Financial Dictionary

This dictionary contains:
24549
financial terms

Ratio




Ratio

The relation between two quantifies expressed as the number of times one is greater than the other.



SIMILAR TERMS
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Ratings
An evaluation of credit quality of a company's debt issue by Thomson Financial BankWatch, Moody's, S&P, and Fitch Investors Service. Investors and analysts use ratings to assess the riskness of an investment.

Ratio analysis
A way of expressing relationships between a firm's accounting numbers and their trends over time that analysts use to establish values and evaluate risks.

Ratio calendar combination
A strategy consisting of a simultaneous position of a ratio calendar spread using "calls" and a similar position using puts, where the striking price of the "calls" is greater that the striking price of the "puts".

Ratio calendar spread
Selling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls.

Ratio spread
Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.

Ratio strategy
A strategy in which one has an unequal number of long securities and short securities. Normally, it implies a preponderance of short options over either long options or long stock.

Ratio writer
An option writer who does not own the number of shares required to cover the call options he or she writes.

Rational expectations
The belief that people's expectations compensate for, and render useless, interventionist government policy.

Rationalization
A reorganization of a company in order to increase its efficiency.

Rationalize
To eliminate unnecessary employees, equipment, processes, etc. from a company or factory to make it more efficient.



PREVIOUS AND NEXT TERMS
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Rate of return
The amount of profit, interest or dividend received from an investment, expressed as a percentage.

Rate of return ratios
Ratios that measure the profitability of a firm in relation to various measures of investment in the firm.

Rate of vhange
The speed at which a variable changes over a specific period of time.

Rate risk
In banking, the risk that profits may drop or losses occur because a rise in interest rates forces up the cost of funding fixed-rate loans or other fixed-rate assets.

Ratings
An evaluation of credit quality of a company's debt issue by Thomson Financial BankWatch, Moody's, S&P, and Fitch Investors Service. Investors and analysts use ratings to assess the riskness of an investment.

Ratio

Ratio analysis
A way of expressing relationships between a firm's accounting numbers and their trends over time that analysts use to establish values and evaluate risks.

Ratio calendar combination
A strategy consisting of a simultaneous position of a ratio calendar spread using "calls" and a similar position using puts, where the striking price of the "calls" is greater that the striking price of the "puts".

Ratio calendar spread
Selling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls.

Ratio spread
Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.

Ratio strategy
A strategy in which one has an unequal number of long securities and short securities. Normally, it implies a preponderance of short options over either long options or long stock.

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This dictionary contains 24549 terms.







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