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| This dictionary contains: 24549 financial terms |
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Basket
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BasketApplies to derivative products. Group of stocks that is formed with the intention of either being bought or sold all at once, usually to perform index arbitrage or a hedging program.
RELATED TERMS--------------------------------------
Derivative
A financial contract whose value is based on, or "derived" from, a traditional security (such as a stock or bond), an asset (such as a commodity), or a market index.
Group
A group generally includes a parent company and its subsidiaries, but it may also include affiliates.
Index
In the stock market, an index is a device that measures changes in the prices of a basket of shares, and represents the changes using a single figure.
Arbitrage
Buying securities in one country, currency or market, and selling in another to take advantage of price differences.
Hedging
Reducing the risk of unfavorable movement in commodity or security prices, or exchange or interest rates, by way of futures contracts.
SIMILAR TERMS--------------------------------------
Basket options
Packages that involve the exchange of more than two currencies against a base currency at expiration.
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Basic IRR rule
Accept the project if IRR is higher than the discount rate; reject the project if it is lower than the discount rate.
Basis
The price an investor pays for a security plus any out-of-pocket expenses. It is used to determine capital gains or losses for tax purposes when the stock is sold.
Basis point
In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points.
Basis price
Price expressed in terms of yield to maturity or annual rate of return.
Basis risk
Unexpected changes in the basis between the placing and the lifting of a hedge. Basis risk is in excess of convergence.
Basket
Basket options
Packages that involve the exchange of more than two currencies against a base currency at expiration.
Bear
An investor who believes a stock or the overall market will decline. A bear market is a prolonged period of falling stock prices, usually by 20% or more.
Bear CD
A bear CD pays the holder a fraction of any fall in a given market index.
Bear hug
Often used in risk arbitrage. Hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market value of the acquiree's shares so as to as to squeeze (hug) the target into acceptance.
Bear market
Any market in which prices exhibit a declining trend. For a prolonged period, usually falling by 20% or more.
RELATED TERMS--------------------------------------
Derivative
A financial contract whose value is based on, or "derived" from, a traditional security (such as a stock or bond), an asset (such as a commodity), or a market index.
Group
A group generally includes a parent company and its subsidiaries, but it may also include affiliates.
Index
In the stock market, an index is a device that measures changes in the prices of a basket of shares, and represents the changes using a single figure.
Arbitrage
Buying securities in one country, currency or market, and selling in another to take advantage of price differences.
Hedging
Reducing the risk of unfavorable movement in commodity or security prices, or exchange or interest rates, by way of futures contracts.
SIMILAR TERMS--------------------------------------
Basket options
Packages that involve the exchange of more than two currencies against a base currency at expiration.
PREVIOUS AND NEXT TERMS--------------------------------------
Basic IRR rule
Accept the project if IRR is higher than the discount rate; reject the project if it is lower than the discount rate.
Basis
The price an investor pays for a security plus any out-of-pocket expenses. It is used to determine capital gains or losses for tax purposes when the stock is sold.
Basis point
In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points.
Basis price
Price expressed in terms of yield to maturity or annual rate of return.
Basis risk
Unexpected changes in the basis between the placing and the lifting of a hedge. Basis risk is in excess of convergence.
Basket
Basket options
Packages that involve the exchange of more than two currencies against a base currency at expiration.
Bear
An investor who believes a stock or the overall market will decline. A bear market is a prolonged period of falling stock prices, usually by 20% or more.
Bear CD
A bear CD pays the holder a fraction of any fall in a given market index.
Bear hug
Often used in risk arbitrage. Hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market value of the acquiree's shares so as to as to squeeze (hug) the target into acceptance.
Bear market
Any market in which prices exhibit a declining trend. For a prolonged period, usually falling by 20% or more.
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This dictionary contains 24549 terms.
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