Financial Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y

a

A (credit rating)

AA (credit rating)

AAA (credit rating)

Abnormal return

Absolute return funds

Accelerated monitoring fees

Accelerated Return Note

Accelerated share repurchase

Accounting liquidity

Accounting Rate of Return

Accretive acquisition

Acquisition structure

Activist shareholder

Adams Express Company

Advanced Computerized Execution System

After-Hours Trading (AHT)

Agency security

Agricultural Bank of China

Alaska Permanent Fund Dividend

Alberta Heritage Savings Trust Fund

Alpha generation platform

Alternative asset

Alternative display facility

Alternative energy indexes

Alternative Investment Fund Managers (AIFM) Directive 2011

Alternative public offering

Alternative trading system

Amex Composite Index

Amex Gold Miners Index

Amex Volatility Index

AMX index (Midcap)

Anglo-Swedish Literary Foundation

Annual equivalent rate (AER)

Annual general meeting (AGM)

Annual percentage rate (APR)

Annual total return

Annualized loss expectancy

Arbitrage betting

Arbitrage pricing theory

Articles of incorporation

AScX index (Small Cap)

Asset allocation

Asset backed security

Asset purchase agreement (APA)

Asset stripping

Asset-backed commercial paper program

Asset-backed securities index

Asset-based approach

Asset-based lending

Assets under management (AUM)

Associated Press

Association of the Luxembourg Fund Industry

Assurance contract

Attitude to Risk

Auction process

Audited account

Australian Securities Exchange

Automated Trading

Average accounting return

Average accounts receivable

Average Daily Trading Volume

Average propensity to consume

Average propensity to save

b

B (credit rating)

Banco Santander

Bank of America

Bank of England

Banking as a Service

Bankruptcy Prediction

Barbell strategy

Bárcenas affair

Barclays Capital Aggregate Bond Index

Barriers to Entry

Barron's 400 Index

Barry Rosenstein

Basic Earnings Per Share

Basket of goods

BB (credit rating)

BB+ (credit rating)

BBB (credit rating)

BB− (credit rating)

Beachhead acquisition

Bear call spread

Benchmark Indices

Beneficial Ownership

Beneish M-Score

Bespoke portfolio (CDO)

Bid instructions

Bid-to-cover ratio

Bielard, Biehl and Kaiser five-way model

Big Data Scoring

Black Swan Funds

Black–Scholes model

Blue Ocean Strategy

Blue-chip index

Blue-chip stock

BME Spanish Exchange

Bolt-on acquisition

Bombay Stock Exchange

Bond conversion

Bond Exchange of South Africa (BESA)

Bond prospectus

Botswana Stock Exchange Domestic Company Index (BSE DCI)

Botswana Stock Exchange Foreign Company Index (BSE FCI)

Boutique investment bank

BSE Sensex index

Budapest Stock Exchange

Business Assets

Business failure

Business valuation standards

Buy-in management buyout (BIMBO)

c

C (credit rating)

Calculation products (indices)

CAMELS rating system

Capital adequacy ratio

Capital Budgeting

Capital Expenditure (CAPEX)

Capital gains distribution

Capital Gains Tax

Capital market imperfections

Capital recovery factor

Capital Requirements Directives

Capital Requirements Regulation 2013

Carhart four-factor model

Cascades in financial networks

Cascading failure

Cash conversion cycle

Cash flow hedge

Cash Management

Cash-flow return on investment (CFROI)

CBOE S&P 500 BuyWrite Index (BXM)

CC (credit rating)

CCC (credit rating)

CCC+ (credit rating)

CCC− (credit rating)

CEE Stock Exchange Group (CEESEG)

Center for Audit Quality (CAQ)

Central counterparty clearing

Central limit order book

Certified Risk Manager

Chepakovich valuation model

Chicago Board Options Exchange

Chicago Mercantile Exchange

China A50 index

China Concepts Stock

China Construction Bank Corporation

China Development Bank

Choice dividend

Choice dividend delivery

Choice dividend issue

CIBI Information, Inc

Clearing balance requirements

Clientele effect

Coherent risk measure

Collateralized debt obligation

Collateralized mortgage obligation

Collective action clause

Commercial mortgage-backed security

Commercial Paper

Committee of European Securities Regulators

Committee on Capital Markets Regulation

Commodity Market

Commodity product Markup Language

Common ordinary equity

Common stock dividends and DRIP

Compliance Officer

Composite Index

Compound Interest

Comprehensive Capital Analysis and Review

Condition-related order

Confirmation Bias

Conglomerate merger

Conservative investing

Consistent pricing process

Consolidated Quotation System

Consolidated Tape System

Constant proportion portfolio insurance

Consumer credit risk

Consumer price index (CPI)

Contract consolidation

Contract For Difference (CFD)

Contract soulte (a type of cash settlement)

Control premium

Controlling (majority) shareholder

Convenience Yield

Convergence trade

Convertible arbitrage

Convertible issue

Cornering the market

Corporate Actions

Corporate Bonds

Correlation Coefficient

Cost accrual ratio

Counterparty Risk

Covered interest arbitrage

Credibility theory

Credit Agricole

Credit Analysis

Credit Default Swap

Credit Enhancement

Credit Rating Agency

Credit Reference

Credit scorecards

Credit valuation adjustment

Creditworthiness

Creeping tender offer

Crime Victims Fund

Cross border listings

Crossing network

Currency analytics

Currency Crisis

Currency Hedging

Current account and savings account (CASA) ratio

Current asset / Current accounts

Current Liabilities

CUSIP-linked MIP code

Custodial participant

Cyclical company

Cyclically adjusted price-to-earnings ratio

d

D (credit rating)

Days payable outstanding

Days sales outstanding

Death spiral financing

Debt service coverage ratio

Debt service ratio

Debt-to-capital ratio

Debt-to-equity ratio

Debt-to-GDP ratio

Debt-to-income ratio

Debtor collection period

Deferred Revenue

Delist worthless

Dematerialization

Derivatives Market

Designation Scheme

Deutsche Börse

Digital Banking

Direct Investment

Direct market access

Direct participation program

Direct public offering

Directors' dealings

Discounted Cash Flow (DCF)

Discounted maximum loss

Distortion risk measure

Diversification

Dividend distribution tax

Dividend future

Dividend imputation

Dividend indices

Dividend payout ratio

Dividend Policy

Dividend puzzle

Dividend recapitalisation

Dividend reinvestment plan

Dividend rights issue

Dividend stripping

Dividends received deduction

Division 7A dividend

DJ New Zealand index

DJ Shanghai index

Dodd–Frank Wall Street Reform and Consumer Protection Act

Dogs of the Dow

Domestic Market

Don't fight the tape

Dow Jones Asian Titans 50 Index

Dow Jones EURO STOXX 50

Dow Jones Industrial Average

Dow Jones Sustainability North America Index

Dragon King Theory

Dynamic risk measure

e

E Fund Management (Hong Kong) Co., Limited

Earnings before interest, taxes, and depreciation

Earnings guidance

Earnings Response Coefficient

East India Stock Dividend Redemption Act 1973

Economic Capital

Economic Value Added

Economies of Scale

Effective annual rate (EAR)

Effective gross income

Efficiency Ratio

Efficient Market Hypothesis (EMH)

Eisner v. Macomber

Electricity price area

Electronic communication network

Electronic trading

Emmanuel Lemelson

Emotional Trading

Endogenous risk

English auction

Enterprise Risk Management

Enterprise Value

Entropic risk measure

Entropic value at risk

Equation of exchange

Equity Capital Markets

Equity carve-out

Equity premium puzzle

Equity valuation

Equity-linked note

Euro money market

Euro Stoxx 50 Index

European Market Infrastructure Regulation

European Securities and Markets Authority

European Systemic Risk Board

Event-driven investing

Exchange rate risk

Exchange traded fund (ETF)

Exchange traded note (ETN)

Exchange traded products (ETP)

Exercised option

Expectations hypothesis

Expected shortfall

Expiration Date

Expire dividend right

Exponential utility

Exposure factor

External Financing

Extreme value theory

f

Face value (par value, principal)

Failure to deliver

Fair Value Accounting

Fama–French three-factor model

Faroese Securities Market

Fat-finger error

Favourite-longshot bias

Federal Deposit Insurance Corporation

Federal Reserve

Federal takeover of Fannie Mae and Freddie Mac

Film Musicians Secondary Markets Fund

Financial Adviser

Financial asset securitization investment trust

Financial astrology

Financial betting

Financial CHOICE Act

Financial condition report

Financial Crisis Inquiry Commission

Financial crisis of 2007–2008

Financial Information eXchange

Financial integration

Financial Market

Financial market participants

Financial Model

Financial Product (Instrument)

Financial quote

Financial Ratio

Financial Regulation

Financial Report

Financial result

Financial risk modelling

Financial services

Financial signal processing

Financial Stability Board

Financial Stability Oversight Council

Financial Statement

Financial Times Stock Exchange (Footsie)

First Chicago Method

Fixed income arbitrage

Fixed-asset turnover

Fixed-income attribution

Flight-to-liquidity

Flow-through share

Food speculation

Foreign Exchange (Forex, FX)

Foreign exchange hedge

Foreign exchange risk

Forward Contract

Founding partner

Fractional-reserve banking

Free cash flow (FCF)

FreeCreditScore.com

Frictionless market

FTSE Bursa Malaysia Index

FTSE Fledgling Index

FTSE MID 250 Index

FTSE techMark Index

FTSE/Mondo Visione Exchanges Index

FTSEurofirst Euro Supersector Indices

Fuel price risk management

Fund governance

Fund Processing Passport

Fundamental Analysis

Fundo de Investimento em Direitos Creditórios

Futures Contract

i

IBC (Índice Bursátil Caracas)

IberoAmerican Federation of Mutual Funds

ICE Clear Credit

Ice futures Europe

IDX Composite index

Illiquid assets

Immediate or cancel

Immediate Order

Impact investing

Implementation shortfall

Implicit contract theory

Implied repo rate

Incremental capital-output ratio

Index arbitrage

Index cohesive force

Index-linked bond

Indian Trading League

Indication of interest

Indirect finance

Industrial and Commercial Bank of China

Industry Classification Benchmark

Infection ratio

Information ratio

Information technology (IT)

Initial Public Offering (IPO)

Intangible Asset

Intellectual Capital

Inter-dealer broker

Interbank lending market

Intercontinental Exchange (ICE)

Intermarket analysis

Intermarket sweep order

Internal contradictions of capital accumulation

Internal Financing

Internal models approach for market risk

International exposure indices

International lender of last resort

International Retail Service

International Securities Exchange

International Securities Identification Number (ISIN)

International Underwriting Association

Inventory Turnover

Investment bank

Investment control

Investment Fund

Investment Management

Investment outsourcing

Investment policy statement

Investment Strategy

Investment thesis

Investor Relations

Investor Sentiment

IPO underpricing

Iraq Relief and Reconstruction Fund

Isoelastic utility

Issue (Process)

Issue forward split

j

Japan Exchange Group – Tokyo

Japan Post Bank

Jarrow–Turnbull model

JPMorgan Alerian MLP Index ETN

JPMorgan Chase & Co

Jurisdictional arbitrage

k

K-factor (actuarial)

Karachi 100 index

Key economic indicator

Knockdown price

KSE All Share Index

Kuala Lumpur Composite Index

l

LabEx ReFi - European Laboratory on Financial Regulation

Labour-sponsored venture capital corporation

Lehman Brothers

Leveraged Buyout

Leveraged Finance

Leveraged recapitalization

Lifeline Express China

Limited partner (LP)

Limits to arbitrage

Liquid alternative investment

Liquidating distribution

Liquidation approach

Liquidation preference

Liquidation value

Liquidity at risk

Liquidity crisis

List of bank stress tests

List of CDO managers

List of companies paying scrip dividends

List of electronic trading protocols

List of public corporations by market capitalization

List of systemically important banks

Loan-backed securities (LBS)

Loan-to-value Ratio

London Metal Exchange (LME)

London Stock Exchange Group (LSE)

Long-term rating

Long/short equity

Low latency (capital markets)

Low risk investment

Low-margin securities

Low-volatility anomaly

Luxembourg Depository Receipt

m

Macedonian Film Fund

Macroprudential regulation

Magic formula investing

Maintenance Margin

Making Home Affordable

Managed futures account

Management buy-in (MBI)

Management buyout (MBO)

Manager of managers fund

Margin of safety

Marginal Revenue

Mark to market accounting

Mark Twain effect

Market clearing

Market Correction

Market distortion

Market Identifier Code

Market if touched

Market impact cost

Market microstructure

Market moving information

Market Portfolio

Market Saturation

Market Segmentation

Market value added

Market-based valuation

Markets in Financial Instruments Directive 2004

Marlboro Friday

Master transaction agreement

Maximum Downside Exposure (MDE)

Medical underwriting

Mergers and Acquisitions (M&A)

Mexican peso crisis

Mexican unidad de inversión

Microprudential regulation

MIDAS Technical Analysis

Minimum acceptable rate of return

Minimum Efficient Scale

Minority shareholder

Mischler Financial Group

Mitsubishi UFJ Financial Group

Mizuho Financial Group

Modern portfolio theory

Modigliani risk-adjusted performance

Monetary hawk and dove

Money Market Fund

Montana Management

Monthly income preferred stock

Mortgage underwriting

Mortgage underwriting in the United States

Mortgage-Backed Securities

Multi-manager investment

Multiple factor models

Municipal bond arbitrage

n

Naive diversification

NASDAQ Biotechnology Index

Nasdaq Composite

NASDAQ Transportation Index

NASDAQ-100 Index

Nasdaq-100 Volatility Index

National Association of Health Underwriters

National best bid and offer

National Credit Regulator

National Futures Association

National market system plan

National Stock Exchange of India

Negativity Bias

Net Asset Value (NAV)

Net capital outflow

Net credit sales

Net debt repayment

Net income per employee

Net interest income

Net interest margin

Net interest spread

Net operating assets

Net Operating Income (NOI)

Net value asset

Netherlands Film Fund

New Energy to Reinvent and Diversify Fund

New York Stock Exchange (NYSE)

Nikkei 225 index

No free lunch with vanishing risk

Noddle (credit report service)

Noisy market hypothesis

Nominal vs real GDP

Non-competition agreement

Non-disclosure agreement (NDA)

Non-solicitation agreement

Non-voting stock

Norwegian Banks' Guarantee Fund

Nouveau marché

NYSE Arca Major Market Index

NYSE Arca Tech 100 Index

p

P&L attribution

Paper valuation

Participating preferred stock

Partnership for New York City

Payment for order flow

Payment schedule

Performance attribution

Period of financial distress

Philadelphia Gold and Silver Index

PHLX Semiconductor Sector

Physics of financial markets

Piotroski F-Score

Political arbitrage

Portfolio Diversification

Portfolio Investment

Portfolio Management

Portfolio margin

Portfolios with Purpose

Position Trading

Post-earnings-announcement drift

Potential future exposure

Prague interbank offered rate (PRIBOR)

Pre-tax profit figure

Precautionary demand

Precious metals

Preference Shares

Preferred dividends

Prepayment of loan

Prestige Bulletin

Price action trading

Price discovery

Price optimisation

Price/cash flow ratio

Price/earnings (P/E ratio)

Price/sales ratio

Primary Dealer Credit Facility

Principal trade

Principled reasoning

Private electronic market

Private Equity Fund

Probability of default

Procyclical and countercyclical

Producer price indexes (PPI)

Professional Liability Underwriting Society

Profitability Index

Projected sales

Proprietary Trading

Proxy statement

PSE All Shares Index

PSE Financials Index

PSE Index (PSEi)

Public offering without listing

Puerto Rico Industrial Incentives Fund

Purchase price adjustment

Purchasing power parity

q

Qualified institutional placement

Quality investing

r

Rate of return on a portfolio

Rate of return pricing

Rational herding

RD (credit rating)

Re-investment risk

Real options analysis

Real-time economy

Receivables turnover ratio

Red herring prospectus

Redemption mechanism

Redundant assets

Refinancing risk

Registered professional liability underwriter

Registered share

Regulatory (Regulated, Controlled) Market

Regulatory market (regulated market, controlled market)

Reinvestment risk

Relative strength index (RSI)

Relative valuation

Replicating strategy

Report of Anton R. Valukas

Repurchase agreement

Reserve requirement

Residential mortgage-backed security

Residual income valuation

Retail foreign exchange trading

Retail price index

Return on capital employed

Return on Investment (ROI)

Return on modeling effort

Return on net assets

Return on tangible equity

Reuters 3000 Xtra

Reverse auction

Reverse due diligence

Reverse greenshoe

Richard Bookstaber

Risk Diversification

Risk free asset

Risk Management

Risk management in Indian banks

Risk transformation

Risk vs Reward Ratio

Risk-adjusted return on capital

Risk-free interest rate

Risk-neutral measure

Risk-weighted asset

RNPV (Risk-adjust net present value)

Roll-up (merger)

Roy's safety-first criterion

Royal Bounty Fund

Russell Indexes

s

S&P 500 VIX index

S&P Midcap 400/BARRA Growth

S&P Midcap 400/BARRA Value

S&P SmallCap 600

S&P SmallCap 600/BARRA Growth

S&P SmallCap 600/BARRA Value

S&P Vietnam 10 Index

S&P/ASX 200 index

S&P/TSX Venture Composite Index

Same-day affirmation

Santa Claus rally

Savings account

Scalping definition

SD (credit rating)

Seasoned equity offering

Secondary Market

Securities market

Security agreement

Security Analysis

Security interest

Sensitivity Analysis

Sentiment Trading

Sentimental value

Settlement date

Shadow banking system

Shanghai Stock Exchange

Shelf registration

Shenzhen Stock Exchange

Short-term rating

SIX Swiss Exchange

Social dividend

Social return on investment

Socially responsible investing (SRI)

Sovereign credit rating

Sovereign default

Sovereign Wealth Fund

Special Dividend

Speculative demand

Spread (Difference)

SSE Composite Index

Stable value fund

Standard & Poor's

Statistical arbitrage

Statutory liquidity ratio

Stock certificate

Stock market bubble

Stock market prediction

Stock transfer agent

Stock valuation

Strategy indices

Strike price = exercise price

Structured Finance

Structured investment vehicle

Structured note

Structured Product

Subprime mortgage crisis

Subscription price

Sustainable growth rate

Swap Execution Facility

Swap transaction

Swing trading definition

Systematic trading

t

Tactical asset allocation

Take-Profit Order

Tangible assets

Target date fund

Technical Analysis

The 2009 Supervisory Capital Assessment Program

The 2010 European Union bank stress test

The 2010 Flash Crash

The 2011 European Union bank stress test

The 2012 JPMorgan Chase trading loss

The 2014 European Union bank stress test

The 2016 European Union bank stress test

The black swan theory

Times interest earned

Tokyo Stock Exchange

Total expense ratio

Total return swap

Total shareholder return

Trading Capital

Trading Strategy

Transaction Costs

Transferable securities

Treasury Management

Triangular arbitrage

Troubled Asset Relief Program

u

Uncovered interest arbitrage

Underlying Asset

Underwriting spread

Unlisted public company

Unsubordinated debt

Unsystematic Risk

v

Value investing

Venture Capital

Venture capital trust

Vertical analysis

Vertical merger

Volatility risk

Volume-weighted average price (VWAP)

w

Wealth management

Working Capital

x

y

Yield to Maturity