Topix 500 Index: A capitalization-weighted index designed to measure the performance of the 500 most liquid stocks with the largest market capitalization that are members of the topix. Swaps were first introduced to the public in 1981 when IBM and the World Bank entered into a swap agreement. Market capitalization-weighting: Market cap share prices x number of shares outstanding. Relative price: Refers to the share price of the ETF. However, there is still the risk that no wheat will be available because of events unspecified by the contract, such as the weather, or that one party will renege on the contract. Net income profit margin: Net income divided by total sales. The law mandated the clearing of certain swaps at registered exchanges and imposed various restrictions on derivatives.
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Liquidity trap: a situation where central banks monetary actions are ineffective in decreasing interest rates and stimulating growth. Corporate High Yield Index: Covers the universe of fixed-rate, non-investment-grade corporate debt. Cap rate: Ratio of net operating income to property asset value. Market neutral: Strategy that seeks to avoid forex traded risk level market risk by hedging a percentage equal to total long exposure. Relative value: The relationship between a particular attribute,.g., a dividend, and the firms share price compared to that of another firm. However, a forward is not traded on an exchange and thus does not have the interim partial payments due to marking to market. Msci Emerging Markets.S.
Exchange-traded derivatives (ETD) are those derivatives instruments that are traded via specialized derivatives exchanges or other exchanges. The percentage change measured between these two points is equivalent to the growth rate in trailing 12-month dividends. Eonia (Euro Overnight Index Average A daily reference rate that expresses the weighted average of unsecured overnight interbank lending in the European Union and the European Free Trade Association (efta and is calculated by the European Central. Qualifying securities must have a below investment grade rating (based on an average of Moodys, S P and Fitch at least 18 months to final maturity at the time of issuance, at least one year remaining term. Frexit: an abbreviation of French exit that mirrors the term Grexit. Golden cross: Generally referenced when a shorter-term moving average crosses above a longer-term moving average and is a bullish indicator. Price-to-cash flow (P/CF) ratio: Share price divided by cash flow per share. The Act delegated many rule-making details of regulatory oversight to the Commodity Futures Trading Commission (cftc) and those details are not finalized nor fully implemented as of late 2012. Currency: Currency in which the underlying index returns are calculated. This decrease in face value is measured by the MBS's "factor the percentage of the original "face" that remains to be repaid. The price agreed upon is called the delivery price, which is equal to the forward price at the time the contract is entered into. Liquidity Risk : the risk that an investor will not be able to buy or sell a security at"d prices.
Foreign exchange market - Wikipedia
Zombie Companies: A term used for companies that are operating in debt, near bankruptcy. Fund Distribution Yield: The fund distribution yield is calculated by annualizing the most recent fund distribution and dividing by the funds current NAV. For example, an equity swap allows an investor to receive steady payments,.g. Dividends per Share: The sum of declared dividends for every ordinary share issued. Dollar, the debt obligation becomes less expensive. These policies affect tax rates, interest rates and government spending, in an effort to control the economy. Buyback yield: amount of a companys buybacks divided by its market capitalization Buyouts: The acquisition of a targeted firm by purchasing shares of the company to obtain ownership CAC 40 Index: The French stock market index that tracks. Risk of default: the risk that a borrower will not meet their contractual obligations in conjunction with an investment. Wholesale Prince Index (WPI An index that measures and tracks the changes in price of goods in the stages before the retail level. (See Berkshire Hathaway Annual Report for 2002) Financial Reform and Government Regulation edit Under US law and the laws of most other developed countries, derivatives have special legal exemptions that make them a particularly attractive legal form to extend credit. Dollar Index: measures the effective exchange rate between the US Dollar and its major trading partners span id"Federal Reserve" style"font-family: verdana Federal Reserve: The Federal Reserve System is the central banking system of the United States. Dollar against the currencies of a broad group of major.S.
Derivative (finance) - Wikipedia
The Nikkei is equivalent to the forex traded risk level Dow Jones Industrial Average Index in the.S. Corporate High-Yield Index: measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. Swaps can basically be categorized into two types: Interest rate swap : These basically necessitate swapping only interest associated cash flows in the same currency, between two parties. Bear market: A sustained downturn in market prices, increasing the chances of negative portfolio returns. High Yield Index and caps issuer exposure.
Frank Partnoy ; David. Credit default spread: a market derived measure of risk that seeks to signal the likelihood that a borrower will default. For this reason, the futures exchange requires both parties to put up an initial amount of cash (performance bond the margin. Net income: A companys total earnings (or profit which are calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. CNH forward: An agreement to buy or sell a specific currency at a future date at an agreed upon rate. WisdomTree International LargeCap Dividend Index: A fundamentally weighted index that measures the performance of the large-capitalization segment of the dividend-paying market in the industrialized world outside the.S. Trading activity relates to the liquidity of a security; therefore, when average daily trading volume is high, the stock can be easily traded and has high liquidity. Forwards, like other derivative securities, can be used to hedge risk (typically currency or exchange rate risk as a means of speculation, or to allow a party to take advantage of a quality of the underlying instrument which is time-sensitive. Dollar, there will be a negative impact on returns; if the euro appreciates there will be a positive impact. WisdomTree Japan Hedged Quality Dividend Growth Fund (jhdg was designed to track the returns, before expenses, of the WisdomTree Japan Hedged Quality Dividend Growth Index.
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Leverage Ratio: Total amount of debt given a total amount of assets.e., total Debt divided by total assets Leveraged loan market: Loans extended to companies or individuals that already have undertaken considerable amounts of debt, thereby increasing their risk of potential default. Different types of derivatives have different levels of counter party risk. Underlying basket: securities held by a fund to replicate an investment strategy or index. Archived from the original (PDF) on March 23, 2012. The index includes the top 75 income-producing stocks that meet certain eligibility criteria. The structure of the MBS may be known as "pass-through where the interest and principal payments from the borrower or homebuyer pass through it to the MBS holder, or it may be more complex, made up of a pool of other MBSs. Options valuation is a topic of ongoing research in academic and practical finance. Research and development (R D the investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures. Trimmed mean: a mean is an average, so a trimmed mean is an average that takes out some of the more extreme values within a designated framework Trust loans: Loans of trust companies.
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Blue chip: Stocks that have the reputation for quality, reliability and the ability to operate profitably in good times and bad. Hsbc Asian Local Bond Index (albi The hsbc Asian Local Bond Index tracks the total return performance of liquid bonds denominated in the local currencies in China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand. Gross negative fair value: The sum of the fair values of contracts where the bank owes money to its counter-parties, without taking into account netting. Latest available a/o March 1, 2012. Msci Japan Index: A market cap-weighted subset of the msci eafe Index that measures the performance of the Japanese equity market. Current ratios: The current ratio is a liquidity ratio that measures a companys ability to pay short-term and long-term obligations. Along forex traded risk level with many other financial products and services, derivatives reform is an element of the DoddFrank Wall Street Reform and Consumer Protection Act of 2010. Regular cash dividends : Dividends that companies indicate they will commit to paying on an ongoing basis at a set frequency. Treasury Inflation Notes Index: Measures the performance of the.S.
Working Paper : 1011. Trading partners Real Trade Weighted.S. There is always a bid and ask price in an actively traded stock. Hedge funds or even some private equity firms do not neatly fit either category). WisdomTree Equity Income Index: Measures the performance of the 30 highest-yielding dividend-paying equities within the WisdomTree Dividend Index, weighted by indicated cash dividends. A derivatives exchange is a market where individuals trade standardized contracts that have been defined by the exchange.
Archived from the original on April 29, 2010. Futures and Options Week : According to figures published in F O Week October 10, 2005. Earnings before interest, taxes, depreciation, and amortization (ebitda The net income of a company with interest, taxes, depreciation, and amortization added back. Per capita income: The sum of the value of all goods and services produced in a particular country divided by the total population of that country. 5 6 The assets include commodities, stocks, bonds, interest rates and currencies, but they can also be other derivatives, which adds another layer of complexity to proper valuation. The Annual Review shall be conducted at the end of August as follows.(1)1000 stocks are selected based on trading value in the past 3 years and the market value on the selection base date (the end of June).
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The party agreeing to buy the underlying asset in the future, the "buyer" of the contract, is said to be " long and the party agreeing to sell the asset in the future, the "seller" of the contract, is said to be " short ". "Buffett's Time Bomb Goes Off on Wall Street" by James. Msci USA Financials Index: Designed to measure the performance of US large and mid cap companies that are classified in the Financials sector according to gics. The mortgages are sold to a group of individuals (a government agency or investment bank) that " securitizes or packages, the loans together into a security that can be sold to investors. Dbiq Optimum Yield Diversified Commodity Index: is a rules-based index composed of 14 commodities drawn from the Energy, Precious Metals, Industrial Metals and Agriculture sectors. The prices used to calculate the DAX Index come through Xetra, an electronic trading system. In basic terms, the value of an option is commonly decomposed into two parts: The first part is the "intrinsic value defined as the difference between the market value of the underlying and the strike price of the given option. Dow Jones euro stoxx 50 Index: A market capitalization-weighted stock index of 50 large, blue-chip European companies operating within eurozone nations. Sovereign Debt: Bonds issued forex traded risk level by a national government in a foreign currency, in order to finance the issuing countrys growth. Exchange-traded funds hold the underlying assets of the index and their returns represent the returns of the assets held. Dollars; resulting statistics are the result of a combination of the euros performance against the.S. Net share buyback: Takes both the issuance of any new shares and the buyback of any outstanding shares into account.
Equipment Fixed Asset Tax: A tax is charged on equipment part of the fixed asset. Repo rates: Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds. The Long Equity Index consists of approximately 100.S. Russell 1000 Growth Index: A measure of the large-cap growth segment of the.S. Thus on the delivery date, the amount exchanged is not the specified price on the contract but the spot value (i.e., the original value agreed upon, since any gain or loss has already been previously settled by marking to market). Citi 2-Year Treasury Benchmark On-the-Run Index: Total return index for the Generic United States on-the-run 2-Year Treasury. Stoxx Europe 600 Index: The stoxx Europe 600 Index is derived from the stoxx Europe Total Market Index (TMI) and is a subset of the stoxx Global 1800 Index. Gross Profitability: a companys total revenue (equivalent to total sales) minus the cost of goods sold Gross profits over assets (gpoa Measures a corporations profitability by revealing how much gross profit a company generates relative to the level of assets used to generate them.