Financial Dictionary

This dictionary contains:
24549
financial terms

Perfect hedge




Perfect hedge

A situation in which the profit and loss from the underlying asset and the hedge position are equal.

RELATED TERMS
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Profit
The difference between the price received for a product and its cost (the price of the factors of production used to make it).

Loss
The opposite of gain.

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.

Asset
Is the taxable basis of a property, imposed by the municipality. Often it is at a fraction of the market value.

Hedge
A measure used to offset losses or potential losses.

Position
A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into.



SIMILAR TERMS
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Perfect capital market
A market in which there are never any arbitrage opportunities.

Perfect competition
Exists when there are a large number of sellers and buyers, freedom to enter and leave markets, a complete flow of information, etc.

Perfect forecast line
Graph of a slope that matches the forecast of an exchange rate with the actual exchange rate.

Perfect market assumptions
Conditions under which the law of one price holds. The assumptions include frictionless markets, rational investors, and equal access to market prices and information.

Perfect market view (of capital structure)
Analysis of a firm's capital structure decision, which shows the irrelevance of capital structure in a perfect capital market.

Perfect market view (of dividend policy)
Analysis of a decision on dividend policy, in a perfect capital market environment, that shows the irrelevance of dividend policy.

PERFECTECH INTL
PERFECTECH INTL is a securities company with code 00765 at Hong Kong stock. Board lot: 2,000.

Perfected first lien
A first attachment on an asset that is duly recorded with the relevant government body so that the lender will be able to act on it should the borrower default.

Perfectly competitive financial markets
Markets in which no trader has the power to change the price of goods or services.

Performance Accelerated Restricted Stock Award Plans (PARSAPs)
Also known as performance-accelerated restricted stock ("PARS") and time-accelerated restricted stock award plans ("TARSAPs"). Grants of restricted stock or restricted stock units which may vest early upon attainment of specified performance objectives.

Performance attribution analysis
The decomposition of a money manager's performance results to explain the reasons why those results were achieved.

Performance bond
A surety bond between two parties, insuring one party against loss if the terms of a contract are not fulfilled. Usually part of a construction contract or supply agreement.

Performance evaluation
The assessment of a manager's results, which involves, first, determining whether the money manager added value by outperforming the established benchmark (performance measurement) and, second, determining how the money manager achieved the calculated return (performance attribution analysis).

Performance Food
Performance Food is a top United States corporation in the field of food, and its estimated market value is 1,270 million US dollars.

Performance fund
A growth-oriented mutual fund investing in growth stock and performance stock with low dividends and high risk.

Performance index
A risk-adjusted measure of how well a portfolio has performed.

Performance index paper
A short-term paper on which the rate is denominated and paid in a base currency.

Performance measurement
Calculation of the return a money manager realizes over some time interval.

Performance shares
Shares of stock paid out to managers only if the company makes certain sales, earnings per share, or other similar criteria.

Performance stock
High-growth stock in a company that retains earnings for further growth and therefore pays no dividends, but that an investor feels has significant future potential.



PREVIOUS AND NEXT TERMS
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Percentage premium
Applies mainly to convertible securities. Premium over parity of a convertible bond divided by parity.

Percentage price oscillator
A technical momentum indicator showing the relationship between two moving averages.

Perfect capital market
A market in which there are never any arbitrage opportunities.

Perfect competition
Exists when there are a large number of sellers and buyers, freedom to enter and leave markets, a complete flow of information, etc.

Perfect forecast line
Graph of a slope that matches the forecast of an exchange rate with the actual exchange rate.

Perfect hedge

Perfect market assumptions
Conditions under which the law of one price holds. The assumptions include frictionless markets, rational investors, and equal access to market prices and information.

Perfect market view (of capital structure)
Analysis of a firm's capital structure decision, which shows the irrelevance of capital structure in a perfect capital market.

Perfect market view (of dividend policy)
Analysis of a decision on dividend policy, in a perfect capital market environment, that shows the irrelevance of dividend policy.

Perfected first lien
A first attachment on an asset that is duly recorded with the relevant government body so that the lender will be able to act on it should the borrower default.

Perfectly competitive financial markets
Markets in which no trader has the power to change the price of goods or services.

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This dictionary contains 24549 terms.







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