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Allocational efficiency
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Allocational efficiencyA formal notification to the writer of an option from a clearing house that an option has been exercised by an option holder and that the writer is obliged to buy/sell the underlying instrument at the exercise price.
RELATED TERMS--------------------------------------
Writer
A person who makes an opening sale of an option contract.
Option
The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date.
Clearing
Is the process of financial guarantee between clearing members. This activity intends to eliminate the risk of contractual or transactional default.
Holder
1) A person in possession of a negotiable instrument such as a bill of exchange or promissory note. 2) A person who has made an opening purchase of an option and thus has acquired the rights to them.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Exercise
To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of a put) the underlying security.
Price
The cost of a good or service to the consumer.
SIMILAR TERMS--------------------------------------
Allocation notice
Rate used in charging customers for accepting banker's acceptances, consisting of the discount interest rate plus the commission.
Allocation of income rules
The effectiveness with which a market channels capital toward its most productive uses.
Allotment
An arrangement whereby a security issue is cancelled if the underwriter is unable to resell the entire issue.
ALLOY
ALLOY is a credit union with head office in ALLOY, WV
ALLOY SCOTTDALE
ALLOY SCOTTDALE is a credit union with head office in SCOTTDALE, PA
PREVIOUS AND NEXT TERMS--------------------------------------
Alligator spread
A partner or stockholder of a firm that is a member of the NYSE, the partner or stockholder is not personally a member of the NYSE.
All-in cost
The term used to describe a spread in the options market that generates such a large commission that the client is unlikely to make a profit even if the markets move as the investor anticipated.
All-in-rate
Total costs, explicit and implicit.
Allocation notice
Rate used in charging customers for accepting banker's acceptances, consisting of the discount interest rate plus the commission.
Allocation of income rules
The effectiveness with which a market channels capital toward its most productive uses.
Allocational efficiency
Allotment
An arrangement whereby a security issue is cancelled if the underwriter is unable to resell the entire issue.
Alpha
The number of securities assigned to each of the participants in an underwriting syndicate.
Alpha equation
Is a measure of the incremental reward (or loss) that an investor gained in relation to the market.
Alphabet stock
Regression usually run over 36-60 months of data: Return-Treasury bill= alpha + beta (S&P 500 - Treasury bill) + error. The alpha is the intercept.
Alternative investments
Categories of common stock of a corporation associated with a particular subsidiary resulting from acquisitions and restructuring.
RELATED TERMS--------------------------------------
Writer
A person who makes an opening sale of an option contract.
Option
The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date.
Clearing
Is the process of financial guarantee between clearing members. This activity intends to eliminate the risk of contractual or transactional default.
Holder
1) A person in possession of a negotiable instrument such as a bill of exchange or promissory note. 2) A person who has made an opening purchase of an option and thus has acquired the rights to them.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Exercise
To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of a put) the underlying security.
Price
The cost of a good or service to the consumer.
SIMILAR TERMS--------------------------------------
Allocation notice
Rate used in charging customers for accepting banker's acceptances, consisting of the discount interest rate plus the commission.
Allocation of income rules
The effectiveness with which a market channels capital toward its most productive uses.
Allotment
An arrangement whereby a security issue is cancelled if the underwriter is unable to resell the entire issue.
ALLOY
ALLOY is a credit union with head office in ALLOY, WV
ALLOY SCOTTDALE
ALLOY SCOTTDALE is a credit union with head office in SCOTTDALE, PA
PREVIOUS AND NEXT TERMS--------------------------------------
Alligator spread
A partner or stockholder of a firm that is a member of the NYSE, the partner or stockholder is not personally a member of the NYSE.
All-in cost
The term used to describe a spread in the options market that generates such a large commission that the client is unlikely to make a profit even if the markets move as the investor anticipated.
All-in-rate
Total costs, explicit and implicit.
Allocation notice
Rate used in charging customers for accepting banker's acceptances, consisting of the discount interest rate plus the commission.
Allocation of income rules
The effectiveness with which a market channels capital toward its most productive uses.
Allocational efficiency
Allotment
An arrangement whereby a security issue is cancelled if the underwriter is unable to resell the entire issue.
Alpha
The number of securities assigned to each of the participants in an underwriting syndicate.
Alpha equation
Is a measure of the incremental reward (or loss) that an investor gained in relation to the market.
Alphabet stock
Regression usually run over 36-60 months of data: Return-Treasury bill= alpha + beta (S&P 500 - Treasury bill) + error. The alpha is the intercept.
Alternative investments
Categories of common stock of a corporation associated with a particular subsidiary resulting from acquisitions and restructuring.
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This dictionary contains 24549 terms.
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