Internal Rate of Return The rate of return when given dollar weightage. Discount rate applicable to make the NPV (net present value) of investment zero. The rate that, when applied to the future cash flows of a bond, equals its price when discounted back to present date. … [Read more...]
National Income Accounting
Filed Under: n by
National Income Accounting System to measure economic activity in a country during a specific period; used by government. … [Read more...]
Short Straddle
Filed Under: s by
Short Straddle An options strategy where a short position is held in a call and a put with the same expiration date and strike price. Random Finance Terms for the Letter S Short Covering Short Hedge Short Interest Short Short Sale Short Selling Short Squeeze Short … [Read more...]
Two-State Option Pricing Model
Filed Under: t by
Two-State Option Pricing Model Also known as the binomial option pricing model. It is a pricing model for options in which the assets underlying the instrument is allowed only two possible values (discrete in nature) in the next period of time for every value that it can take in the … [Read more...]
Income Stock
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Income Stock High dividend paying common stock category that offers limited profitable investment choices. … [Read more...]
Capital Gains Yield
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Capital Gains Yield Portion of change in price in return on a stock. … [Read more...]
Asset-Based Financing
Filed Under: a by
Asset-Based Financing Financing methods wherein equity investors and lenders primarily depend on the cash flow arising from a specific asset or asset group for returns on their investment. … [Read more...]
Net Change
Filed Under: n by
Net Change Difference between the last trade executed in a day and the last trade executed the previous trading day. … [Read more...]
Hedged portfolio
Filed Under: h by
Hedged portfolio Portfolio that encompasses short position in call option and long position in stock to reduce risk to zero. The return generated equals the zero risk rate of interest. … [Read more...]
Dead Cat Bounce
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Dead Cat Bounce Marginal upward market movement seen in bear conditions. … [Read more...]
Call Money Rate
Filed Under: c by
Call Money Rate Also termed broker loan rate. The rate of interest charged by banks to finance investor margin loans. Brokers add a service charge to the call money rate. … [Read more...]
Complete Capital Market
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Complete Capital Market Market wherein one distinct security that is marketable exists for every outcome possible. … [Read more...]
Stratified Equity Indexing
Filed Under: s by
Stratified Equity Indexing A way of building a portfolio in which there is a classification of the stocks into stratum, with each stratum being part of it. Random Finance Terms for the Letter S Stopping Curve Refunding Rate Stop-Limit Order Straddle Straight Line … [Read more...]
Lookback Option
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Lookback Option Options that let the holder choose the strike price from the historical prices of the underlying asset during the life of the current option. In a call option, the holder chooses minimum price and in a put option, he choose the maximum to make the best possible … [Read more...]
Salary Freeze
Filed Under: s by
Salary Freeze A situation where a company suspends any increase in the salary levels of its employees. Random Finance Terms for the Letter S S&P Safe Harbor Lease Safekeep Safety Cushion Safety-Net Return Salary Freeze Sale and Lease-Back Sales … [Read more...]
Economic Equilibrium
Filed Under: e by
Economic Equilibrium The state wherein there is a balance in the economic forces. In absence of any external influences, these variables will remain unchanged. Also refers to the situation when supply and demand for a product are equal. … [Read more...]
Street
Filed Under: s by
Street Refers to Wall Street’s community of financial institutions and individuals. The community includes dealers, brokers, underwriters and all other financial professionals. Random Finance Terms for the Letter S Stopping Curve Refunding Rate Stop-Limit … [Read more...]
Forward Market
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Forward Market The market wherein participants formally agree to trade commodities, securities, or foreign exchange to be delivered in future at a price fixed today. … [Read more...]
Butterfly Shift
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Butterfly Shift Shift in the yield curve that is not parallel and involves the curve’s height. … [Read more...]
