||A market in which buyers enter competitive bids and sellers enter competitive offers at the same time.
||A company's payment of cash, stock, or physical products to their shareholders.
||Distribution in Kind
||A distribution made in the form of stock rather than cash.
||The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share.
||The rapid selling of securities, such as stocks, bonds, and commodities
||A contractual agreement made between different parties to compensate for any damages or losses.
||Letter of Indemnity
||A letter guaranteeing that contractual provisions will be met, otherwise financial reparations will be made.
||In the context of international trade, this is a limit put on the amount of a specific good that can be imported.
||During an IPO, this is the number of shares granted to each participating underwriting firm that they are permitted to sell. Remaining surpluses are then given to other firms which have won the bid for the right to sell the IPO.
||Banking services between merchant banks and other financial institutions.
||Occurs when the trend of a security's price does not correspond with the trend of an indicator.
||A debt security, usually maturing in one to ten years.
||The stated value found on financial instruments.
||The face value of a bond.
||Getting out of a position in a particular stock or security.
||A mutual fund that invests its assets in the money market, bonds, preferred stock, and common stock in an attempt to provide both growth and income.
||Balanced Investment Strategy
||A portfolio allocation and management method aimed at balancing risk and return.
||A situation in an exchange market where all brokers bidding for the same security have equal standing due to identical bids.
||A bond's average price is calculated by adding its face value to the price paid for it and dividing the sum by two.
Average price is also sometimes known as Net Asset Value (NAV) for mutual funds.
||Average Price Put
||A type of option where the payoff is either zero or the amount by which the strike price exceeds the average price of the asset.
||Average Price Call
||A type of option where the payoff is either zero or the amount by which the average price of the asset exceeds the strike.
||Average Annual Return
||A figure used when reporting the historical return of a mutual fund. The AAR is stated after expenses have been tallied, including administration fees, 12b-1 fees, and others.
||Average Annual Growth Rate
||The average increase in the value of a portfolio over the period of a year.
||An estimate of the number of terms to maturity, taking the possibility of early payments into account. Average life is calculated using the weighted average time to the receipt of all future cash flows.
||The simple mathematical average of a two or more numbers.
||A period in which a stock price has very little or no trend resulting in a flat price pattern.
||The estimated value of real estate that is used for tax purposes.
- An evaluation of a corporate or municipal bond's relative safety from an investment standpoint. Basically, it scrutinizes the issuer's ability to repay principal and make interest payments.
- An analyst's recommendation on whether to buy, sell, or hold a specific stock.
||A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends
||A security not registered in the issuing corporation's books but is payable to its bearer (the person possessing it).
||When a person or firm is unable to repay debts. Thus, the ownership of the firm's assets are transferred from the stockholders to the bondholders.
||The ever present risk that a firm will be unable to meet its debt obligations. Often referred to as default or insolvency risk.