as copper, coffe[...]
A futures contract on a commodity or “actuals”, such as cocoa, soybeans or gold, its underlying typically being held for consumption.[...]
A swap in which one of the cash flows is tied to the fixed price for a commodity and the other based on a fluctuating commodity index level.[...]
Synonym for common stock
Synonym for common stock
The residual equity in a company in that all other financial claims against the firm have priority over this class of equity, it typically entitling i[...]
Synonym for common stock
A financial instrument that is of the same credit quality and maturity and otherwise has the same features as the reference instrument.[...]
Synonym for settlement sum
A bid submitted on a yield basis in the auction of securities with the bidder specifying the rate, yield or discount margin if awarded, limited to 35%[...]
Any nonderivative financial instrument that is comprised of both liability and equity components, it calling for split accounting under IFRS.[...]
The interest that accrues on the initial principal amount and on the accumulated interest of a debt instrument.[...]
The annualized total return for periods longer than one year, which is a better indication of fund performance than nonannualized figures.[...]
Synonym for compound interest
The calculation and accrual of interest on the initial principal amount and on the accumulated interest of a debt instrument.[...]
The period in a conventional year (360, 365 or 366 days) over which interest on an interest-paying instrument is compounded.[...]
Synonym for fair value option
An investment fund with an investment policy designed to moderate risk and achieve relatively stable returns, allowing their investors to minimize the[...]
Synonym for clearing broker
Synonym for constant-maturity Treasury
A swap in which one leg is linked to a short-term rate, such as LIBOR, and the other is based on the long-term constant-maturity Treasury bond yield.[...]
An interest rate index based on a hypothetical US Treasury security with a fixed maturity, most often used as the floating-rate leg of a constant-matu[...]
The tax doctrine that states income is constructively received if it is under a taxpayer’s control to receive the payment, unless the actual receipt[...]
When a commodity’s future price is higher than its spot price, which arises when there is surplus in the spot market and the future supply of the co[...]
A bond that is automatically converted into common equity with the occurrence of a particular trigger event, such as the breach of a minimum regulator[...]
Synonym for contingent deferred sales charge
A deferred sales charge (back-end sale load), the amount depending on how long the investor holds the mutual fund shares and commonly decreasing to ze[...]
Synonym for contingent deferred sales charge
The value of the asset upon which a forward or futures contract is based.[...]
The settlement month specified under the terms of a futures contract (March, June, September or December).[...]
Synonym for FRA term
Synonym for forward rate
The amount of underlying that makes up a unit of trading and that must be delivered or purchased upon exercising an option.[...]
An assessment performed at an individual instrument level to determine whether the contractual terms of a financial asset result in cash flows that ar[...]
An investment fund purchasing program requiring an investor to commit to periodic investing a fixed amount in a mutual fund over time, often monthly f[...]
A group of members of a company who act together and in concert for a common purpose, usually determined by reference to the parties that effectively [...]
When in short supply, a premium is earned by holders of a physical commodity (and occasionally by holders of a government bond in the repo market), it[...]
Synonym for covered warrant
An embedded option in a corporate bond, commonly subordinated debentures, granting holders the right to convert the security into a predetermined numb[...]
The condition that occurs when the market price of a convertible bond is equal to its conversion value.[...]
The percentage amount by which the bond sells above its conversion value: (conversion price − current stock price) ÷ current stock price).[...]
The fixed amount of par value of the convertible bond in exchange for one share of the underlying stock, it typically being significantly higher than [...]
Synonym for conversion feature
Synonym for conversion ratio
The number of units of the underlying asset into which a bond or warrant can be exchanged.[...]
The total market value of the underlying security into which a convertible bond can be currently exchanged (i.e., conversion ratio x current stock pri[...]
A security, usually a bond or preferred stock, that is convertible into the common stock of the security's issuer.[...]
A measure of the sensitivity and stability of duration over the yield curve, it describing the nonlinear price/yield relationship and accounts for the[...]
Synonym for convexity
Synonym for primary deposit
Any action undertaken by a company that has the potential to affect the nature, make up and/or ownership of the company's equity, including cash and s[...]
Any secured or unsecured, interest bearing or discount capital market debt instrument issued by a corporation regardless of its maturity, as opposed t[...]
A bond fund that is invested mainly in corporate bonds of any maturity, which are the secured or unsecured, interest bearing or discount capital marke[...]
Synonym for issuer rating
A tax levied on the net profit of corporations.[...]
Synonym for commercial paper
Synonym for beta
Synonym for interest rate collar
An interest rate swap in which the payment obligation accrues only on those days when the reference rate is within a predetermined range (corridor) du[...]
The original cost of an asset purchased, including any reinvested dividends, reinvested capital gain distributions (for mutual funds), adjustments for[...]
The net cost incurred in holding a long cash position and a short futures position until the futures settlement date.[...]
The currency into which a currency is exchanged, the currency in an exchange rate listed after the base currency and commonly separated by a slash (e.[...]
A swap transaction that is the opposite leg of the original swap entered into in order to cancel out the impact of the original swap.[...]
An interest rate swap in which the coupon payments of a longer-term fixed rate debt are exchanged for the interest payments on floating rate debt on t[...]
Synonym for bond equivalent yield
Synonym for bond equivalent yield
A generally fixed-rate capital market debt instrument secured by both the creditworthiness of the issuing financial institution and a high-quality col[...]
The concept that the rates on interest-bearing foreign and domestic investments should be equal when forward FX rates are used to determine the domest[...]
Synonym for covered interest-rate parity
Synonym for covered interest-rate parity
A call option written by the owner of an underlying asset or another option that offsets (covers) the position, typically in order to realize option p[...]
A basket warrant typically written by banks granting the holder the right to buy from the writer the portfolio of equity issued by third parties or an[...]
Abbreviation of commercial paper
Synonym for commercial paper programme
Abbreviation of credit rating agency
A sales charge that compensates the UIT sponsor for creating and developing each UIT, including determining the UIT’s investment objectives and poli[...]
The underlying securities and/or cash that an ETF authorized participant (AP) contributes to the fund sponsor in exchange for equally valued creation [...]
A very large block of EFT shares, usually 25,000-200,000, that an ETF authorized participant (AP) receives in exchange for a creation basket of equall[...]
Describes a financial asset when one or more credit events have occurred that have a significant impact on the expected future cash flows of the asset[...]
A measure of creditworthiness and the ability of an individual or company to repay debt, especially as assessed and reported by a credit rating agency[...]
An independent company that evaluates and quantifies the credit risk of banks, nonbank corporations and local and national entities as well as their p[...]
A document that governs bilateral margin collateral arrangements between parties that have entered into one or more over-the-counter (OTC) derivatives[...]
The rate used to calculate the effective interest rate (EIR) for the initial recognition of purchase credit-impaired assets, but not included in the l[...]
Synonym for credit-adjusted effective interest rate
Commercial paper that has credit support from a bank or nonbank corporation with a high credit rating to enhance the marketability of the CP.[...]
Synonym for credit-supported commercial paper
A currency swap that exchanges the floating interest linked to one reference rate against the floating interest based on another reference rate.[...]
Synonym for currency coupon swap
Abbreviation of credit support annex
Synonym for rights-on
Describing a bond that is trading with subscription warrants attached, which can be detached from the host bond and either exercised to buy the underl[...]
How shares trade from the dividend declaration date to the date prior to the ex-dividend date.[...]
Variation of cumulative preferred stock
Synonym for cumulative preferred stock
A form of preferred stock whose dividends, if passed, accumulate until they are paid out in full, where all passed dividends (arrearage) plus the curr[...]
A currency swap that does not require the re-exchange of principal at maturity.[...]
A currency swap that involves the exchange of fixed rate interest payments in one currency for floating rate payments in another.[...]
Synonym for FX forward
A futures contract for the exchange of a standard amount of a specific, usually major currency, for another currency at a specific exchange rate.[...]
Synonym for currency futures
A contract that gives its buyer the right to buy (in the case of a call) or sell (in the case of a put) a set amount of one currency for another at a [...]
An over-the-counter (OTC) contract in which two counterparties commit to exchange principal amounts of two notes, to exchange the two corresponding st[...]
Variation of demand deposit
The impairment loss model for the recognition and measurement of the allowance for loan and lease losses (ALLL) requiring an entity to estimate the ex[...]
The remaining amount of time until the maturity date of a debt instrument (e.g., bond).[...]
Synonym for current yield
Synonym for present value
The amount of return on an investment based on the clean price of a bond other fixed-interest security determined by dividing its annual coupon (nomin[...]
A contractual arrangement for the provision of securities services including, at a minimum, the clearing and settlement of transactions, the safekeepi[...]
Synonym for custody
- Customary notation for discount.[...]
- Synonym for dividend per share
Abbreviation of Macaulay duration
Abbreviation of modified duration
The maximum price change permitted in a trading session, to provide a volatile market with an opportunity to cool off.[...]
The daily debiting of the loss or crediting of the gain to the account of those with the respective open futures positions, which protects brokers and[...]
Synonym for daily price limit
Synonym for day-count convention
The convention used to count the number of days interest has accrued on debt securities (e.g., bonds, notes, loans, medium-term notes, swaps or FRAs) [...]
Abbreviation of dual-class recapitalization
Synonym for trade date
Commercial paper, usually issued by nonfinancial and smaller financial companies, that is placed with a dealer that markets and sells it to investors [...]
A corporate bond that is not secured by a claim on a specific asset or group of assets, instead it is backed only by the general credit and reputation[...]
Any financial liability or obligation incurred through borrowing (e.g., loan) or issuing (e.g., bonds) or trading (e.g., accounts and notes payable).[...]
The date when a dividend is declared, which creates a liability for the dividend (dividends payable).[...]
Synonym for indenture
Describing a call option whose underlying is currently trading much higher than its strike price or a put option whose underlying is trading much lowe[...]
A call option whose underlying is currently trading much lower than its strike or a put option whose underlying is currently trading much higher than [...]
Synonym for issuer rating
A fee typically paid by investors to brokers when selling or redeeming fund shares, most commonly a contingent deferred sales charge (CDSC).[...]
An interest rate swap in which only the payments – not the transaction – are deferred for a specified period into the future.[...]
Synonym for forward swap
A post-employment benefit plan that creates an obligation of the employer to the company’s employees that is limited to the amount that the employer[...]
Synonym for defined benefit plan
A post-employment benefit plan whereby an employer pays fixed contributions into a fund in the form of a separate entity for the benefit of an employe[...]
Synonym for defined contribution plan
The final date for the delivery of the asset underlying a futures contract by the seller to the exchange in order to fulfill the terms of the contract[...]
Synonym for contract month
Synonym for settlement price
A generally noninterest bearing bank deposit that may be withdrawn at any time without prior notice by check, cash withdrawal from an automated teller[...]
Variation of savings deposit
A standing facility of the Eurosystem used by monetary financial institutions (MFIs) to make overnight deposits with the national central bank (NCB) i[...]
A negotiable certificate (receipt) issued by a domestic depository bank for equity or debt instruments of a foreign-based corporation that are held on[...]
The removal all or a part of an asset from an entity's balance sheet when its contractual rights to the cash flows asset expire or all of the asset’[...]
A financial instrument whose value or price is derived from another instrument (underlying asset), such as an option, forward, futures or swap, as opp[...]
Synonym for derivative
Synonym for derivative
A warrant that is detachable for its host security (bond or preferred stock).[...]
A spread in which the long position and the short position in the same class of option (a call or put on the same underlying) differ both in expiratio[...]
Synonym for rate-differential swap
Synonym for settlement sum
Synonym for dilution of ownership
The reduction in each current shareholder’s fractional ownership in the company resulting from the issuance of additional shares of common stock in [...]
Commercial paper that is sold to investors directly by the issuer, usually financial companies and very large corporations, without the intermediation[...]
The price of a bond including all interest that has accrued on it from the last payment of interest on the bond up to the date when it is traded.[...]
The amount by which a financial instrument is trading below its par value.[...]
The basis for quoting an interest rate product where the interest element is the discount to the instrument’s face value at the time it is purchased[...]
A bond that is trading below its par value, which occurs when the bond’s coupon rate is less than its required yield.[...]
A money market instrument that is issued at a discount to its face value so as to include interest at maturity and quoted at a discount rate on a disc[...]
1. The interest rate at which expected future cash flows are discounted in the process of computing the present value of a financial instrument.2. The[...]
Synonym for discount to net asset value
Referring to the situation where the shares of a ETFs and closed-end funds are trading at a price lower than the net value of its assets (NAV) per sha[...]
The interest rate (discount rate) applied to the periodic cash flows of a debt instrument and that is compounded to calculate the instrument's present[...]
The lending facilities of a regional Federal Reserve bank for the provision of funds to member banks through discount window programs.[...]
Synonym for bank discount yield
Synonym for yield basis
Synonym for bank discount yield
Synonym for discount bond
The process of computing present value.[...]
The asset-based fee paid by mutual funds and ETFs, but also closed-end funds, to brokers and others as compensation for the ongoing cost of marketing [...]
Synonym for fund dividend
Synonym for asset diversification
Referring to a diversified investment fund.[...]
Synonym for diversified investment fund
Synonym for diversified investment fund
A management investment company that holds a minimum of 75% of its assets in cash, government securities and other eligible securities subject to a li[...]
A distribution made by a company to its shareholders in the form of cash, the company’s own shares, or other assets in proportion to the number of s[...]
The ex-dividend dates after which the last dividends were paid by the fund and the amount of each payment per share, it also showing the price of shar[...]
A current liability that is created when a cash dividend is declared, it reducing retained earnings by the amount of the dividend.[...]
The equity ratio showing the amount of dividends paid out to common shareholders (dividends – preferred stock dividends) or, conversely, retained by[...]
The equity ratio showing the total annual dividends a company pays out to common shareholders, including interim dividends, divided by the number of c[...]
The equity multiple that shows the dividend paid out to a company’s common shareholders as a percentage of the per share market price of the stock.[...]
A stock fund that invests in the shares of companies that pay continuous quality dividends, generally comprised of a portfolio of blue-chip stocks.[...]
Synonym for dividend payout ratio
Synonym for dividend yield
Synonym for arrearage
A tax deduction that US corporate shareholders of a fund – not the fund itself – are generally entitled to claim with respect to dividend income r[...]
Synonym for Y
The reciprocal tax agreement between the US federal government and US state and local governments under which income on securities issued by the one g[...]
Abbreviation of dividend payout ratio
Abbreviation of dividend per share
Abbreviation of discount rate
Abbreviation of depository receipt
Abbreviation of dividends received deduction
Abbreviation of deferred sales charge
The capital stock of a company that is comprised of more than one class of common stock, one of which has superior voting rights and generally held by[...]
Synonym for dual-class recapitalization
The creation of a second class of common stock that has limited voting rights but typically a prior claim on the company’s earning and a higher divi[...]
Synonym for DuPont formula
A formula that expresses a firm's return on equity (ROE) in terms of its net profit margin times its asset turnover times its leverage: (Net Income ÷[...]
Synonym for DuPont formula
Synonym for DuPont formula
Synonym for DuPont formula
The weighted average maturity period of the cash flow or of any series of linked cash flows on a rate-sensitive instrument, reflecting the timing and [...]
Abbreviation of dividend yield
- The day-count convention that counts every month as 30 days, but not extended to 30 days if the last day of the period is the last day in February, an[...]
- Abbreviation of European ABCP
Abbreviation of effective annual rate
A fee in the form of the loss of interest or a separate charge for the withdrawal of funds from a savings or time deposit before its maturity.[...]
Income received from the active provision of goods or services, especially wages and salaries, it excluding income from a business undertaking in whic[...]
A tax credit earned income credit that benefits taxpayers who work either as an employee or in their own business and have low income during the tax y[...]
A measure of a firm's underlying cash flow and ability to service its debt, computed by adding interest expense, depreciation expense and amortization[...]
Synonym for price-to-earnings ratio
Net income for the year attributable to common shareholders of the company divided by the weighted average number of issue-adjusted common shares duri[...]
Abbreviation of earnings before interest, taxes, depreciation and amortization
Abbreviation of European Central Bank
Abbreviation of Euro certificate of deposit
Abbreviation of expected credit loss
Synonym for expected credit loss model
The credit risk of a financial asset has not increased significantly since initial recognition and entities continue to recognize 12-month expected lo[...]
A financial asset is underperforming and has experienced a significant increase in default risk since initial recognition – the entity measures a lo[...]
A debt instrument that is credit impaired and nonperforming – interest income is measured by applying the EIR to the net carrying amount of the inst[...]
Synonym for fair value
Abbreviation of Euro commercial paper
Synonym for Euro commercial paper program
Synonym for Euro-commercial paper programme
Abbreviation of Euro depositary receipt
A tax credit for attending an eligible educational institution.[...]
Synonym for effective annual rate
Synonym for effective annual rate
Synonym for effective annual rate
The annualized nominal rate of interest based on a 365-day year that provides a level yield on a financial instrument to its maturity date or next mar[...]
An effective annualized yield (EAY) and the actual yield received by bond investors that takes the compounding of interest into account.[...]
The convexity of a bond that takes into account the convexity of options embedded within the bond, it capturing the curvature of the observed price/yi[...]
The date on which the parties to an interest rate swap (IRS) begin calculating accrued obligations, as of when the fixed and floating interest amounts[...]
Synonym for value date
An alternative measure of duration that calculates a bond’s price movement given the existence of an embedded call or put option, it taking into acc[...]
A technique for calculating the actual interest rate in a period based on the carrying value of a financial instrument at the beginning of the account[...]
Synonym for effective annual rate
Synonym for bond equivalent yield
The security market line, where the returns on risk-free investments intersects the return on the total market, it showing the combination of assets t[...]
Synonym for effective interest-rate method
Abbreviation of expected loss
A financial asset that the Eurosystem accepts for underlying its central bank credit operations and which fulfills the eligibility criteria laid down [...]
An acceptance that is eligible for rediscount at the Bank of England.[...]
Abbreviation of Euro-medium term note
Synonym for Euro medium-term note program
Synonym for Euro medium-term note programme
Synonym for repurchase date
Synonym for actual/365 fixed
A scrip dividend giving shareholders the option of receiving additional shares worth more than the alternative cash payment.[...]
The total market value of all sources of a company’s financing (i.e., market value of equity + market value of preferred equity + market value of de[...]
The equity ratio that compares the enterprise value of a company with its operating profit or EBITDA, where enterprise value (EV) is the total market [...]
Abbreviation of Euro OverNight Index Average
Abbreviation of earnings per share
The return on a fund calculated by taking the asset-weighted average share class returns for funds with multiple share classes and then equal-weight t[...]
A corporate bond that is issued to pay for new large-ticket equipment, the certificate giving the bondholder the right to the equipment in the event t[...]
Synonym for equity instrument
Synonym for stock fund
Any financial instrument that evidences the legal right of ownership in a company and where all the payments on the instrument are at the discretion o[...]
Synonym for shareholder
A swap in which one cash flow is linked to the return of an equity position, such as the S&P 500, while the other is based on a market rate, such as L[...]
An equity share, depository receipt, subscription right, subscription warrant or debt instrument that is optionally or compulsorily convertible into s[...]
Synonym for bond equivalent yield
Abbreviation of European System of Central Banks
Synonym for exotic fund
Abbreviation of equipment trust certificate
Abbreviation of exchange-traded fund
Abbreviation of Euro Interbank Offered Rate
Synonym for Euro certificate of deposit
A negotiable fixed- or floating-rate interest-bearing certificate of deposit issued by banks in bearer form at par with interest and principal paid in[...]
A short-term, unsecured, unsubordinated bearer promissory note issued in Eurocurrency in interest-bearing form and quoted on an add-on basis, commonly[...]
A standardized issuance platform for Euro-commercial paper (ECP) in the public and private Euromarkets, whereby an issuer normally sets up the program[...]
Variation of Euro commercial paper program
Synonym for Euro-commercial paper programme
Synonym for Euro commercial paper
A depositary receipt for the negotiable securities of a foreign-based corporation denominated and quoted in euros and traded predominantly in Europe.[...]
The daily reference rate based on the averaged interest rates at which banks offer deposits to other banks in the euro interbank market.[...]
A standardized issuance platform for issuance of Euro medium-term notes in the public Euro markets as well as for private placements, whereby the sec[...]
Variation of Euro medium-term note program
The effective overnight rate for the euro computed as a weighted average of all overnight unsecured lending transacted within the euro area interbank [...]
Synonym for Euro certificate of deposit
Synonym for Euro certificate of deposit
Synonym for Euro commercial paper
Synonym for Euro commercial paper program
Synonym for Euro commercial paper
An intermediate- to long-term generally unsecured and unsubordinated fixed- or variable-rate interest-bearing debt instrument issued in one or more Eu[...]
Synonym for note issuance facility
A generally unsecured, unsubordinated intermediate- to long-term coupon-bearing Euromarket debt instrument ordinarily issued in bearer form on a “on[...]
Synonym for E30/360
Any currency held on deposit with a bank that is foreign to the bank’s own domestic currency, or the currency of a financial instrument that is fore[...]
Synonym for Euromarket
The US dollar held abroad and, thus, free of regulations that effect domestic deposits, such as reserve requirements, deposit insurance and interest-r[...]
Any financial market instrument denominated in one or more Eurocurrencies, typically unsecured and unsubordinated, rated by an international credit ra[...]
The over-the-counter market for interbank deposits, loans, debt, equity and derivative instruments denominated in a currency foreign to the bank, debt[...]
Synonym for Eurocurrency
An underwritten, fully negotiable, unsecured, unsubordinated promissory note of a high-quality corporate, financial or sovereign borrower, issued in t[...]
Synonym for note issuance facility
Asset-backed commercial paper issued in the European market, with a maturity of up to 364 days.[...]
The European Central Bank (ECB) and the national central bank (NCBs) of each EU member state.[...]
Synonym for European-style option
The central bank the central bank of the 19 European Union countries which have adopted the euro (the eurozone) with the responsibility setting and ad[...]
A currency option exchange rate quote expressed in terms of the amount of counter currency per one unit of USD.[...]
An option that can be exercised only on its expiration date, generally options on futures and OTC options.[...]
The European Central Bank (ECB) and the national central banks (NCBs) of the European Union member states that have adopted the euro.[...]
Abbreviation of enterprise value
Abbreviation of enterprise value-to-EBITDA
Synonym for ex-warrant
Synonym for ex-dividend date
How shares trade from the ex-dividend date until the date of dividend payment.[...]
For publicly traded shares, the date specified by the market where traded as of when a stock trades without the new buyer receiving the declared divid[...]
Referring to the shares in a rights offering that have begun to trade without the new buyers of the shares receiving the associated subscription right[...]
Describing a bond trading without subscription warrants, which trade separately from the host bond and can either be exercised to buy the underlying s[...]
More funds on deposit at a central bank than are necessary to meet the reserve requirements.[...]
The US Exchange Act rule that permits foreign private issuers to have their equity securities traded on the US over-the-counter market without registr[...]
Synonym for settlement price
An embedded option in a corporate bond granting bondholders the right to convert (exchange) the bond for equity of a firm different to the bond issuer[...]
A fee charged when investors exchange their fund investment with another fund within the same fund group or family of funds.[...]
Synonym for exchange feature
An open-end investment company or unit investment trust (UIT) whose shares trade on the secondary market in intraday trading at its intraday indicativ[...]
Synonym for traded option
Any US traded security that need not be registered with financial market authorities, including US Treasury securities, state- and local-government is[...]
Notice from the SEC to move forward on a new initiative, applying only to the situation for which it is granted, such as an interval fund receiving ex[...]
1. Making use of a right.2. Making use of an option contract by its holder.[...]
The date at which a European option is exercisable, which is the reference rate reset date in the case of interest rate caps and floors.[...]
Notification to the broker of a call holder exercising its right to buy the contract amount of the underlying at the strike price and receive delivery[...]
Synonym for exercise notice
Synonym for strike price
A special tax levied on a specific type of asset, e.g., a nondeductible 4% federal exercise tax is levied on a regulated investment company (RIC) if i[...]
Synonym for exercise
An investment fund that focus on niche investments or narrowly focused strategies – often thinly traded, commonly complicated investments with highe[...]
Synonym for gross expense ratio
Synonym for net expense ratio
The expected impairment of a loan, lease or other financial asset based on changes in its expected credit loss either over 12 months or its lifetime.[...]
A three-stage approach for estimating and measuring the expected credit loss of a financial and its interest revenue based on changes in its expected [...]
The amount that a creditor (lender, lessor) can expect on a credit exposure equal to the exposure less the value of the collateral in the event of def[...]
Synonym for total annual fund operating expenses
1. The date when a futures contract stops trading, which is its last trading day before final settlement.2. The maturity date of an option contract, a[...]
The set of four months for the expiration of options, allowing option contracts to trade for each month over any twelve-month period: January, April, [...]
expiry
BE
Variation of expiration
Synonym for time value