Financingthat is required, but for which no provision has been made. The difference intotalfundingneeded for a proposal and the amountof funding already made available.
Anasset-liabilitycorporatehedgebased on net assets, or the amountof a company’sshareholders’ equity. Less sophisticated than placingone hedge on the total assets of the company, and another on the totalliabilities, gap hedging is the practice of simply hedging the net of thetwo, orowners’ equity. Assumes thevolatilityof assets and thevolatility of liabilities are equal.
In the context of general equities,opening pricethat is substantiallyhigher or lower than the previous day'sclosing price, usually becauseof some extraordinarily positive or negative news.
A system whose probabilities are well described by thenormaldistribution, or bell shaped curve.
GDP implicit price deflator
An economic technique used to account forinflationby comparing thecurrent-dollargross domestic product GDPto constant-dollarGDPas aratio. The ratio accounts for price changes of goods and services thatmake up GDP and changes in the composition of GDP.
Provision in maritime law where all shippers on a given voyage wouldreimburse the ship line in the event of vessel sinking or catastrophicdamage. It also provides for the reimbursement to those shipperswhose cargo was thrown overboard in order to save the vessel.