You are on page 1of 304

A

ability-to-pay principle

abnormal earnings/return

abnormal rate of return

above the line

absolute advantage

absolute convergence

absolute dispersion

absolute frequency

absolute prepayment speed

absolute priority rule

absolute valuation model

absolute yield spread

academic arbitrage

accelerated amortization

accelerated depreciation method


1
accelerated sinking fund provision

acceleration clause

acceptance criterion

acceptance sampling

access person

account

accountant' s opinion

account balance

account form

(report form)
account payable

accounting


accounting Beta method B
B
accounting change
( AICPA)(APB) 20
(1)(2)

(3)

accounting control

accounting cycle

accounting earnings/income

accounting estimate

accounting exposure
translation
exposure
accounting equation

accounting goodwill

accounting method

accounting model
(1)(2)
(3)(4)
accounting policy making

Accounting Principle Board (APB)

accounting profit

Accounting Rate of Return (ARR)

1
accounting risk

accounting system

accounts payable

accounts receivable

accounts receivable turnover

accreting swap

accrual

accrual (basis) accounting

accrual bond

(Z bond)
accrued expense

accrued income/revenue

accrued Interest (AI)

accrued interest option

accrued liabilities

Accumulated Benefit Obligation (ABO)

accumulated depreciation
1 j 1
accumulated surplus

accumulation phase

acid test ratio

acquisition

active factor risk

active participation

active (portfolio) management

active return

active risk

active risk squared

active specific risk or asset selection risk

activist strategy

actual

actual return on plan assets

actuarial rate of return

actuarial yield

adaptive-expectations hypothesis

additions

additional compensation arrangement

additional paid-in capital

addition rule

addition rule for probabilities


A B P(A or B) =P (A) +P
(B) -P (AB)
additions

add-on interest

adjustable peg

Adjustable-Rate Mortgage (ARM)

adjusted basis

adjusted Beta B
B
adjusted Beta market model B



( Mean-reverting)
1 1

adjusted forecast

Adjusted Gross Income (AGI)

adjusted multiple coefficient of determination

Adjusted Present Value (APV)

adjusted R2 R2
R2
adjusted trial balance

adjusting entry

administrative fees

administrative lag

advance billing

advances

adverse opinion

advisory service

affiliated company
20-50%
affirmative covenants

after tax

after-tax cost of debt kd(1-T)


( WACC)
after-tax yield

after the fact

against actuals

agency problem

agency mortgage-back securities


( Freddie
Mac)(Fannie Mae)

agency relationship

agency security

agency trade

Aggregate Demand (AD)

aggregate demand curve

aggregate expenditure model

aggregate price index

Aggregate Supply (AS)

aggregate supply curve

aging of accounts receivable


(1)
(2)(3)(4)

AICPA
American Institute of Certified Public Accountants
AIMR
(Association for Investment Management Research)

all-in cost

allocative efficiency

allocative inefficiency

all-or-none order

all-or-nothing option

allowance

allowance for bad debt

allowance for depreciation


1 1
allowance for doubtful accounts

allowance for uncollectible accounts

allowable depreciation
1 j
allowance method

all-risk(ar)

Alpha

alternative currency option

alternative hypothesis
Ho
Ha
alternative option

American Depository Receipts (ADRs)

American Institute of Certified Public Accountants (AICPA)

American Municipal Bond Assurance Corporation (AMBAC)

American option

American Stock Exchange (AMEX)

American terms
US$/FC

amortization

amortization of goodwill

142 [] 142 2002 1 1


142
Amortizing and accreting swaps

amortizing securities

amortizing swap

analysis effect

analysis of variance (ANOVA)

analyst

analytical method

Delta
announcement date

annual compounding

annual equivalent yield (AEY)

annual (financial) statement

annual report
Annual percentage rate (APR)

annual report

annual financial statement


annual yield


annuitant

annuity

annuity due

annuity bond

annuity due

annuity method of depreciation 1

1
1 (compound interest method of depreciation)
anomalies

ANOVA table
F
anticipated change

anticipated inflation

anticipatory hedge

antidilutive EPS

antitrust legislation

APB Opinions
1962 -1973 31

appraisal

appreciation

appropriated retained income

( unappropriatedretained
income)
appropriation of retained earnings


approximate percentage change

a priori probability

arbitrage

arbitrage approach

arbitrage-free pricing/valuation

arbitrage opportunity

arbitrage portfolio

Arbitrage Pricing Theory (APT)


CAPM

arbitrage principle

arbitrage relative value funds

arbitrageur

arithmetic average

arithmetic mean (AM)

arm' s-length transactions


arrears

arrears swap

articles of incorporation (or partnership)

articulation

ascending tops

Asian Development Bank

Asian call option

ask price
offer price
assessment

assessment ratio

assessor

asset

asset allocation

asset allocation decision

Asset-Backed Security (ABS)

asset-based model

asset-based valuation

asset class

asset coverage

asset impairment
( FASB) 144

asset liability management

asset-or-nothing call option


all-or-nothing option
Assets Under Management(AUM)

asset turnover ratio

asset value

assignable causes

assignable contract

assignment

assignment of mortgage

associated person

assumable mortgage

assumption

asymmetric information

as-you-like-it option

chooser option
at a premium

at market

at per

at the close

atthe-money

at-the-money option

attribution analysis

auction market

audit

audit committee

auditor

auditor's opinion

audit report

audit trail

authorized shares

authority bond

authorized stock

autocorrelation

autocorrelation test

auto loan-backed securities

automatic stabilizers

automation

autonomous expenditures

autoregressive conditional heteroskedasticity (ARCH)

ARMAARMA
autoregressive (AR) model

autoregressive moving-average model (ARMA)


( ARMA) AR MA
ARMA(pq) AR (p) MA (q) ARMA (1)
ARMA (2)(3)
80
avail

available asset

available cash

Available-For-Sale (AFS) securities

average age of fixed assets

average fixed cost


average collection period of receivable
365
365
average cost

average cost method

(1)(2)
(3)
average depreciable life
1
=

average fixed cost

average age of fixed assets


average inventory processing period
=
365
average price

average price call option

average price put option

average product

average rate

average rate of return

average revenue

average s

average strike option

average tax rate (ART)

Average Total Cost (ATC)

Average Variable Cost (AVC)

BA
Bank's Acceptance
baby bond
100
back office

back-dating


back door financing


back door listing

back-end load


(Front-end load)
back simulation
(historical simulation method)
back spead

backtest

Back-to-back

back-to-back credit

back-to-back loan

back up

Backvrardated

Backwardation

backward induction

bad debt

bad debt-allowance method

bad debt writeoff

bad debt expense

bad debt recovery

bad delivery

balance

balanced budget

Banlaced budget multiplier


balanced fund

balanced mutual fund

(1)(2)(3)

balance of international .payment

balance of merchandise trade

Balance of Payment (BOP)

(1)
(2)(3)
(4)

balance of trade

(balance of trade surplus)(balance


of trade deficit)
balance on current account

balance on goods and services

balance sheet (B/S)

balance sheet equation


=+
ballooning

balloon maturity


balloon payment
10
5000 55000
bank accommodation

bank bill/draft

bank check

bank discount basis


360
bank discount yield
360

bank draft
bank bill
banker's acceptance bill

bank guarantee letter

Bank Insurance Fund (BIF)

banking syndicate

Backing Act of 1993 1993

(Glass-Steagall Act)
bank interest

bank line

bank loan

bank money

bank note

bank of commercial

Bank overdraft

bank rate

bank reconciliation

bank reserves

bank run

bankruptcy

bankruptcy cost

bankruptcy remote entity


( ABS)

special purpose vehicle


bar chart

barbell-bullet analysis

bargaining power of buyers

(1)
(2)(3)
(4)
bargaining power of suppliers

(1)
(2)(3)

barometer stock

barrier option

barrier price

barriers to international diversification


(1)(2)(3)
(4)(5)(6)
barrier to competition

barrier to entry

barter

base
(base period)(base price)
basebuilding

base case

base period

basic earnings per share


=
basic earning power
1

basic earning power ratio

basic yield

basis

basis accounting

basis grade

Basis of an asset

Basis Point (BP)


1 0. 01% 1%
bp
basis point model 100 100
1% 5. 75 5.81
6

Basis point value (BPV)


1
basis price

basis risk

basis srvap

Basket options -

basket purchase

Bayes'formula

Bayes'theorem

BD form BD

bear

bear call spread

bearer

bearer bond

bearer secutity

bear floater

bear hug

bear market

bear put spread

bear raid

bear spread

bear squeeze

beat the gun

before-tax profit

before the fact


ex-ante
behaviroral finance

bellvrether bond
30
bells and whistles

bellvrether stock

belovr par

Belovr the line

(above the line)


benchmark

benchmark bills
( Fannie Mae)
1
benchmark bond

benchmark error

benchmark notes
(Fannie Mae) 5 10

benchmark portfolio

benchmark spot (zero-coupon) rate curve

beneficial owner

beneficiary

benefit principle |J

benefits paid

bernoulli random variable


O 1
bernoulli trial

best-case scenario

best effort

Beta(B)

betterment

biased expectations

bid


bid and asked

bid-asked spread

bid bond

bidding up

bid in competition

bid price

Big Board
1792

bigger fool theory

bilateral arbitrage

bilateral netting

bill of exchange

bill rate

binary option

binomial distribution
n
pko1 - p l-p n
k q n p n 1
binomial model

binomial option pricing model

binomial probability distribution



n x
binomial probability function

binomial random variable


n

binominal tree

bird-in-the-hand theory
1 1

black box approach

black market

black market bond

Black-Scholes formula

Black-scholes or black-scholes-merton formula

( Fisher Black)(Myron Scholes)

Black-Scholes option pricing model


( Fisher Black)(Myron Scholes) 1973

blanket mortgage

blanket order

blind pool

block



blocket

block houses

blocking

block order
l l
block trade/sale/transaction
1
blood bath

bloTving off

blue chip

Blue-sky laWs

board broker

board lot
100 1000
board of arbitration

board of directors

board of trade

boiler room

bond

bond anticipation note

bond categories





bond discount

bond-equivalent basis
2
bond-equivalent yield (BEY)

180 10000 9750 ( 10000


-9750) /9750365/180=5. 2%
bond fund

bond indenture

bond indexes

bond market

bond option

bond power

bond premium

bond premium amortization

bond price volatility

bond rating
AAA D

bonds
bond
bond sinking fund

bond svrap

bond vrashing

Bond Yield Plus Risk Premium Method (BYPRP)

bonus futures

book

book credit

book entry securities

book of original entry

Book Value (BV)

1
book value of equity (or book value)

book value per share

book value per share of common stock

bootstrapping

borrower

borrower arbitrage

borrowed reserves

Boston interest
30
bottom

bottom fisher

bottom out

bottom-up forecasting approach

bottom-up investing


bought deal

boundary condition

boundary space

bourse

box plot
1 3
50% 3
1
box spread

brand name

brady bonds

breadth of market

break

breakaway gap

breakeven analysis

break-even exchange rate

breakeven point

break-even price or level

breakeven quantity of sales

break fonvard

break point(BP)
( EBIT)

Bretton Woods
1944
Bretton Woods system

Breusch-Pagen test BP

bridge loan

bring out

broad market

broke-dealer

broken lot
100
broker

brokerage

brokerage account

brokerage house

broker associations/groups

brokered market

broker loan rate


call money rate
broker's market

bubble company

bucketing

bucket shop

bucking the trade

budget constraint

budget constraint line

budget deficit

budget line

budget of balanced

budget of government
1
budget surplus

build-up method

bulge

bull

bull call spread

bulldog bond

bullet loan

bullet bond/maturity

bull Floating-rate Note

bullion

bull market

bull pool

bull spread

bull straddle writing

bull vertical spread

bundling unbundling

bunds

buoyant

business cycle

GDP
business ethics

business expenses
1

business-interruption insurance

business risk

business segment

butterfly shifts

butterfly spread

buy-and-hold str'ategy

buy at best

buyback

buyer


buyer s market

buying hedge

buying on margin

buying outright

buying power

buying the intermarket spread

buy price

buy minus

buy on bid

buy order

buyout

buy-side analyst

by-product

calendar spread

call

call auction

callable benchmark notes


(Fannie Mae) 5 10
(1)5
(2)5 (3) 10 (4) 10

callable bond/securities

callable reference notes


(Freddie Mac)

callability

call and prepayment risk

call date

call market

call money rate

call (option)

call option on LIBOR LIBOR


( LIBOR)
call premium

call price

call protection

call provision

call risk
(1)
(2)

call schedule


candlestick chart

cannibalization

cap

cap agreement
(1)
(2)
capacity

capital

capital account
(1)
(2)
capital allocation decision

CapitaIAllocation Line (CAL)

capital appreciation

CapitaJ Asset Pricing Model (CAPM)

( Beta)
=
capital budgeting

(operating budget)
capital charge

capital composition

capital consumption


capitaJ deepening

capital expenditure( capex)

capital flight

capital formation

capital gain

capital gains yield

capitaJ improvement

capitalism

capital issues


capitalization

capitalization (financialleverage) rate (cap rate)

capitalized

capitalized interest

capital market (or guideline company) approach

capital lease
(1)(2)
(3) (4)
90%

capital loss

capital market

capital market instruments

capital market integration

Capital Market Line (CML)

(SML)
capital markets

capital-output ratio
( GNP)
capital preservation

capital preservation investment strategy

capital ratio

capital rationing

capital stock

capital stock certificate

capital structure

capital structure - influences


(1)(2)
(3)(4)
capitaJ leases

capital widening

caplet

CAPM risk control methodology


f3

capped floaters


capped swap

cappmg

cap rate

cap risk

carry

carried interest (private equity)


20%
-25%
carrying amount

IEl;
book valuecarrying value
carrying broker

carrying charge

carrying value

1
book valuecarrying amount

cartel

carve-out

cash

cash account

cash-and-carry arbitrage

(carry-and-cash arbitrage)

cash basis accounting

cash budget

cash commodity

cash conversion cycle

cash delivery

cash disbursements journal

(cash receipt journal)


cash discount

cash dividend

cash drag

cash equivalents

Cash Flow (CF)

Cash Flow at Risk (CFAR)

cash flow duration

cash flow forecasting

cash flows from financing (CFF)

cash flows from investing

Cash Flow from Operating (CFO)

cash flow hedge

cash flow matching

Cash Flow Return On Investment (CFROI)

cash flow statement

statement of cash flow


cash flow yield

cash inflow

cash market

cash management bills

6
3 4 6 9
cash method of accounting

cash-or-nothing call option

cash-or-nothing put option

cash oufflow

cash price or spot price

cash ratio

cash receipts journal

(cash disbrusements jouranl)

cash reserves

cash selection

cash settlement

cash short and over

cash substitute

cash surrender value

catch-up effect

catalyst

causal forecasting methods

CD equivalent yield CD
360 rMM=HPY(360/t) t
HPY
ceiling

central bank

Centralized risk management or companywide risk management

Central Limit Theorem( CLT)

central tendency

certain world

certificate

certificate of compliance

Certificates ofDeposit (CDs)

S&L

certificated or certified stocks

Certified Financial Planner (CFP)


( FPA)

30 ( CRE)

Certified Public Accountant (CPA)

( AICPA)
ceteris paribus

other things constant


chain rule of forecasting

change in accounting principle

1
66
C

change in demand

change in net working capital

change in supply

character

characteristic line

charge

( debit)

chart

charter


Chartered FinanciaIAnalyst (CFA~)
CFA institute

Chartered Financial Consultant (CFC)

Chartered Investment Counsel (CIC)

67
C
charting

chartist

chart of accounts

Cheapest to deliver (CTD)

chattel

Chebyshev's inequality

S(,u - ko+) S 1-1k2


o s >I
check

checking accounts

checking the market

Chicago Board ofTrade (CBOT)


1948

Chicago Board Option Exchange (CBOE)

68
C
Chicago Mercantile Exchange (CME)

Chicago School of Economics

Chief Executive Officer (CEO)

Chief Financial Officer (CFO)

Chief Operating Officer (COO)

Chinese Market

choice

chooser option

as-you-like-it option
chumming

churning

China Wall

fire wall
circuit breaker

69
C
civilian labor force
16 16
claim account

claim

class

class midpoint

classical economics 8
18 19
1776

classical economists

classical theories

classified balance sheet

clean price

clean surplus relation

70
C
clearing

clearing firm

clearing house

clearing margin

clearing market

clearing member

clearing system

clientele Effect

Cliquet option

closed-end investment company

closed-end fund

NAV

71
C
closed-end investment company

closed-end muted funds

closed mortgage-backed security

closeout netting

close the books

closing

(1)(2)
(3)
(4)

closing book

closing entries

closing price
closing quote
closing quote
closing price
cluster sampling

72
C
CMT rate CMT

Coase theorem

code of ethics

coefficient of determination


coefficient of variation (CV)

coincident indicators

colnsurance

coinsurance clause

cointegrated

collar

collar agreement
73
C

collar hedge

collateral

collateralize

collateralized auto loan securities

Collateralized Bond Obligation (CBO)


Asset-Backed Security
( ABS)
collateralized loan

Collateralized Mortgage Obligations (CMO)

Freddie Mac 1983


collateral trust bonds

collection ratio

collective bargaining

74
C
collective decision making

collusion

collusive oligopoly

combination

combination formula (binomial formula)


n k k
Ck" 2 r
1 j!r
combination matching

Horizon Matching
combined interest rate and currency svrap (CIRCUS)

command economy

combined financial statement

commercial bank

75
C

commercial credit

commercial discounts

commercial letter of credit

commercial Joan

CommerciaIPaper (CP)

90
commission

commission brokers

commission house

commission rates

commitment fee

commodity

Commodity Credit Corporation

76
C

commodity forward

commodity fund

commodity futures

Commodity Futures Trading Commission (CFTC)

commodity-linked bull and bear bonds

commodity money

commodity pool

commodity pool operator

commodity pool operator

commodity price index

commodity swap

77
C
commodity trading advisor

common life method


NPV
NPV (EAA)

common-size balance sheet

common-size income statement

common-size statement

common stock

common stock equivalent

companion tranches
PAC-
support
trancheS
company fundamental factors


company share-related factors

comparable analysis

78
C
comparative advantage

( absolute
advantage)
comparative financial statements

comparative sales approach

comparative statics

compensating balance

compensating wage differentials

compensation fund

competition as a dynamic process

competition

competitive bid

competitive environment

competitive equilibrium

79
C
competitive market

competitive price

competitive price-searcher market

competitive strategy

complement

( substitute)

S S Sc
completed contract method

completely diversified portfolio

completely randomized design

complete market

completeness fund

complete portfolio

complex capital structure


80
C
( dilutive)

compliance programs
(1)
(2)
(3)
component percentages

composite

composite depreciatin
1 ( group
depreciation)
Composite measure

compound entry

(simple entry)
compounding

compounding frequencies

compound interest

compound interest bond

81
C
compound journal entry
compound entry
compound option

compounding period

compounl interest method of depreciation


1 1

(annuity method of depreciation)


compound option model

comprehensive Income( CI)


computing a moving average


n n
n period moving average=X+X l++X-/n
concealment

concentration ratio

concession

82
C
conditional convergence

conditional expected value

conditional heteroskedasticity

ConditionaIPrepayment Rate (CPR)

conditional probability

conditional variance

condor spread

confidence interval

confidence level

l-a
conflicts to clients and prospects
AMIR AIMR

conflicts to employer
AIMR AIMR

83
C
conforming mortgage

8026

congenerlc merger

conglomerate company

conglomerate merger


conservatism

consignee

consignment

consignor

consistency

consistent estimator

consistent probability

consolidated financial statements


C

(consolidated balance sheet)


(consolidated income statement)
consolidated mortgage

consolidation loan

consolidation method

consolidation phase

constant-cost industry

constant dollars

constant growth dividend discount model


Po=D1(k-g) Di k
g
Constant-Maturity SWap or CMT swap

Constant Maturity Treasury or CMT

constant growth model

Constant Prepayment Rate (CPR)

85
C
Constant Proportion Portfolio Insurance (CPPI)
Stock Exposure=m(Assets - Floor)
Stock Exposure m Assets Floor
m 2 100 90
2(100-90) -20 80
constant returns to scale

construction in processs

construction loan

constructive total loss

construct the portfolio


( clients policy statement)

construction-in-progress

consumer credit

Consumer Price Index (CPI)

consumer's risk
}

consumer surplus

y
C

consumption

consumption asset

consumption function
C-f(y)
consumption opportunity constraint

contagion theory

contango

contestable market

contingency table

contingent claims

contingent deferred sales load

contingent immunization

87
C
contingent interest

contingent liability

contingent order

contingent premium option

Continual monitoring

continuing earnings
(underlying earnings)
continued bond

continuously compounded

continuously compounded return

continuous market

continuous random variable

Continuous time

contra account
1

Contract For Difference (CFD)


j

contract grades

contraction phase

contraction risk
n
pass-through(1)
MBSs
(2)

contract market

contract price

contract rate
mortgage rate
contractual rate

contrarian

contributed capital

89
C
contributions

contributory negligence

control account

control chart

controlled adjustable rate preferred stock

control premium

control variate technique

controlling interest

convergence

convertible debt

convenience sampling

convenience yield

conventional option

conventionaJ pass through


C
__-I__-._--____________---____

conversion

conversion factors

conversion parity price

conversion premium

conversion price

conversion rate

conversion ratio

conversion value

converted price

convertible

convertible bond

Convertible Floating-Rate Note (CFRN)

91
C
convertible hedge

convertible preferred stock

conversion security

convexity

convexity effect

cooked books

CooksD D

cooperative equilibrium

Copyright

core earnmgs
underlying earnings
corner

corporate bonds

92
C

- -- corporate equivalent yield

corporate income fund

corporate income tax

Corporateor Within-Firmrisk

corporate reacquisition

corporate structure analysis

corporation

corpus treasury receipt

correcting for seasonality in a time series model


AR

correcting heteroskedasticity
(1)(2)(Robust
Standard Errors)
correcting multicollinearity

correlation
l
-1 0
93
C
correlation analysis

correlation coefficient
-1. 00 +1. 00 x
y x y
corridor swap

cost approach

cost average

cost-benefit analysis

cost curve

cost focus

cost leadership

cost of capital

cost of carry

Cost of carry modeJ

94
C
cost of debt

Cost Of Goods Sold (COGS)

cost of goods sold index

Cost of new common equity, ke

Cost of Preferred Stock, kp

Cost of retained earningsls

cost parity

cost plus pricing

cost principle

cost-push inflation

cost recovery


cost valuation

cosurety
95
C

counter-cyclical securities

countercyclical policy

counterparty

counter-trend trading

counting principles

country Beta

country political risk

Country risk

coupon

coupon bond interest

coupon bonds

coupon date

96
C
coupon frequencies

coupon rate

coupon stripping

coupon strips


coupon reinvestment risk

coupon rollover date

coupon yield

covarlance

covariance stationary

(1)(2)(3)

covenant

cover

covariance matrix
97
C

covariance stationary

coverage ratio

covered arbitrage

7% 10% 4% 10%

1% covered interest arbitrage


covered call

covered interest arbitrage

7% 10% 4% 10%

1% covered arbitrage
covered interest differential

covered interest parity

covered margin

covered option

covered person

(AIMR)(CFA)(CFA)
98
C

covermg

crash

crawling peg

credit

credit agreement

credit analysis

Credit at Risk (CaR)

credit card

credit card receivables

credit card receivable-backed securities


99
C
credit card security


credit department

credit derivative

credit enhancement

credit event

credit exposure

credit linked security

credit memo/note

credit metrics
JP 1977 4
VaR
creditor

credit rating

credit risk or default risk


100
C

credit sale

credit spread

Credit spread option

credit spread risk

credit swap

credit unions
I

Credit VARDefault VARor Credit at Risk VAR


VAR
Credit-linked notes

critical value
C
P(-C<x<C)=
cross elasticity of demand

cross hedge
101

cross-currency interest rate swap

cross-index basis note

cross order

crossover price

crossover rate

cross-product netting

cross-rate

cross-referencing

cross-sectional analysis

cross-sectional comparison

cross-sectional data

102
C
cross-sectional return studies

cross shareholding

cross trading

cross-sectional data

cross-sectional analysis

crossover prlce

crosstabulation

Crowding-out effect

cumulative absolute frequency

cumulative distribution function


X X x
F=Pjr<
cumulative dividend

cumulative frequency distribution


cumulative
relative frequency distribution.
103
C
cumulative preferred stock

noncumulative preferred stock


cumulative relative frequency

cumulative relative frequency distribution


cumulative
frequency distribution.
curb exchange

curb trading

currency

currency annuity swap


currency

baSlS SWap o
currency appreciation

currency arbitrage

currency basis swap


currency
annulty SWap o
currency board
(1)
(2)(3)
100%
C
currency depreciation

currency exposure

currency forward

currency option

currency hedging

currency in circulation

currency-option bond

currency risk

currency selection


currency swap

currency wareants

current account


105
C

CurrentAsset (CA)

current capital

working
capital
current cost

current coupon bond

current credit risk

current debt

current face

current income

current issue

Current Liability (CL)

current market value

C
current maturity
10 6
4

current/noncurrent method E

current price
( spot price)(cash
price)
current rate

current ratio

working capital ratio


current value account

current yield

curtailment

curvature

cushion bond

cushion spread

custodians

107
C
customer list

cut price

cutting a loss

cyclical business

cyclical change

cyclical company

cyclical stock
beta

cyclical unemployment


108
D
D
daily adjustable tax exempt securities

Daily Earnings at Risk (DEaR)


VaR
daily price limit

daily settlement

daily trading limit

data mining/snooping

data set

data-snooping

data-snooping bias

dated date

dated earned surplus

date of declaration

date of maturity

date of record

date of trade

date processing

dating

dawn raid

day loans

day order

day-to-day repo

day trade

day trader

deadweight loss

110
D
dealer

dealer bank

dealer loan

dealer market
OTC
dealer paper

deal screening

debentures

debenture stock

debenture bond

debit

debit discount

debit spread


D
debt and equity securities available-for-sale

debt-equity ratio

debt-equity swap

debt financing

debt obligations supported by public credit enhancement programs

debtor

debt ratio
(debt to asset)
(debt to equity)
debt securities

debt securities held-to-maturity

debt service

deciles

decimal settlement price

112
D

decision rule

declaration date

declining-balance (depreciation) method


1

declining trend channel

decreasing-cost industry


dedication

dedication with reinvestment

deduction

deep bid

deep discount bond

deep in the money

deep out of the money

113
D
default

default loss rate

default premium

default rate

default risk

default risk premium

Default Value at Risk (Default VaR)

defeasance

defeased bond-equity swap

defensive company

defensive competitive strategy

defensive stock

114
D
deferral method

deferral of costs

deferred account

deferred annuity

deferred asset

deferred bond

deferred interest bond.


deferred call

deferred charges

deferred coupon bond

deferred income taxes

deferred interest bond

deferred bond
deferred payment note
115

deferred swap

deferred stock

Deferred strike option

deferred taxes

deferred tax asset

deferred tax liabilities

deficit

deficit financing

deficit spending

defined benefit pension plan

defined contribution pension plan

116
D
deflating

deflation

degree of combined leverage

degree of confidence

degree of flnanciaJ leverage


=

degree of freedom (dt)

degree of operating leverage

delayed settlement swap

delinquency


delist

delivery

delivery biD

117
D
delivery day

delivery month

delivery notice

delivery option

delivery point

delivery price

Delphi method

Delta

Delta - DV
PV P
Delta hedge

Delta-Gamma approaches to VaR VaR


VaRDelta-gamma

Delta neutral portfolios

Delta-normal approaches to VaR VaR


D
VaR(Delta)
Delta neutral

demand

demand-and-supply analysis

demand and supply curve

demand curve

demand deposits

demand for loanable funds

demand for money

demand line of credit

demand loan

demand mortgage

demand note

demand price
119
D

demand-pull inflation

demographic trend

demography

denomination

Dependent

dependent events

dependent variable
r=f(x)y x
depletion

depletion allowance

deposit

deposit account

deposit expansion multiplier

120
D
depository institutions

depository trust company

depreciable cost

depreciable value

depreciation

depreciation accounting

depreciation fund
1
depreciation method
1

depreciation of a currency

depreciation of an asset

depreciation schedule
1
121
D
depression


depth

depth of market

derivative assets

derivatives

derivatives dealers

derivative instrument

derivative security

derived demand

descending tops

descriptive statistics

deseasonalized time series

D
Designated order turnauound (DOT)

detachable warrant

detecting heteroskedasticity
(1) Breusch-Pagen

(2)(Scatter Plot)
(3) F-Test F-Test

detecting multicollinearity
(1)(2) T-test
F-Test (3)

detecting seasonality


AR (1) 12

detecting serial correlation


(1)(Scatter Plot); (2)
Durbin-Wat son
devaluation

devalued

development cost

diagonal spread

differences between means

D
differential swap

differential

differential duty

differential expectations

differentiated products

differentiation

differentiation parity

diff svraps
rate-differential swap
diffusion index

digested securities

digital option

diluted earnings per share

124
D
dilution

dilutive securities

diminishing marginal utility

direct earnings

direct exchange rate

direct financing

directional (more volatile) hedge funds

direct method

(indirect method)
direct paper

direct placement

direct quote
DC/FC
(indirect quotation)
direct reduction mortgage

direct search market


D

direct tax

direct write-off method

dirty float

dirty price
(clean price)
disbursement

discontinued operations

discount

discount amortization

discount basis

discount bond
126
D

discount broker

discounted abnormal earnings model

Residual Income ModelEdwards-Bell-Ohlson model


Discounted Cash Flow (DCF) method

discounted cash flow model

present value model


discounted cash flow (DCF) techniques

discounted future value

discounted payback period

discounted value

discount for lack of marketability

discount for lack ofliquidity

discounting

discount instrument
127
D

Discount insterest

discount market

discount margin

discount on securities

discount period

discount rate

discount yield
360

discouraged workers

discrete random variable

discrete time

discrete uniform probability function

discretionary account

128
D

distress securities

distress selling

distribution date


distribution-free method

distribution

distributing syndicate

distributor

divergence

diversification

diversification benefits

diversified common stock fund

diversified company

130
D
discretionary fiscal policy

discretionary trust

discriminant analysis

discrimination

disecononues of scale

disequilibrium

disinflation

disintermediation

dispersion


disposable income

disposal value

dissaving

distant contracts or deferred contracts


129
D
diversified holding company

diversifiable risk

divestiture

dividend

dividend arrearages

dividend capture

Dividend Discount Model (DDM)

dividend exclusion

dividend in arrears

dividend irrelevace theory

M&M
dividend payout ratio

dividend policy

(1)(2)(3)(4)
dividend protection

131
D

dividend price ratio

dividend reinvestment plan (DRP)

dividend account

dividend in arrears

dividend policy decision

dividend yield

division oflabor

documented discount notes

dollar bonds

dollar cost averaging

dollar default rate

132
D
dollar-denominated issue

dollar duration
100 bp
bp
dollar interest
=
/360
dollar safety margin

dollar-weighted return

(IRR)(time-weighted return)
domicile

dominant stategy

double-barreled in security


double bottom

Double-Declining- Balance depreciation (DDB)

1 1 1 (salvage value)
double drain

double entry

doubling option

D
double top

Dow Jones average


65
30 20 15
Dow Jones bond average
6
Dow Jones commodity futures index
12
Dow Jones IndustriaIAverage (DJIA)
30
Dow Jones transportation average
20
Dow Jones utilities average
15
down-and-in option

down-and-out option

downgrade

downgrade risk

down reversal

downside variance

134
D
downtick


dorvnstreaming

downstream merger

down transition probability

downward-sloping demand

downturn

DOWPAC
8
Dow theory

1
draining reserves

drawdown

drawing account

drop-lock bond

drop lock security


135
D

Dual-currency bond

dual-currency issue

dual mutual fund

dual-indexed floater

dual purpose fund


2

dual series zero-coupon debenture

dual trading

due diligence

due-on-sale clause

dummy variable
O 1
dumping

136
D

duopoly

DuPont analysis

DuPont system
ROE ROE (1)
(2)(3)
durable goods

duration

(modified duration)
duration-convexity approach

duration matching

duration strategy

10 10

Durbin-Watson statistic DW

D =
(et - et_i )2
et2

i=l
Dutch auction

137
D

Dutch Book Theorem

duty to employer
AIMR

dynamic asset allocation

( static asset allocation)

dynamic hedging

Delta
dynamic true growth model
( r>k
m>l)
138
E
E
EAFT index
(MSCD)

early exercise

early stage

early-stage investment

earned income

earned surplus

earnmgs

Earnings at Risk (EAR)

Earnings Before Interest and Taxes( EBIT)

Earnings Before Tax (EBT)


earnings growth rate (g)

earmngs momentum

E
earnings multiplier model

earnings multiplier

earnings multiplier modeJ

Earnings Per Share (EPS)

earnlngs power

earnings price ratio

earnlngsquality

earnlngs surprise

earnings statement

earnings test

earnings yield ratio

easy-money policy

econometrics

E
economic earnings

economic efficiency
(1)
(2)

economlc exposure

(annountting exposure)

economic goods

economic goodwill

economic indicators
GDP
economic life

economic profit

economic regulation

economic risk

economics

economic surplus
141
E

economic theory

Economic Value Added (EVA)

economies of scale

(diseconomies of scale)
economies of scope

econonuzing behavior

Edwards-Bell-Ohlson model

Effective Annual Rate( EAR)

EffectiveAnnuaIYield (EAY)
365
EAR=(1+ HPY)365/-1 HPY t

effective convexity

effective duration

effective exchange rate

142
E
effective interest

effective- interest amortization

effective interest rate

Effective Tax Rate (ETR)

efficiency

efficient capital market

efficient diversification

efficient frontier

Efficient Market Hypothesis (EMH)

efficient portfolio

elasticity
1%
elasticity of an option
1%
143
E
elasticity of demand

elasticity of supply

Electronic Data Processing (EDP)

electronic trading

element 1

embedded option

embezzlement

emerging market

emerging markets fund

empirical duration

empirical probability

empirical rule
1 2 3

empirical test
E

employed

Employee Retirement Income Security Act (ERISA)


1974

Employee Stock Ownership Plan (ESOP)


ESOP

employment discrimination

employment-to-population ratio
16 16 16 16
ending inventory

ending-wealth value


end-of-the-month option

endogenous growth theory

endorsement

endowment funds

145
E
enhanced derivatives products companies (EDPC) (or special purpose vehicles [SPVs])

EnterpriseValue (EV)

Enterprise-Wide Risk Management (ERM)

entity 1

entrepreneur

entrepreneurship

entry barriers

equality of variance

equation of exchange
MV=PTM V P T
1911

equilibrium

146
E
equilibrium for a business firm

equilibrium for the individual consumer

equilibrium price

equimarginal rinciple

Equipment Trust Certificate (ETC)

Equitzing cash

equitizing long-short

equity

equity basket

equity capital

equity charge

equity collar

147
E

equity derivative

equity forward

equity financing

equity index-linked note

equity kicker

equity-linked debt

equity method

20%-50%
equity mutual fund

equity options

equity risk premium

equity swap

500
equity turnover

148
E

equivalent annual annuity (EAA) method

EAA
equivalent annual yield
1+
12 1
equivalent taxable rate
=
1-
error autocorrelation

error term

escalator clause

COLA
escrowed-to-maturity bonds

estimate

estimated liabilities

estimated (or fitted) parameters

estimated rate of return

expected rate of return


estimated useful life
149
E
1
estimation

estimator

Euribor

Euro

Eurobonds


Eurocurrency

Eurocurrency market

Eurodollar bonds

Eurodollar CDs

Eurodollar futures contract

Eurodollar interest rate


150
E

Eurodollar

Eurodollar market

European Currency Unit (ECU)


European Monetary System

European-style option or European option


(American option)

European terms
FC/US$
(American terms quotation)
European Union (EU)
1957 (Treaty of Roam)
( EEC)
Europe Australia Far East index (EAFE index)

even lot
100 1000 5000
round lot
event

event-driven fund

event risk

event study

EV to EBITDA EV/EBITDA

ex-ante
(ex post)
ex ante alpha

excess burden of taxation

excess earnings approach

excess kurtosis

excess liability insurance

excess reserves

excess return


exchange

exchangeable bond

exchange clearinghouse

152
E

Exchange for physicals (EFP)

against actualsex-pit
transactionversus cash transaction
exchange gain or loss

exchange-listed derivative

exchange membership

exchange of borroxing

exchange option

exchange rate
1.5 l
1.5
exchange rate risk

Exchange-traded funds (ETFs)

excise tax

exclusion principle

53
E

exclusions

ex-dividend

ex-dividend date

efficient frontiers

Markowitz (Mean-Variance Portfolio


Model)
executive stock option

exercise (or exercising the option)

exercise limit

exerclse price (or strike price or striking price or strike)

exercise rate or strike rate

exercise value

intrinsic value
exhaustive

exhaustive events

154
E
exit

exotic option

expansionary fiscal policy

expansionary monetary policy

expansion project

expectation

expectation hypothesis

expectational arbitrage

expected future spot price

expected holding period return

expected inflation rate

expected rate of return

estimates rate of retum


155
E
Expected Return( ER)

expected return on plan asset

expected value
E X
E(x)=P() xi P(x,)
expected value of a variable

expenditure approach
GDP GDP

expenditure multiplier
GDP
expenditure

expenditure multiplier

1 (1-MPC)
expense

expense accounts

experience rating

experimental unit

156

E
experimentwise Type I error rate

expiration

expiration date

expiry

ex-pit transaction

explicit cost

explicit transactions

Exponentially Weighted Moving Average (EWMA)

exponential probability distribution

exponential smoothing

exponential weighting
r
t-l <1
exports

ex-post
157
E
(ex ante)
exposure

extendable bond

extendable swap

extended CAPM
CAPM CAPM
extension risk

extension svrap

external auditor

external credit enhancement

external debt

external disecononues

external econonues

external efficiency

158
E

external equity

external factors

external interest rate

externality

Extraordinary item

extraordinary repairs

extra risk

Extreme Value Approach (EVA)


VaR
ex-warrants (XW)

159
F

F
face amount/value

factor


1 0
factor analysis

factor Betas or factor loadings B

factor model

factor portfolio
1 0
factor push analysis

factorial experiment

factor risk premium (or factor price)


i 1 0

factor sensitivity (also factor betas or factor boadings)


160
F

Factorial
4 1=4321=24
factors of production

fair dealing

fair game

Fair Market Value (FIVfV)

fair value

fallacy of composition

Fannie Mae

Federal National
Mortgage Association
FASB statements

FAS 133 133

fat tails

Federal Deposit Insurance Corporation (FDIC)


1993
161
F

federal funds market

7
federal funds rate

Federal NationaIMortgage Association (FNMA)

Federal Open Market Comnuttee (FOMC)

federally related institutions

Federal Reserve Banks


12
12

Federal Reserve Board (FRB/Fed)


12

Federal Reserve System (FRS)


1913

feedback theory


fiat

162
F
fiat money

fictitious trading

fidelity bond

fiduciary

fiduciary account

Fiduciary call

fiduciary duties

fill

fill or kill order

filter rule

final dividend

final good
163
F

final market goods and services

finance company

FinanciaIAccounting Standards Board(FASB)

financial account

financial assets

financial bond

financial derivatives

financial engineering

financial futures

financial holding company

financial instrument

F
financial intermediary

finance leasing

financial leverage

EBIT/(EBIT -I)
financial management

financial merger

financial ratio

financial risk

financial risk management

financial statement

financial statement analysis

financial structure

165
F
financing activities

financing cash flovr

finished goods inventory

fire vrall

China wall
firm


2
firm-specific risk

first call date

first-differencing

Y=X-X
First- InFirst- Out (FIFO)

first mortgage bond

first notice day

first-order correlation

166
F
first par call date

fiscal policy

first position day

fiscal year

fiscal-monetary mix

Fisher effect

i r+

fitch investors services

five-number summary
1 3

fixed annuity

fixed asset

plant asset
fixed asset turnover ratio
=

fixed charge coverage ratio


167
F

Fixed Cost (FC)

fixed exchange rate


fixed rate
fixed exchange rate regime

fixed exchange rate system

Fixed-for-floating rate swap

Fixed-income forward

Fixed-income investments

fixed income securities

fixed liability

fixed price contract

fixed rate

fixed exchange rate

fixed-rate perpetual preferred shares

168
F
fixed-rate perpetual preferred stock

flat trend channel

flat yield curve

FLEX options FLEX


CBOE

flexible exchange rate


floating exchange rate
flexible exchange rate system

flexible portfolio fund

flight to quality

(flight from quality)


flotation cost

floating exchange rate


flexible exchange rate
floating interest rate

floating rate bond

( LIBOR)
Floating Rate Note (FRN)
169

F
floating rate tranche
Floating-rate loan

Floating Rate Certificate ofDeposit (FRCD)

Floating Rate Note (FRN)

( LIBOR)
floating rate bondfloating
rate tranche tranche
floating rate tranche

( LIBOR)

floor

floor agreement
(1)
(2)
floor brokers

floor price

floor trader

floored swap

floorlet
170
F

floor traders or locals

Flotation costF

flow through

flow

flow effect

flower bond

fluctuation limit

F.OBdestination

F.OBshipping point

focus

footnotes

force majeure

forced conversion

171
F

forced liquidation

forecasting

Foreign Corrupt PracticesAct (FCPA)


1977

foreign bond

foreign currency

foreign currency risk premium

foreign currency debt rating

foreign currency exposure

foreign currency option

foreign currency translation h

foreign exchange (FX)

172
F
foreign exchange controls 0

foreign exchange futures

foreign exchange market

foreign exchange parity

foreign exchange swap

Foreign investment hedge

Forex
( foreign exchange)
forward

forward contract

forvrard differential

forward discount or premium

forward exchange rate

173
F
forward interest rate

forward market

forward premium

forward P/E
leading P/Eprospective P/E

forward price

forward purchase

forward put-call parity

forward rate

Forward Rate Agreement (FRA)

forWard rate of interest

forward sale

forward start option

174
F
forward swap

foundation

four Cs of credit analysis C

fourth market

fractile

quantile
fractional-reserve banking

franchise

franchise factor

franchise value
P/E P/E = P/E

Franco Modigliani
1956
MM
175
F
fraudulent financial reporting

Free Cash Flow (FCF)

free cash flow model

Free Cash Flow to Equity (FCFE)

=+ 1
+
Free Cash Flovr to the Firm (FCFF)

=EBIT (1-)
+(EBIT)=
=++
free cash flovr to the firm model

freely floating

free market

free rider

Free Trade Agreement (FTA)

F
freight out expense

frequency distribution

frequency polygon

frictionaJ unemployment

( structural unemployment)(cyclical
unemployment)
friendly merge

fringe benefits

front-end income loading

front-end load
(back-end load)

front running

F-statistic F-
F- F-

full carry

F
full carry market

Full-costing

full disclosure

full employment

(structural unemployment)
(frictional unemployment) 94%-95%

full price (or dirty price)

dirty price
full replication

full valuation approach


(1)
(2)(3)(4)
fully diluted earnings per share

Fully Taxable Equivalent Yield (FTEY)

functional currency

fundamental analysis

(technical analysis)
178
F
fundamental factor models

fundamentalist

fundamental long/short funds

fundamentals

fund of funds

fungibility

future

future market

Future Value (FV)

Futures Commission Merchants (FCMs)

futures contract

futures exchange

179
F

future value (FV)


( present value)

futures fund

FutureslndustryAssociation (FIA)

futures option

futures price

FX swap

180
G
gain

G
galloping inflation

hyperinflationgalloping inflation
game theory

Gamma
ADe,
Delta Gamma=A/:
f
P
Gamma hedge
delta gamma
delta
Gamma risk
(Delta)
Garman-kohlhagen model

gap analysis


gap option

gather in the stops

GDP deflator GDP


GDP GDP
General Agreement on Tariffs and Trade (GATT)

181
G
general collateral agreement

general control

general equilibrium

general journal

(special journal)
general ledger

general lien

(particular lien)
general linear model
y= Po +PiZi +P222++ppZp +8
general loan and collateral agreement

general long-term debt

Generalized least squares

GenerallyAccepted Accounting Principles (GAAP)


( FASB)

182
G
general management trust


GeneraJ obligation bond (GO)

(revenue bond)
general obligations debt

General overhead

general partners
(limited partners)
General price index -

( special price index)


general property

general-purpose financial statement


( GAAP)

general redemption price

regular redemption price


Generic
( plain-vanilla)
generic competitive strategies

generlc securities

183
G
Gensaki

Gensaki rate

geographical arbitrage

geometric average
n 2
Geometric Brownian motion

geometric mean (GND


n n x Y,/XY
giffen good


gifting phase

gift tax

Gilt (or gilt-edged)

gilt-edged securities

Ginnie Mae

Government National
Mortgage Association
184
G
give up

glamour stocks

global bond

global company analysis

Global Investment Performance StandardsTU (GIPS@)


GIPS CFA Institute
( AIRM)

globalization

global minimum-variance portgolio

GLOBEX

13
GNP deflator
GNP GNP


GNP gap
GNP GNP GNP
GNP
185
G
go-go fund

golng concern

going-concern assumption

going-concern value

going long

going out ofbusiness

going short

gold bonds


gold certificate

golden parachute

gold fixmg
5

gold exchange standard

186
G
F(1)
(2)(3)

gold hoarding

gold standard

(1)(2)

(3)
Good This Week order(GTW)

Good Till Cancelled order (GTC)

goodness of fit test

goods and services market


GDP
GDP
goodwill

go public

Gordon model

go short

government bills
1
1 87
G
government bonds
5
government consumption

government debt

Government National Mortgage Association (GNMA)

government spending
AE G
Government Sponsored Entities (GSE)

grace period

grade

graduated payment mortgage

Graham and Dodd


1934 -
Graham-Dodd method

grant date

grantee

188
G
grantor

gray chips

gray market

green index
10
greenmail

Gresham's law

gross

Gross Domestic Product (GDP)

(expenditure approach)(income approach)


gross mcome

gross investment

gross lease

gross margin/profit

189
G

Gross National Product (GNP)

gross private investment

GDP

gross profit margin

=
gross profit percentage

gross profit test

gross sales

gross spread

7%-8%

gross underwriting spread

gross yield

grouped data

Group depreciation
1
G
L composite depreciation)
Group of Seven (G7)7
7 7

Group ofThirty 30

group sale

growmg perpetuity

growth accounting equation

growth company

growth fund

growth of total factor productivity


A/A

growth phase

growth rate
(NNP)

growth rate of dividend

growth stock
191
G
P/E

guaranteed account

guaranteed bond

Guaranteed Income Contract( GIC)

guaranteed insurance contracts

guaranteed mortgage certificate

guaranteed spread

192
H
H
haircut finance
85%
85%
half-hedge option
100
hammering the market

handle
910

ll09/33 11010/33
handling charge



Hang Seng index
33
hard currency

hardening

head and shoulder

health and safety regulation

healthcare inflation rate

heaVy market

193
H
hedge

hedge accounting

hedge fund

hedger

hedge ratio


hedging

hedging with call options

hedging with put options


held- to- maturity securities

heteroskedasticity

hidden assets

H
high-grade bonds
AAA AA

high leverage point

high premium convertible debenture

high quality grade bonds


AAA AA
high-grade bonds
high-quality stock

high-yield bond

hinge
1 25 3 75

high-low option

histogram

historical cost

historical method

historical rate

historical simulation
195
H

historical simulation method (or back simulation)

( Monte carlo simulation)


historical volatility

historical cost

historical cost accounting

(replacement cost accounting)

historical exchange rate

H-Model H

hold harmless

holdback

holder-of record date

holding company
A B A B
holding cost

holding effect
196
H

holding period

Holding Period Return(HPR)

Holding Period Yield


( HPY)
Holding Period YieldHPY


homogenization

homogenous expectation


homoskedasticity

horizon analysis

horizon matching

combination
matclung
horizontal merger

horizontal equity
( vertical
equity)
horizontal spread
calendar
197
H
spread
host

hostile takeover

hot collateral

special collateral
human capital

human resources

hung up

hurdle rate

hybrid asset

hybrid REITs

hybrid securities

hypergeometric probability function

n x
hyperinflation

198
H

hypothecated stock

hypothecation

hypothesis

hypothesis testing

IMM index IMM

100
immunization

impact lag

impairment

imperfect competitor

imperfect information

implementation shortfall

implicit costs

implicit-cost elements

implicit forward rate

implicit marginal tax rate

200
I
implied duration

implied forward yield curve

Implied Repo Rate (IRR)

implied volatility

implied yield

Import Quota(IQ)

imports

imprest basis

imprest funds

improvement

imputed interest

in-advance svrap

201

incidence

incidence of a taxtax incidence


incidence of a tax

incidencetax incidence

mcome

income account

income approach

(1)
(2)


GDP GDP

income basis

income before income tax


pretax income
income beneficiaries

income bonds

income effect

202

income elasticity

income elasticity of demand or supply

income from operation

income fund

income mobility

income policy

income property


income risk

Income Statement (I/S)

income tax

income tax expense

203
I
income tax payable

inconsistent probabilities

increasing cost

incremental cash flows

increasing-cost industry

incremental cash flows

indenture

independence and objectivity

independent

independent audit

independent events
P (AI B)=P
(A) P(B l A)=P(B)
independent good

204
I

Independently and Identically Distributed (IID)

independent projects

independent samples

independent variable

index

index amortizing swap

index arbitrage

index amortizing note

indexed principal swap

index fund

index futures

indexing

index-linked bond
205

index model

index ofindustrial production

index of leading indicators

index option

indifference analysis

indifference curve

indirect business taxes

Indirect exchange rate

indirect method

indirect quote
FC/DC
indMdualinvestement

industrial property

206
I

industry

industry analysis model

industry attractiveness

industry classification

industry earnings multiplier


( P/E)
=
industry life-cycle

industry life-cycle analysis

industry structure
5

inertial inflation

infant industry

inferential statistics


207
inferior good

(Normal goods)
infinite period dividend discount model

Gordon model
inflation

inflationary gap

infationary premium

inflation-linked (orinflation-indexed) bonds

inflation rate
(1)
(2)(3) GDP
inflation risk

inflation tax

influential observation

information

informationally efficient market


208
I

Information ratio (IR)

inflation-adjusted principal

inflationaJry premium

information content hypothesis

in-ind transgers

initial growth stage

initial investment outlay

initial margin

5%

initial margin requirement

Initial Public Offerings (IPO)

innovation

209
I

in-option

input controJ

input growth
N/N K/K
input Jist

in-sample forecast errors

insider information

insider trading

instability in the minimum-variance frontier

instability of regression coefficients


installment option

installment sales

210
I
institutional investor

lnsurance

lnsurance company

insured bonds

insuring

intangible assets

intent

interbank market

intercept

intercommodity spread

intercompany transaction

inter-dealer brokers

211
I
interdelivery spread

interest

interest bond


interest cost
(PBO)
interest coverage ratio

interest differential

interest expense

interest on interest

Interest Only (IO)


CMO
interest-only strips
interest-only strips
CMO
Interest Only (IO)
interest period

interest rate

interest rate anticipation


212
l

interest rate anticipation effect

interest rate call

interest rate cap or cap

( LIBOR)

interest rate collar

interest rate effect

interest rate floor or floor T

( LIBOR)


interest rate forward
(forwed rate agreement)
interest rate futures contract

interest rate model

interest rate option

Interest Rate Parity (IRP)


213
I

( JohnKeynes) 1923


Interest rate put

interest rate risk

interest rate swap



interest rate tree

interim period

interval

intermarket sector spread

intermarket spread swap

intermediate goods


214
I
internal audit

internal auditor

internal control

internal credit enhancements

internal liquidity (solvency) tatios

internalizing an externality

Internal Rate of Return (IRR)

International Accounting Standards Committee(IASC)


75
international bond

international bond market


(1)
(2)(3)(4)
(5)(6)(7)(8)
(9)(10)(11)
(12)
international CAPM

215
International Commodities Clearing House (ICCH)

international diversification

international domestic bonds

international Fisher relationship

et-eo (1+nominal rate h)(1+


nominal rate f)

international investing

international Monetary Fund (IMF)


1946 3 8

International Securities Market Association (ISMA)


1969
(Association oflntemational Bond DealersAIBD)
International Swap Dealers Association (ISDA)
1985 2

International Swaps and Derivatives Association (IS&DA)

international trade

interperiod tax allocation

216

interpolation formula

InterquartileRang (IQR)
3 1
Interval

interval estimate

interval scale
(nominal scale)
(ordinal scale)(ratio scale)
intervention

in-the-money

in-the-money option

intracommodity spread

intramarket sector spread

intrinsic value

217
Introducing Broker (IB)

Invention

inventory
merchandise inventory
inventory cost

inventory investment

inventory method of depreciation

inventory profit

inventory shrinkage

inventory turnover

Inverse floater

inverse floating rate note/tranche

inverted market

218
I

inverted yield curve

investability

(1)
(2)(3)

investing

investment

investment advisor

investment analysis

investment asset

investment bank

Investment Cash Flow (ICF)

investment company
219


investment constraint

investment decision process

investment grade
AAA BBB

investment-grade bonds
( Moody) Baa Baa BBB BBB

investment horizon

investment in human capital

investment management company

investment objectives

Investment Opportunity Schedule (lOS)

Investment Policy Statement (IPS)

investment portfolio

I
investment process

investment strategy

investment value


investor-s life cycle

invisible hand principle


1776

invisible supply

involuntary bankruptcy

inward transportation

iron law of wages

irregular component

IRR rule

island reversal


issuance test

issued shares

issued stock
( outstanding stock)
(treasury stock)
issue prlce

issuer

issuer default rate

issuer's on-the-run yield curve

itemized deduction

January effect -

j-curve effect J

J J

JeIJy Roll spread

Jensen measure

jobber

job lot

John Maynard Keynes

(1923)(1930)
( 1936)
Johnson-Shad Agreement
CFIE SEC 1982

joint account


joint bond

223
J
joint float

joint probability
X=Y= X= y=

joint probability function


F(x)=(X<zY<y)
joint venture

journal

journal entry

journalizing

judgement sampling

jumbo certificate of deposit


10
jump volatility

junior bond

junior mortgage

junior refunding
J
5 1 5 1
junk bonds
( Moody) Baa Baa BBB BBB

junior securities

justified P/E

justified price multiple

K
K
kappa
10
kerb dealing

key construction bond

key industry

keying of entries

Keynesian economlcs

Keynesian effect

Keynesian equilibrium

key rate duration

kickback

kicker
226
K

kitchen sink bond


CMO

knocked down

knock-in option


knock-out option

Kruskal-Wallis text

kth order correlation k


k
kurtosis
( leptokurtic)
(mesokurtic)(platykurtic)
L
labeling

L
labor force
16 16
labor force participation rate
16 16

labor market

labor supply

labor theory of value

labor union

Laffer curve
A.B. Laffer
O O 100%
OC
B D Laffer
O
C

lag

lagging ind]icators
228
L


laissez-faire capitalism

Lambda

lapsed option

Laspeyres index

Last- In First Out (LIFO)

last notice day

last sale

last trading day

latent defect

later-stage investment

law of comparative advantage

law of demand

law of diminishing marginal utility

law of diminishing returns

law of one price

law of supply

leading dividend yield

Leading Economic Indicator (LEI)

leading indicators

leading P/E
forward P/Eprospective P/E
lead manager

LEAPS

lease

leasehold

leasehold improvements

lease-purchase agreement

least-cost rule

ledger

left-hand financing

legal asset

legal capital

legal lending limit

legal list

legal right of set-off

legal risk
231
L

legal tender

lender

lender of lost resort

lending securities

leptokurtic

(mesokurtic)(platykurtic)
Less Developed Countrys (LDCs)

lessee

lessor

letter bond

letter of credit

letter of free credit


232
L

Jetter of guarantee

Jetter of indemnification

level of significance
0

leverage

leveraged


Leveraged Buy Out (LBO)

leveraged company

Leveraged floating-rate note (or leveraged floater)

leveraged investment company

leveraged lease

leveraged recapitalization

(1)
233
L
(2)(3)

leverage ratio

liabilities

liability method

liberalism

libertarianism

LIBOR flat LIBOR


LIBOR LIBOR
license

licensing

Iien


life annuity

life income
L
( general partners)

Jimited partnership
( General Partnership)

limited tax general obligation debt

Jimit move

limit order

limit order book

Jimit price

limit up

linear association

Linear interpolation

linear regression
=a bX X
Y
linear trend

Y= Bo+B+et=l23T Y
t Bo Y Be
236
L

Iife of contract

lift a leg

life cycles

LIFO liquidation

LIFO reserve

likelihood

limit

limit down

limited discretion

Iimited liability

(unlimited liability)
limited liability company

limited partner

235
L
t
line of credit

liquid

liquid asset

liquid liability

liquidated damage

Iiquidating market

liquidation-only trading

liquidating value

liquidation

Iiquidation value

liquidity discount

liquidity theory

237
L
liquid market

liquidity

liquidity preference theory


liquidity premium

liquidity ratio

liquidity risk

listed option

listed securities

Listed stock

listing

load fund

loanable fund
238
L

loanable funds market


loan amortization

loan commitment

loan crowd

loaned flat

loan-to-value ratio

local

local bill

local currency debt rating

locked-in

locked market

lockup

239
L

Logit model Logit


Logit
log-linear model

log-linear trend model

In
(Y t)= Ba +B1t +ett=1,2,3,,T
Log-Iog regression modeJ

lognormal distribution

logrolling

London Gold Market

1919

London InterBank Bid (LIBID)

London InterBank Offering Rate (LIBOR)

1 3 6 LIBOR

London Stock Exchange (LSE)


1773 7
long

240
L
long bond
10
long call

long futures

long hedge

buying hedge

long- Iived asset

long position

long put

Long-run Average Total Cost (LRATC)

Long-run Average cost Curve (LRAC)

long-run growth model

Simple Long-run growth Model


(Dynamic Long-run growth Model)(Expansion Model)
(Negative growth Model)
Long run (in production)

241
L
long-short investing
(1)
(2)(3) Beta
long squeeze

long stock

long-term asset

long:term capital gains


1
long-term capital losses
1
Long-term EquityAnticiPation Securities (LEAPS)

Long-termhigh-priority goal

long-term liability/debt
10
long-term solvency

long run
( short
run)
look-ahead bias

lookback option

242
L
lookback call option

lookforward option

Lorenz curve

loss

lot

Lower bound


Lower of Cost or Market (LCM)

lower-priority goal

low-load fund

3%4%
Low Of Cost Or Market (LOCOM)

Low-regula r-dividend-plus-extras

lump sum

luxury goods
243
L
1
(necessity)(inferior goods)
M
M
Macaulay duration

macroecononuc factor

macroecononuc factor model

macroecononucs

macro funds

maintenance margin

Malthusian theory of population growth

managed float

Managed futures

management accounting

M
Management and advisory firm

Management Buy Out (MBO)

Management Discussion and Analysis (MD&A)


MD&A

management effect

management fee

management report

Management's Discussion and Analysis (MD&A)

mandated benefit

Mann-Whitney-Wilcoxon test

manufactured housing-backed securities

manufacturing company

margm

246
M

margin account

marginal
i

marginal benefit

Marginal Cost

Marginal Cost of Capital (MCC)

MarginaICost ofCapital (MCC) Schedule

marginal principle

marginal probability
(unconditional probability)
marginal product

marginal product theory of distribution


B

Marginal Propensity to Consume (MPC)


(C)
(Y)MPC=CY
M
Marginal Propensity to Import (MPI)
GDP
Marginal Propensity to Save (MPS)

marginal rate of substitution

MarginaIRevenue (MR)

Marginal Revenue Product (MRP)


( marginal
revenue)(marginal product)
marginal tax rate (MTR)
1
MarginaIUtility (MU)

margin buying

margin buying arrangement


1934

margin call

margin deposit

M
margm error

margin transaction

Marked to market (MTM)

market

marketability

marketability discount

marketable securities

market-based forecast

market bid-ask spread

market-book ratio

market capitalization rate

market correction

market economy
249
M


market efficiency

market equilibrium

market failure

Market-If-Touched (MIT) order

market impact

market index

market index of stock prices

market maker

market model

i Rt=Q+BR+eiQi= i
B t= i R==

market multiple analysis

M
market on close order

30 60
market-on-openlng

marketor Betarisk

market order

market organization

market portfolio

market power

market price

market value
market price of risk

market rate

market risk

price risk
251
M
market risk neutralization

market risk premium

market securities

market segmentation

market segmentation tbeory

market sentiment

market share

market structure

market timer

market timing

market to book ratio


market value

252
M
Market Value Added (MVA)

market-value clause

market-value-weighted series

Markowitz
1952

Markowitz decision rule

Markovritz portfolio theory


1952

markup pricing

martingale

master swap agreement


(ISDA)

matador bonds

matched sale purchase agreement

253
M
matched sample

matching principle

matching

materiality convention

material nonpublic information

mature grovrth rate

mature phase

mature stage

maturity date

maturity risk

30
Maturity risk premium (MRP)

maturity strategy

10 10

254
M
maturity value

mean

Mean Absolute Deviation (MAD)

MAD=lx,-xlz
mean differences

Mean excess return

mean rates of return

mean reversion

Mean Square Error (MSE)

mean square
F
Means-tested income transfers

mean-variance analysis

(1)
(2)
(3)(4)

mean-variance criterion

255
M

measurement error

measurement scales

measures of central tendency

mechanic-s lien

median

medical savings accounts

medium grade bonds


BBB
medium of exchange

medium-term bond
2 10
medium-term loan
2 3
Medium-Term Note (MTN)
9 10
member rate

membership on an exchange

256
M
merchandise inventory
inventorr
merchandising company


Merge andAcquisition (M&A) approach
Merge(Acquisition)

merger

Merton Miller

Merton Miller and Franco Modigliani (M&M)M&M

M&M
M&M

Merton model
Black-Scholes
mesokurtic
(leptokurtic)platykurtic
method based on forecasted fundamentals

method of comparables

method of average return on equity

method of comparables

method of forecasted fundamental

Michael Porter

microeconomics

middleman

middle office

Milton Friedman
1976
(1959)<(1962)(1969)

mimicking portfolio

mlmmum prlce

minimum liability allowance


( FASB)(ABO)

258
M

minimum-variance frontier

minimum-variance hedge ratio

Minimum-Variance Portfolio (MVP)

rmnlmum wage

min-max option

minority discount

minority interests

minority shareholder
50%
mirrored fund
( onshore fund)(offshore
fund)
mismatch risk

mlsprlclng
M

srepresentation

mixed economy

modal interval

mode

model

model risk

Modern Portfolio Theory (MPT)

Modified Accelerated Cost Recovery System (MACRS)


1 1

modified convexity

modified duration
1

1+
Modified IRR (MIRR)

260
M
Molodovsky effect Molodovsky

momentary run

momentum indicators
(EBITDA)

monetarism


Ml(money supply) (Ml)
Ml (1)(2)
(3)
M2(money supply)(M2)
M2 Ml (1)(2) 10
(3)
monetarists

monetary assets

monetary base

monetary liabilities

monetary method

261
M
monetary neutrality

monetary policy

monetary tools

money

money demand schedule

money fund

money interest rate

money market fund

money market


1
money market fund
120
M2
money market mutual fund


262
M

IOU
money market yield (or CD equivalent yield)
360 360
r-HPY(360/t)
money purchase pension plan

money rate of interest

money supply
MlM2M3
money-supply effect

money-supply multiplier

monopoly

monopolistic competition

monopoly
(1)
(2)
monopsony

Monte Carlo simulation

263
M


moral hazard problem

moral obligation bonds

mortality tables

mortgage

Mortgage-Backed Security (MBS)

mortgage bonds

mortgagee

mortgage loan

mortgage payable

mortgage pay-through bond

mortgage rate
contract rate
264
M
mortgage REITs

mosaic theory

moving average

200

moving-average time series model

M2
Ml
multi-asset option

multicollinearity

multifactor CAPM CAPM


CAPM CAPM
multifactor model

(1)
(2)

P/E
(3)

multinational economic data


265
M

GDP

(1)(2)
(3)
multinomial population

multi-period binomial model

multiple coefficient of determination


y

multiple comparison procedures

MultipleIRRs (M )

multiple linear regression

multiple linear regression model

multiple R

Y Y
multiple regression

multiple scenario P/E analysis

multiple-step income statement


266
M

(single-step income statement)


multiple step-up note

multiplication rule
k ni
nl*n2* n3* n4*nk
multiplication rule for probabilities
A B B A B
P (AB) -P (AIB)P(B)
multiplicative times series model

I=CiSi x/i
I=Si x/
multiplier

multiplier effect

multiplier model

multistage dividend discount model

multivariate distribution

multivariate normal
267
M

municipal bondMuni


municipaJ bond interest

municipal derivative securities 1

municipaJ securities

municipal strip

mutiple sampling plan

mutual fund

mutual fund theorem

mutually exclusive

mutually exclusive events

mutually exclusive projects

268
N
N
naked option

naked call

naked position

Nash equilibrium

NationaIAssociation of Securities Dealers

NationaIAssociation of Securities Dealers Automated Quatation (NASDAQ) System

national debt

National Futures Association (NFA)

national income

( NNP)
national-income and -product accounting

national saving
269
N

natural monopoly

natural rate of unemployment

natural resources

natural time lag

3 6
nearby contract

near money

near-term, high-priority goal

near-the-money

necessity
1(luxury
goods)(inferior goods)
negative amortization

negative carry

270
N
negative cash flow

negative covenant

(positive covenant)
negative convexity

negative goodwill

negative income tax

negative interest

negative leverage

negatively skewed

>>(positively skewed)
positively skewed

>>(negatively skewed)
negative pledge clause

negative serial correlation

neglected-firm effect

271
N
negotiable certificate of deposit

Negotiable Order ofWith-drawal (NOW) account

negotiable security

negotiated sales

negotiating bank


neoclassical growth theory

net asset
owner's equity
Net Asset Value

NetAssetValue (NAV) per share

net book value


1
Net Cash Flow (NCF)

net current asset

Net Economic Welfare (NEW)


N
GNP
Net Exports (NX)

net gains and losses and related amortization

net hedging hypothesis

net income

net income of foreigners

net interest

net investment income

net Jease

net liability position

net loss

Net National Product (NNP)

( GNP)
Net Operating Income (NOI)
273
N

Net Operating Loss (NOL)


3 15
net payment

net position

Net Present Value (NPV)

Net Present Value (NPV) method

net present value profile

net proceed

net profit

net profit margin

=
Net Realizable Value (NRV)

net sales

netting

274
N
netting by novation

Net working capital (NWC)

net worth

neutrality

new classical economists


new issue

newly issued stock

n factoriaJ N
1 NN!=N(N-1)(N-2)21 0!-1
no-arbitrage assumption

no-arbitrage bounds

no-arbitrage principle

node

no-growth company

275
N
no-growth value per share

no-load fund

nominal account

nominal cost of money

nominal distribution
x (x)=1 1e p22 2 X
((J ) X NN(p)(
nominal Gross Domestic Product (GDP)

nominal Gross National Product( GNP)

nominal interest rate

nominal price

nominal rate

nominal (quoted) risk-free fatekRF

nominal scale

(ordinal
(Interval scale)(ratio scale)
nominal spread
( YTM)
276
N
nominal values

nominal variables

nominal yield

nonactivist strategy

nonagency securities
Fannie Mae
( Freddie Mac)(Ginnie Mae)

non-amortizing asset

noncallable bond
(callable bond)

noncash item
1
non competitive bid

nonconforming mortgage

nondeliverable forwards (NDFs)

nondollar-denominated issue

N
nonhuman resources

non-investment-grade bonds

high yield
bond

nonlinear relation

nonmonetary method

nonoperating income

nonparametric methods
( parametric
test)
nonparametric test

(parametric test)
non-pay-related plans

nonpecuniary job characteristics

nonprobabilistic sampling

nonprofit organization

nonrecourse loan
N

nonrefundable

nonsampling error

nonsystematic risk

non-US-pay bond

Non Sufficient Funds (NSF) check


NSF

normal profit

nominal risk-free rate (NRF)

=1+

1+-1
nominal spread

non-activist view

noncompetitive bid

279
N
noncumulative preferred stock

nonpublic information

no-par stock

no risk premium hypothesis

normal backwardation

E (Ps)>Pf E(Ps) PfVJ

normaJ contango

normal distribution

95% 2
normal good

(inferior goods)
normal market

normal portfolio

normal profit rate

280
N
normal volatility


normal yield curve

normative economics

North American Free Trade Agreement (NAFTA)


1994
2004
nostro account

note receivable

notes
1 10
notes payable

notes receivable

note to financial statement

notice day

notice of claim

notice of intention day


281
N

notice of suit

notionallnterest Only (IO)

notional amount

notional principal


not statistically significant

np Chartnp

n-Period moving average n


n
NPV profile

NPV rule

nuIJ hypothesis

( alternative hypothesis)
number of days sales in receivable
365 365

282
O
O
objective probabilities

obligation

objectives

odd lot
100
1 99
off-balance sheet asset

off-balance sheet liability

off-balance sheet financing

offensive competitive strategy

offer

offering

offer price
ask price
off-market FRA


283
O

official exchange rate

official reserves

official reserve account


(IMF)

off-market swap

offsetting

offsetting order

offshore fund

off-the-run issues

Okuns law
GNP
oligopolists

oligopoly

284
O
oligopsony

omnibus account

one-factor model

one-sided hypothesis test (or one-tailed hypothesis test)

one-tailed test(two-tailed test)


on-market FRA

onshore fund

on-the-run issues

on-the-run treasury

open (good-till-canceled) order

open account

open contract

open economy

285
O
open-end fund
NAV

open-end investment company

open-end interest

open market

open market committee

open market operations

open outcry

open-end mortgage

opening price

operating asset

operating budget

(capital budget)
operating cash flows

operating capital

286
O
operating characteristic curve

operating cost

operating cycle

operating efficiency ratios

operating expense

operating exposure

operating income

operating lease

operating losses

operating leverage

operating management

operating merger

287
O
operating profitability ratios

operating profit margin


( EBIT)=

operating reserve

operating statement
income statement
statement ofincome
operation income

opportunity cost
( sunk cost)

opportunity cost of equity capital

opportunity cost of production

opportunity set

optimal capital structure

Optimal dividend policy

optimal portfolio

288
O
optimizer

optimum capacity

option

Option-adjusted spread( OAS)

option buyer

Options Clearing Corporation (OCC)

option contract

option cost

option-free bond


option on futures

option on a futures contact


option on a futures contact

289
O
option on the physical

option orders

option premium (or option price or premium)

Option Pricing Model (OPM)


(1) Black-Scholes (2) Black
(3)
option seller

option series

option writer

options market

order book official

order-driven system

ordinal level data

ordinal
290
O
ordinal scale


(nominal scale)(interval scale)(ratio scale)
orinal utility
A B A

ordinary annuity

ordinary business

Ordinary least squares (OLS)

original issue discount bond

original margin
1020%
Other Checkable Depoists (OCD)

Ml
other comprehensive income

other postretirement benefits

other revenues

other things constant


1

ceteris paribus other things equal


291
O
other things equal
1

outcome

outliers

out-of-sample forecast errors

out-of-sample test

out-of-the-money

out-of-the-money option

out-option

outperformance option

output control

outright position

outstanding shares
292
O

outstanding stock

out trade

overage

overbought

( oversold)
overfunded plan

overhead

overnight

overnight money

overnight repo/RP

overpriced

oversold
(overbought)

overweighted

293
O

Over-The-Counter (OTC)

overvalued

overweighted

owner's equity

294
P
P
Paasche index

paid- in capital
paid-up capital
paid-in surplus

paid-up capital
paid- in capital
paired comparisons test

paired observations

pairs arbitrage trade

paper loss

paper profit

paper profit or loss

paradox of value

parallel loan
295
P


parallel shift

parameter

parametric test
t
(nonparametric)
par bond

par call problem

parent corporation
50%
Paris arbitrage

partial-equilibrium analysis

partial lookback option

participating bond

participating option

296
P
participating preference share

participation

participation certificate

particular lien

( general lien)
partitioning

partnership

partnership agreement


par value

par-value stock

par yield curve

passive investment strategy

passive management
passive management

passive investment strategy


pass-through security
297
P

patent

path dependence

path dependent option

path independence

payables

payables payment period


= 365

payables turnover ratio


=

payback

PaybackPeriod (PBP)

payee

payer swaption


298
P

pay-fixed

Pay-In-Kind (PIK) bond PIK

pay-later ooption

payment date

payment-in-kind

payment netting

pay-related plans

payoff

payoff table/matrix

payout ratio

P chart P

peak

299
P
P/E effect

peer group comparlson

pegged

pegged exchange rate

pegged exchange-rate system


pegged price

peggmg

pension

pension fund

pension plan

P/E ratio

percent frequency distribution

percentage of account receivable method


300
P

percentage-of-completion method

(completed contract
method)
percentiles
100
perfect collinearity

perfect hedge

perfect market

performance

performance bond

performance evaluation

performance fee


performance measurement

performance presentation standards (PPS)


CFA Institute
301
P

performance shares

perks

period cost

periodic inventory system

periodicity

permanent account
temporary account
permanent difference 7J<,

(temporary difference)
permanent income hypothesis

permit revaluation of tangible and intangible assets

Permutation |J
n r(r<=n)
( combination)
permutation formula 2 -2
n k k - r)!
perpetual bond
302
P

perpetual inventory method

perpetual inventory system


perpetuity

Persent value (PV)

Persistent earnings

personal articles policy

personal consumption

personal consumption expenditure

personal income

personal income taxes

personal property

303
P
(real property)
personal savings rate

personal trust

P/E-to-GroWth rate (PEG)


( P/E)(EPS) PEG

petty cash fund

Phillips curve
A *W

physical capital

physical capital maintenance

physical count

Pigovian tax

pin risk

Pip
1 1%
pit

plagiarism
P

Plain-vanilla

plain-vanilla currency swap


LIBOR

plain vanilla interest rate swap

plain vanilla option

plain vanilla svrap

Planned Amortization Class (PAC)

plant asset

fixed asset
Plantproperty and equipment (PP&E)

platykurtic
(mesokurtic)
(platykurtic)
plow back

point

305
P
point estimate
(interval estimate)
point-and-figure chart
OX chart

poison-pill strategies

Poisson probability distribution


x
Poisson probability function

policy effect

policy-ineffectiveness theorem

policy statement

political risk

pooled

pooled variance

pooling-of-interest method

306
P
population
sample
population mean

pork-barrel legislation

Porter's 5 factors

portfolio

portfolio immunization

portfolio insurance

portfolio investment recommendations and actions

portfolio management

portfolio possibilities curve

portfolio selection/composition decision

portfolio theory
307
P

position

position day

position limit

2000
position trader

positive carry

positive convexity

positive covenant
(negative covenent)
positive economics

positive leverage

positive rate of time preference

positive serial correlation

308

P
positively skewed

>>(negatively skewed)
post-audit

post-closing trial balance

posted price

posterior probability

(pniori probability)
posting

potential credit risk

potential deposit expansion multiplier

potential GNP GNP


GNP
GNP
potential output

poverty threshold income level

power of a test p

l-a
P
power of sale

PRAT modeJ PRAT


(P)
(R)(A)(T) PRAT
prearranged trading

precision

predicted P/E
12
= 12

predicted values
X Y
preemptive right

preferred habitat theory

preferred stock

Premium

premium bond

premium on bond

310
premium

premiums for control

prepaid expense

prepaid income

prepayment

prepayment option

prepayment rate

prepayment risk

prepayment speed

prerefunded bonds


prerefunded municipal bondS.
prerefunded municipal bonds

311
P

prerefunded bonds
Present (price) value of a basis point (PVBP)

Present Value( PV)

(future value)
present value interest factor
N 0 1(1+Y)N I/Y
N
present value model

discounted cash flow model


Present Value of Growth Opportunities (PVGO)

preservation of confidentiality

pretax income
income before income tax
(taxable income)
pretax operating rate of return on total asset

price-cash flow ratio

price change effect

price ceiling
312
P

price change effect

price compression

price continuity

price controls

price discovery

price discrimination

priced risk

price-driven market

PriceEarnings ratio (P/E ratio)




price elasticity of demand
P

(income elasticity of demand)

price elasticity of supply

(income elasticity of supply)

price flexibility

price floor

price index

price-inelastic demand
1
price limits

price momentum


price multiple

price relative

100
price risk

PriceSales (P/S)

314
P
1 2
price-sales ratio

price searchers

price searcher market


(1)
(2)(3)
(4)
Price sensitivity hedge ratio

price takers

Price-to-Book Ratio (PBR)


PBRf l 1

price to cash flow ratio


P/E
P/E

Price to Sales Ratio (PSR)

Price Value of a Basis Point (PVBP)


(0.01%)
price volatility
315

price-weighted index

price vreighted series

pricing practice

primary distribution

primary market

prime grade bonds


AAA Aaa
Principal (par value)

principal-agent problem

Principal Only (PO)

principal strip

priority of transactions
AIMR~ AIMR~
AIMR~
AIMR~
316
P
prior probabilities
(posterior probability)
prior-period adjustments

prisoner's dilemma

private accounting

private equity market


private good

private investment

private linuted company

50
private placement

private property rights

private saving

privately held government debt

privately owned

317
P
probability
A P (A)
probability density function

probability distribution

probability function
P(X=x)2 p(x)
probit model
0-1
processlng controls

produce price index

producer price index (PPI)

producer's risk

producer surplus

product costs

product differentiation

318
P
production function

production possibilities curve

productivity growth

productivity

product life cycle model


S

professional corporation

professional sconduct

profit

Profit and Loss (P&L) statement

profit margin

profit maximization

profitability

profitability evaluation

39
P
pro forma statement

program trading

progressive income tax

progressive tax

prohibition against misrepresentation


AIMR~

prohibition against plagiarism

project cost of capitalkp

Projected Benefit Obligation (PBO)

promised yield to call (YTC)

promised yield to maturity (YTM)

promissory note

prompt date

320
P
property

property dividend

PropertyPlant and Equipment (PP&E)

property rights

Proportional tax

proportionate consolidation method

proprietorship

pro rata basis

prospective P/E

prospectus

protectionism

P
protective covenant

protective put

proxy

prudent investor rule

Prudent Man Rule (PMR)

pseudo-American call option pricing model

pseudo-random numbers

public accounting

public bond

pubic cash-matched dedicated portfolio

public-choice analysis

322
P

public goods

public offering

publicly owned

pull-to- par

purcbase allowance

purcbase and sale statement

purchase discount

purchase fund

Purchasing Power Parity (PPP)

Purchasing Power Parity (PPP) theorem


1916 (Gustav Cassel)

(Absolute PPP)
(Relative PPP)
purchasing power risk

P
purchase method

purchase money mortgage

purchase returns

purchases account

purchases journal

purchasing power

purchasing power parity

pure cash-matched dedicated portfolio

pure competition

pure discount instrument

purely competitive markets

pure play method


f3
putable bond

put bond

put-call-forward parity

put-call parity -

put date

put option

put price

put provision

put rights

put swaption

p-Value p-
p
a
pyranuding

Q
q ratio q
q 1

quadratic optimization

qualified opinion

qualitative analysis

qualitative data

qualitative dependent variables

qualitative factors

qualitative independent variable

qualitative variable

Quality Control (QC)

quality of earnings

quality of earnings ahalysis


Q

quality option

quality stock

quantile (or fractile)

quantitative analysis

quantitative data

quantitative factors

quantitative long/short funds

quantitative variable

quantity demanded

quantity equation of exchange


MV=PQ M (GNP)V P
Q
quantity theory of money

GDP
quantity index
327
Q

quantity risk

quantity supplied

quantity theory of money

quantity theory of prices

quanto

quanto option

quartiles
25 50 75 1 2 3 4
25%
quasi-arbitrage

quick ratio

(acid test ratio)


quintiles

quota

328
Q
quotation

quoted interest rate

quoted margin

329
R
R
range notes

R chart

rag stock

random number

random number generator


0 1
random variable

random walk hypothesis

random walk

random walk theory

randomized block design

range

330
R

range floater

range forward

range forward contract

raider

rapid amortization

rate anticipation effect

rate anticipation swap

rate-differential swap

diff swap
rate duration

rate of return

rate of return on capital

rate of unemployment
=+
R
100%
rating agency

rating evaluation

rating transition matrix

ratio

ratio analysis

ratio bull spread

ratio scale
( nominal scale)

(ordinal scale)(interval scale)


rational-expectations hypothesis

rational ignorance effect

rationing

ratio scales

332
R
ratio spread

raw material inventory

R&D in-progress

reacquired stock

reaction

real accounts

real assets
real capital
real balance effect

real business cycle theory

real capital
real assets
real earnings
real income
real estate

real estate valuation

R
Real Estate Investment Trusts( REITs)

real estate loan

real estate market

real estate return indexes


(1)(REIT) REIT
REIT REIT
REIT REIT
REIT (2) Frank
Russell Company (FRC) National Council of Real Estate Investment
Fiduciaries (NCREIF)

(RD)
real estate tax

real exchange rate

real exchange rate risk

real foreign currency risk


(real exchange rate
ridk)(purchasing power risk)
reaJ GDP GDP
GDP
real gross nationaJ product
GNP GNP= GNP/GNP
realincome
334
R
real earnings
real interest rate

realization account

realized capital gains/losses


(unrealized
capital gains/losses)
realized compound yield

realized return

realized yield

real options

real price
real value
real property
(personal property)
real rate

real rate of interest

335
R

real return

real risk-free rate ofinterest, k*

real risk-free rate (RRFR)

=[1+1+]-1
real values

real value
real price
real variables

real wages

asonable basis and representation

rebalancing

rebate

recapitalization

receivables


receivables turnover
336
R

receive-fixed

recelver

receiver swaption

receiver's and trustees' securities

receiver's sWaption

recession
GNP
reciprocal business

recogniition lag

reconcile a bank statement

reconstitution

record date 0

records of original entry

337
R
recourse

recovery

recovery rate

redeem

redeemable stock

redemption notice

receiver svraption

redemption price

5% 10%
redemption yield

redemption value

rediscount

338
R
reference bills
(Freddie Mac)
1 1
reference notes
(Freddie Mac)
2 10
reference rate

referral fees

refinancing = -

refunding

refunding issue

Regime

regional bank

regional fund

refunding mortgage

regional stock exchange

registered as to interest only

339
R
registered as to principal only

registered bond

registered check

Registered Competitive Market Makers (RCMMs)

registered coupon bond

registered form

registered instrument

registered bond
registered option trader

registered security

registered traders

registration statement

regression analysis
340
R

regression coefficients
y=a+bx
a b

regression equation

regressive tax

regular dividends

regular redemption price

general redemption price


regulation

regulation A A
( small issuer)

regulation B B

regulation C C

regulation D D

regulation E E

regulation F F

341
R
regulation G G

regulation Q Q

regulation T T

regulation T call T

regulation U U

regulation W W

regulation X X

regulation Z Z

regulatory risk


reinvestment income

reinvestment rate

reinvestment rate assumption

reinvestment rate risk


342
R

reinvestment risk

rejection point (or critical value)

relationship trading

relative dispersion

relative efficiency

relative frequency

relative frequency distribution

relative frequency method


n A k
k/nP(A) -k/n
relative-strength index

70 30

relative value

relative-strength (RS) ratio

relative valuation model


relative yield spread

relative value analysis

relevance

relevant cash flows

relevant cost
1

reliability
( FASB)

reliability factor

remainder beneficial

remainder men

remargining

Rembrandt bonds

344
R
remeasurement

renegotiable rate mortgage


3 5
20 30
rentier

rent seeking

reorganIZation

reorganization bond

repeat-purchase item


replacement analysis

replacement chain (common life) approach

replacement cost

(historical cost)
replacement cost accounting

(historical cost accounting)


replacement project analysis
R

1
replacement rate

replacement value
( replacement cost)
repo
repurchase
agreement
reportable position

reportable segment
10%
repo rate

reporting currency

report form

( account form)
reproduction cost

repurchase agreements( Repo/RP)


repo
repurchase date

repurchase price

required rate of return


R
required yield

required reserve

required reserve ratio

required return

required yield
required rate of return
requisitionist

rescind

reserves

reserve accounting

reserve bank

reserve borrowing capacity

reserve for bad debts

reserve fund

reserve ratio

347
R

reserve requirement

reset date

reset notes

reset option

residual analysis

residual autocorrelations

residual claim

residual claimants

resid ual income

residual Dividend Model

Residual Income Model (RIM)

348
R
residual interest

residual effect

residual plot

residual security

residual tranche

residual value
salvage valueterminal value
resistance

resistance level

resource

resource allocation

resource market

resource mobility

resource prices
349
R

responsibilities of supervisors

resting order

restricted retained income

appropriated retained income


restricted surplus
(1)
(2)(3)
restricted stock

restricted stock option

restrictive fiscal policy

restrictive monetary policy

restructuring charges
1

retail method of inventory

retailer

350
R
Retained Earnings/income/profits (RE)

Retention Rate (RR)

retirement benefit accounting

retractable

retractalbe bond

return

Return On Assets (ROA)


1

Return On Capital (ROC)

return of capital

Return On Equity (ROE)

return on stockholders' equity


Return On Investment (ROI)

return on
invested capital (ROIC)
return on invested capital(ROIC)

351
R
return on net worth

return on sales or profit margin

return on stockholders' equity

return on total asset

return on total capital

return on total equity

return prediction studies

returns to scale

revaluation equity

revaluation

revenue anticipation note


revenue bond

revenue indexed mortgage

352
R
revenue recognition

revenue recognition principle

revenues

revenue share

reverse annuity mortgage

reverse a swap

reverse cash-and-carry arbitrage

reverse conversion

reverse cost method

reversing entries

reverse repo
353
R

reverse repurchase agreement


reverse repurchase agreement

reverse repo

reverse yield gap

reversing trade

reversion level

Rho Rho
1%

Ricardian equivalence theorem

riding the yield curve

4.10%
4.00%

rigged market

riggmg

right

right of redemption

354
R
right of rescission
3

rights issue

rights to dissolution or sale of stock

right-to-work laws

ring

rmglng up

rising bottoms


rising trend channel

risk

risk-adjusted discount rate

risk allocation

risk analysis

355
R
risk arbitrage

risk aversion

risk budgeting

risk capital

risk-free asset

risk-free rate

risk governance

risk management

risk-minimizing hedge

risk-neutral probabilities

risk-neutral valuation

risk-neutral world

risk lover
(risk averter)

356
R
risk of inflation


RiskPremium (RP)


risk premium hypothsis

risk rating

risk-retrun trade-off

risk reward

risk spreading

risky asset

rivalness

robust

robust standard errors

rolled its position forward

357
R
roller coaster

rollover

rollover Certificate of Deposit

12 6
round lot
100 1000 5000
even lot
rolling strip hedge

rolling up

rollover mortgage
2 3
Roll's critique
( CAPM)
CAPM Roll CAPM

roll-up fund

root mean squared error (RMSE)

round lot short-cover ration

round trip trade

358
R
round turn

Roy's safety first criterion

Op RE[Rp] P

runs test

rule 144 144

rule 144A 114A 0

rule 15c3-3 15c3-3

rule 405 405

rule of 20 20 IJ
20
rule of 70 70
x 70/x
rule of 72 72
72
rule of 78 78

12 11
1 12 78 78

rule of fair practice

359
R
runaway inflation

run on a bank

runs test

360
S
sacrifice ratio
1%
saddled

safety-first rules

safe harbor

sale of receivables

sales allowance

sales basis method

sales discount

sales journal

sales return

sales revenue

sales tax

361
S
sales-type lease

Sallie Mae


Student Loan Marketing Association (SLMA)

salvage value
residual valueterminal value
Samaritan's dilemma

same-day substitution

sample space

sample

( population)

sample excess kurtosis

sample kurtosis

sample mean

sample point

362
S
sample selection bias

sample size

sample skewness

sample standard deviation

sample statistic or statistic

sample variance
1
sampling


sampling distribution


sampling error

sampling plan

sampling unit

sampling with replacement

sampling without replacement

363
S
samurai bond

sandwich lease

Sandwich spread

saving

savmgs and loan association (S&L)


J

saving function

savings account

savings deposit

Say's Law

scale

scale down (or up)

scalper

scalping

364
S

scarcity

scatter diagram

scatter plot
scatter plot

scatter diagram
scenario analysis

(sensitivity analysis)
scenario writing

scheduled principal repayment

scientific thinlang

scorched earth tactic

scrap value

scratch trade

seagull

seasonal component

365
S
seasonlity

seasonal swap

Seasoned equity issues

seasoned issue

seasoned security
90
seats

secondary distribution


secondary effects

secondary market

secondary mortgage market

second-pass regression

second mortgage bond

second mortgage lending

366
sector rotation strategy

sector

sector-neutral risk control methodology

Sector/qualitye ect

Sector rotation strategy


P/E

Secured (senior) bond

secured debt

Securities and Exchange Commission (SEC)

securities

securities investor protection corporation

securitization

securitized


367
security analysis

security characteristic line

security market

security market indicator series

Security Market Line (SML)


CAPM
(CML)
security selection decision

seed money

seed investment

seed stage

segment disclosure

segregated securities

self-correcting mechanisms
368

self-dealing

Self-Liquidating Asset Purchase (SLAP)

seller's market

sell-side analyst

selling away

selling concession

selling flat

selling group

selling hedge

short hedge
selling short

sell out

369
S
semiannual compounding

semi-logarithmic chart

semi-logarithmic scales
(XY)(XInY)

semi-strong efficiency market hypothesis

( weak-form)(strong-form)
semi-variable cost

2% 1000 2%
semlvarlance

senior bond

senior mortgage

senior securities

sensitivity analysis

( scenario
analysis)
Separately Traded Registered Interest and Principal Security (STRIPS)

370
S
separation theorem

serial bonds

serially correlated

t
serial obligation bond

series of options

series bond

service fee

settlement

settlement date or payment date

settlement options

settlement period

settlement price


settlement risk

371
S

settling

severance pay

shadow price

share

share broker

shareholder
stockholder
shareholders' equity

share repurchase plan

shark repellent

Sharpe ratio/measure

'_
p 0 p
shelf registration
2

shell company
372
S

shirlang

shogun bond

short
short position
shortage

short bond

short coupon
6
short covering

shortfall risk

short futures

short hedge

selling hedge
short interest

short interest ratio

short forward rate

short position
short
short run

(long run)
Short-Run Average Cost curve (SRAC/SAC)

U
short sale

short selling
short sale rule

short selling

short sale
shortsighteddness effect
(1)
(2)

short- term debt

short- term equity securities

short-termlncome trust

Short- Term Investment Fund (STIF)


90
374
short-term liquidity

short-term loan

short-term security

short-term solvency ratio

short-term trading index

shout option

shutdown

side-by-side trading

Sigma

signal

signaling theory

significant influence
20% 50%
(equity method
accounting)
375
S
significance level

sight draft

sign test

silver standard

simple arbitrage

simple capital structure

simple entry
compound entry

simple interest

simple linear regression


simple random sample
( stratified
sampling)(systematic sampling)
simple random sampling

simple return

simulation

376
S
simulation trial

single liability

Single-Monthly Mortality rate (SMM)

single option

single-payment loan

single-period binomial model

single price auction

single- step income statement

(multiple
step income statement)
single-country fund

single-index model

single step-up note

single-tax movement
19

377
sinlang fund


sinlang fund bond

sinlang fund provision

sinking fund redemption

size effect

skewed

skewness

skip-day settlement

slope

slope coefficient

slope
small cap

378
S
small-firm effect

smart money

smoothing constant

socialism
(1)
(2)

social overhead capital

social responsibility

social returns to capital

soft currency

soft arbitrage

soft dollars

soft money

soft market

379
S
sole proprietorship

solvency

source document

source of fund

sovereign bonds

sovereign debt

sovereign risk

spearman rank correlation coefficient

special assessment bond

special cash account


7
Special Claim On Residual Equity (SCORE)

special collateral

hot collateral
380
S
Special Drawing Right (SDR)

special-interest issue

specialist

specialist's short-sale ratio

special item

special journals

(general journal)
Special Purpose Corporation (SPC)
(AAA AA )

Special Purpose Entity (SPE)

SPE

Special Purpose Vehicles (SPVs)


(ABS)

bankruptcy remote entity


special redemption price

381
S

specialty fund

specific identification method

specific price index

( general price index)

specific write- off method

speculation

speculative company

speculative stock

speculative-grade bond
(Moody) Baa BBB

speculator

S&P 500 Depository Receipts (SPDR) 500


1993 500
S&P 500 index 500
500

spike

382
S
spending phase

Spin-off

split-off

split-up

spot

spot commodity

spot exchange rate


spot rate

spot interest rate

spot market
cash market
spot price

spot rate
spot exchange rate
S
spot yield curve

spread


spreader

spread risk

spreadsheet modeling

spread arbitrage

spreading
spreading

spread arbitrage
spread Joan
4

spread position

spread products

spread sector

spread trade

S
spread transaction

spurious correlation

squeeze

stack hedge

stagflation

standard cost

standard deviation


standard error
(n)

Standard Error of the Estimate (SEE)



== 2z
/=1
Standardized Unexpected Earnings (SUE)

standard normal distribution (or unit normal distribution)


0 1
Standard&Poor's

standard Poor's 500 stock Index 500


385
S
400 20 40
500

standard&Poor's rating
AAAAAA BBB
A+ C
D
standardized beta beta

standardized residual

standardizing

standard portfolio analysis of risk

standby commitment

stated value

Statement of Cash Flows( SCF/SoCF)

cash flow statement


(CFO)(CFI)(CFF)
statement of earnings

statement of income and retained income

statement of income

386
S
statement of retained income

statement of stockholders'equity

static asset allocation


( dynamic
asset allocation)
static spread

static yield spread

statistic

statisticaJ factor model

statistical inference

Statistically significant

statistics

stem-and-leaf display

step income statement

step-up note
387

step-up swap

stickjump bonds

stockbroker

stock certificate

stock consolidation
(stcok split)
stock dividend
( cash dividends)
stockholder
shareholder
stockholder's equity

stockholder wealth maximization

stock index

stock index arbitrage

stock index futures

388
S
stock index option

stock index

stock issuances company

stock options

stock option compensation cost

stock power

stock repurchase


stock selection

stock split
(stcok consolidation)

stop buy order

stop limit order

stop loss order

389
S

Stop order

stop-out price

stop payment

stop yield

Storage

storage cost or carrying costs

Store of value

straddle
0

straight bond
(callable bond)
straight line depreciation

1
straight-line amortization
S

straight-line interest

strangle

Strap

strap option

Strategic asset allocation

Strategic Business Plan


5 10
strategic planning

stratified random sampling

simple random sampling(systematic sampling)


stratified simple random sampling

street broker

street name

391
S
street price

stress price
exerclse pnce
stress testing

strike
(1)(2)

strike price
exercise

Price
strip

Strip hedge

strip option

stripped bond

stripped of coupon

stripped mortgage-backed security

stripped treasuries

stripping a treasury security


392
S

Strong-form efficient market hypothesis

(weak-form)(senu-strong-form)
stuck in the middle

student loan-backed securities

( FFELP)
Student Loan Marketing Association (SLMA)

Student's t-distribution Student t


x~N(o1)Yx2(n) t=x it (n)

Student t
t Student t t
structural change

structural unemployment

( frictional
unemployment)(cyclical unemployment)

structured note

style analysis

style grid
393
S

studentized deleted residuals


i

subject market

subjective price

subjective method

submortgage

subjective probability

subordinated interest

subordinated (junior) bond

subordinated debenture

subordination clause

subordinated debenture bonds

subordinated debt

394
S
subrogation

subscriber

subscription price

subscription privilege

subscription

subsidiary company
51%
subsidy

substitutes

(complements)
substitution effect

substitution swap

Sum ofSquared Error (SSE)


SSE2
Sum of the Years' Digits method (SYD)
1

395
S
sunk cost

super dot

supermajority votes

supernormal growth

supernormal grovrth rate

supershares

supply curve


supply of money

supply shock

supply-side economics

support level

support tranches
PAC-

396
S
supranational

surplus

( shortage)
survivorship bias

sushi bond

sustainable competitive advantage

sustainable growth rate

ROE
swap

swap arbitrage

swap bank

swap book

swap broker


397
S
swap dealer

swap facilitator

swap-linked notes

swap rate

swap spread

swaption

switching



Switching option

switch order

SWOT analysis SWOT

symmetallism

398
S
Synthetic index fund

synthetic instrument

synthetic option

Synthetic put

synthetic short


systematic Beta risk B

systematic factors

systematic risk

(unsystematic risk)
systematic sampling
n
(simple random sampling)(stratified sampling)

T
T
TAC interest-only Bond TAC
TAC
TAC
TAC principal-only bond TAC
TAC
TAC
Taccount T
T-

tactical asset allocation




tail

99.88
0.88

tail hedge

take back

take down

take-or-pay contract

throughput arrangement
takeout
}
401
T
takeover


taker

tailing the hedge

tandem option

tangible asset
(intangible
assets)
tangible book value
P/B

tangible book value per share

tangible net worth

tangible value

tap
1

tap CDs

target beta beta


beta
402
T
target (optimal)capitalstructure

tap system

target capital structure

target duration

trarget payout ratio

target population

target price

target semideviation


target semivariance

tariff

tariff quota

taxable income

403
taxable-equivalent yield

1-
tax allocation
tax deferral
tax anticipation notes

tax-backed debt

tax base

tax cost

tax credits

tax deduction

tax deferral
tax
allocation
tax deferred annuity

taxes payable

tax evasion

T
tax incidence

tax exemption

tax-exempt securities

tax loss carryforward

tax preference theory

tax rate

tax return

tax revenue

tax risk

tax swap

t-Distribution t
(o1)Y~)(2(n) t=x~
t (n)

team production

405
technical analysis


fundamental analysis
technical correction

technical rally

technical divergence

technical indicators

technological advancement

technological change


technology

TED spread

temporal method

temporary account l

(permanent account)
temporary difference

T
(permanent difference)
temporary supernormal growth

tenancy at wilJ

tender

ten-forty 10-40
40 10
tender offer

ten-k report 10-k

tenor

term

term bond

term certificate

term federal funds


terminal market

terminal value
residual value
salvage value
termination date

term insurance

term issue

term loan

term mortgage

term premium

term repo/RP
term repurchase
agreement
term repurchase agreement
term repo/RP
terms of trade

term structure

term structure of credit spread

term structure ofinterest rate

term structure of volatility

term to maturity

testamentary trust

testing for correct specification of an AR model AR


AR (1) AR
(2)(3)
testing individual coefficients using the t-test T-Test
T-Test j T-Test

tbj 2(bj -bj) Sbj T-Statistic n-k-l n k

test of significance using confidence internals

test statistic

theoreticaJ futures price


F=P+[Pt(RC)] P C
R t
Theta

thin market

third market
T

third-party account

third-party check

third-party guarantee

threat ofsubstitutes

three-point arbitrage

triangular arbitragetriangular currency arbitrage.


three-stage mode

thrift institute CDs

throretical fair price

throughput arrangement

tick

1% 1/32
tight market

tight-money policy
410

time arbitrage

time bargain

time deposit

timing difference

(permanent
difference)
time draft

time index
0

time line

time-period bias

time preferences for consumption

time premium

time-series analysis

41
T
time-series data

timing option

time-interest-earned (TIE) ratio

time order

time premium

time series


time series data

time spread option

time to expiration

time value decay

time value of money

time value or speculative value

time value decay

412
T
time-weighted rate of return
dollar-weighted return

time-weighted return
1
timing option

to-arrive contract

Tobin's Q Q

token money

Tombstone (or Tumbstone)

Top-down

(bottom-up approach)
top-down forecasting approach

topping out

touch option


total asset turnover

413
T
total cost

total debt ratio

=
total dollar return

total fixed cost

total future dollars

total probability rule


P (R) =P (RII)P(I)
+P (Rllc)P(f)
total probability rule for expected value

E (X) =E cxlsi)P(Si) +E (XIS2)P(S2)++E(XlS.)XP (Sn)


total product

total return

total return swap

total revenue

total variable cost

Totten trust

414
T

tournament pay

tracking error

tracking portfolio
S&P500

tracking risk

trade balance

trade barrier

(1)(2)

trade deficit

traded flat

trade discount

trademark

trade-off theory

415
T
trade option

trade restriction

trade policy

trader

trade surplus

trading at discount

trading at a prenuum

trading down

trading effect

trading halt


trading instructions

trading on the equity

trading range

416
T
trading rule

trading securities

trading through the fund's rate

trading turnover

trading up

traditional cash flow method

trailing dividend yield

trailing P/E (or cruuent P/E)


12 =
12
tranche

transaction

transaction accounts

transactional demand

(precautionary demand)
transaction Cost (TC)
417
T


transaction exposure

transition phase (stage)

transfer initiation request

transferable bond

transfer payment

transfer price

transferee

transfer tax

translation

translation exposure

accounting exposure
translation risk

transporting the spread

418
T
Q

treasury bill(T-Bill)
1
( treasury bond)(treasury note)

treasury bill future


100 3
treasury bond future
10 10
Treasury Bond( T-Bond)
10 (treasury bill)
(treasury note)
treasury coupon securities
1 10 10
treasury coupon strips


Treasurylnflation Protection Securities (TIPS)

Treasury Note( T-Note)


1 10 ( treasury bill)
(treasury bond)
treasury note future
10 5 2
treasury principal strips

Treasury Receipt( TR)


419
T

treasury securities

treasury spot rate

treasury spot rates term structure of interest rates

treasury stock

treasury stock method

treasury strips

tree diagram

trend

Treynor's measure

trial balance 1

triangular arbitrage

three-point arbitragetriangular currency arbitrage.


420

T
triangular currency arbitrage

three-point arbitragetriangular arbitrage.


trickle-down theory

triple-witching hour
500 100

triple bottom

triple top

trough
( peak)
trust

(1)
(2)
(3)

trust company

trustee

trust fund

421
T
trustor

trust indenture

t-statistic t-
t t
t-Test t
t

turkey

turnover

turtle trade

twists

two-point arbitrage

two-sided hypothesis test (or two-tailed hypothesis test)


Ho Ha Ho
Wo Wl Ho
Ho(one-tailed test)
two-stage Dividend Discount Model (DDM)

200-day moving averages 200


200

twenty-day period 20

twofer

two-period model

two-way rate

typeI error
Q
(type II error)
type II error
(type I error)
12B-1 mutual Fund 12B-1

1% 1%
12b-l fee 12b-l

12b-l

U
U
ultimate beneficiary

unamortized bond discount

unamortized discounts on investment

unamortized preminms on investment

Unanticipated change

unanticipated inflation

unappropriated retained earnings j


(appropriated retained
earnings)
unbiasedness

( efficiency)(consistency)
unbiased predictor

unbundle

uncalled capital

uncollected funds

424
U
uncollectible account

unconditional heteroskedasticity

Unconditional probability (or marginal probability)

uncovered

uncovered call

naked call

Uncovered interest rate parity

uncovered writer

underbooked

undercapitalized

underfunded plan

underground economy

underlying

Underlying asset
U

underlying commodity

underlying earnings (or persistent earnings or continuing earnings or core earnings)

underlying future contract

underlying mortgage

underlying variable
underlying
Underpriced

Undervalued

Underweighted

underwriter

underwriting

underwriting agreement

underwriting fee

underwriting syndicate


426
U

undistributed profit

undistributed profit tax

unearned income

unearned revenue

unearned interest

unemployment

unemployment gap
GDP GDP GDP (GDP gap)
unemployment rate
16 65
uneven cash flow series

unexpected earnings (earnings surprise) h


earnings surprise
uniform probability distribution

unilateral transfer

427
U
union

unissued common stock

unitary elastic
1
unitary hedge ratio
1
unit depreciation
1
Unit elastic demand
1

unit investment trust

unit normal distribution


0 1
unit of account

unit s-of-production
1
unit root
Yt - PY l+f=12p=l{ut
E(f)=0cov(f )2< s=012
univariate distribution

unleveraged program
50%
428
U
unlimited liability
(limited liability)

unlimited tax general obligation debt

unlisted option

unlisted stock

unloading 0

unpaid dividend

unrealized appreciation

unrealized capital gains

(realized capital gains)


unrealized loss

unregistered instrument

Unsecrued bonds

debentures
unsecured debt

429
U
unsubordinated debenture

unsystematic risk

( systematic risk)(non-diversifiable risk)


unusual or infrequent items

unweighted index

unweighted price indicator series

unwind

unwind a trade

up-and-in option

up-and-out option

upgrade

upper medium grade bonds


A
up reversal
430
U

upset price

upside

upside-downside volume ratio

uptick


uptick-downtick raho

0.4 1

uptick rule

up transition probability

upward sloping yield curve

use of funds

use of professional designation


AIMR~
CFA Chartered Financial AnalystTMCFA
CFA~ CFA

User charges

431
U
US-pay bond

USTreasury obligation

usury

utilitarianism

1ltility

utility revenue bond

432
V
N
valuation

valuation analysis

valuation allowance

valuation model

valuation process

valuation reserve

value

value added

Value Added Tax (VAT)

Value at risk (VaR)

p 97% VaR 100


9726 100
5% 100
433
V
Value chain

Value Line (VL)

value line index

value date

value fund

Value ofMarginaIProduct (VMP)

value risk

value stocks

P/E
value-weighted index

variable

variable annuities

variable cost

variable Iife insurance

434
V

variable-rate certificate of deposit


90 CD 90 360
variable-rate mortgage

Variable-rate Note (VRN)

variable-rate preference share

variable-rate securities

variable selection procedures

variable

variance
n
variation mar n

(margin call)

(variation margin)

Vega

Vega= V /Acjp
Vega hedge
delta gamma

435
V
Vega-neutral portfolio

velocity of money

vendor


vendor's lien

Venn diagram

venture capital

venture capitalist

venture capitaJ fund

verfiability

verification

GIPS
versus cash transaction

against actuals
Exchange-For-Physicals (EFP)ex-pit transaction
vertical equity
(horizontal equity)

436
V
vertical integration

vertical spread

Vested Benefit (VB)

Vested Benefit Obligation (VBO)

V formation V

visible supply

30
volce

voidable contract

volatility

volatility risk

437
V
Volatility smile/skew

volume

volume discount

volume of trade

voluntary bankruptcy

Voluntary Export Restraints (VER)

voluntary liquidation

voluntary unemployment

voting right

voting stock

vulture fund

438
W
wage rate

walve


W
warehouse receipt (wr.)

warrant

warrant value

warranty

warranty liability

wash sale

wasting asset

watered stock

439
W
weak-form efficiency market hypothesis

( semi-strong-form)
( strong-form)
wealth

weekend effect

weighted aggregate price index

weighted- average cost

weighted average
1
weighted mean
Weighted-average Cost ofCapital (WACC)

WACC=Ka=1-+
+
Weighted Average Coupon (WAC)

Weighted Average Maturity (WAM)

weighted mean
1
weighted average
welfare economics

welfare state
19

well-diversified portfolio

whathow and for whom

when issued (wi) market

wi when issued trades


when issued (wi) trades

wi when issued market


white elephant

white knight

Wholesale Price Index (WPD

wholesaler

wide open

wide opening

widow-and-orphan stock

Wilcoxon signed-rank test

Wild card option

Wild card play


Wiam FSharpe
1964
willingness to pay

winding up

windfall profits tax

window dressing

winner-take-all game

withdrawal

withholding

withholding tax

without recourse

worked off

worlang asset

worlang capitaJ

working capital management

working capital

current
capital
working capital ratio

current ratio
working capital turnover

work in process

work in process inventory

world bank
(IBRD)
(IFC)
world investable wealth

World Trade Organization (WTO)


1994 GATT 133

worst-case scenario

write

write-down

written-down value

write-off

writer

Writer of an option

write up

z Chart z

Yankee bonds

yield

yield beta beta

yield curve

4 (1)(2)
(3)
(4)
yield curve risk

yield curve swap


3
30
yield illusion

yield ratio

yield spread

yield to average life

yield to call

yield to first call

yield to first par call

yield to maturity (YTM)


YTM

yield to put

yield to worst

Z bond

accrual bond
zero-base budgeting

zero basis

zero-beta portfolio

zero-cost coHar

zero-cost option

zero-coupon bond

zero-coupon interest rate

zero-coupon yield curve

zero growth Dividend Discount Model (DDM)

J}|
zero-plus tick

zero-profit-point

zero-rate mortgage

zero-sum game

zero volatility OAS

zero-volatility spread Z-spread

Zeta
1600 7
Z statistic