Babeş – Bolyai University, Cluj – Napoca Faculty of Economics and Business Administration

Financial English Glossary

Mic Iulia 2nd year - Marketing

No. 1.

Word/Expression Credit-default swaps



Definition A credit default swap (CDS) is a swap contract and agreement in which the protection buyer of the CDS makes a series of payments (often referred to as the CDS "fee" or "spread") to the protection seller and, in exchange, receives a payoff if a credit instrument (typically a bond or loan) experiences a credit event. It is a form of reverse trading. A subsidiary, in business matters, is an entity that is controlled by a separate higher entity. The controlled entity is called a company, corporation, or limited liability company; and in some cases can be a government or state-owned enterprise, and the controlling entity is called its parent (or the parent company). Fair value, also called fair price (in a commonplace conflation of the two distinct concepts), is a concept used in accounting and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or asset.

Context Credit-default swaps are insurance-like contracts between two parties.

Source http://www.businessw http://businessfinance


Fair value


Fiscal policy

Government's revenue (taxation) and spending policy designed to counter economic cycles in order to achieve lower unemployment, achieve low or no inflation, and achieve sustained but controllable economic growth. In a recession, governments stimulate the economy with deficit spending (expenditure exceeds revenue). Over the past few years, the World Bank has put significant resources into activities meant to have global impact. One is debt relief, and under the enhanced Heavily Indebted Poor Countries Initiative, 26 poor countries have received debt relief, which will save them 41$ billion over time. 1. Any country other than one's own; same as foreign. 2. Out in the sea, not on land.


Debt relief

"Certainly for significant U.S. subsidiaries of multinational companies listed in the EU, 2005 is a real deadline, and most of these companies should be in the midst of IFRS implementation," Braverman says. " "What all of this probably means is that once the IASB adopts fair value accounting, the SEC will probably watch for a year or two to see how the European companies report and to assess that the reporting is sufficiently relevant and reliable," Freedman predicts. Fiscal policy is said to be tight or contractionary when revenue is higher than spending (i.e., the government budget is in surplus) and loose or expansionary when spending is higher than revenue (i.e., the budget is in deficit). Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations.

http://businessfinance /library/Enc/FiscalPoli cy.html

http://englishnetlinks.h siness.htm



The U.S. government needs to be tougher on offshore tax crimes than it has been, says U.S. Representative Richard Neal, a Massachusetts Democrat and one of the sponsors of the legislation.




The owner of a government or corporate bond. Being a bondholder is often considered safer than being a shareholder because if a company liquidates, it must pay its bondholders before it pays its shareholders. A product offered by an insurance company or an employer to which one makes contribution(s) and immediately or later begins receiving payments, which usually last the remainder of the annuitant's life. An annuity usually refers to a retirement account into which the annuitant makes payments over his/her working life. A situation in which a mortgage lender takes possession of the property because the borrower has not made payments on interest or principal for a certain period of time. Once the lender takes over the property, it usually sells at a discounted price so as to recover the amount lost on the mortgage loan.





Marconi staved off collapse in May last year thanks to a restructuring in which banks and bondholders agreed to write off most of the company's debt in return for control. The need for a product is clear: people are living ever longer, which creates risk for institutions such as corporate pension schemes and annuity providers that will have to provide retirement incomes for longer than expected. As a homeowner who is facing a foreclosure, don't expect that a short sale will not leave any marks on your credit record. /02/money1

http://www.economist. com/node/21547998



A person or organization that makes a loan. That is, a lender gives money to a borrower with the expectation of repayment in a timely manner, almost always with interest.



1. To be slow in leaving, especially out of reluctance; tarry. 2. To remain feebly alive for some time before dying. 3. To persist: an aftertaste that lingers. 4. To proceed slowly; saunter. 5. To be tardy in acting; procrastinate. A statement that shows the financial position of a business enterprise at a specified date by listing the asset balances and the claims on such assets.


Balance sheet

Bankia, a merger of seven savings banks and the largest property lender in Spain, is not Mr Rajoy‘s only banking problem, but it is a good place to start. As late as last year, many luxury properties in the Los Angeles area lingered on the market for weeks or months, according to Stephen Shapiro, co-founder of Westside Estate Agency in Beverly Hills. These are genuine liabilities but they are not recorded properly on the balance sheet.

http://bx.businessweek .com/shortsales-vsforeclosure/view?url=h ttp%3A%2F%2Fheyw m%2F2009%2F12%2 Fthree-reasons-whyshort-sale-isbetter.html http://www.economist. com/node/21554545

http://www.businessw http://www.economist. com/blogs/buttonwood /2012/05/publicsector-pensions



1. The movement of money into and out of a business 2. A prediction of such movement over a given period

A shortage of bank credit means they may be reluctant to put at risk the cash-flow needed to start a price war. An analysis of recent data points by Now-Casting, which publishes "realtime" economic forecasts, points once more toward contraction in the second quarter.

http://www.economist. com/node/21555599



1. To estimate or calculate in advance, especially to predict (weather conditions) by analysis of meteorological data. 2. To serve as an advance indication of; foreshadow: price increases that forecast inflation. 3.To calculate or estimate something in advance; predict the future. 4.A prediction, as of coming events or conditions. 1. The act or process of accumulating; an increase. 2. Something that accumulates or increases.

http://www.economist. com/blogs/freeexchang e/2012/05/businesscycles




Long-term debt



A debt security with a maturity in the long-term. While there is no set definition of what constitutes the long-term, it is generally accepted that long-term bonds are those that mature several years in the future, often more than 15 or 20. One of the most low-risk long-term bonds, the U.S. Treasury Bond, usually has a maturity of 30 years. In personal finance, liabilities are the amounts you owe to creditors, or the people and organizations that lend you money. Typical liabilities include your mortgage, car and educational loans, and credit card debt. Seller. Contrast with donor, who transfers property by gift, and testator, who transfers property under a will.

But it does mean that action has to be taken in the form of higher contributions and in stopping the accrual of future liabilities at the same pace as before; if you're in a hole, stop digging. There's nothing original in noting that Medicare, Medicaid and Social Security are the main drivers of America's long-term debt problem.

http://www.economist. com/blogs/buttonwood /2011/01/pensions_and _risk_management

http://www.economist. com/blogs/democracyi namerica/2012/02/bara ck-obamas-budget

Many small businesses are exposed to the risk of product liability claims, including manufacturers, vendors, suppliers, and exporters. Many small businesses are exposed to the risk of product liability claims, including manufacturers, vendors, suppliers, and exporters Private equity managers would invest long-term capital in poorly run companies, undertake complicated reorganizations that were not possible in prior corporate forms, and would exploit market inefficiencies.

http://www.businessw ent/jun2008/sb200806 18_537185.htm http://www.businessw ent/jun2008/sb200806 18_537185.htm http://www.businessw tent/mar2009/ca20090 324_088569.htm





Ownership interest in a firm. Also, the residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. In real estate, dollar difference between what a property could be sold for and debts claimed against it. In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. Equity is also shorthand for stock market investments.






Bond market


Liquidating dividend

A non-cash expense (also known as non-cash charge) that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets. A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return from now to the expiration of the option. There are volatility indexes. Such as a scale of 1-9; a higher rating means higher risk. The supply and demand for the buying and selling of bonds. The bond market involves both government and corporate bonds in both the primary market (the first sale at issue) and the secondary market (all subsequent sales). Most transactions involving bonds occur over-the-counter. Bond prices both affect and are affected by the current state of the stock market. A dividend paid to shareholders out of a company's capital or assets, rather than its earned income. That is, a liquidating dividend occurs when a company pays more than its total profit in dividends. This usually happens when shareholders believe that the company is no longer sustainable or profitable. Therefore, liquidating dividends are considered a return of shareholders' investments, rather than profit on them. All of the firm's debts must be paid before it can pay liquidating dividends. The amount of a dividend that a publicly-traded company decides to pay out to shareholders. The dividend policy may change from time to time. Factors affecting a dividend policy include the company's earnings for the relevant period and its expected performance in the near future. Many companies, especially startups, have a rather stingy dividend policy because they plow back much of their earnings into further development.

But macroeconomic adjustment without depreciation looks increasingly difficult; it will mean more hardship and perhaps a lot more. Volatility makes it almost impossible to value an asset, bankers say.

http://www.economist. com/blogs/freeexchang e/2012/05/euro-crisis-4 http://www.economist. com/node/21555931

Central banks are the biggest players in many rich-world government-bond markets.

http://www.economist. com/node/21555936

"There is no personal liability for corporate income taxes unless there is a liquidating dividend or the shareholders fail to maintain clear delineation between corporate finances and personal finances," says Robert McKenzie, tax attorney for Arnstein & Lehr LLP.



Dividend policy

Dividends policy and partial surrenders of the base policy can be received up to the owner's investment in the contract without creating taxable income.


A The transfer of the Royal Mail pension scheme to the state provided a £28bn windfall for the exchequer in April. unexpected profit or For example. A windfall may occur. Companies may also experience windfall when demand for their products o. y/22/uk-inflationdrops-mervyn-king http://www. for example. Integrated Pest Management (IPM) is an effective and environmentally sensitive approach to pest management that relies on a combination of common-sense 26. if the asking price for a house is $300. Borrow To receive money from another party with the agreement that the money will be repaid. resulting in a monthly surplus of £16. Bargain 28. IPM programs use current. resulting in a monthly surplus of £16. Most loans also have a maturity date by which time the borrower must have repaid the loan.1bn in the same month in 2011.000 and a potential buyer does not want to pay that much. attracting media attention. Current holders of the stock are given more shares so that they maintain the same percentage of ownership in the y/22/uk-inflationdrops-mervyn-king http://www..promoting innovative techniques such as integrated pest management. Once the one-off Royal Mail effect was stripped out. The transfer of the Royal Mail pension scheme to the state provided a £28bn windfall for the exchequer in April. To negotiate. he may bargain with the seller to lower the price to $280. Windfall Britain's annual inflation rate fell to its lowest level in more than two years last month as bargains on the high street and a post-Easter cut in air fares helped keep price increases in y/22/uk-inflationdrops-mervyn-king 29.5bn.entreprene ur. a company engages in a stock split in order to decrease its share price by increasing the number of shares available. http://www. meaning they pay a certain percentage of the principal amount to the lender as compensation for borrowing. and the environment. especially in the United Kingdom. A reverse stock split helped J2 Global Communications of Hollywood avoid delisting in early 2001. in combination with available pest control methods.5bn – up from £9. Exchequer http://www. A purchase with a price lower than fair market y/22/uk-inflationdrops-mervyn-king 30.c o. Most borrowers borrow at interest. Stock split The act of a publicly-traded company increasing the number of outstanding shares while maintaining the same market capitalization. and with the least possible hazard to people. http://www. is used to manage pest damage by the most economical means. for example. In other cms/s/8b626158-0ed211df-bd7900144feabdc0 27. however. A general term. 2.c o. . or at least lower than competitors' prices. after a company announces an earnings surprise and its stock consequently jumps significantly. This information. an umbrella manufacturer may see windfall during an especially rainy year.25. for a fund or account.c o. Integrated pest management This is the meaning of the term integrated: both chemical and biological. net borrowing in April stood at £11.. comprehensive information on the life cycles of pests and their interaction with the environment. http://www. y/28/consumeroutlook-brighter-sayexperts 35. A standard against which a security's performance is compared.31. Wage growth will finally begin to outpace inflation and our pay packets will also be boosted by the tax changes announced in the budget. It is thought to be a better measure of underlying inflation as it does not account for temporary price to 2. y/28/consumeroutlook-brighter-sayexperts http://www. http://www. http://www.c o. such as energy and food. Stocks are usually compared against stocks. To surpass or outdo (another). Core inflation 32. and the bottom y/28/consumeroutlook-brighter-sayexperts y/22/uk-inflationdrops-mervyn-king Consumers will be better off at the end of the year after a dramatic slowdown in inflation and rise in the personal tax threshold. based on the estimated value of the property and the number of people living in it . Boundary beyond which a radically different state of affairs exists.c o.5% in the year to April. But poorer working families who get housing and council tax benefits will be just £33 a year better off from the threshold rise because as their income goes up their benefits fall. 2. growth. Another type of benchmark considers securities according to industry: a telecommunications stock may be compared to other telecommunications stocks.c o. Threshold 34.c y/22/uk-inflationdrops-mervyn-king The cost of living measured by the Retail Prices Index – used as the benchmark for many pay deals – was up 3.1%. while others include all markets but exclude the markets that have had the greatest volatility over the last given period. Council tax A tax levied on households by local authorities. etc. which strips out energy and food costs.6% in the year to March.c o.c o. bonds against bonds. or performance. who aren't liable for income tax. won't benefit from the increase in the personal allowance account. earning above £ according to a report by the Ernst & Young Item y/28/consumeroutlook-brighter-sayexperts http://www. also dropped sharply last month. So-called "core inflation". Some economists who measure core inflation exclude certain markets that tend to be volatile. Minimum or maximum value (established for an attribute. A benchmark is usually an index of securities of the same or similar class. as in speed. Benchmark 33. after rising by 3. from 2. 1. Only the top 10% of the income distribution. or parameter) which serves as a benchmark for comparison or guidance and any breach of which may call for a complete review of the situation or the redesign of a system. Outpace A measure of inflation that attempts to predict future inflation by excluding price volatility. Allowance account A reserve fund created by a charge against profits in order to provide for changes in the value of a company's assets 36.

imperil. Endanger 1. Central banks also have the responsibility to shore up the economy and help to move it back toward full employment. 12/apr/11/bankingeuropean-central-bank http://moneyland.000 in the account and withdraws $1. especially those classified as ―unbanked‖ or ―underbanked‖ are using these cards as de facto checking accounts. http://moneyland. Under-banked http://moneyland. lack of a bank account often renders one ineligible to buy a house or take advantage of some social services. 2.c o. http://www. The must be prepared to take the steps necessary to counter the growth of asset bubbles before they get large enough to endanger the economy. an overdraft incurs a relatively steep penalty fee. 40. if an account holder has $1.time. (Business / Commerce) an additional payment made to employees as a means of increasing production. since they will be able to sell what they produce at these higher prices. Incentive 1. Describing a situation when an issuer or syndicate manager has difficulty finding enough underwriters to place a new issue with investors. and more Americans. com/2012/05/29/thegrowing-debate-overprepaid-debit-cards/ 42. especially those classified as ―unbanked‖ or ―underbanked‖ are using these cards as de facto checking accounts. If businesses expect that prices will be 15% to 18% higher three years from now it will give them more incentive to invest today.200. The bank may or may not honor the overdraft.c o. The rapidly growing prepaid market is attracting both banks and non-banks. Unbanked persons are either paid in cash or cash their paychecks rather than deposit them. carry the weight of. Shore up Be the physical support of. a motivating influence.37. Unbanked Describing a person or group of people who do not have an account at any 12/apr/11/bankingeuropean-central-bank http://www. For example. Overdraft A situation in which a bank customer withdraws more from his/her account than he/she had previously deposited. and more Americans. com/2012/05/29/thegrowing-debate-overprepaid-debit-cards/ .time. Usually. Unbanked persons are often poor.c o. To threaten with extinction. stimulus 2. Eakes also called for the elimination of mandatory arbitration clauses in cardholder agreements and said prepaid cards shouldn‘t be subject to any kind of insufficient funds or overdraft penalties. The rapidly growing prepaid market is attracting both banks and 12/apr/11/bankingeuropean-central-bank http://www.time. depending on its policies and the importance of the customer. To expose to harm or danger. however. com/2012/05/29/thegrowing-debate-overprepaid-debit-cards/ 41. this is an overdraft of $200.

long-term loans and deferred taxation. Direct Deposit tegiesstyles/a/aa10180 5_2.magicdilig ence. A direct deposit service also allows the recipient to have access to his/her funds immediately without waiting on the holding period. The Cash flow statement shows the movement and availability of cash through and to the business over a given period. which advocates call payday lending by another name — in a prepaid debit card The DuPont analysis article is important because it deals with something I don't see investors talk much about – the asset turnover ratio. Capital employed 48. The quick ratio. certainly for a trading year. sometimes called the acid-test. com/news/122349/why -the-asset-turnoverratio-matters 47. which is required for many check deposits. especially but not limited to a paycheck. http://www. Acid test A stern measure of a company's ability to pay its short term debts.43. com/2012/05/29/thegrowing-debate-overprepaid-debit-cards/ http://www. retained profits and reserves. The cash flow statement provides a third perspective alongside the Profit and Loss account and Balance Sheet.a bout. investments and the net investment in working capital (current assets less current liabilities).htm 45. staff and other creditors is essential for any business to survive. One of the three essential reporting and measurement systems for any company. is transferred immediately into the recipient's bank account. The direct deposit replaces a check for which the recipient would otherwise have to wait to arrive in the mail. com/od/financialratios/ f/finratioanal4. Viewed from the other side of the balance sheet. In other words: the total long-term funds invested in or lent to the business and used by it in carrying out its operations. (liquid assets/current liabilities).about. Eakes and others who spoke during the panel discussion as well as in the open-mic session that followed unanimously said that there‘s no place for credit — via overdraft or direct deposit advances. http://moneyland. The availability of cash in a company that is necessary to meet payments to suppliers.htm This third entry in the Understanding Financial Statements series looks at the cash flow statement. and so the reliable forecasting and reporting of cash movement and availability is crucial. or tax refund. in that stock is excluded from asset value. Cash flow statement The value of all resources available to the company. The single most important indicator of the inherent excellence of a business is the return on capital employed. and often also monthly and cumulatively. Asset turnover An electronic service in which a payment. rstanding-the-cashflow-statement . typically comprising share capital. is a more stringent test of liquidity than the current ratio. the final of the 3 primary financial statements that all public companies must report to the SEC. http://bizfinance. pension. capital employed comprises fixed assets.gurufocus.time. A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.

In finance.economist. com/node/21555767 52. fixtures and fittings. By some usually the relationship between long-term borrowings and shareholders' funds. The weighted average of a country's currency relative to an index or basket of other major currencies adjusted for the effects of inflation. http://www.49. Mr Halfon called for a windfall tax on the oil companies (as opposed to just the North Sea oil companies. com/node/21555767 51. about 3. news/uk-england18210753 54. Inland China‘s share of fixed-asset investment matched that of the coastal provinces for the first time in http://www. equipment. global spending and China‘s own investment expenditure. which the chancellor announced last year) to fund a fuel duty forex rate or FX rate) between two currencies specify how much one currency is worth in terms of the other. Gearing The ratio of debt to equity. The campaign for lower fuel prices is gearing up again. $) means that JPY 91 is worth the same as USD 1. the IMF identifies four reasons: China‘s exchange rate. The average quantity of an item consumed or expended during a given time interval. Fixed assets Assets held for use by the business rather than for sale or conversion into cash. Consumption rate It would require China‘s low consumption rate to move still lower to make room for so much investing and exporting.[1] For example an exchange rate of 91 Japanese yen (JPY. com/node/21555767 50.economist. Real effective exchange rate The measure most economists watch is the real effective exchange rate (REER) adjusted for consumer-price inflation and weighted by trade.economist.2 trillion USD worth of currency changes hands every day.economist. In its latest World Economic Outlook. Exchange rate http://www. com/node/21555767 53. its terms of trade. then exceeded it in 2010. in terms of one country's currency. The foreign exchange market is one of the largest markets in the world. eg. http://www. It is the value of a foreign nation‘s currency in terms of the home nation‘s currency. especially a privatized utility company that has exploited a monopoly. The weights are determined by comparing the relative trade balances. the exchange rates (also known as the foreignexchange news/uk-england18210753 . http://www. expressed in quantities by the most appropriate unit of measurement per applicable stated basis. Windfall tax (Economics) A tax levied on an organization considered to have made excessive profits. with each other country within the index. http://www. ¥) to the United States dollar (

representing the required news/uk-england18210753 http://www. commonly used/required for import/export trade. http://www. debtors. Duff and Phelps should t/t (telegraphic transfer) International banking payment method: a telegraphic transfer Gross profit was up 13. to finance stock." Group sales for the nine weeks to 25 March were up 13. between a bank and an overseas party enabling transfer of local or foreign currency by telegraph.2% on the same period a year ago to £ /hi/business/6999453. I couldn't contact the bank by telephone or internet so I visited the local branch in Stockport and made a telegraphic transfer. . continually news/uk-scotlandglasgow-west18212287 http://news. or gross profit. "If fewer people are able to afford to travel [to our resorts] there is a knockon effect on our economy. http://www.s tm cable or telex. and often abbreviated to simply 'margin' 57. Knock-on effect A secondary or incidental wireless communications news/business17836617 and work in progress. Gross profit Sales less cost of goods or services sold. Insolvency The lack of financial resources. A leading insolvency expert has told the BBC that if the allegations of a conflict are proved. The terminology dates from times when such communications were literally 'wired' . Also called a cable Also referred to as gross profit margin. Mr Grier has denied knowing that Ticketus were funding the purchase. and his PR team has claimed he was only aware of a much smaller arrangement of around £5m with the finance firm to fund a working capital shortfall. Working capital Current assets less current news/uk-scotlandglasgow-west18212287 58.5% on the year to £99.

(current assets/current liabilities). Liquidity ratio Indicates the company's ability to pay its short term http://www. Earl.. Initial public offering 62. or a particular project with agreed terms of reference and outputs such as to meet the criteria or terms of the donation or award or grant. The share price has since slumped amid worries that the company was over-valued by advisers marketing the float. by measuring the relationship between current assets ( those which can be turned into cash) against the short-term debt value. In other words an IPO is the first sale of stock by a private company to the public. eg. Flotation These are funds used by an organization that are restricted or earmarked by a donor for a specific purpose. foundations and trusts. which can be extremely specific or quite broad. so you may be tempted to dismiss them as self-interested threats (lower capital and liquidity ratios allow banks to take greater bonus-generating risks). http://www. news/business18257043 http://www. endowment or pensions news/business18257043 63. You have heard these complaints many times before from the launching or financing of a commercial enterprise by bond or share issues said: "Cuts [to police force budgets] mean funds are restricted http://www. The flotation was disrupted on its first day of trading by technical glitches on the Nasdaq stock exchange. IPOs typically involve small. research (in the case of donations to a charity or research organization ). who works with Avon and Somerset Police and internet safety charity the South West Grid for Learning. philanthropic organizations. The source of restricted funds can be from news/uk-england16833527 One reason for the fall in shares since its initial public offering (IPO) is that Tuesday was the first day that options on Facebook stock began trading. An Initial Public Offering (IPO being the Stock Exchange and corporate acronym) is the first sale of privately owned equity (stock or shares) in a company via the issue of shares to the public and other investing institutions. young companies raising capital to finance growth. which may also entail specific reporting and timescales. the raising of a loan or new capital by bond or share issues news/business16739133 .co. bequests from wills. private a. grant-awarding bodies. An IPO is effectively 'going public' or 'taking a company public'. The practical implication is that restricted funds are ring-fenced and must not be used for any other than their designated purpose. For investors IPOs can risky as it is difficult to predict the value of the stock (shares) when they open for trading. Restricted funds 61. with which the organization using the funds must

bbc. don a name tag and make polite conversation about Laffer curves and marginal tax" investment trust that owns and manages a pool of commercial properties and mortgages and other real estate news/uk-scotlandscotland-business14334011 news/business13235042 66. office and residential complex in Reserve currency A currency which is held in significant quantities by many governments and institutions as part of their foreign exchange news/uk-northernireland-15757929 . a massive retail.83 yuan from its listing price of 5. http://www. IPO A corporation's first offer to sell stock to the shares can be bought and sold in the stock market. and commodities such as A market cycle is complete when the S&P is 15% below the highest point or 15% above the lowest point (ending a down market).uk/ news/business13235042 REIT that housing market cycles are typically extended and "The region is learning. etc. Market cycle The period between the 2 latest highs or lows of the S&P 500. It also tends to be the international pricing currency for products traded on a global market. The tax rate that would have to be paid on any additional dollars of taxable income earned.24 yuan in early Investment trust A financial institution that sells shares to individuals and invests in securities issued by other companies. news/business17471095 69. gold. Shares in Hui Xian Real Estate Investment Trust (REIT) fell sharply to 4. Investors gave a tepid response to the initial public offering (IPO) and it was priced at the lowest end of a 5.48bn yuan ($1. China has been trying to promote the yuan as an alternative global reserve currency to the US dollar.£969m). The investment trust's main asset is Oriental Plaza. Both Maxim and Sepa have economically benefited from a review of the original terms without impacting the actual net present value of the lease. raising 10. Marginal tax rate Time. http://www. to watch the projector being fired up. http://www. at some cost. showing net performance of a fund through both an up and a down yuan range. discounting both future costs and revenue at an appropriate rate Abbreviation NPV Real Estate Investment Trust .uk/ news/uk-politics17486346 70. yet news/business13235042 67. net present value (npv) Accounting an assessment of the long-term profitability of a project made by adding together all the revenue it can be expected to achieve over its whole life and deducting all the costs involved.

house price to income rations clearly show that in comparison to a few years ago Northern Ireland's housing market is now much more affordable. the demanders of labour services (employers). employment. Factors contributing to a currency's hard status can include political stability. Also called real assets.71.‖ Its announcement coincides with news that major money exchange houses in the nearby United Arab Emirates have stopped handling Iranian rials over the last few weeks. prepared by a credit bureau at the request of the lender (Black's Law Dictionary). citing a risk of default despite a recent debt write-off deal. It is an evaluation made by credit bureaus of a borrower‘s overall credit history. Ajai Chopra said: "I think the sort of measures we have in mind are. Moody's believes that Greece will still face medium-term note solvency news/business18158226 Stanley Gibbons said "we are witnessing an increasing international interest in the ownership of tangible and income. it is a tax on the purchase price. Hard currency or strong Labour economics looks at the suppliers of labour services (workers).uk/ news/business16573771 http://www. by his stage of its manufacture or distribution. material or From the perspective of the buyer. news/business17390456 . backing by reserves of precious metals. a news/business17238523 http://www. A credit rating estimates the credit worthiness of an Credit ratings are calculated from financial history and current assets and liabilities. They can be issued on a fixed or floating coupon basis. Tangible asset 76. The buyer remits to the government the difference between these two amounts. Hard currency A medium term note (MTN) is a debt note that usually matures (is paid back) in 5–10 years. Moody's has cut Greece's credit rating again. corporation. An asset whose value depends on particular physical news/business17238523 The IMF's technical expert on the UK economy. and retains the rest for themselves to offset the taxes he had previously paid on the inputs. in economics. low inflation. and long-term stable or upward-trending valuation against other currencies on a trade-weighted basis. Value Added Tax Although first-time buyers are still facing difficulties in terms of accessing mortgage finance and continuing uncertainty in the labour and attempts to understand the resulting pattern of consistent monetary and fiscal policies. These include reproducible assets such as buildings or machinery and non-reproducible assets such as but the term may be less than one year or as long as 50 years. Medium-term note 73. A credit rating is also known as an evaluation of a potential borrower's ability to repay debt. or even a country. something that has further reduced Iran's ability to trade and acquire hard currency. refers to a globally traded currency that can serve as a reliable and stable store of value. 72. Labour market Labour economics seeks to understand the functioning and dynamics of the market for labour. or a work of art. From that of the seller. A form of consumption tax. from an accounting view. Credit rating 74. http://www. Labour markets function through the interaction of workers and employers.‖ http://www. one could consider cutting the Value Added Tax. it is a tax only on the "value added" to a news/uk-northernireland-15757929 http://www. such as collectibles.

is accused of running a scheme that persuaded investors to buy certificates of deposit from Stanford International Bank. Puerto Ricans do not pay US income tax. have tended to favour parties that support the union with the US. effort. A civil action brought in a court of law in which a news/business12502786 80. and the island receives federal funds The "301 Group" of newer MPs caused friction in the run-up to the ballot by fielding a "slate" of candidates in an attempt replace the "old guard". A CD bears a maturity date and a specified interest Also. a continued commitment to innovation and the best suited portfolio to target the most profitable news/uk-scotlandscotland-business18266192 Stanford. Friction The "stickiness" involved in making news/business12502786 news/business12502786 79. He has been in custody since June 2009. http://www. The defendant is required to respond to the plaintiff's complaint. Puerto Rican voters. primarily for enrolling other people into the scheme or training them to take part. demands a legal or equitable and a variety of court orders may be issued to enforce a accusing them of depriving him of his constitutional rights. the total process including news/uk-politics18093877 82. rather than supplying any real investment or sale of products or services to the public. Countersuit Mr. Future value The value that a sum of money invested at compound interest will have after a specified news/world-us-canada17139243 81. A declaratory judgment may be issued to prevent future legal disputes. Certificate of deposit Also called a time deposit. or impose an injunction to prevent an act or compel an located in Antigua. judgment will be given in the plaintiff's favor. Texan billionaire Allen Stanford has filed a countersuit against US" http://www. excess reserves lent by banks to each other.77. 78. and tax effects of gathering information and making a transaction such as buying a stock or borrowing money. Stanford's alleged pyramid scheme that they claim defrauded investors of $7bn (£ this is a certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. http://www. "This investment. award damages. http://www. will provide the basis for future value growth for our company. a party who claims to have incurred damages as a result of a defendant's actions. Federal funds http://www. and can be issued in any denomination. who elect a governor for the island. allied to strong market growth. If the plaintiff is successful. A pyramid scheme is a non-sustainable business model that involves promising participants Pyramid scheme The lawsuit claims prosecutors "undertook illegal tactics" in their investigation of Mr. money. The duration can be up to five years. Non-interest bearing deposits held in reserve for depository institutions at their district Federal Reserve Bank. services or ideals.

bbc. One manages one's brokerage account differently according to the type of brokerage. Brokers are only allowed to conduct transactions on advisory accounts on the specific orders of the account or under very specific instructions. Emerging market A financial or consumer market in a newly developing country or former communist news/uk-northernireland-18055426 88. http://www. Joint venture A partnership or conglomerate. The firm now has gross assets of about £340m compared to around £460m in news/uk-northernireland-18055426 86. formed often to share risk or expertise. Drinks firm Chivas Brothers has outlined a £40m investment program as it seeks to meet growing demand for whisky in emerging markets. The property firm which owns the Bloomfield shopping centre in Bangor has announced a £26m pre-tax loss for 2010. Chivas Brothers chairman and chief executive Christian Porta commented: "We are committed to a capital expenditure of £40m annually to further increase our distillation capacity and production facilities. call on the telephone. one may meet with a broker. The firm's accounts state that it has decided to pull out of a joint venture with the McGinnis house-building group and write off the value of their investment in that news/uk-scotlandscotland-business18266192 http://www. For news/uk-northernireland-18055426 that is. Pre-tax loss A loss reported before tax benefits are considered. Capital expenditure Expenditure on acquisitions of or improvements to fixed assets. Money given to a broker or brokerage for investment purposes. 85. 84. Gross The amount before any subtractions are made. http://www. He then subtracts his tax liability and other deductions to arrive at his net the amount that a person earns from an employer represents his gross news/uk-scotlandscotland-business18266192 http://www. Brokerage accounts are divided into two main categories: advisory accounts and discretionary or give orders over the Internet. Brokerage account .

http://www. Land bank A bank that provides loans for agricultural or other rural use. Pre-tax profit General market of houses being purchased and sold between buyers and sellers either directly by owners or indirectly through brokers. to take control of an 87-acre land bank which had been owned by the failed Taggart housebuilding group. a company can issue shares in exchange for computer servers. Bank guarantees reduce the risk to loans and liabilities and usually improve the credit agency ratings of bonds. Bank guarantee A promise made by a bank to provide payment to another bank or lender on a bond. possibly at the expense of excellence in train design and domestic news/uk-northernireland-18055426 94. 93. Banks often make guarantees on behalf of certain clients to promise payment on loans. news/uk-northernireland-18055426 90. Bundling MPs also concluded the bundling together of train manufacture and financing in large procurement exercises would skew the market towards larger multinational news/uk-northernireland-18055426 http://www. their involvement in the venture returned a loss of about £12m. Mortgages are frequently bundled as mortgage-backed securities. 91. Housing market 92. The restaurant business. made a pre-tax profit of £824. The practice of selling multiple products as if they were one. http://www. 1. Share capital Share capital (UK English) or capital stock (US English) refers to the portion of a company's equity that has been obtained (or will be obtained) by trading stock to a shareholder for cash or an equivalent item of capital value. A note in the account states that Mr. via a completely different company called Dermont news/uk-englandderbyshire-16178039 . all seven books in the Harry Potter series may be bundled and sold as a box set.000 loss the year before. Net income before federal income taxes are news/uk-northernireland-18055426 but they also finance personal and recreational Mortgages registered with Companies House suggests the project related to a site at Rathgael in Bangor.89. The accounts suggests that after selling their stake in the project and writing off a loan and bank guarantee. In 2009 . the two firms teamed up. The practice of compiling a number of financial products and selling them as securities. Herbert no longer owns Lebreh with his wife Lesley now controlling 100% of the company's share over the past three years the housing market has followed a relentless downward path. or other liability in the event of default. instead of purchasing the servers with news/uk-northernireland-18055426 http://www. For For on turnover of £34m which compares to a £705. which employs around 350 people. Most loans from federal land banks are for commercial agriculture.

bbc. In Both employees and employers must make National Insurance contributions. the minimum return the portfolio must make in order to remain actively managed. The safety-net return is part of a contingent immunization strategy. the difference between the initially available immunization level and the safety-net news/uk-englandderbyshire-16178039 bonds. The act in which a bank submits a financial instrument to another bank and demands payment on the instrument. A bidder may be an individual or a corporation.400 jobs after Siemens was named as the preferred bidder for the lucrative then you pay National Insurance Deductions.95. National Insurance pays for the state pension. we have the bid-ask spread which is the difference between what buyers are willing to pay and what sellers are asking for in terms of price. the portfolio automatically initiates an immunization strategy to reduce the portfolio's risk. The idea was to provide a government safety-net return for workers who fell on hard times. but the government may borrow against them http://www. made up of highest-quality assets topped up with bonds that can be easily converted to equity. They do not fund other government functions. Generally speaking. Safety-net return In an actively-managed portfolio. Bidder A potential buyer. Canadian-owned Bombardier announced it was cutting 1. If the return falls below this news/uk-englandderbyshire-16178039 96. and whole companies. The price a potential buyer is willing to pay for a news/business16235636 99. Ms Ellman said: "We could not evaluate whether the decision to choose Siemens was arrived at correctly because all of the bids were and remain confidential. Bid http://www. a seller finds the bidder who offers the best deal and executes the sale with him or her. Safety cushion In a contingent immunization strategy. Indictment Unite union general secretary Len McCluskey said: "The select committee's report is a damning indictment of the newsbeat/10078062 . unemployment benefits and also funds the National Health Service. bidders seek to buy houses. news/uk-englandderbyshire-16178039 97. The term may apply regardless of what the bidder is seeking to buy. To give only a few newsbeat/10078062 100. National Insurance Deductions If you have a job. and employers must make further contributions on certain employee benefits. http://www. Deductions from paychecks or other payments made to National Insurance in the United Kingdom. It also says the biggest banks should go further than this and have a safety cushion of between 17% and 20% of assets.‖ http://www. Sometimes also used in the context of takeovers where one corporation is bidding for (trying to buy) another corporation.

uk/ news/uk-northernireland-15482349 Giving evidence to the assembly's committee for enterprise. an employee of an investment bank may trade with the bank's money without receiving authorization from or reporting it to his supervisor. MacBeth. by others who:  have used information which is not publicly available (insider dealing).  have disseminated false or misleading news/uk-northernireland-15482349 interest or dividends) and repayment of principal. In theory. One then buys the same securities in order to repay the brokerage." said Mr. MacBeth. The retail price includes all expenses the retailer incurs. http://www. directly or indirectly. if one buys a vacuum in order to use it instead of to sell it to another news/uk-northernireland-15482349 The FSA said it took the matter seriously because of his seniority. usually from a brokerage. For example." said Mr. his failings were serious because of his experience and senior position at JP Morgan. Market abuse The FSA said that while Mr. The price the end user of a product pays. one likely pays the retail trade and investment. this enables the retailer to sell the good at a better price for the news/uk-northernireland-15482349 http://www. "The other is that there are some suppliers who are engaging in selling short measures. one expects to sell the borrowed securities at a higher price than the price at which one buys in order to return the securities. The practice of trading securities using another person or institution's money without input or oversight from others. Selling short is one of the most common practices of hedge funds. Wholesaler 103. Market abuse may arise in circumstances where financial investors have been unreasonably The condition or status of a security that has priority over other securities by the same issuer with respect to the payment of income (that is. Retail price 104.101. In selling short. plus a mark-up. That is. The possibility of rogue trading shocked the committee and its chairman Alban Maginness MLA said it was a cause for concern http://www. Rogue trading 105. bonds have seniority over preferred stock and preferred stock has priority over common stock. for the same issuer. one borrows securities. where they are resold to consumers.  have distorted the price-setting mechanism of financial instruments. As an example. "Their view was that on a number of occasions they had seen retail prices below the level at which they were wholesaling. Seniority To sell borrowed and sells them. Rogue trading generally is risky and usually is discovered when it leads to a large loss. That Selling short news/business17596281 106. Selling short is practiced if one believes that the price of a security will soon James MacBeth of the OFT said the strongest evidence for this came from a wholesaler monitoring the A wholesaler generally is able to extract a better price from the manufacturer because it buys so many good relative to an individual retailer. Hannam had not deliberately set out to commit market news/business17596281 . A company that purchases large quantities of goods from a manufacturer and sells them to stores.

new retail store news/uk-england10772814 He was convicted earlier this month of obtaining the money by deception. Collins. sleight of hand. we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. It is usually done when shares are undervalued. bluff.A supply stored for future use. Separation property 108. War chest Cash kept aside for a takeover or for defense against a takeover bid.To accumulate and maintain a supply of for future use. Even with these investments." "We have used some of our cash to make great investments in our business through increased research and news/business17434328 news/business17434328 http://www. expected them to do. raw materials and components into a finished product that is delivered to the end customer. "Even with these investments. and I think most. beguilement. Share repurchase The property that portfolio choice can be separated into two independent tasks: 1) determination of the optimal risky portfolio. strategic prepayments and capital expenditures in our supply chain. In sophisticated supply chain news/uk-england10772814 110." Apple chief executive Tim Cook said in a and building out our infrastructure. Supply chain activities transform natural Lee claimed the £1m payment related to a separation property deal he had with Mr. and subterfuge are acts to propagate beliefs that are not true. or not the whole truth (as in half-truths or omission).[2] In court. Supply chains link value chains. Apple shares have surged to about $600 in recent days. It can employ news/business17434328 http://www. http://www. people. used products may re-enter the supply chain at any point where residual value is recyclable. information and resources involved in moving a product or service from supplier to customer. it tends to elevate the market value of the remaining shares held by stockholders. Deception 109. A supply chain is a system of organizations. camouflage or Supply chain Stockpile . which is a purely technical news/business17434328 . So we are going to initiate a dividend and share repurchase program. http://www. deceit. with a stock market value of more than $ To surge To rise and move in a billowing or swelling manner. propaganda. Program by which a corporation buys back its own shares in the open market. and 2) the personal choice of the best mix of the risky portfolio and the risk-free asset. technology. we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. 113. .co. Deception can involve dissimulation. 112. "This is consistent with what which is to address shareholder concerns around the huge cash stockpile. making it the world's most valuable company. usually carefully accrued and news/business17434328 Since it reduces the number of shares outstanding and thus increases earnings per share.

it is the owners' interest in the assets of the enterprise after deducting all its liabilities. 117.114. and using options. The purchase of corporate bonds by the issuing company at a discount in the open market. These techniques include borrowing Also used in the context of bonds. they share equally in ownership equity from all perspectives.which is that the bank rewards its top executives disproportionately in relation to the rewards available for shareholders. Barclays would win the motions .co. Barclays would be relying on the votes of overseas investors. Buyback 115. Also used in the context of corporate finance. According to well-placed less than half its stated target of reaching 13% by 2013 and considerably below the 11% or so cost of its equity. Shareholders` equity In finance. should continue to bolster the soaring share price.but in the teeth of considerable opposition from conventional. If all shareholders are in one and the same class.6%. Hedge funds offer investors the possibility of extraordinary gains with above-average http://www. To bolster The covering of a short position by purchasing a long contract. plus the buyback. stock buyback. plus the buyback. In financial should continue to bolster the soaring share price. "This. who manage the savings of millions of British people. long-term British shareholders.[1] It appears on the balance news/business17783917 http://www. Concession 118. In other words. Hedge fund A very specialized. one of four financial statements. http://www. strengthen." Last year its return on average shareholders' equity was 6. usually resulting from the short sale of a commodity. When a firm elects to repurchase some of the shares trading in the market. See: Short covering. shareholders' capital employed) is ownership equity spread out among shareholders whose class of share may have special rights attached to it. To support or reinforce. The per-share or per-bond compensation of a selling group for participating in a corporate underwriting. shareholders' equity (or stockholders' equity. selling short. shareholders' funds. leading institutional shareholders believe that the concessions unexpectedly offered by Barclays do not address their fundamental concern .co." news/business17434328 news/business17434328 " news/business17783917 . hedge funds and others investors who do not typically become exercised by remuneration. open-end investment company that permits the manager to use a variety of investment techniques usually prohibited in other types of news/business17783917 volatile.

The average petrol price has risen to a new high of 142. by lending much more relative to their equity .co. Speculator news/business17777367 http://www. For a depository institution. who attempts to anticipate price changes and.or by "leveraging up" to use the jargon. this was a relatively common way to discourage hostile takeovers in the 1980s. often in order to finance an expansion of operations. In news/business17783917 121." The AA blamed speculators for pushing up oil prices and said the government should do more to tackle the problem. especially a temporary one. is earning considerably less than its cost of In other words. One. http://www. A speculator does not use the market in connection with the per liter after a brief halt to weeks of rises. Credit crunch A shortage of available credit for businesses and consumers. through buying and selling It is calculated thusly: Cost of Equity = ( Dividends per share / Price per share ) + Dividend growth news/business17783917 120. Leverage up The reason some investors don't like return on equity as a formal target is that banks can boost it in a very simple but potentially dangerous way. This situation could arise when lenders are reluctant to lend because of uncertainty of defaults or are willing to lend only at high interest rates thus making it difficult for businesses and consumers to secure credit. Cost of equity The required rate of return that a stockholder demands from a publicly-traded company in exchange for buying a share and assuming the risk associated with it. news/business15985203 news/world-europeguernsey-18263176 http://www. aims to make . because obviously we've had an election and a new board. The difference is usually composed of revisions to price difference or spread and commission costs. which usually increases the share price. motoring association the AA says. the difference between income and cost. like many of the western world's big banks. Deputy Jones said: "There has been some the difference between the assets it invests in (loans and securities) and the cost of its funds (deposits and other sources) Spread income Also called margin processing. the SEC ruled last month. Halt it has an incentive to take the kind of dangerous risks that led to the credit crunch and banking crisis of 2007-8. To increase a firm's amount of debt. A publicly-traded company may leverage up to repurchase its own news/business17783917 122. A suspension of movement or progress. The proper accounting method for such transactions is to spread the income over the lifetime of a contract. when a bank has a formal target of improving the return on equity. The difference between estimated transaction costs and actual transaction costs. marketing or handling of a product. http://www. a firm leverages up by issuing a news/business17777367 http://www. Right now Barclays. Slippage

949%. from news/business15985203 Markit's purchasing managers' index (PMI) of activity dropped to 46. Purchasing managers are responsible for buying the goods that a company needs to function. Wallflower http://news. Weighted average cost of capital 130. Often the weighted average of the cost of equity and the cost of debt The weights are determined by the relative proportions of equity and debt in a firm's capital structure The amount of money paid in interest on a loan or other The index derives its value from monthly surveys of purchasing managers in representative industries. It is used as an indicator of the direction of an economy. a weighted average cost of capital of tm http://news. the company is said to make a restatement. Base rate 132. and it goes down if they are buying less. When it releases this to the Used as a hurdle rate for capital investment. stock that tends to have a low P/E (price-to-earnings ratio). earning billions from a sprawling range of web properties. The index goes up if purchasing managers are buying more than before. Borrowing cost Expected return on a portfolio of all a firm's securities. Will the government recommend to the Bank of England the use of a policy of sterilized intervention on the exchange rates in order to reduce the value of the pound . Foreign exchange market intervention in which the monetary authorities have insulated their domestic money supplies from the foreign exchange transactions with offsetting sales or purchases of domestic assets.126.1 in October. (Economics. Stock that has fallen out of favor with /hi/business/ . Purchasing managers index 128. Total bids exceeded the £10bn on offer by £850m with the highest accepted rate being 6. it may amend the profitloss statement to reflect the new ews/technology14820161 .4 last news/business15985203 129. http://news. For example. if a company issues a profit-loss statement and then discovers new information that affects the statement.s tm An index tracking the decisions that purchasing managers Draghi said a "fundamental restatement" of the region's fiscal rules was key to restoring confidence. Accounting & Finance / Banking & Finance) Brit the rate of interest used by individual commercial banks as a basis for their lending rates. The Bank of England has lent banks and financial institutions £10bn in a move analysts expect to ease the impact of a credit crunch and high borrowing it is what one must spend in order to receive money. In other words. Restatement /hi/uk_news/politics/6 16587.stm http://news. Sterilized intervention The release of a previously issued financial statement amended with new information.The Lord the Bank tm http://www. However most banks had to pay above base rate for the /hi/business/ /hi/business/7149153. No wallflower Yahoo is still a huge player in the online advertising market. Borrowing costs are expenses for both personal and business

http://www. is that the funds in the special purpose vehicle would act as a form of insurance. the issuers must register Yankee bonds with the SEC. to cover the risk that Greece would eventually default on the new 30-year news/business13924950 ."we want to help bootstrap the UK electronics industry" the group wrote in a blog post . A bond issued by the International Bank for Reconstruction and Development to Latin American countries starting in 1989 and continuing into the 1990s. a non-American company may choose to sell a bond in the United /hi/europe/6709745. a blank check allows the payee (or anyone else) to determine the amount of the check. bootstrapping is used to create a yield curve by filling in the missing yields on the T-bills. Ecuador defaulted on its Brady bonds. in order to stimulate China's integration into world capital markets. 1. Because many of them were guaranteed by U. Most of the Brady bonds were tradable news/uk-englandlancashire-17386205 136. Treasury does not issue new T-bills constantly. It easily can lead overdrafts. I'd prefer they just write their cronies a blank check without buying borrowed from so-called Brady bonds that were used to help Latin American countries cut their massive debt burdens 20 years m Informal for a situation or transaction requiring a great deal of trust between the parties. The bond represents a debt that the bond issuer owes to the bondholder. To calculate the yield curve on a zero-coupon Treasury bill. especially if one is made to a person the writer does not trust or if the payee does not know how much is in the writer's A check made payable to a certain person. ews/technology17190918 137. Yankee bond A foreign bond denominated in U.but that turned out not to be possible at the right price. This is obviously a large risk to the entrepreneur as he/she has no recourse should the business fail. a bondholder usually has the right to receive principal and interest on this debt. In the event of the bankruptcy of the issuer. That is. Bootstrap It had originally hoped to produce the devices in the UK . http://www. were more attractive to investors. Because the U. 1. http://www. In 1999. 2. A blank check can be very dangerous. 134. Many bonds issued in the region prior to this were illiquid. bondholders have priority over shareholders in the liquidation of assets. though some derivatives separate the two. organization or to cash. and signed by the writer with the amount of the check left blank.133. In order to raise capital from American investors. A person or company that owns a municipal or corporate m /hi/business/249684.S. for that reason. Treasury bonds. Brady bond But the idea. Bondholder The brewery is a member of a bondholder scheme which aims to bring local businesses together and help promote the image of the area. Blank check The government plans to issue $38bn in domestic bonds. It effectively refinanced the bonds issued by Latin American countries after many defaulted on their national debt in the 1980s. To start a company with personal finances rather than through loans or venture dollars and traded in the United States. It also wants to raise more money overseas after its successful $1bn Yankee dollar bond last year. http://news.S. Thus. they also carried less risk.

the term has the additional definitions: 1. 3. The United States has laws prohibiting cartels. news/business17176332 Bucket shop 140.s tm But it is not clear whether Thursday's merger will be enough to propel Deutsche Bank into the top league "bulge bracket" of Wall Street banks. 4. The carry return is the coupon on the bonds minus the interest costs of the short-term borrowing. A dividend clawback is an arrangement whereby the equity owners commit to use dividends they have received in the past to finance the cash needs of the project or corporation in the future. Clawbank . Long calls and short uncovered calls: strike price plus news/world-latinamerica-18321154 borrowing from the ECB at 1% and buying say Italian or Spanish bonds or quality corporate bonds. Lloyds Bank last week took back £2m in bonuses from senior executives. an underwriting firm responsible for placing a certain amount of a new issue with 2. and HSBC said it. If a bulge bracket firm is the single largest underwriter. this refers to a trade where you borrow and pay interest in order to buy something else that has higher interest. Short put covered by short stock: short sale price of underlying stock plus premium. An illegal brokerage firm that accepts customer orders but does not attain immediate executions.000 have gone missing since the crackdown on cartels began in 2006.000 people have been killed and more than 5. http://www. Brackets are listed in order of size on an advertisement detailing each new issue. Cartel A group of businesses or nations that act together as a single producer to obtain market control and to influence prices in their favor by limiting production of a product. A bucket shop broker promises the customer a certain price. Short covered call: purchase price of underlying stock minus premium. For the bond "The likelihood of reaching the government's 70p plus breakeven point [for the share price] seems a long way off. An estimated 50. The banks could carry out the simplest and most profitable of "carry trades". the broker may never fill the customer's order but keep the /hi/business/671509. In the context of /hi/business/ http://news. yielding say 5%. In bracketing. had exercised "clawback".st m" http://www. Carry trade Refers to the price at which a transaction produces neither a gain nor a loss. even if Lloyds is making slow and steady progress. Alternatively. it may be responsible for assigning parts of the issuer to other Breakeven point 139. Bulge bracket 141. known as the news/business17904674 The sharp rises could mean an end to the 'bucket shop' flights which British passengers have been enjoying. Long puts and short uncovered puts: strike price minus premium. whilst the absence of a dividend is another drag on enticing potential news/business17339754 http://www. but waits until a price discrepancy is present and the trade is advantageous to the firm and then keeps the difference as profit.

http://www. common shares in the same company. a limited-purpose trust company under New York State banking law. The States should send out a "letter of comfort" to calm concerns over the lack of a cash deposit protection scheme in Guernsey. conversion occurs when the holder gives the convertible bond back to company A and. A letter that a parent company submits to a bank on behalf of a subsidiary. which is in turn owned primarily by most of the major /hi/europe/5274100. either receives for free or buys at a stated price. Federal Reserve System. The act of exchanging a convertible security for the underlying common stock. if one holds a convertible bond in company A. Conversion It is an incentive for farmers to change their /hi/europe/jersey/7680 303. in return. And although farmers have to buy new machinery. and processes related income distributions DTC is a member of the U. The letter of comfort also states that the auditor is confident that a full audit would not uncover anything unusual that would negatively affect the when land is taken out of production. a group of deputies has said.stm The consortium had appealed against Highland Council's decision to refuse planning permission. Companies in a consortium cooperate with one another. often sharing technology as needed. It accepts deposits of over 2 million equity and debt securities issues (valued at $23 trillion) from over 65 countries for m Consortium 1. Depository Trust Company there is no lengthy conversion http://news. Lipkin said that he had sent false reports to the Depository Trust Co. A consortium allows the companies to conduct operations that they would not be able to do individually. a statement by an auditor stating news/uk-scotlandhighlands-islands18299014 146. a review of the issue's prospectus has revealed nothing inaccurate or misleading. Letter of comfort 145. When the subsidiary is applying to borrow funds from the bank. DTC is the world's largest central securities depository. Before or during a new and exchanges on Wall Street. which is a clearing house for buying and selling securities. that a consortium is not a merger and the companies remain news/business13678446 . unlike organic 2. For example. executes book-entry deliveries (valued at over $116 trillion in 2000) records book-entry pledges of those securities. while a full audit has not been done. and is owned by the Depository Trust and Clearing Corporation (DTCC). however. broker-dealers. A group of independent companies participating in a joint venture for mutual benefit. the letter of comfort states that the parent company approves of and supports the application. a registered clearing agency with the Securities and Exchange Commission. It is important to note.

which in turn raises the effective margin of error. The seven-member governing body of the Federal Reserve System. information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other. If Nepal does allow them to go. Effective margin Used with SAT performance A shareholder may trade shares in the REIT as if they were stocks. The REIT issues a fixed number of shares at its establishment. Most /hi/south_asia/5409358 . Federal Reserve Board 151. and afterward neither increases nor decreases the number of quantity. 149. Examples of this problem are adverse selection and moral hazard.000 a year. Shares in Hui Xian Real Estate Investment Trust (REIT) fell sharply to 4. Information asymmetries Financial managers need to recognize these information asymmetries and find ways to reassure investors that there are no nasty surprises on the way. Ian Plenderleith. An investment company that invests exclusively in real estate and mortgages. the REIT itself is not taxed.24 yuan in early trade. http://www. UN officials say that the US authorities will only allow the refugees to enter America on an incremental basis of around 10. This creates an imbalance of power in transactions which can sometimes cause the transactions to go awry. 2. or margin of income. and making other key economic decisions. Something added or gained: a force swelled by increments from allied http://news.83 yuan from its listing price of The process of increasing in number. rather taxes are passed on to shareholders. size. or extent. REIT This does have the effect of reducing the number of people on whose answers the final voting intention figures are based . 4. former head of economic research at the US Federal Reserve Board. A slight. Incremental basis 1. which is responsible for setting reserve requirements. information asymmetries are studied in the context of principal-agent problems. and the trust's net asset value.148. The value of shares in a real estate investment trust is determined by supply. news/business13235042 150. One of a series of regular additions or contributions: accumulating a fund by JP Morgan's former head of investment banking. 3. An REIT is actively managed. who had a long career at the Bank before leaving in and David Stockton.stm .uk/ news/uk-politics13248622 http://www. meaning that the real estate underlying the trust change from time to time in accordance with the fund's investment goals. In economics and contract theory. demand. on assets in excess of financing costs for a given interest rate and prepayment rate scenario.stm 152. and the discount rate. often barely perceptible augmentation. The three men leading the reviews are Bill Winters. the amount equal to the net earned /hi/south_asia/5409358 .uk/ news/business18153171 http://news.

" Council documents suggest the site could fetch between £40. Second-stage financing Working capital for the initial expansion of a company that is producing. the terminal value (continuing value or horizon value) of a security is the present value at a future point in time of all future cash flows when we expect stable growth rate forever. operational expenditure or OPEX is an ongoing cost for running a product. 154. toner. When it breaks down or becomes obsolete. business.000 jobs were lost between its offices in Edinburgh and Lytham St Annes near Blackpool as the firm moved to cut operating expenses by 25%. Valuation horizon 156. including a full second-stage financing. Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for stock splits). ROE may be decomposed into return on assets (ROA) multiplied by financial leverage (total assets/total equity).bbc. power and maintenance cost represents OPEX. it is calculated by the best guess of the net cash inflow when it is sold at the end of its Debt-to-equity ratio The last time the debt-to-equity ratio was so high was in the late 1980s. For larger systems like businesses. is the cost of developing or providing non-consumable parts for the product or news/uk-englandlondon-12184675 an estimate of the value of an asset at the end of its For example. operational expense. the purchase of a photocopier involves CAPEX. In Operating expenses 157. OPEX may also include the cost of workers and facility expenses such as rent and utilities. a price reflected in an assessment stating the pier had only a scrap and salvage value. ahead of submitting a planning application until in mid-2012. It will never be above the blue book news/uk-wales12988391 http://www. Its counterpart. Investors use ROE as a measure of how a company is using its money. The relationship between long-term funds provided by creditors and funds provided by a capital expenditure (CAPEX).000£140. Return on equity ( ROE ) In accounting.000. A firm's debt-toequity ratio is calculated by dividing long-term debt by owners' news/uk-wales12988391 http://www. also discounted back to present value. Both items are shown on the balance operating expenditure. It is most often used in multi-stage discounted cash flow analysis. which indicates very aggressive financing or a history of large losses. An operating expense.Also residual /hi/business/7475006. or system. Indicator of profitability. More than 1. and has growing accounts receivable and inventories. and allows for the limitation of cash flow projections to a several-year period. when many private equity investments were hit by the eventual economic downturn and rising interest rates.s tm . http://news. The value of a business is usually computed as the discounted value of free cash flows out to a valuation horizon (H).s tm which is its profits divided by the total value of all its shares. http://www.153. A high debt-to-equity ratio. and the annual paper. For example. Salvage value 155. Also known as Second-round financing. a firm's computer depreciates each year. http://news. Result is shown as a percentage. starting in September results in very volatile earnings. plus the forecasted value of the business at the horizon. it has a residual /hi/business/4566710. "We have a lot more listening still to news/uk-scotlandscotland-business17911321 Sony is also attempting to improve dramatically its return on equity (ROE).

Euro notes and coins would all be redenominated into the currency of their issuing national central bank (euro notes have serial number prefix letters identifying the issuer). http://www. Ballpark An organization that registers. Assets under management http://www. A major securities exchange in Greece. shares on the Athens Stock Exchange had dropped by 3. As I have pointed out here http://www.7%. the average amount of time until the debt securities mature.such that the average maturity of UK debt is just under 14 years . or to the total amount managed for all clients. when analysts are in the process of determining a company's earnings. The shorter the average maturity Informal.27%. For example. the less the fund's share price will fluctuate with changes in interest least you're getting some ballpark of the a company may say that it has more than $2 billion under management. Audit An examination of a company's accounting records and books conducted by an outside professional in order to determine whether the company is maintaining records according to generally accepted accounting principles. Martin Currie said unlisted news/business18324562 It was established as the Athens Stock Exchange in 1876.95% and in Paris. which accounted for less than 1% of Martin Currie's total assets under management. they may release a "ballpark" as they continue their calculations. For example. and keeps the proceeds from its sale. an Asset management often opens more potential investment vehicles to the client. http://www. By 13:00 GMT. See: accountant's opinion.159. news/uk-scotlandscotland-business18025387 .6% voting against his reappointment. it is said to be the issuer of that stock. An issuer can be a private company or a news/world-europe18055629 164.the UK might well be like Italy in finding it very hard to borrow at any price right now. Average maturity In a mutual fund containing debt securities. Assets under management may refer to the assets for a particular client. More than 300 publicly traded companies are listed on the Athens bonds and derivatives. while chairman of the audit committee Christopher Williams had news/business16028896 162. For example. if the Debt Management Office hadn't done quite such a brilliant job in borrowing for long maturities . it became the Athens Exchange in a merger with the Athens Derivatives Exchange. the Frankfurt Dax fell by 1. Issuer 160. if a company registers a stock with the SEC. makes arrangements to underwrite it." CAF chief executive John Low told the BBC. It trades news/uk-18009714 The London FTSE-100 index was down It is calculated by adding together the total amount of time until maturity and dividing by the number of debt securities in the mutual fund. The money or other assets for which an investment advisory firm makes investment decisions for a client. and sells a security on the primary market. was a specialist part of its business which had now been closed news/magazine18193962 http://www. Athens Stock Exchange http://www.3% of votes cast against him. In 2002.5%. Chairman Rob Walton had 12. "Even if [these figures] are inaccurate. there's a high level of uncertainty . Confirming the fines. the Cac-40 saw losses of

a type of loan that buyers are forced to convert into shares . http://news. http://www. Money is contributed from after tax income and not subjected to income tax or capital gains tax within a holding or upon /hi/business/2965486. news/uk-england13686559 168.s tm .ISAs. a delayed rights issue. Cash and a broad range of investments can be held and there is no requirement to withdraw money before any particular age. he said there was little he could do. You can have a mini cash Isa and a mini stocks and shares A minimum price contract exists in order to reduce the risk of fluctuations in the forward's price. A bond that must be converted into common stock in the company issuing it on or before a certain date. Lisbon. the AEXOptiebeurs (formerly the European Options Exchange or EOE) and the AEX-Agrarische Termijnmarkt. A forward contract where the underlying asset is guaranteed to have a minimum price upon delivery. pronounced /ˈaɪsə/) is a financial product available to residents in the United Kingdom. It was contrary to EU law to set a minimum price contract and neither could it dictate what went into farmers' contracts Out went the confusing concepts of mini. The maxi Isa is aimed at those who want mainly to invest in stocks and shares.s tm 169.effectively. Paris. Maxi ISA Out went the confusing concepts of maxi. Your entire maxi Isa investment must be with one financial company such as a bank or fund management group.and maxi. as well as for investors wishing to hedge the risk in their after which there is no guaranteed return but the possibility of a much higher return. An advantage of a mandatory convertible to the investor is the fact that it guarantees a certain return up to the conversion date. but when doing so would put a strain on the price of existing shares. Minimum price contract Exchange that comprises the tm But as for Government help for the industry. Mandatory convertible bond /hi/business/ NYSE Euronext runs the New York. Brussels and Amsterdam exchanges.s tm HVB has been reportedly planning a "mandatory convertible bond" /hi/business/2805405. leaving the new set-up much easier to understand. leaving the new set-up much easier to understand. The mini Isa is principally targeted at savers who want to hold some of their money in an account which pays Amsterdam exchanges ( AEX) 166. Mini ISA http://news. A publicly-traded company issues mandatory convertibles when it needs to raise the capital provided by issuing stock. This is useful for farmers and other producers of commodities. It is designed for the purpose of investment and savings with a favourable tax status. each from different financial product providers so you can shop around for each individual AEX-Data Services is the operating company responsible for the dissemination of data from the Amsterdam Exchange via its integrated Mercury 2000 /hi/business/2965486. An Individual Savings Account (ISA.

with which it owns 2% of the world's stock news/world-europe17189739 172. charitable donations. For example. in arms manufacturers). an individual may have a moral objection to news/uk-scotland17056479 The handbag maker said in a filing to the Hong Kong stock exchange on Friday that it will issue up to and others. if ever. in environmentally friendly companies) and where he/she does not make investments (e. The mortgage interest deduction is a particularly important tax shield to middle-class households because the value of their properties constitutes the greatest part of their net worths. it may inform where an individual makes investments (e. Ethical investing may be both positive and negative. A negotiable certificate that represents a company's publicly traded debt or equity. and even whole subdivisions of companies. as opposed to a tax on the estate itself.s tm http://www. a method that allows companies already publicly traded elsewhere to list in Hong Kong. http://www. which is a tax on the estate before it is distributed." Mr. is responsible for an inheritance tax. Estate duty Depositary receipts are created when a company's shares or bonds are delivered to a depositary's custodian bank. Roden wrote.g. Depositary receipt A tax on the money or assets that one inherits from an estate. inheritance taxes are levied at the state level and apply to the inheritors rather than the estate of the deceased. inheritance taxes vary according to the inheritor's relationship with the deceased. "Benefits will be calculated ignoring the effect of the earnings cap (currently £ It should not be confused with an estate tax. that is. In the United news/10237355 The Scandanavians' global pension fund is worth more than £300bn. Tax shield 171. http://news. Some mutual /hi/business/8107501.170. Estate duty has been levied by the Austrian authorities on this inheritance. Ethical investments 174. Examples of tax shields include mortgage interest deductions. For example. http://www. making strategic and ethical investments around the Depositary receipts facilitate trading of foreign securities. Any investment philosophy that recommends investment decisions based upon a decision's ethical implications for individuals and companies.g. are dedicated to promoting ethical Sarkozy came to power in 2007. which instructs the depositary to issue the receipts. he introduced a "tax shield" that capped tax at 50% of all income. When Mr. Creating tax shields is also important to wealthy individuals to help them avoid as many taxes as possible A limit applied to the contributory salary of certain scheme members who are high earners.200 a year).uk/ news/business15907950 . a spouse rarely. and therefore refrain from investing in tobacco million Hong Kong depositary receipts. Earnings cap The reduction of one's taxable income as the result of a properly qualified deduction. Generally speaking.

http://news. but remains so throughout one's career. 'Evaluation period' Gen Petraeus and Mr. This is done periodically to assess the effectiveness of a money manager's work for his/her firm.5 or the date of retirement." Mr Bailey said in a speech. Evaluation period The time period in which a money manager's performance is measured against some subjective or objective news/business18186363 . which primarily offers services to businesses. though this is not always the case. I think that the reform of retail banking in this country cannot move ahead unless we tackle the issue of free in-credit banking. Strong Credit and Residual Losses: Credit and residual losses on World Omni's portfolio and securitizations are currently low. Some retail banks offer basic brokerage services. Crocker began on Tuesday by testifying before the Senate Armed Services Committee.stm "The company was in fact issuing backdated options with an exercise price lower than the fair market value on the grant date. mortgages. A BBC Scotland investigation into a property factor has revealed allegations that it was trying to bully clients into paying excessive accumulation penalty charges running into thousands of pounds. http://news. Exercise price A 50% tax that one must pay if one neglects to take the required minimum distribution from one's IRA. Retail banking contrasts with commercial banking. having improved in 2010? /hi/business/6082472.s tm http://www.175. whichever comes later. The required minimum distribution is the portion of an IRA that must begin to be distributed to an annuitant by the age of 70. the excess accumulation penalty exists in order to prevent an IRA from becoming unfairly valuable during the annuitant's retirement. 179. Residual losses The loss of the attenuator at the minimum setting of the personal lines of credit. and so m/article/2012/06/04/i dUS132117+04-Jun2012+BW20120604 178. Retail banking Banking services that are offered to individual customers through local branches of the Examples of retail banking services include checking and savings accounts. Excess accumulation penalty "In short. http://www. and the amount of contributions. In any case. The amount of the minimum required distribution is determined by the value of the /hi/uk_news/scotland/8 /hi/middle_east/73367 31. the length of time the annuitant has credit cards. and have a much better sense of what we are paying for and how we are paying." he said. The evaluation period is especially important at the beginning of employment.stm 176. The price at which the security underlying an options contract may be bought or sold. with mostly RV gains recorded on most models during this period.reuters. then moved on to the Senate Foreign Relations Committee. supported by strong credit quality and elevated used vehicle values.

co. Retail investors are thought to be risk-averse and poorly informed compared to other investors. responsible for approximately one third of the country's trading volume. which are large firms who invest on behalf of clients. Some investment vehicles require minimum investments so as to discourage retail investors from them. which is the biggest card retailer in the UK. Bombay Stock Exchange ( BSE) 184. "the board has seven members" staggered board of directors . For news/business13961625 182. http://www. it is notable for the Sensex. http://www. is facing a legal battle over its use of the word Sensex.a board of directors a portion of whose members are elected each year instead of all members being elected annually management . Retail investors are the polar opposite of institutional investors.stm . went into administration last week. head of retail enforcement at the FSA. Mumbai or BSE. One of the oldest stock exchanges in India. employing just five full-time staff and being a limited company with a board of directors. Board of directors A stock in a department (but not an independent corporation) of a publicly-traded Tracking stock committee having supervisory powers. O'Donnell "had absolutely no understanding" of the regulatory restrictions in place which prohibit advisers from selling UCIS to the vast majority of UK retail investors. the Bombay Stock Exchange (BSE).bbc. But not by very much. a company may issue tracking stock representing its new green energy division. Retailer card An investor who invests small amounts of money for himself/herself rather than on behalf of anyone else. Retail investor 181. http://news.those in charge of running a business India's most important financial market. It is also known as Stock Exchange. an index of the 30 most actively traded stocks on its floor that is considered one of the most important benchmark indices in India.180. A group of persons chosen to govern the affairs of a corporation or other large institution board They were common during the dotcom bubble. though there is disagreement as to how true that is. A plastic payment card issued by a specific retailer or group of retailers for limited use at their own news/uk-scotlandscotland-business18181276 /hi/south_asia/7402595 .bbc. having been founded by Sir Keith Joseph and Margaret Thatcher in 1974. as established companies formed internet divisions and wished to observe their performance. Comparing the expenses of synthetic and plain vanilla ETFs tracking major global stock market it shows that investors do news/uk-scotlandscotland-business18262665 The company. A tracking stock allows the company to gauge the performance of a new or untested product or department while still maintaining control over it. said Mr. Tom /hi/uk_news/magazine/ 7189094. Tracing its origins to the 1830s.stm The Centre for Policy Studies (CPS) is on the other side of the political and organizational divide. Foreign demand shocks. A negative disposable income indicates that an individual is borrowing in order to cover his/her expenses. whose other works include Serenade and Double more open. A country's average disposable income is an important indicator of economic health. Demand shock 186. how much one can save. and strong form (stock prices reflect all relevant information. For example. a company announcing that it is discontinuing a certain product may see an increase in demand for that product because people want to buy it while they can. Efficient Market Hypothesis States that all relevant information is fully and immediately reflected in a security's market price. resulting in a return to such as insider information). The event may result from government /hi/business/3190830. http://www. Three forms of efficient market hypothesis exist: weak form (stock prices reflect all past information in prices). This results in an increase in price for that product.s tm . Disposable income Any sudden event that dramatically but (usually) temporarily increases or decreases demand for one or more goods or services. economies. Double indemnity He said Cain. if that company decides not to discontinue the In other words. http://news. semi-strong form (stock prices reflect all past and current publicly available information). but there was no brand completely dedicated to India's youth. or may be a random occurrence in the demand will likely taper off. etc. worked on revisions to the novel until close to his death and that handwritten changes appear in margins of the manuscript. which we see are already having relatively outsized effects on Asia's news/business18164049 187. such as a change in money supply. Disposable income determines what sort of lodging one can afford. at any one time a company's share price will correctly reflect all known information about its prospects. an investor should not expect to earn an abnormal return (above the market return) through either technical analysis or fundamental analysis. including information not yet disclosed to the general public. thereby assuming that an investor will obtain an equilibrium rate of return. A person's income after he/she has paid taxes. how often one can go out to news/business14642778 Rahul and Rajat realized that this would mean there would be more young employees with disposable news/entertainmentarts-15001324 188. A clause in an insurance policy that provides for payment of double the face value of the contract in case of accidental death. Under the Efficient Market Hypothesis. http://www.

bbc. For instance. Often. why a bigger emphasis was made on rewarding the chief executive for still being employed after a few years. this means to do better than some particular benchmark. Outperform Pirc had said that pay was not sufficiently linked to performance: "It is not clear. http://www. 193. Earnings are distributed after operating expenses are deducted. this means that the company will do better than its industry in the remuneration report. If you are considering doing this you should probably consult an Independent Financial Adviser before proceeding. Mutual Fund XYZ is said to outperform the S&P500 if its return exceeds the S&P500 tm http://www. an employee may buy a more efficient computer program to accomplish his/her office work. one might have a higher return than the benchmark in a particular year because of higher risk /hi/business/6494387. Out-of-pocket expenses include mundane. Outperform is also a term used by analysts to describe the prospects of a particular company. recurring expenses such as paying the home electric bill or buying Expenses that one must pay from one's personal. this language does not take risk into account. However. the term refers to expenses incurred by an employee in the service of the employer. They also indicate employment costs are down 12% to £8.s tm http://news. Out-of-pocket expenses The volunteer councillors receive outof-pocket expenses and the charity has a few hours of paid secretarial support each sport/0/football/17936 371 http://news. Create a crossed market by expressing a willingness to sell on the bid side of the market and buy on the offer side. in which contributors can stop and restart payments and switch funds to another scheme without paying a penalty 190.03m and operating costs have reduced by 19% to £ The other possibility would be to take a transfer from the employer's scheme into a personal or stakeholder pension plan from which you could then purchase a pension annuity. In news/business18203985 .bbc. Taylor Woodrow and Wimpey have US operations that overlap the market. income. a flexible pension scheme with low charges. the value of which would depend on prevailing rates (not particularly good at the moment) as well as your age. rather than for leading the bank to outperform. instead of news/uk-england-bedsbucks-herts-14417069 /hi/business/" http://www. Operating costs The amount paid for asset maintenance or the cost of doing business. excluding depreciation. Overlap the market Used in the context of general equities. That is. however.189. Stakeholder pension plan 191.

unlike the prime rate and the discount rate. smaller than the final investment-grade bonds are low-return. development of real estate (for example by building a house on it) usually increases the value. Describing a bond with a medium or high /hi/business/8009280. Increased earnings due to increased sales and cost controls. In addition to being However. In the news/business17523376 195. as it is called. depending on local regulations. Now under the traditional a dividend declared and paid before the company has compiled or released its final financial statements for a given year.K. you saw a nice big positive earnings surprise.s tm .co. Most American Treasury and municipal bonds are investment-grade. but not always. the dividend given before a company's annual meeting (at which financial statements are announced) is called the interim dividend. Depending on the particular title. greatly reducing the cost on the news/business17752115 The Fed funds rate.. dividends are commonly declared twice per year. http://www. Real estate is one of the primary (and indeed one of the only) assets whose value does not depreciate over time. often points to the direction of US interest rates. Quality of earnings "When I took a look at the big banks. Ownership of real estate does not automatically include the right to develop it. Real estate Hong Kong-listed Sun Hung Kai Properties is Asia's most valuable real estate company and the second most valuable in the world. Interim dividend Wolseley has raised its interim dividend 33% to 20 pence per share. Bonds rated Baa3 by Moody's or BBB. Overnight rate The interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight S&P or Fitch. Land and the improvements on it. ownership of real estate may include mineral rights to any geophysical aspects occurring thereon. after a shopping mall operator in America http://www. It is often. Investment grade This has worried foreign investors and threatened the country's investment grade credit rating.194. as compared to artificial profits created by inflation of inventory or other asset prices. Investment-grade bonds are considered sufficiently low-risk that the law allows banks to invest in market strategist at Oregonbased DA Davidson & Co." said Fred if the Bank of England cuts its overnight bank lending http://news. In the United Kingdom. but I really questioned the quality of the news/business18275858 198. The most sensitive indicator of the direction of interest news/business17521016 196. since it is set daily by the market.

Whether a so-called gross leverage ratio of 20 achieves the correct balance between risks and rewards is moot: some would argue it should be lower seamless. Leverage ratio http://www. financial experts are warning financially vulnerable homeowners to be cautious of risky financial lease option agreements which could put their property in news/business15290940 202. With house repossessions predicted to rise over the next year. companies with higher leverage as determined by a leverage ratio are thought to be more risky because they have more liabilities and less equity. In risk analysis. A time during which a company's employees may not change the portfolios of their retirement plans. or other schemes which give the appearance of trading.html 200. belying their recent quiet period and lack of news/business15576052 . A time during which the issuer is not allowed to promote a new issue. It is treated as a sale for tax purposes. It is also called a financial lease. Actually. http://www. Quiet period 1. no bona fide. the lessor must record the lease as a sale on his/her own balance sheet. any ratio that measures a company's leverage. One example of a gearing ratio is the long-term debt/capitalization ratio. Fictitious trading It added that "in an effort to ensure that its reported information would be used by the reporting blogs/acrosstheline/20 11/11/lafaro_fighting_ with_wire_cell. cross trading. The quiet period begins on the filing date when the issuer registers the security with the SEC and ends 25 days after the security is actually issued. competitive trade has occurred. bucketing. A leverage ratio is also called a gearing ratio or an equity multiplier. It is more commonly called a lockdown. Dynegy caused West Coast to submit information misrepresenting that West Coast was a counter-party to fictitious trading". Generally. This usually occurs when the company sponsoring the plans is making some administrative changes.199. Additionally. which is calculated by dividing total debt by total which is calculated by taking the company's long-term debt and dividing it by its long-term debt added to its preferred and common stock. A capital lease may last for several years and is not callable. http://news. Financial lease A long-term lease in which the lessee must record the leased item as an asset on his/her balance sheet and record the present value of the lease payments as /hi/business/ Wash trading. Another example is a simple debt-to-equity ratio. breathless 4 song run-through including ‗Into The Ground‘ and ‗Long Distance‘. This is only after a sharp.s tm

Loan Repayment Insurance. Once the lender takes over the property. experts differ on which ones. Expunging the order removes this risk. it usually sells at a discounted price so as to recover the amount lost on the mortgage loan. For example. (also known as PPI. Payment Protection Insurance. Various methods exist for forecasting. It typically covers the borrower against an accident. The 25-year-old did not contest the forfeiture of the cash at Hamilton Sheriff Court. A straight cancellation leaves a record in the archives of AUTEX. one may forfeit one's house if the mortgage defaults. to cancel an order such that it leaves no record either on the electronic board or in the historical archives of the board. and is most widely sold by banks and other credit providers as an add-on to the loan or overdraft product. Foreclosure results in a loss for the lender and is obviously quite detrimental to the borrower. lenders attempt to work with the borrower to come up with a better solution. which may not be desirable for some traders who do not wish other traders to know that they were once interested in a certain They will be told they may have been mis-sold a payment protection insurance (PPI) policy some time in the past. as a result. if any. would you expect to be able to expunge all trace of it now? ews/technology16732881 . Forfeiture usually occurs when one has neglected to fulfill one's obligations necessary to keep the right or property. not to be confused with Income Protection or credit card cover) is an insurance product that is designed to cover a debt that is currently outstanding. Credit Protection Insurance. circumstances that may prevent them from earning a salary/wage by which they can service the debt. http://www. This debt is typically in the form of a loan or an overdraft. sickness. Forfeiture The loss of a right or work Five of the biggest US banks have agreed to provide $25bn (£16bn) to homeowners to settle claims over improper foreclosure news/uk-englandlondon-18284304 news/uk-scotlandglasgow-west18206181 http://www. Expunge news/business16961355 205. it is the last resort. Forecasting A situation in which a mortgage lender takes possession of the property because the borrower has not made payments on interest or principal for a certain period of news/business17299871 206. if you had put an embarrassing photo online a few years ago. unemployment or death. Payment Protection Insurance 207. Foreclosure Most of the The entertainment retailer recently surprised the City by forecasting a return to profit in 2013 despite estimated losses of about £19m for the past financial year. On AUTEX. such as extending the repayment period in order to lower payments The act or process of using certain data to predict future market http://www.

Mark-to-market (MTM) Recording the value of an asseton a daily basis according to current market pushing prices coincided with a round of market jitters over the euro-zone. really dresses up balance and sheets and is wonderful until no one wants to buy the marked up ass http://www. Likewise. So for a futures contract. 'Fair Value. Market jitters Anxiety among many like the rent.and part of Goldman's role in this deal was as market maker .uk/2 /hi/entertainment/7571 152. . So for a Greek government bond. http://news.stm http://www. in August last year. what it would be worth if realized today rather than at the specified future the MTM is how much it could be sold for today. or it can be a one-off expense. html http://www. Also called extra. Examples of explicit costs include salaries. http://www. or it can vary from time to time. like the electric bill. not to "disclose the identities of a buyer to a seller and vice versa". The This is merely a stupid. /hi/business/3925627. causing them to sell stocks and bonds.html http://news. minus any impairment charges . Less news/business17142170 http://news. 214. Banks are not required to mark to market investments that they intend to hold indefinitely (in what is called the "banking book" in accounting jargon). And it says that the normal practice of a market maker . This could take the form of Vodafone stepping up its share buyback program or paying extra dividends.s tm Removing that cross-subsidy could lead banks to increase the explicit costs of credit. An explicit cost can be /hi/uk_news/magazine/ blogs/thereporters/robe rtpeston/2010/04/the_i mplications_of_goldm ans_d. com/blogs/schumpeter/ 2012/05/accountingstandards 213. an explicit cost is called an outlay Extra dividend 209. An extra dividend may be issued when a firm in a cyclical industry has an especially profitable period and wishes to distribute some extra funds to its One who maintains firm bid and offer prices in a given security by standing ready to buy or sell round lots at publicly quoted prices. it can be predictable. Also Explicit cost 210. Market maven Informal.stm 211. cruel idea invented by some marketing maven who thinks only of the convenience of supermarket shelf stackers and nothing of the way in which children come to books. a well respected investor or analyst who is known as a leader in giving accurate and timely opinions on the performance of one or more securities. special' or 'Mark to Market' in the etc. Used in the context of general equities. A direct expense that a business incurs in conducting an activity. Market maker A nonrecurring additional payment to stockholders that is brought about by special circumstances. Marked-to-market An arrangement whereby the profits or losses on a futures contract are settled each these investments are valued at the price at which they were originally purchased. blogs/thereporters/robe rtpeston/2008/06/the_c redit_insurance_ripoff.

"I also have to thank Ricky Ross for introducing me to Keynesian economics .bbc.5%. Monoline insurance 217. The upward price movement of goods and services. the IMF has also provided rescue loans.5m. IMF The International Monetary Fund is an organization set up after World War II to provide financial assistance to The effect of conventional and unconventional monetary policy rules on inflation expectations http://www. http://news.1% and 2.economist. The Monetary Policy Committee of the Bank of England is responsible for setting short-term interest rates and other monetary policy in the UK.stm 218. If they pay a fee to a monoline to insure their debt. Nearly everyone with a vote on UK monetary policy thinks they are doing enough to support the economy: the Monetary Policy Committee (MPC) voted 8-1 against injecting more money into the economy last month.215. which in turn means the borrower can raise the money more news/business18259036 http://www. com/blogs/freeexchang e/2012/03/monetarypolicy-0 Monolines insurances were set up in the 1970s to insure against the risk that a bond will default. Gaspar said. Keynesian economics news/business18321468 220. alongside the European Union governments and the ECB. Portugal had fulfilled all the bailout criteria set by inspectors from the EU. However that was wiped out by impairment charges .uk/ news/business18339334 http://www. Monetary policy 216. MPC The policies of the central Monolines were set up in the 1970s to insure against the risk that a bondwill In modern political parlance. Mr. to Greece.who writes songs about economists these days? The inflation forecast was narrowed from between 2. such as quantitative easing. Since the financial crisis. Inflation The economic theories of John Maynard Keynes. Impairment charge The amount written off by a company when it realizes that it has valued an asset more highly than it is actually news/uk-northernireland-18016074 http://www. http://www. the IMF has been most active in providing rescue loans to the governments of developing countries that run into debt problems.7% to between relating to bad property loans . 221. the belief that the state can directly stimulate demand in a stagnating economy. for instance. This allows it to control the short-term interest /hi/uk_news/magazine/ news/uk-scotland17994639 http://www. A central bank has an unlimited ability to create new money. Companies and public institutions issue bonds to raise money. the Irish Republic and Portugal.3% and 2. .printing money to buy up government debts and other assets. Since the 1980s. as well as to engage in unorthodox policies such as quantitative easing . European Central Bank and International Monetary Fund (IMF). by borrowing money to spend on public works projects such as roads.'Sipping down raki and reading Maynard Keynes' . the guarantee helps to raise the credit rating of the bond. schools and hospitals.of £72. Monetary policy can be used to control inflation and to support economic growth.

Deleveraging that any company that might be using conflict minerals register with the Securities and Exchange which case it can be very hard to determine whether the restructuring counts as a default. Even those countries that have made the greatest progress still need assistance. Primarily this occurs by repaying more so now than perhaps a couple of years then it is generally considered a default by the borrower. meaning that their existing debt loads become more manageable. Western economies are experiencing widespread deleveraging.cutting spending and increasing taxation. If lenders do not agree to the change in repayment terms. Dodd-Frank A process whereby borrowers reduce their debt loads. It includes:  restrictions on banks' riskier activities (the Volcker rule)  a new agency responsible for protecting consumers against predatory lending and other unfair practices  regulation of the enormous derivatives market  a leading role for the central bank. usually in order to reduce short-term debt repayments and to increase the amount of time it has to repay It can also occur by bankruptcies and debt to support a pact that will enforce greater budgetary discipline and reduce deficits.222. news/world-europe18303478 224. Debt restructuring 223.a voluntary agreement by lenders to switch existing debts for new debts with easier easier repayment terms . in overseeing regulation  higher bank capital requirements  new powers for regulators to seize and wind up large banks that get into trouble http://www. The amount by which spending exceeds income over the course of a year. However. Deficit A situation in which a borrower renegotiates the terms of its debts. or if the restructuring results in an obvious loss to lenders. Households are deleveraging by repaying mortgage and credit card debts. S&P upgraded the crisis-hit nation to "CCC" from "selective default" after the country completed the biggest debt restructuring in history earlier this year. Banks are deleveraging by cutting back on lending. or by the borrowers increasing their incomes. the Federal news/business17922133 . a process associated with weak economic growth that is expected to last years. Legislation enacted by the US in 2011 to regulate the banks and other financial news/uk-politics18122713 In the United States. http://www. a new law section 1502 of the Dodd-Frank legislation . restructurings can also occur through a debt swap .uk/ news/business17922385 Voters .given the chance .co. because the financial crisis has led to significant instability as the foreign banks that dominate central and eastern European banking have undergone aggressive deleveraging. Governments are also beginning to deleverage via austerity programs .

Osborne insisted. the law was intended to protect banks which lend to consumers and businesses . Investors who buy these securities receive income when the original home-buyers make their mortgage payments So presumably. A widely-accepted definition is one where the initial recovery fails to take total economic output back up to the peak seen before the recession began. A term increasingly used for the idea of a common. Haircut A recession that experiences a limited recovery then dips back into recession. its lenders as part of a debt restructuring. if the deal is allowed to largely to enable the creation of the banking giant Citigroup ." Mr. A US law dating from the 1930s Great Depression that separated ordinary commercial banking from investment banking. taking the debt from a number of mortgages and combining them to make a financial product. For example.deemed vital to the US economy .s tm ." http://www. Euro-bond 228. and the IMF says that "the challenge is now to find a clear and permanent solution while continuing to support US mortgage which can then be traded (see mortgage backed securities).bbc.s tm 230. imposed on. Securitization Turning something into a security. Double-dip recession 227.from the risky speculation of investment news/business18182521 http://news. Glass-Steagall 229. the ECB will ensure that all the risk actually remains with Bankia and the Spanish government and therefore with Spanish taxpayers by imposing a massive discount (or haircut) on the amount of cash it would exchange for the bonds. or agreed with. It has been mooted as a solution to the euro-zone debt news/business18265079 /hi/business/8473903.a move that many commentators say was a contributing factor to the 2008 financial crisis. The exact definition is unclear. Like the UK's planned The law was repealed in /hi/business/7528564. as it would prevent markets from differentiating between the creditworthiness of different government borrowers. A reduction in the value of a troubled borrower's debts. Bringing forward infrastructure investment now would help to boost an economy that's been pushed into a double-dip recession by this Government's mistakes‖ EU leaders have started summit talks in Brussels with Germany resisting pressure to launch euro-bonds as a way to ease the euro-zone news/business18234057 http://news. This could cost upwards of $100bn. as the definition of what counts as a recession varies between countries. jointlyguaranteed bond of the euro-zone governments. "We don't want to return to the crude Glass-Steagal separation of retail banking and investment banking. The latest Business Daily podcast looks at whether the next financial crisis could come out of the unregulated shadow banking sector. Naked short selling 233. Quantitative easing Central banks increase the supply of money by "printing" SPVs. an enterprise where funds from new investors .uk/ news/business18345348 news/business12670943 234.5% and announced no expansion to its quantitative easing (QE) program. The firm's shares dropped as much as 18% on the Australian Securities Exchange after the profit warning. Named after the Italian fraudster Charles Ponzi. this may mean purchasing government bonds or other categories of assets. using the new money. In Rather than physically printing more notes. A version of short selling. securitization.are used to pay high returns to current investors. where the trader does not first establish that he is able to borrow the relevant asset before selling it on. Some economists fear that quantitative easing can lead to very high inflation in the long term. and needed to earn higher returns fast to balance losses elsewhere .bbc. When a company issues a statement indicating that its profits will not be as high as it had expected. The Bank of England has once again left UK interest rates unchanged at news/uk-northernireland-18006221 news/business17781682 A committee of MEPs has voted in favour of restricting the practice of "naked" short selling.that provides a similar borrowing-and-lending function to banks. http://www. Bankers perched precariously on an unstable global Ponzi scheme. which depresses the value of the currency. much of shadow banking system collapsed during the credit crunch that began in 2007. Shadow banking 232. news/business18143078 http://www. but is not regulated like the new money is typically issued in the form of a deposit at the central bank. The National Asset Management Agency (NAMA) has launched a scheme to boost the housing market by protecting buyers against negative equity. Negative equity A global financial system . CDOs and monoline insurers . http://www. Profit warning Similar to a pyramid scheme. the shadow banking system had grown to play as big a role as the banks in providing loans. pocketing the difference. illegal or restricted in some news/business18327652 and in the 2008 financial crisis. and to push up the value of the assets being bought and to lower longer-term interest rates.including investment The aim with short selling is to buy back the asset at a lower price than you sold it for. The idea is to add more money into the Refers to a situation in which the value of your house is less than the amount of the mortgage that still has to be paid off. Prior to the financial crisis.instead of genuine profits .and avoid systemic failure.231. which encourages more borrowing and investment. Ponzi scheme 235. such schemes are destined to collapse as soon as new investment tails off or significant numbers of investors simultaneously wish to withdraw funds. news/business18324562 .co. Services provided by the banks that are deemed essential to the UK economy . lending to small and medium businesses should be separated out from the banks other. Recapitalization news/business18340717 http://news. it results in the government owning a stake in the bank. AGM There were significant protest votes against Wal-Mart directors at last week's annual general meeting (AGM). http://www. it may mean revisiting whether the proposed ring fence between retail banking and investment banking is protection enough for essential banking services. http://www. Typically this will happen via the firm issuing new shares. To inject fresh equity into a firm or a bank. In the United States. particularly to small. An annual general meeting. the retailer has announced. If an emergency decision is needed .co. Rating agency A company responsible for issuing credit ratings. A recommendation of the UK's Independent Commission on Banking. Recession Greece is in the midst of a recession that has been described as the longest ever news/business17606494 http://www. "Recapitalization is not your first port of call but over the next few weeks we will continue to discuss with banks what further steps we can take that would help news/business-yourmoney-18031239 242.when economic output falls. and provided with its own separate capital to absorb any losses. which can be used to absorb future losses and reduce the risk of insolvency. but the medium-sized news/magazine17102525 240. The cash raised can also be used to repay debts. yen and Swiss franc are also /hi/business/7810651. The major three rating agencies are Moody's. it can lead to nationalization. such as job creation and manufacturing activity. In an extreme case. pound." http://www. such as Royal Bank of Scotland. riskier activities. A currency that is widely held by foreign central banks around the world in their reserves. payment transfers. In most parts of the world a recession is technically defined as two consecutive quarters of negative growth . where the government owns a majority of the bank.s tm 238. Reserve currency 241.such as customer accounts. The US dollar is the pre-eminent reserve currency. They would be placed in a separate subsidiary company in the bank. particular its investment banking activities. In the UK.a company may also call an exceptional general meeting of shareholders or EGM. A period of negative economic example in the case of a takeover . Ring fence Analysts have long said that opening up its financial markets was key to Beijing's efforts of pushing the yuan as an alternative to the US dollar as a global reserve currency. which companies hold each year for shareholders to vote on important issues such as dividend payments and appointments to the company's board of directors. a larger number of factors are taken into In the case of a government recapitalizing a Standard & Poor's and Fitch. The ring-fenced business would also be banned from lending to or in other ways exposing itself to the risks of the rest of the bank . ratings agency Moody's has cut the credit ratings of six German banks and three in Austria.

uk/2 /hi/business/ via tax rises . for example.html http://www. The term for bankruptcy protection in the US.3bn bet on European sovereign debt. and de minimis for RBS. 244. CDOs attract a stronger credit rating than individual assets due to the risk being more diversified. it may try to design a new system of global regulation of finance. which can then be traded. The firm made the Chapter 11 bankruptcy filing after making a $ The element of risk is in the fluctuations in the currency market.243. Austerity Economic policy aimed at reducing a government's deficit (or borrowing). such as the Basel Chapter 11 Now the news/business18328084 http://news. CPI is used as the target measure of inflation by the Bank of England and the ECB. funded by home loan debts. in news/world-europe18350977 http://news. suggesting no further action was required.s tm 247. Finally. converting it into currency with a high interest rate and then lending it. Basel accords The Basel Accords refer to a set of agreements by the Basel Committee on Bank Supervision (BCBS). It postpones a company's obligations to its creditors. The purpose of the accords is to ensure that financial institutions have enough capital to meet obligations and absorb unexpected losses. CPI blogs/thereporters/robe rtpeston/2010/01/heste r_halfanswers_bonus_ quest. He believes that the "carry trade" I mentioned yesterday .co.and/or a reduction in government spending or future spending commitments. Two hedge funds operated by Bear Stearns have lost billions of dollars from collateralized debt obligations (CDOs) .s tm http://www.complex financial products made up of bonds. http://www. Collateralized 248. it also said that it considered that CPI inflation was as likely to be above its 2% target as below in the medium term without any extra stimulus measures. The most common carry trade currency used to be the yen. Carry trade 246. 245.of banks borrowing from central banks to finance the purchase of high yielding assets . but it would first have to reach a consensus on what the principles of regulation should be. the value of many CDOs was also reduced. giving it time to reorganize its debts or sell parts of the business. which regulate banking. The Consumer Prices Index is a measure of the price of a bundle of goods and services from across the However. In theory. bonds or other assets in a news/business18172838 . A financial structure that groups individual less prevalent than many bankers tell me. which provide recommendations on banking regulations. loans and derivatives which are. But as the performance of many assets fell during the financial crisis. Ms Merkel's insistence on economic austerity and budget discipline has alienated many Europeans who say the policy is strangling growth and piling more debts on the struggling "periphery" countries like Greece and /hi/business/7727712. Austerity can be achieved through increases in government revenues . with traders seeking to benefit from Japan's low interest rates. It is the most common measure used to identify inflation in a euro and pound can also serve the same purpose. the borrowing of currency with a low interest and whether these should override existing rules.

co. For and is much more important indicator for lenders than the borrower's profits. If the central bank runs out of foreign currency reserves. The Newry-based firm First Derivatives has made a profit of almost £7m this year. Indeed. Earnings (or profit) before interest payments. the EFSF was originally intended to help other struggling eurozone governments. EFSF The European Financial Stability Facility is currently a temporary fund worth up to 440bn euros set up by the eurozone in May news/business12644340 http://www. He attributed some of the pick-up in spending by Western companies to a "dead cat bounce" because 2009 was so difficult. depreciation and amortization. in order to help reduce inflation. "We currently estimate that the closure of Heathrow and Stansted due to volcanic ash will have a total impact on 2010 adjusted EBITDA (adjusted earnings before interest. Sometimes pegs are used to keep a currency strong. a central bank may have to sell its reserves of foreign currency and buy up domestic currency in order to defend the peg. swaps and options are all types of derivatives. It is a measure of the cash flow at a company available to repay its debts. The value of a derivative can depend on anything from the price of coffee to interest rates or what the weather is like. http://www. forwards. tax. Derivative the euro-zone agreed to broaden the EFSF's 253. Currency peg /hi/business/8650832. But the record of currency be used to help Spain in the short term. Following a previous bail-out of Greece. In this depreciation and amortization) of £28m. it was precisely because European countries found it so hard to fix their exchange rates that the euro ever got off the ground. a stock market futures contract allows investors to make bets on the value of a stock market index such as the FTSE 100 without having to buy or sell any shares. Dead cat bounce A commitment by a government to maintain its currency at a fixed value in relation to another currency. and intervention in the markets to support them." The French finance minister has said today that the Eurozone's rescue fund the European Financial Stability Facility (EFSF) .co. tax. Credit derivatives such as credit default swaps depend on the ability of a borrower to repay its debts. or to speculate on news/business18343073 . and has since provided rescue loans to the Irish Republic and Portugal.249. for example by allowing it to support then the peg will collapse. is mixed at best. A phrase long used on trading floors to describe the small rebound in market prices typically seen following a sharp Derivatives allow investors and banks to hedge their news/business14813825 http://www. http://news.s tm news/uk-northernireland-18232889 251. More recently. Ebitda A financial contract which provides a way of investing in a particular product without having to own it directly.

according to the Family Firm news/business17688368 http://www. Unlike the EFSM. The rate at which banks in London lend money to each other for the short-term in a particular currency. There are three main ways of calculating GDP . However that was wiped out by impairment charges . A new Libor rate is calculated every morning by financial data firm Thomson Reuters based on interest rates provided by members of the British Bankers . Suggesting he was a Washington London's FTSE 100. as I've mentioned before. lost more than 1% on Friday. which is closed on Monday for a public holiday. Lehman Brothers 260. but one no-one could work with. . http://www.of £ news/world-us-canada17862648 257. with the Dax falling 3. Although privately-owned. because they are semiirrelevant markets these days. namely of all the services and goods produced in a and the Cac losing news/business18287916 258. They don't lend mortgages directly to homebuyers. The amount written off by a company when it realizes that it has valued an asset more highly than it is actually worth. that he'd taken money from the hated Freddy Mac and Fannie Mae government mortgage companies (as "a historian") and that he was a loose news/world-europe18350977 http://www. But next month the eurozone will have a new 500bn-euro rescue fund. FTSE 100 The European Stability Mechanism is a 500bn-euro rescue fund that will replace the EFSF and the EFSM from June 2013. and contribute an estimated 70% to global through income and through news/business18321094 the two operate as agents of the US federal government.5bn to creditors next week. Lehman Brothers has said it will begin paying out $22.through output. it is pointless looking at Libor and euribor interest rates for signs of banking stress. An index of the 100 companies listed on the London Stock Exchange with the biggest market value. Fannie Mae 256.5m. Libor London Inter Bank Offered Rate. A US investment bank. the government put them into "conservatorship" .bbc. That is why. Nicknames for the Federal Home Loans Mortgage Corporation and the Federal National Mortgage Association respectively. the European Stability Mechanism (ESM). the ESM will only be backed by members of the news/uk-northernireland-18016074 http://www. ESM 255.mainly relating to bad property loans . http://www. and not by other European Union members such as the UK. whose collapse in September 2008 sparked the most intense phase of the financial crisis.2%. Unlike the EFSF. but they are responsible for obtaining a large part of the money that gets lent out as mortgages in the US from the international financial Globally. the ESM is a permanent bail-out arrangement for the euro-zone. Freddie Mac. The index is revised every three news/business18261045 http://www. A measure of economic activity in a country. double its initial estimate for the first round of family businesses are extremely to provide them with any new capital needed to ensure they do not go GDP Gross domestic product. Shares in Europe also suffered sharp falls. Impairment charge After almost going bust in the financial crisis. which should make it easier for countries in trouble to access credit.

banks will have to hold more of the least-risky Tier 1 capital .bbc. Tier 1 capital http://www. In the news/uk-walespolitics-17128489 267. Workers typically strongly resist falling wages. Sticky prices By selling off their mortgages in the form of MBS. Tobin tax . tax cuts and spending increases. A calculation of the strength of a bank in terms of its capital. Comments from the European Central Bank that it was not inclined to provide more stimulus failed to stop the rally. A tax on financial transactions. originally proposed by economist James Tobin as a levy on currency conversions. Mortgage-backed securities (MBS) Banks repackage debts from a number of mortgages into MBS. a bank may swap out of a fixed longterm interest rate into a variable short-term interest rate. Stimulus 265. and in this Monetary policy or fiscal policy aimed at encouraging higher growth and/or inflation. with £200m invested in US collateralized debt obligations (CDOs) and £75m in US home equity mortgage-backed securities (MBS). A derivative that involves an exchange of cash-flows between two parties. In the language of economists.5% compared to 2% under current retained earnings and some preference shares. Britain is suffering from "sticky prices". BP's attempted share swap with Rosneft last year was part of an ambitious plan by the UK company to develop oil fields in the Arctic. defined by the Basel Accords. news/business18079781 http://www. But the landmark deal was blocked in the courts by BP's Sub-prime mortgages A phenomenon observed by Depression-era economist John Maynard disclosed reserves. Many economists warn that this may be the fate of Greece and other struggling economies within the euro-zone. particularly during news/business18021576 It collapsed in the face of billions of dollars of losses in the US sub-prime mortgage market. /hi/business/6956462. to increase stability in financial news/business18349576 http://www. This can mean that. even if other prices . Northern Rock quantified its exposure to US sub-prime mortgages. leading to higher Swap news/business17688361 http://www. quantitative easing.s tm http://www. or a company may swap a flow of income out of a foreign currency into their own therefore the cost of living . typically comprising ordinary shares. These carry a higher risk to the lender (and therefore tend to be at higher interest rates) because they are offered to people who have had financial problems or who have low or unpredictable http://news. This can include interest rate cuts. Tory assembly leader Andrew RT Davies said: "It is all very well for the first minister to deny he is antibanking but giving his agreement for a Tobin Tax to be implemented. The implication is that periods of deflation usually go hand-inhand with very high unemployment. When the new EU rules are passed. which can be bought and traded by investors. it frees the banks up to lend to more homeowners. The tax is intended to discourage market speculators by making their activities uneconomic. For example. wages can become news/business18328424

co. http://www. Volcker Rule The surprise losses at JP Morgan have revived the debate over whether regulators should tighten the so-called Volcker rule. a company that provides baggage handling at the airport. http://www. The Volcker Rule follows similar logic to the Glass-Steagall Act and the UK ring-fence proposal. such as proprietary trading (taking speculative risks on the markets with their £3. as the markets for them ceased to news/business18116934 273. A document entitling the bearer to receive shares. A proposal by former US Federal Reserve chairman Paul Volcker that US commercial banks be banned or severely limited from engaging in risky activities. The bailout loans are being released in a number of tranches of cash. toxic debts were very hard to value or to sell.2bn) of funds from the so-called news/business18163687 http://www. http://www. news/business18321468 271. The term used to refer to the European Union. Like many Londoners at the end of a busy working sell something that you have previously bought. This means that some companies are saddled with toxic debts. warrants were issued for workers at Ground Motive Dependable. The need for an underwriter can arise when a company makes a rights issue or a bond news/magazine18234930 272. and a modified version of the rule was included in the Dodd-Frank financial regulation law passed in the wake of the financial crisis. they must do the unwinding before creditors can get any money rather than clients' money) or investing in hedge funds. toxic debt describes a whole package of loans that are unlikely to be the European Central Bank and the International Monetary Fund .uk/ news/uk-northernireland-16997690 It clears the way for the government to get another 4bn euro ($5bn. with many commentators saying that the sale was over-priced. This greatly increased uncertainty about the financial health of the banks that owned much of these debts. To unwind a deal is to reverse it . The financial institution pledging to purchase a certain number of newly-issued securities if they are not all bought by investors. The underwriter is typically an investment bank who arranges the new issue. During the financial crisis. Toxic debts 269. When administrators are called in to a bank. they have come to unwind over a few drinks. Most lenders expect that some customers cannot repay. or to cancel a derivative contract for an agreed payment. or vice versa. Unwind Much of the blame for the fall in share price is being pinned on lead underwriters Morgan Stanley and the Nasdaq exchange itself. Troika each of which must be approved by the troika's inspectors. usually at a stated news/world-us-canada18348459 even though their core business is sound. Underwriters Debts that are very unlikely to be recovered from three organizations charged with monitoring Greece's progress in carrying out austerity measures as a condition of bailout loans provided to it by the IMF and by other European governments. Warrants In addition to the 12 people connected to American

co. Winnipeg Commodity Exchange (WCE) 280. QFII Is a program that was launched in 2002 in People's Republic of China to allow licensed foreign investors to buy and sell yuandenominated "A" shares in China's mainland stock exchanges (in Shanghai and Shenzhen).economist. com/node/18587436 279. It is Canada's only futures exchange for commodities.274. canola and wheat are In 1904 the WCE established a futures market for wheat. MPC news/uk-englandsouth-yorkshire18032176 http://www. primarily with a view to improving the availability of credit in the Irish economy. such as quantitative It is in response to the Irish financial crisis and the deflation of the Irish property bubble. NAMA Is a body created by the Government of Ireland in late 2009. It was established in The firm made the announcement despite withdrawing plans for a scheme to design and manufacture wind turbines. acquiring property development loans from Irish banks in return for government bonds. The National Asset Management Agency (NAMA) has launched a scheme to boost the housing market by protecting buyers against negative equity. Agreement that a mutual fund will disburse automatic periodic redemptions to the investor. drawing speculators who hope to make a profit after the takeover is completed. and the whisper stock-market rose over 4%. Write-down Reducing the book value of an asset. In news/business18172838 277. A stock rumored to be the target of a takeover bid. http://www. which meets for two and a half days every month to decide the official interest rate in the United Kingdom (the Bank of England Base Rate) Is a committee of the Bank of England. It is also responsible for directing other aspects of the government's monetary policy framework. it became a subsidiary of the Intercontinental Exchange.thecanadia news/business18246207 cles/winnipegcommodity-exchange http://www. Withdrawal plan http://www. only David Miles voted for an extra £25bn of quantitative easing (QE). The Qualified Foreign Institutional Investor (QFII) scheme is one of the main channels used by foreign firms to invest in Chinese financial markets. Part of the reason for the big increase in Thomas Cook's losses was a one-off charge of £300m after it was forced to write-down the value of parts of its business. At May's monetary policy committee (MPC) meeting. Whisper stock An exchange in Canada on which futures and options contracts on barley. http://www. either to reflect a fall in its market value (see mark-to-market) or due to an impairment charge. NAMA will function as a bad bank. Industrial production grew vigorously during the first news/uk-northernireland-18006221 news/business17606494 http://www.

we rebalanced the mix of the three indices monthly so that the expected risk of the granular portfolio targeted the same risk as m/viewtopic. http://thesecularity. Non-cash fringe benefit A non-cash benefit that is afforded to company employees. discounted gym Non-operating expense It would also include career's allowance and industrial injuries disablement benefit . On the international Gross revenue Is a coupon that can be exchanged for one or more postage stamps representing the minimum postage for an unregistered priority airmail letter of up to twenty grams sent to another Universal Postal Union (UPU) member country. or some emergency. memberships to a country club. IRCs are accepted by all UPU member countries. ignoring effects of financing or irrelevant issues. A company's revenue minus cost of goods sold. often as a cushion against a possible loss or debt servicing. http://www. In our experiment. An expense incurred by activities not relating to the core operations of the business. Because these portfolios contain a large number of positions over many areas. a cellular phone. and now the government is planning to get tough. the company achieved an operating profit of $20m in the fourth quarter. These three indexes can be used to create ACWI. Accountants may remove nonoperating expenses or revenues in order to examine the performance of the business. Granular portfolio http://seekingalpha. A type of portfolio that is well diversified across a wide variety of areas. Attempts to persuade card issuers to restrict cash withdrawals have failed. they are considered to have a lower overall risk profile. Restricted cash .co. In 2012/13 the gross revenue cost of running services at Lee Valley Regional Park is £ are less diversified and have a higher overall risk profile. typically with a significant number of holdings. Funds deposited in a separate account. and other material news/uk-politics11463435 /hi/business/2490695. 1. portfolios that have "low granularity" have fewer positions or contain highly correlated news/uk-englandlondon-17429168 m/article/309000getting-granular-withemerging-markets These benefits can include such things as a company Also called "gross margin" and "gross profit". Conversely. excluding nonoperating 2.281.s tm 286.php?f=23 &t=10178 http://www. 282. The value of these fringe benefits must be added to the employees' gross income amount.s tm 283. International reply coupon 285.although it would not include one-off benefits such as social fund loans and non-cash benefits such as free school meals or working tax credits. An individual's total personal income before taking taxes or deductions into /hi/business/2689331.5m. The first USPS employee advised me he was a veteran of the postal service for 30 years and had never heard of international reply coupons.

but it is often not sustainable and in any case dupes the investor. http://www. Starting from today. and control the probability and/or impact of unfortunate events or to maximize the realization of Roth option An option available within some employer-sponsored qualified plans that allows for Roth tax treatment of employee contributions. Growth market An increase in the demand for a particular product or service over time. monitor. The Roth option allows employees to deposit money into their retirement plans on an after-tax basis. This feature is available for both 401(k) and 403(b) news/scienceenvironment17404438 289. and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives. to seize that opportunity for global growth. particularly in the high growth markets around the world. A supposedly open market that is rigged so far in one direction is no longer open. http://www. O2 is rolling out plans that it says will more than double the number of free Wi-Fi hotspots available from services BT Open zone and the Cloud. Rigged market Diageo Chief Executive Paul Walsh said: "We expect that success to continue. a plan which runs for a period of time and is updated regularly for the same period. http://www. lowering the age for participation. Amendment to the Employee Retirement Income Security Act of 1974 providing more benefits for surviving spouses. Retirement Equity Act of 1984 Retirement Equity Act of 1984amends ERISA. p/articles/mi_m1153/is _v107/ai_3452850/ 290. let us be honest about these things. but as the price of the technology decreases and its usefulness in every day life increases.287. An illegal act or practice in which a person or company causes a price to be more favorable to an investor than market forces really news/uk-scotlandscotland-business18336994 http://www. Risk sharing The government has also been looking at pension schemes in other countries where such risk sharing is more common. more consumers could increase demand. Rolling plan 292. Rigged markets exist in order to attract investors to a company or project.go v/news/newsarticle. a new technology might only be marketable to a small set of There are a variety of ways to create a rigged market.asp x?id=67933 . and addressing gender equity concerns the identification. For example. Service members and Defense Department civilian employees who are eligible for the Thrift Savings Plan will soon have a new Roth option for retirement savings under the program. defense finance officials announced today. committing over £1bn in the next five years. which is why we are announcing this major investment in Scotch whisky production. whether positive or negative) followed by coordinated and economical application of resources to minimize. Market growth can be slow if consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price news/business17655683 291. newsbeat/12863791 http://www.

org/journal/2008/6/13/ rubinomics-incrisis. compound news/uk-englandleeds-17738203 However. options are traded on an exchange along with futures and other derivatives. which are traded through a dealer news/world-asia-india16649501 296. A security exchange that primarily or exclusively trades option contracts.realitybase . Generally. Options market Emphasizes the effect that balancing the government budget has on long term interest rates. Short of default. which is a profit-making enterprise. specialize in option transactions. and deficit-financed tax cuts are an ineffective way to increase growth. portal/hps/oid_tutorial.. Taxes should match government spending in the long run. The difference between a bond's face value and the amount for which it is sold by the issuer.. It also refers to debt securities and other financial instruments. http://www. . like the CBOE. are issued at a price less than par in order to entice buyers. Original principal balance http://www. They were all asked to pay in advance. This can be seen as a form of the fiscal theory of the price level – fiscal policy affecting long term inflation (as expressed by long term interest rates). TSX. A shareholder vote that is undertaken in order to determine if certain laws and regulations regarding corporate takeovers are to be waived during a particular corporate action. The total amount of principal owed on a mortgage before any payments are made. Rubinomics 294. http://www. with zero-coupon bonds having the largest.c om/what-is-monthlycompound-interest. We don't want it to go the same way as the Corn Exchange. Over-the-Counter A security traded off exchanges such as the NYSE. An opt-out vote. or allow the takeover to occur sooner than it otherwise would have. The following is an overview of the economics and tax considerations regarding Original Issue Discount. Often. the greater the original issue discount. Other Rubinomics theories are getting gobsmacked by data from the real world. It is considered a form of interest and may be taxed as such. and AMEX. or by going into a bank branch and paying over the counter. if successful. Many the lower the interest rate. especially those with low interest rates. Opt out vote either by bank transfer.html There is nothing wrong in not liking his art. as bonds must be redeemed at face value. The increasing principal balance also raises future interest amounts charged against the the bank will only charge interest on the original principal balance taken out by borrowers. http://www. The phrase ―over the counter‖ can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. Original Issue Discount We want to come up with other options for the market. some exchanges. html 297. the original issue discount is a guaranteed profit for a bondholder. such as derivatives. will remove certain legal restrictions that would have prevented a corporate takeover from occurring. You can easily opt out news/business17314734 .wsc.

co. its original book value net of any accounting adjustments such as depreciation. That is.asp . another person loses a dollar. are zero sum games because wealth cannot be created from these transactions. for every dollar one person makes in a zero sum transaction. ess/accounts/assets_fix edassets_depreciation_ news/magazine15156336 Governments or companies borrow money and agree to pay a certain rate of interest (yield) for a period of time (maturity).bbc. Options and commodity markets. Yield to maturity The current book value of an asset or liability. Zero-sum game 300. and market price. Not every transaction is a zero sum game. note. or other fixed income security if the investor buys and holds it to its maturity date." says Janette Sadik-Khan.299. length of time to maturity. The percentage rate of return paid on a /hi/business/635457. It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate. http://www. The calculation for YTM is based on the coupon rate. "This isn't a zero-sum game. Written-down value A situation where the gain of one person equates to the loss of another person. http://news. m The business decides to calculate annual depreciation at the rate of 40% of the written-down value. stock trading is not because some trades are mutually beneficial to the buyer and the seller. only shifted. that is. the commissioner of transportation for the city of New York.

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