Datasets:
sohomghosh
/
FinRAD_Financial_Readability_Assessment_Dataset

Dataset card Data Studio Files Community
1
terms
stringlengths
1
156
definitions
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3
4.2k
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stringclasses
15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
73
gunning_fog
float64
0.4
56
COVERED POSITION
An outright LONG POSITION or SHORT POSITION that is protected by an offsetting HEDGE. Depending on the nature of the hedge, a covered position may have only negligible MARKET RISK and CREDIT RISK exposures. See also NAKED POSITION.
palgrave
0
50.12
9.4
13
10.83
9
9.67
8.333333
11.4
COVERED PUT
An OPTION position where the seller of a PUT OPTION already has sufficient cash on hand to purchase the UNDERLYING ASSET ifthe buyer EXERCISES the option. Selling covered puts is a relatively low RISK way of generating PREMIUM income since the cash is available to cover the exercise. See also COVERED CALL, COVERED OPTION, NAKED PUT.
palgrave
0
44.03
11.8
12.5
11.08
11.4
10.2
12
13.19
COVERED WRITER
The seller of a COVERED OPTION that either owns the UNDERLYING ASSET (deliverable under a CALL OPTION) or has sufficient cash on hand to acquire the asset (under a PUT OPTION) should EXERCISE occur. A covered writer seeks to earn PREMIUM income on a relatively low RISK basis. See also NAKED WRITER.
palgrave
0
53.92
10
11.2
9.28
9.7
9.96
10.666667
11.54
CP
See COMMERCIAL PAPER.
palgrave
0
34.59
9.2
0
9.23
9.9
9.05
1.5
14.53
CPA
See CERTIFIED PUBLIC ACCOUNTANT.
palgrave
0
8.2
13.1
0
17.4
14.7
11.73
3
21.6
CPDO
See CONSTANT PROPORTION DEBT OBLIGATION.
palgrave
0
32.56
10
0
18.88
15
16.52
3.5
18
CPI
See CONSUMER PRICE INDEX.
palgrave
0
75.88
3.7
0
7.25
6.5
11.73
1
1.6
CPPI
See CONSTANT PROPORTION PORTFOLIO INSURANCE.
palgrave
0
-1.29
14.7
0
23.52
18.8
16.52
4.5
26
CPR
See CONDITIONAL PREPAYMENT RATE.
palgrave
0
8.2
13.1
0
17.4
14.7
11.73
3
21.6
CRACK SPREAD
A SPREAD in the energy market reflecting the price differential between crude oil and a refined product, generally gasoline or heat- ing oil; the spread can be traded through a single FUTURE or OPTION on cer- tain EXCHANGES. A HEDGER or SPECULATOR can buy the crack spread (e.g., purchase crude and sell heating oil or gas) to take advantage of positive mar- gins in refining, and sell the spread (e.g., sell crude and purchase heating oil or gas) to profit from negative margins. See also CRUSH SPREAD, SPARK SPREAD.
palgrave
0
58.25
12.5
13
9.99
16.1
10.25
17.833333
15.92
CRAMDOWN
A process where CREDITORS with existing CREDIT RISK to a company that has filed a REORGANIZATION plan under BANKRUPTCY protection choose not to participate in the new plan and have their interests demoted or “crammed down.” A bankruptcy court can approve cramdown if at least one creditor agrees to the repayment plan and the plan does not discrim- inate among participating creditor claims.
palgrave
0
7.53
27.9
0
13.59
34.7
12.28
45.5
32.18
CRAWLING PEG
A FOREIGN EXCHANGE PEGGING process based on offi- cial CENTRAL BANK intervention activity that adjusts the value of the local CURRENCY through small preannounced changes or average target rates over a period of time. The crawling feature avoids sudden jumps or VOLATILITY characteristic of DEPRECIATION or DEVALUATION, but may still be difficult and expensive to maintain over the long term. Also known as ADJUSTABLE PEG. See also MANAGED FOREIGN EXCHANGE RATE.
palgrave
0
44.95
11.4
13
13.86
13.4
11.41
11.875
13.88
CREDIT
(1) A LOAN, FINANCING, or other form of BORROWING. (2) Payment into an ACCOUNT. (3) An ACCOUNTING entry in a DOUBLE ENTRY ACCOUNTING system that reflects a decrease in ASSETS or an increase in LIABILITIES or CAPITAL. A credit balance also represents liabilities or reve- nues. (3) See also DEBIT.
palgrave
0
37.64
14.2
0
9.81
14.3
10.88
16.5
14
CREDIT ANALYST
An analyst working for a BANK, CREDIT RATING AGENCY, or other FINANCIAL INSTITUTION that is responsible for analyz- ing the financial state and prospects of a company that is an ISSUER of DEBT or a borrower via CREDIT facilities. The output is used in accordance with the function of the credit analyst, which may be to establish an internal CREDIT RATING and recommend a credit decision, establish an external credit rating, or develop a recommendation on whether to buy, sell, or retain the company’s debt. See also EQUITY ANALYST, INVESTMENT ANALYST.
palgrave
0
23.8
17.5
19.3
12.08
17.7
10.52
23.166667
20.03
CREDIT CARD
A card issued by a BANK or FINANCIAL INSTITUTION that conveys a CREDIT line to the holder and allows the purchase of goods or ser- vices on a credit basis. The resulting balance may be paid off by the holder immediately or over time, with INTEREST charges accruing on any unpaid balance. The credit line granted to the holder is, in most instances, unsecured. See also CHARGE CARD, DEBIT CARD.
palgrave
0
62.17
8.9
10.7
8.52
9.1
9.24
10.5
11
CREDIT CONTROL
A government policy of controlling aggregate economic DEMAND by restricting access to CREDIT, generally by influencing INTEREST RATES, limiting the total amount of speculative LENDING, and setting min- imum RESERVE requirements for BANKS.
palgrave
0
4.14
20.9
0
18.63
24.5
15.32
28.5
26.53
CREDIT DEFAULT MODEL
An analytic model that is used to determine credit losses based on the PROBABILITY a COUNTERPARTY will DEFAULT at a future time. See also CREDIT DEFAULT RISK, CREDIT MARK-TO-MARKET MODEL, INTENSITY MODEL, STRUCTURAL MODEL.
palgrave
0
28.84
13.5
0
13.45
13.3
10.52
11.5
12.68
CREDIT DEFAULT RISK
The RISK of loss arising from a COUNTERPARTY’s failure to perform on its contractual obligations, including DERIVATIVES, LOANS, BONDS, and other credit-sensitive instruments. Also known as DEFAULT RISK. See also CREDIT INVENTORY RISK, CREDIT RISK, CREDIT SPREAD RISK.
palgrave
0
41.66
10.6
12.5
15.41
13.4
10.91
8
13.5
CREDIT DEFAULT SWAP INDEX
A POOL of CREDITS that is used as a reference in a CREDIT DEFAULT SWAP transaction or an INDEX TRANCHE structure. ITRAXX INDEXES have emerged as the industry standard for liquid TRADING, though bespoke credit indexes also exist.
palgrave
0
52.19
10.7
0
11.43
11.8
12.06
12
11.81
CREDIT DERIVATIVE
An OVER-THE-COUNTER DERIVATIVE with an UNDERLYING reference that is based on the credit performance of a REFERENCE CREDIT. Credit derivatives are available in various forms, includ- ing the BASKET SWAP, CREDIT DEFAULT OPTION, CREDIT DEFAULT SWAP,CREDIT FORWARD, CREDIT SPREAD OPTION, FIRST-TO-DEFAULT SWAP, Nth-TO-DEFAULT SWAP and TOTAL RETURN SWAP. See also COMMODITY DERIVATIVE, CURRENCY DERIVATIVE, EQUITY DERIVATIVE, INTEREST RATE DERIVATIVE, REFERENCE ENTITY, REFERENCE OBLIGATION, SYNTHETIC COLLATERALIZED DEBT OBLIGATION.
palgrave
0
-1.93
19.1
19.9
21.01
22.2
10.87
19.833333
17.28
CREDIT FORWARD
A single period OVER-THE-COUNTER FORWARD CONTRACT that generates a payoff based on the difference between anagreed CREDIT SPREAD (or price) and the terminal credit spread (price) of a REFERENCE CREDIT. See also CREDIT DERIVATIVE.
palgrave
0
37.3
12.3
0
14.5
14.2
9.12
12
12.68
CREDIT INVENTORY RISK
The RISK of loss arising from a borrower’s finan- cial deterioration (reflected in a widening of its CREDIT SPREAD) and/or its failure to perform on a LOAN or BOND obligation (reflected in DEFAULT). See also CREDIT DEFAULT RISK, CREDIT SPREAD RISK.
palgrave
0
50.67
11.3
0
10.85
12.7
10.05
12.75
12.1
CREDIT RESERVE
A CONTRA-ACCOUNT that is used to fund EXPECTED CREDIT LOSSES. Reserves are established by deducting required amounts from OPERATING REVENUES or current income, and are used when a COUNTERPARTY ceases to perform on a contractual obligation, such as a LOAN, BOND, payable, or DERIVATIVE. See also LOAN LOSS RESERVE.
palgrave
0
46.47
10.8
13
12.7
12.2
11.53
11.166667
13.05
CREDIT RISK
The RISK of loss arising from a COUNTERPARTY’s failure to perform on a contractual obligation (CREDIT DEFAULT RISK) or from credit deterioration (CREDIT SPREAD RISK). Credit risk, which is a form of FINANCIAL RISK, can be subcategorized into CORRELATED , CONTINGENT , DIRECT , SETTLEMENT RISK, SOVEREIGN RISK (COUNTRY RISK), and TRADING .
palgrave
0
21.23
16.4
0
15.09
18.3
10.01
18.25
17.15
CREDIT SCORE
A numeric score, assigned to an individual that has or is seek- ing CREDIT, representing a relative degree of creditworthiness. Credit scores are typically provided by one of several recognized credit bureaus, which spe- cialize in gathering and analyzing credit-related data, including payment time- liness, income, past DEFAULTS, and so forth. See also CREDIT RATING.
palgrave
0
27.52
14
15
14.45
14.7
11.43
13.5
16.05
CREDIT SPREAD
(1) A measure of the RISK PREMIUM a CREDIT-risky cor- porate or sovereign entity must pay to attract CAPITAL. The spread is generally
palgrave
0
51.34
9
0
8.27
7.1
11.76
7.25
11.56
CREDIT SPREAD RISK
The RISK of loss arising from a deterioration in an entity’s CREDITWORTHINESS, generally reflected by a widening in the CREDIT SPREAD. See also CREDIT DEFAULT RISK, CREDIT INVENTORY RISK,CREDIT RISK.
palgrave
0
30.87
12.7
0
14.03
12.8
10.17
11
14
CREDIT SQUEEZE
A series of measures enacted by a CENTRAL BANK or monetary authority to control the MONEY SUPPLY of the country. Such policies may include raising INTEREST RATES, increasing RESERVE REQUIREMENTS, and/or imposing other restrictions on the creation of BANK-generated CREDIT.
palgrave
0
25.8
14.6
0
15.66
16
12.92
14.5
17
CREDIT SUPPORT ANNEX (CSA)
An attachment to the MASTER AGREEMENT framework set forth by the INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION that defines CREDIT terms between two COUNTERPARTIES, including credit thresholds, COLLATERAL requirements, and credit termination events.
palgrave
0
-3.31
21.7
0
22.46
27
13.61
25
24.05
CREDIT UNION
A form of BANK, generally structured as a cooperative organ- ization, that accepts DEPOSITS from, and grants LOANS to, its members.
palgrave
0
50.16
11.5
0
11.72
14
11.45
12.5
12.21
CREDITOR
A party that lends money. See also DEBTOR.
palgrave
0
84.34
2.5
0
0.75
1.2
7.78
1
1.6
CREDITOR COMMITTEE
A group, formed by institutions that have a finan- cial CLAIM on a company that has filed for BANKRUPTCY, which coordinates actions in order to maximize value in LIQUIDATION or REORGANIZATION.
palgrave
0
23.09
17.7
0
12.89
18.7
11.29
22.5
20.14
CREDITWORTHINESS
A measure of the financial strength of an individual or company, and the resulting ABILITY TO PAY on any extension of CREDIT.
palgrave
0
40.69
13.1
0
9.63
11.8
9.75
17
17.89
CREEPING TAKEOVER
See CREEPING TENDER.
palgrave
0
59.97
5.6
0
7.32
8.3
14.31
0.5
1.2
CREEPING TENDER
A CORPORATE FINANCE transaction where an INVESTOR group or acquiring company gradually purchases the COMMON STOCK of a TARGET company. Once a specified block has been accumulated a formal TENDER OFFER is made for the balance of the company’s SHARES. Also known as CREEPING TAKEOVER.
palgrave
0
47.79
10.3
13.6
12.4
11
10.7
10.833333
13.11
CREST
In the United Kingdom, an electronic platform used for the SETTLEMENT of SHARES that eliminates manual and paper-driven processes. The platform was original created by the BANK OF ENGLAND and is now owned and operated by EUROCLEAR.
palgrave
0
44.24
11.7
0
12.65
12.6
9.25
14.25
16.05
CROSS
The process of executing a TRADE that has been MATCHED, often used in the context of off-EXCHANGE TRADING. See also ING NETWORK, DARK POOL, MATCH.
palgrave
0
75.71
5.8
0
8.74
7.8
8.68
6.25
6.6
CROSS-ASSET HEDGE
A proxy or substitute HEDGE that is used when an exact replicating hedge is not available, generally by identifying a refer- ence (e.g., a DERIVATIVE) that has a high degree of CORRELATION with the underlying RISK exposure requiring protection. Although a highly correlated cross-asset hedge introduces elements of BASIS RISK, it reduces or eliminates first-order MARKET RISKS, including DIRECTIONAL RISK or VOLATILITY RISK. Also known as CROSS HEDGE.
palgrave
0
31.51
14.5
16.7
14.57
16.5
12.19
17
19.08
CROSS COLLATERAL AGREEMENT
A single COLLATERAL agreement that covers multiple LOANS or CREDIT facilities. Also known as DRAGNET CLAUSE. See also POOLED PORTFOLIO COLLATERAL, TRANSACTION-SPECIFIC COLLATERAL.FOREIGN EXCHANGE RATE.
palgrave
0
12.29
13.6
11.9
20.32
16.1
12.89
5.5
12.92
CROSS-DEFAULT CLAUSE
A clause in a LOAN, BOND, or DERIVATIVE agreement indicating that a technical DEFAULT on one obligation triggers a technical default in all other obligations. Cross-default clauses are commonly used in CREDIT agreements and MASTER AGREEMENTS.
palgrave
0
36.28
12.7
0
14.96
14.7
10.67
13
13.87
CROSS HEDGE
See CROSS-ASSET HEDGE.
palgrave
0
93.81
0.9
0
9.23
11.5
14.31
0.5
1.2
CROSS-MARGIN AGREEMENT
An agreement between two or more EXCHANGES that permits MARGIN requirements to be computed on a net, rather than gross, basis. Such an agreement avoids “double counting” of mar- gins for LONG POSITIONS and SHORT POSITIONS, allowing clients to use their ASSETS more efficiently.
palgrave
0
57.61
10.7
0
12.76
14.6
10.83
14
13.35
CROSS RATE
A FOREIGN EXCHANGE RATE between two CURRENCIES that does not involve the US dollar.
palgrave
0
65.73
7.6
0
10.72
9.1
7.71
7
8.46
CROSS SHAREHOLDING
Minority stakes held by two companies in each other; this is often done to help strengthen long-term business relationships, and is particularly prevalent in RELATIONSHIP MODEL countries such as Germany and Japan.
palgrave
0
30.54
17
0
15.56
21.4
11.14
21
19.05
CROSSED TRADE
A practice where ORDERS to buy and sell listed SECUR- ITIES are matched without being channeled through an EXCHANGE; once crossed, the details may be reported to the exchange. Crossed trades are not permitted in certain market jurisdictions as they are thought to reduce trans- parency and leave open the possibility for unfair pricing practices.
palgrave
0
52.02
12.8
0
13.18
17.3
10.46
15.75
13.91
CROSSING (
1) The process of executing buy and sale trades that have been MATCHED. (2) In the United Kingdom, a process where a BROKER or DEALER buys and then sells the same SECURITIES, without exposing them first to the market.(2) See also WASH SALE.
palgrave
0
53.21
16.5
0
8.95
21.7
10.18
24.5
19.99
CROSSOVER DISCOUNT RATE
The DISCOUNT RATE which yields iden- tical NET PRESENT VALUES for two different CAPITAL INVESTMENT projects.
palgrave
0
63.7
8.4
0
15.43
13.9
11.34
11
8.9
CROSSOVER INVESTOR
An INVESTOR that invests in a company before it goes public, and continues to do so during the INITIAL PUBLIC OFFERING stage and once it is a publicly listed company.
palgrave
0
41.03
15
0
9.41
15.1
8.81
19
14.67
CROWDED TRADE
An INVESTMENT or TRADE in a particular ASSET that has attracted a significant amount of interest and speculative CAPITAL, causing its price to move quickly and sharply. A crowded trade may be OVERBOUGHT and due for a CORRECTION.
palgrave
0
52.19
10.7
0
11.43
11.8
9.15
13.5
14.97
CROWN JEWEL DEFENSE
An ANTITAKEOVER DEFENSE used by a company seeking to avoid a future HOSTILE TAKEOVER by another company. In the event a hostile takeover is successful the crown jewel provision in the company’s bylaws automatically triggers the sale of valuable corporate ASSETS, leaving the acquiring company with less value than anticipated. By publicizingin advance the existence of a crown jewel provision, a company hopes to deter any potential takeover attempts.
palgrave
0
31.21
14.6
16.7
14.8
16.2
10.5
17.166667
15.58
CROWN JEWELS
A company’s most productive and/or profitable ASSETS/operations. See also CROWN JEWEL DEFENSE.
palgrave
0
14.63
12.7
0
17.33
14.2
11.83
3.5
12.4
CSA
See CREDIT SUPPORT ANNEX.
palgrave
0
50.5
7.2
0
7.25
6.5
15.68
1
1.6
CTA
See COMMODITY TRADING ADVISOR.
palgrave
0
-8.73
15.5
0
14.5
12.4
15.68
3
21.6
CTD
See CHEAPEST-TO-DELIVER.EXPONENTIAL INTERPOLATION, LINEAR INTERPOLATION.
palgrave
0
-170.49
38.3
0
51.36
45.1
19.67
4.5
26
CUMULATIVE PREFERRED STOCK
PREFERRED STOCK that includes a feature allowing any foregone or suspended DIVIDEND payments to auto- matically accumulate. When the company restarts its program, cumulative preferred stock INVESTORS are entitled to receive all accumulated dividends before dividends can be paid to COMMON STOCK or NON INVESTORS.
palgrave
0
23.26
15.6
0
17.06
17.9
11.42
16.75
17
CUMULATIVE VOTING
A form of proportional representation that permits INVESTORS to allocate all of their votes in support of a single DIRECTOR or issue; this type of voting can favor MINORITY INTERESTS as it gives them greater ability to concentrate their otherwise limited voting influence.
palgrave
0
10.91
22.4
0
14.35
25.3
12.75
32.5
26.5
CURE PERIOD
A time frame of 30 to 90 days during which a company that has gone into technical DEFAULT on a contractual payment is permitted to submit payment without further prejudice, and without being considered to have defaulted. See also GRACE PERIOD.
palgrave
0
42.21
12.5
0
11.02
12.1
9.66
14.25
15.03
CURRENCY
(1) See MONEY, (2) See FOREIGN EXCHANGE.
palgrave
0
81.29
3.7
0
3.26
5
10.75
2.5
2.8
CURRENCY BASKET
A group of CURRENCIES that may collectively be used as a reference value for another currency. Certain managed currencies in the emerging markets use currency baskets in this fashion.
palgrave
0
39.84
11.3
0
12.75
11
8.71
10.75
11.32
CURRENCY DERIVATIVE
An EXCHANGE-TRADED DERIVATIVE or OVER-THE-COUNTER DERIVATIVE with an UNDERLYING reference based on FOREIGN EXCHANGE RATES. A currency derivative can be struc- tured as a currency OPTION, currency forward, CURRENCY FUTURE, CURRENCY SWAP, or CURRENCY WARRANT. See also COMMODITY DERIVATIVE, CREDIT DERIVATIVE, EQUITY DERIVATIVE, INTEREST RATE DERIVATIVE.
palgrave
0
-3.28
17.5
17.9
19.07
17.7
10.57
14.333333
12.21
CURRENCY FUTURE
A FUTURES contract, bought or sold via an EXCHANGE, which references a specific FOREIGN EXCHANGE RATE. Currency futures are available on both CONVERTIBLE CURRENCIES and select EXOTIC CURRENCIES. See also COMMODITY FUTURE, INDEX FUTURE, INTEREST RATE FUTURE.
palgrave
0
33.61
11.6
13
15.36
12.9
10.65
8.166667
13.57
CURRENCY OVERLAY
An INVESTMENT technique related to the active management of CURRENCY exposures inherent in a PORTFOLIO of multicur- rency ASSETS, where the currency RISKS of the portfolio are managed separ- ately from the remaining MARKET RISKS of the portfolio. The currency overlay is implemented by creating a currency neutral position for the INVESTOR, and then permitting tactical flexibility that allows the portfolio manager to devi- ate from the base position in order to generate currency-based ALPHA. The overlay may be based on CARRY, momentum, and/or quantitative approaches.See TRANSLATION RISK.
palgrave
0
16.36
18.3
20.6
15.73
20.3
11.55
24
20.81
CURRENCY WARRANT
A long-dated CURRENCY OPTION (i.e., 3 to 5 years) that is typically attached to a BOND (as a BOND WITH WARRANTS). The war- rant, which can be detached and traded separately, is generally denominated in a currency that is different from the currency of underlying bond issue and is included to give the ISSUER a lower overall cost of funding.
palgrave
0
41.03
15
0
9.3
15.7
11.44
20.5
16.67
CURRENT ACCOUNT
(1) The sum of a country’s activity in net TRADE (EXPORTS less IMPORTS), INVISIBLES, receipts/remittances from abroad, inter- national payment transfers, and gifts. (2) In the United Kingdom, a CHECKING ACCOUNT. (1) See also BALANCE OF PAYMENTS, CAPITAL ACCOUNT.
palgrave
0
23.43
19.7
0
13.82
25.1
12.45
24.5
19.7
CURRENT ASSETS
Any ASSET on the BALANCE SHEET with a final MATURITY of less than one year. Common current assets include cash, mar- ketable SECURITIES (e.g., BONDS, COMMON STOCK, PREFERRED STOCK, and other INVESTMENTS), INVENTORY, and ACCOUNTS RECEIVABLE. Current assets generally exhibit a high degree of LIQUIDITY and can often be converted into cash very quickly, at a price near carrying value. Also known as CIRCULATING ASSET. See also CURRENT LIABILITIES, CURRENT RATIO.
palgrave
0
40.14
11.2
12
12.52
11.6
10.57
8.5
12.44
CURRENT CAPITAL
See WORKING CAPITAL.
palgrave
0
34.59
9.2
0
7.32
8.3
9.05
1.5
1.2
CURRENT EXPOSURE METHOD
A regulatory method of computing CREDIT RISK on a SWAP under the BANK FOR INTERNATIONAL SETTLEMENTS’ ori- ginal 1988 Capital Accord based on the sum of FRACTIONAL EXPOSURE (i.e., POTENTIAL EXPOSURE arising in the future) and ACTUAL EXPOSURE (i.e., the current or MARK-TO-MARKET value of the transaction). See alsoINTERNAL RATINGS-BASED APPROACH, ORIGINAL EXPOSURE METHOD.
palgrave
0
18.69
17.4
0
15.32
19.8
12.58
22
18.95
CURRENT ISSUE
See ON-THE-RUN SECURITIES.
palgrave
0
9.21
12.7
0
15.03
17.8
9.05
1.5
14.53
CURRENT RATIO
A measure of a company’s LIQUIDITY and its ability to meet obligations that are coming due, typically computed as:where CA is CURRENT ASSETS and CL is CURRENT LIABILITIES.A current ratio above 1.0 indicates that the company has sufficient CASH FLOW from maturing assets to meet its short-term obligations. A ratio below1.0suggests the possibility of greater LIQUIDITY RISK pressures. See alsoQUICK RATIO.
palgrave
0
25.49
14.7
16.3
14.56
15.3
10.86
15.5
15.99
CURRENT WEIGHTED INDEX
A method of computing a weighted INDEX that uses current period quantities, computed as:⎝where pc is the current period price, qc is the current period quantity, p0 is the base period price. Also known as PAASCHE’S INDEX. See also BASE WEIGHTED INDEX.
palgrave
0
57.27
8.8
12.5
10.14
9.1
9.59
8.666667
10.36
CURRENT YIELD
A current measure of the return on a INTEREST-bearing FIXED INCOME SECURITY, generally computed as:where C is the COUPON, and P is the purchase price of the security. See alsoBOND EQUIVALENT YIELD, DISCOUNT YIELD, SIMPLE YIELD, TAXABLE EQUIVALENT YIELD, YIELD TO CALL, YIELD TO MATURITY.
palgrave
0
40.18
13.2
0
12.94
15.3
10.72
15.25
14.33
CURVE RISK
The RISK of loss arising from a change in the shape of the YIELD CURVE (i.e., the TERM STRUCTURE of INTEREST RATES).Although curve risk is generally associated with interest rates, it is also evi- dent in other financial variables with a term structure, such as VOLATILITY of interest rates, FOREIGN EXCHANGE RATES, and EQUITIES. A subcategory ofMARKET RISK.
palgrave
0
42.04
14.6
0
12.14
17.5
10.25
19.5
17.12
CUSHION BOND
A CALLABLE BOND with a high COUPON that is selling for a PREMIUM. The cushion bond loses less value as rates rise and gains less value when rates fall when compared with a NONCALLABLE BOND.
palgrave
0
79.09
6.6
0
7.77
8.2
9.02
8.25
8.14
CUSIP
See COMMITTEE ON UNIFORM SECURITIES IDENTIFICATION PROCEDURES.
palgrave
0
-28.7
19
0
25.64
19.8
13.01
6.5
25.66
CUSTODIAN
An AGENT that performs various duties on behalf of a client, including holding SECURITIES in safe CUSTODY, executing financial transac- tions under specific instructions, and collecting periodic CASH FLOWS fromINVESTMENTS.
palgrave
0
7.19
19.7
0
19.68
23.9
15.65
25
25.33
CUSTODY
The act of holding SECURITIES or other ASSETS in safekeep- ing for another party. BANKS often provide custody services to their clients, reducing the inefficiency, inconvenience, and possible danger of conveying assets between locations/accounts. Also known as GLOBAL . See alsoCUSTODIAN.
palgrave
0
15.68
14.4
13
16.52
14.4
11.4
8.833333
12.32
CUSTOMER MARGIN
MARGIN posted by a FUTURES COMMISSION MERCHANT or client with a CLEARING MEMBER to cover the requirements of TRADES that have been executed and temporarily covered by the member’s own CLEARING MARGIN.
palgrave
0
30.54
17
0
13.76
19.4
11.64
20
17.8
CUSTOMS UNION
A confederation of two or more countries that agree to eliminate DUTIES on IMPORTS and EXPORTS on goods and services within the confederation.
palgrave
0
39.67
13.4
0
13
14.7
10.27
14.5
12.68
CUTTING THE MELON
The process of granting current SHAREHOLDERS of a company’s COMMON STOCK a SPECIAL DIVIDEND (in SHARES or cash). The process is periodically used as a means of returning excess CAPITAL to INVESTORS.
palgrave
0
46.78
10.7
0
11.95
11.2
10.84
11
12.65
CYCLICAL STOCK
The STOCK of a company that tracks very closely the BUSINESS CYCLE, i.e., declining in price during an economic slowdown or RECESSION and rising during an economic expansion.
palgrave
0
34.6
15.4
0
12.42
17.3
10.1
20
16.91
CYLINDER
See ZERO COST COLLAR.
palgrave
0
75.88
3.7
0
1.45
1.8
7.78
1
1.6
D&O COVER
See DIRECTOR AND OFFICER INSURANCE COVER.DELIVERY VERSUS PAYMENT.
palgrave
0
4.14
14.7
0
20.95
16.7
11.93
7
18.2
DAIMYO
[JPN, COL] A public BOND issued in Japanese yen by a non-Japanese company. Daimyos are generally listed on the Luxembourg Stock Exchange. See also GEISHA, SAMURAI, SHIBOSAI, SHOGUN.
palgrave
0
62.04
6.9
10.5
10.76
9.1
12.56
5.333333
9.43
DAISY CHAIN
An illegal TRADING scheme where a group of manipu- lators trade a company’s COMMON STOCK among themselves in order to cre- ate the illusion of activity. Unsuspecting INVESTORS are lured into the scheme and bid prices up further, until a point where the manipulators sell their posi- tions at a profit and leave remaining investors with losses as the market falls. Daisy chains are generally only possible in SECURITIES with relatively small FREE FLOAT and TRADING volume. Also known as PAINTING THE TAPE. See also PUMP AND DUMP.
palgrave
0
53.61
10.2
11.6
10.9
11
9.35
11
11.59
DAMAGES
The financial compensation awarded by the courts to a plaintiff for losses, breach of CONTRACT, or infringement of protected RIGHTS. The compensation may equal the amount of financial loss sustained, or it may be set as some multiple of that amount. See also LIQUIDATED , STATUTORY , UNLIQUIDATED .
palgrave
0
47.49
10.4
13.6
12.64
11.8
9.89
11.5
13.08
DARK ALGORITHM
An ALGORITHM that is specifically designed to detect, and interact with, a DARK POOL.
palgrave
0
57.27
8.8
0
10.72
9.8
9.97
9
14.17
DARK LIQUIDITY
See NONDISPLAYED LIQUIDITY.
palgrave
0
9.21
12.7
0
20.83
19.3
14.31
1.5
14.53
DATED SECURITY
Any SECURITY that has a defined MATURITY. See alsoPERPETUAL DEBT, UNDATED SECURITY.
palgrave
0
-2.3
15.1
0
12.52
9.8
11.83
4.5
15.73
DAX
See DEUTSCHE AKTIENINDEX.
palgrave
0
59.97
5.6
0
16.95
16.2
14.31
1.5
14.53
DAY COUNT CONVENTION
A mechanism for computing COUPON pay-ments/receipts on a FIXED INCOME SECURITY. Day count conventions, whichvary by instrument, market, and country, are based on the period betweenCOUPON payments, the number of days in the month, and number of the•Actual/360, which computes the actual number of days between two cou- pon dates and assumes the year has 360 days.•Actual/365, which computes the actual number of days between two cou- pon dates and assumes the year has 365 days.•Actual/actual, which computes the actual number of days between two cou- pon dates and assumes the year has 365 days or 366 days (depending on leap year).•30/360, which assumes that each month has 30 days and the year has 360 days (a European version of this modifies the end-of-month computation).
palgrave
0
16.5
26.5
0
12.49
34.4
10.53
32.5
28.84
DAY COUNT NOTE
See RANGE FLOATING RATE NOTE.
palgrave
0
100.24
0.5
0
6.12
4.6
10.2
1.5
2
DAY ORDER
A LIMIT ORDER for the purchase or sale of SECURITIES that is automatically cancelled if it is not executed during the trading day. See alsoGOOD TILL CANCELLED ORDER.
palgrave
0
40.35
11.1
0
10.32
8.8
8.84
8
11.31
DAY TRADING
The process of actively buying and selling SECURITIES throughout the day but holding little or no OPEN POSITION at market close; the practice was initially popularized by the advent of ELECTRONIC COMMUNICATIONS NETWORKS and Internet-based TRADING platforms. See also SWING TRADING.
palgrave
0
33.75
13.6
0
16.24
16.5
11.97
14.25
16
DAYLIGHT OVERDRAFT
An intraday LOAN created when a BANK transfers funds in excess of its balance held in a RESERVE account with the CENTRAL BANK. OVERDRAFTS may also occur in the accounts of interbank payment members and in correspondent BANKS.
palgrave
0
52.19
10.7
0
11.08
11.4
10.81
11.5
11.81
DAYLIGHT RISK
The RISK of loss arising from failure by a party to a CONTRACT to receive, within the same business day, cash or ASSETS after it has already delivered assets or cash to another party. Also known as DAYLIGHT EXPOSURE. See also SETTLEMENT RISK.
palgrave
0
65.42
7.7
9.7
8.4
7.6
7.65
7.5
7.58
DAYS PAYABLES OUTSTANDING
A measure of a company’s CASH FLOW CYCLE, reflecting the number of days it takes for a company to pay cash for its outstanding ACCOUNTS PAYABLE. It is computed as:where AP is the company’s accounts payable balance, CPday is the company’s average CREDIT purchases per day.The higher the ratio, the longer the company takes to pay cash for its pur- chases.
palgrave
0
48.98
14
0
10.51
16.5
10.59
20.25
16.13
DAYS SALES INVENTORY
A measure of a company’s INVENTORY cycle, or the number of days of inventory it has on hand to meet sales demand. It is computed as:where Inv is the company’s inventory on hand, ready for sales (i.e., the FINISHED GOODS INVENTORY), CGSday is the company’s average day’s COST OF GOODS SOLD.The higher the ratio, the longer it takes to convert inventory into cash.
palgrave
0
39.5
15.6
0
9.76
16.7
9.71
20.75
15.14
DAYS SALES OUTSTANDING
A measure of a company’s CASH FLOW CYCLE, reflecting the number of days its takes for a CREDIT sale to be con- verted into cash. It is computed as:where AR is the company’s ACCOUNTS RECEIVABLE balance, CSday is the company’s average credit sales per day.The higher the ratio, the longer it takes to convert sales into cash.
palgrave
0
51.01
13.2
0
9.35
14.9
10.87
17.75
14.91
DCF
See DISCOUNTED CASH FLOW.
palgrave
0
75.88
3.7
0
7.25
6.5
7.78
2
11.6
DEAD CAT BOUNCE
A temporary recovery in a market or SECURITY following a steady or sharp decline; the recovery is typically fleeting and the downward trajectory generally continues.
palgrave
0
12.26
17.8
0
15.26
17.6
11.82
21.5
21.2