Datasets:
sohomghosh
/
FinRAD_Financial_Readability_Assessment_Dataset

Dataset card Data Studio Files Community
1
terms
stringlengths
1
156
definitions
stringlengths
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
MID-MARKET
The midpoint of a BID and OFFER on an ASSET. Also known as MID-PRICE.
palgrave
0
81.29
3.7
0
2.04
0.9
7.37
2.5
2.8
MID-PRICE
See MID-MARKET.
palgrave
0
35.61
8.8
0
4.2
12.5
11.63
1
0.8
MIDDLE OFFICE
A group of functions found in BANKS, SECURITIES FIRMS and INVESTMENT BANKS that center on verifying pricing of TRADES and providing technology and infrastructure support to TRADERS.
palgrave
0
35.61
15
0
15.9
19.1
12.58
19.5
19.69
MIDGET
A 15-year GOVERNMENT NATIONAL MORTGAGE ASSOCIATION PASS-THROUGH SECURITY. See also DWARF, GNOME.
palgrave
0
23.09
11.5
0
17.85
14.9
11.83
4
12.4
MIFID
See MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE.
palgrave
0
14.63
12.7
0
18.78
14.5
14.46
5
22.4
MIGRATION
See RATING .
palgrave
0
35.61
8.8
0
-4.51
3.1
11.63
0.5
0.8
MINIMUM FLUCTUATION
The smallest price movement on a SECURITY or DERIVATIVE, typically set in relation to the specific characteristics of an ASSET or market. See also TICK VALUE.
palgrave
0
32.9
11.9
0
10.83
9.2
9.75
8.5
14.43
MINIMUM FUNDING REQUIREMENT
In the United Kingdom, a require- ment that the ASSETS of a PENSION not be less than 90% of its LIABILITIES.
palgrave
0
67.08
9.1
0
5.92
8.8
9.19
11.5
10.3
MINIMUM SUBSCRIPTION
The minimum size (in value terms) of a NEW ISSUE of STOCK or a RIGHTS OFFERING that must be raised in order for the transaction to proceed. If the minimum subscription amount is not met, the transaction is cancelled.
palgrave
0
68.6
8.5
0
8.47
9.8
8.65
12.75
11.9
MINORITY CONTROL
A process or structure where a small group of INVESTORS cooperates to gain effective control of a company; this is gener- ally accomplished by attracting enough PROXIES from diffuse owners and can only work if no other large block holder exists. See also LEGAL MECHANISM CONTROL, MAJORITY CONTROL, MANAGEMENT CONTROL, MINORITY INTEREST, TOTAL CONTROL, VOTING TRUST CONTROL.
palgrave
0
25.63
16.8
0
14.34
19
11.14
19.25
17.72
MINORITY INTEREST
An ownership stake of less than 50% in a com- pany, which leaves SHAREHOLDERS with no effective control of manage- ment. A minority interest arises when a CONTROLLING INTEREST is held by another party. Also known as MINORITY OWNERSHIP. See also MINORITY CONTROL.
palgrave
0
43.59
9.9
12.6
10.13
8.1
9.68
7.125
9.9
MINORITY OWNERSHIP
See MINORITY INTEREST.
palgrave
0
-24.64
17.4
0
11.15
11.5
14.31
2.5
27.87
MINORITY PROTECTION
See MINORITY SHAREHOLDER RIGHTS.
palgrave
0
8.2
13.1
0
17.4
14.7
15.68
3
21.6
MINORITY SHAREHOLDER RIGHTS
A set of rights accorded to the MINORITY SHAREHOLDERS to ensure that they are not treated unfairly by the MAJORITY INTERESTS. Specific rights vary by jurisdiction, but include access to FINANCIAL STATEMENTS, ability to take legal actions, and so forth. Also known as MINORITY PROTECTION.
palgrave
0
39.33
11.5
14.6
12.69
11.5
11.4
11.5
15.78
MINUS TICK
Sale of a SECURITY at a price that is lower than the prior trans- action, generally indicated through the display of a “-“ next to the screen or tape price. In some jurisdictions a SHORT SALE cannot be initiated on a minus tick. Also known as DOWNTICK. See also PLUS TICK, ZERO PLUS TICK, ZERO .
palgrave
0
65.93
7.5
9.5
6.49
6
8.34
7.25
9.16
MISMATCH
A state where a BANK’s RATE-SENSITIVE ASSETS and RATE- SENSITIVE LIABILITIES are not perfectly matched with regard to MATURITY or DURATION. A mismatch implies the existence of LIQUIDITY RISK, INTEREST RATE RISK, and/or CURVE RISK, but may generate a greater RETURN on invested CAPITAL. See also GAP, GAPPING, MATCHED BOOK, UNMATCHED BOOK.
palgrave
0
45.46
11.2
14.6
13.11
13.2
10.87
12.666667
14.61
MISREPRESENTATION
An untrue statement of fact that is made by a party in entering into a CONTRACT, and which may result in losses or damages tothe other party. The misrepresentation may be negligent (indicating that the party makes the statement without any reason to believe it is untrue) or fraudu- lent (indicating that the party makes the statement knowing that it is untrue). See also FRAUD, RESCISSION.
palgrave
0
49.15
11.9
10.5
10.39
12.7
8.79
12.666667
11.22
MIXED LOT
A total ORDER comprised of ROUND LOTS and ODD LOTS. See also BOARD LOT, LOT.
palgrave
0
89.24
2.7
0
3.15
1.8
7.17
2.75
3
MLP
See MASTER LIMITED PARTNERSHIP.
palgrave
0
8.2
13.1
0
15.95
13.5
11.73
3
21.6
MNC
See MULTINATIONAL CORPORATION.
palgrave
0
-50.02
21
0
26.63
24
14.31
2.5
27.87
MOB SPREAD
See MUNICIPALS OVER BONDS SPREAD.
palgrave
0
66.4
5.2
0
10.76
8.4
10.2
2.5
10
MOCHIAI
The network of cross-SHAREHOLDINGS held by KEIRETSU companies.
palgrave
0
46.44
8.8
0
18.81
15
11.93
5
13.2
MODE
The value of a series of observations that occurs with greatest fre- quency. See also MEAN, MEDIAN.
palgrave
0
62.85
6.6
0
7.62
5.8
10.56
4.25
8.11
MODEL
A mathematical framework used by a BANK, INSURER, INVESTMENT MANAGER, or other FINANCIAL INSTITUTION to perform specific financial computations, such as pricing DERIVATIVES or other instruments or deter- mining a quantum of RISK. While often useful, such computations are prone to RISK.
palgrave
0
16.32
16.2
0
15.43
16.5
11.07
16.5
16.97
MODIFIED DURATION
A common measure of DURATION, or the average CASH FLOWS of a FIXED INCOME instrument, which estimates the change in the value of the instrument for a small change in YIELD.of a specific rate reinvested CASH FLOWS. Unlike the NET PRESENT VALUE computation, which reinvests at the project’s COST OF CAPITAL, and stand- ard internal rate of return computation, which reinvests at the internal rate of return, the MIRR uses specific rates for cash inflows.
palgrave
0
33.41
17.9
0
11.79
21.1
9.71
25.75
19.8
MODIFIED LADDER OPTION
See FIXED STRIKE LADDER OPTION.MATURITY DATE.
palgrave
0
31.55
10.4
0
15.88
13
14.46
3
9.07
MODIFIED SHOUT OPTION
See FIXED STRIKE SHOUT OPTION.Additional reference: Miller and Modigliani (1958).
palgrave
0
52.87
8.4
0
20.1
17.5
16.76
6
12
MOF
See MULTIPLE OPTION FACILITY.
palgrave
0
-8.73
15.5
0
13.05
11.2
15.68
3
21.6
MOMENT
In statistical theory, operators that describe the shape of a distri- bution. In general, theFirst moment is 0Second moment is the VARIANCEThird moment is SKEWNESSFourth moment is KURTOSISAlso known as CENTRAL MOMENT.
palgrave
0
38.32
11.9
0
15.25
13.9
9.86
11
12.65
MOMENTUM INDICATOR
A TECHNICAL ANALYSIS measure used to gauge the speed of upward and downward movements in a SECURITY or market INDEX. Common momentum measures include relative strength indicators, MOVING AVERAGES, and convergence/divergence metrics.
palgrave
0
21.4
14.3
0
17.98
16.1
13.31
12
17.65
MOMENTUM TRADING
A TRADING strategy that is based purely on the short-term movement and momentum of a SECURITY or INDEX rather than on FUNDAMENTAL ANALYSIS or TECHNICAL ANALYSIS. See also MOMO,NEGATIVE MOMENTUM TRADING, POSITION TRADING, SWING TRADING.
palgrave
0
28.33
13.7
0
14.73
14.4
10.82
13.75
16.14
MOMO
A TRADER or INVESTOR engaged in MOMENTUM TRADING.
palgrave
0
46.44
8.8
0
10.11
7.3
13.9
4
8.2
MONETARISM
A theory of ECONOMICS popularized by economist Milton Friedman indicating that MONEY SUPPLY is the driving force in determining national output and INFLATION, and that policies should be geared toward ensuring an equilibrium in SUPPLY and DEMAND for MONEY.Additional reference: Friedman and Schwartz (1963).
palgrave
0
1.44
24
0
17.6
28.8
14.07
34
28.51
MONETARY BASE
The core amount of MONEY circulating in a national sys- tem, precise measurement of which can vary by country and desired breadth. In a narrow sense it includes notes and coins and BANK RESERVES held with the CENTRAL BANK or monetary authority; a broader definition also includes customer DEPOSITS held by BANKS. See also M0, M1, M2, M3.
palgrave
0
60.35
9.6
11.2
9.81
11
11.4
11.666667
11.86
MONETARY INFLATION
An expansion in a country’s MONEY SUPPLY which, under MONETARISM, leads to an increase in INFLATION.
palgrave
0
46.78
10.7
0
12.18
11.6
11.34
11
13.9
MONETARY POLICY COMMITTEE (MPC)
In the United Kingdom, a committee within the BANK OF ENGLAND that meets monthly to consider MONETARY POLICY and economic issues, culminating in a decision on set- ting of INTEREST RATES.
palgrave
0
31.55
16.6
0
11.96
17.9
12.81
23.5
22.72
MONEY
(1) A MEDIUM OF EXCHANGE which is in circulation in the finan- cial system. A narrow definition of includes paper and coins, while a broader definition includes measures such as M1, M2, and M3. (2) A medium of exchange used in a particular country. (1,2) Also known as CURRENCY. See also FIAT .
palgrave
0
53.92
10
10.5
7.65
9.1
9.96
10.5
10
MONEY AT CALL
Secured funds lent by BANKS, BROKERS, DEALERS, and other FINANCIAL INSTITUTIONS to one another which must be repaid on demand. See also MONEY AT SHORT NOTICE.
palgrave
0
58.28
8.4
0
10.37
9.2
10.35
7
8.28
MONEY AT SHORT NOTICE
Secured funds lent by BANKS, BROKERS, DEALERS, and other FINANCIAL INSTITUTIONS to one another which must typically be repaid within 1 to 2 weeks. See also MONEY AT CALL.
palgrave
0
56.76
8.9
0
9.5
8.9
11.98
8.25
9.94
MONEY BROKER
In the United Kingdom, a BROKER that specializes in arranging short-term funding between BANKS, DISCOUNT HOUSES, and other FINANCIAL INSTITUTIONS that are active in the MONEY MARKET, in exchange for a COMMISSION.
palgrave
0
22.08
18.1
0
15.04
21.2
10.65
21
19.05
MONEY CENTER BANK
A large BANK operating from one of the main money centers of the world.
palgrave
0
74.19
6.4
0
5.73
5.1
7.71
7
8.46
MONEY LAUNDERING
The process of disguising illegally earned money so that it becomes part of the mainstream financial system. Money laundering generally comprises the three general stages of PLACEMENT, LAYERING, and INTEGRATION. Also known as LAUNDERING.
palgrave
0
34.63
11.2
13.6
15.47
12.5
11.16
8
13.93
MONEY MARKET
The short-term financial marketplace for issuance and TRADING of ASSETS and LIABILITIES with MATURITIES extending from 1 day to 24 months. Instruments of the money market include GOVERNMENT BILLS, REPURCHASE AGREEMENTS, REVERSE REPURCHASE AGREEMENTS, BANKER’S ACCEPTANCES, CERTIFICATES OF DEPOSIT, COMMERCIAL PAPER, EURO COMMERCIAL PAPER, and short-term notes. Money market instruments are very LIQUID and generally feature only modest amounts of MARKET RISK and CREDIT RISK. See also CAPITAL MARKET.
palgrave
0
28.54
13.6
14.6
17.63
16.7
11.36
12.625
13.3
MONEY MARKET BASIS
A day count convention applied to MONEY MARKET instruments, which is based on the actual number of days divided by 360 (for the United Kingdom) or 365 (for the United States and most other countries).
palgrave
0
44.41
15.8
0
9.82
18.4
9.88
21.5
18.57
MONEY MARKET FUND
A MUTUAL FUND that invests exclusively in MONEY MARKET instruments, including COMMERCIAL PAPER, GOVERNMENT BILLS, BANKER’S ACCEPTANCES, and CERTIFICATES OF DEPOSIT. Money market funds are generally highly LIQUID and relatively low RISK, although returns are not GUARANTEED.
palgrave
0
18.86
15.2
0
18.8
18
13.09
14.75
18.21
MONEY MARKET INSTRUMENT
Any financial instrument with a MATUR- ITY of less than 1 year, which can be traded and is often priced on a DISCOUNT basis. Common instruments include GOVERNMENT BILLS, CERTIFICATES OF DEPOSIT, COMMERCIAL PAPER, BILLS OF EXCHANGE, and BANKER’S ACCEPTANCES, among others.
palgrave
0
50.16
11.5
0
13.23
14.9
11.45
14
14.11
MONEY MARKET PREFERRED STOCK
See ADJUSTABLE RATE PREFERRED STOCK.
palgrave
0
83.32
2.9
0
14.24
11.2
10.2
1.5
2
MONEY SPREAD
See BEAR SPREAD, BULL SPREAD.
palgrave
0
117.16
-1.9
0
4.96
4.6
0.25
1.5
2
MONEYNESS
The degree to which an OPTION possesses or lacks INTRINSIC VALUE. An option with moneyness is said to be IN-THE-MONEY and has intrinsic value; an option without moneyness is OUT-OF-THE-MONEY and has no intrinsic value.
palgrave
0
45.25
11.3
0
11.6
12.1
7.21
12.25
10.43
MONOLINE INSURER
An INSURER that provides CREDIT enhancement (or WRAP) via GUARANTEES for MUNICIPAL BONDS and ASSET-BACKED SECURITIES (ABS), based on its ability to maintain a strong CREDIT RATING (e.g., AAA) of its own. If the bond or ABS being secured does not pay INVESTORS contractual INTEREST and PRINCIPAL, the monoline insurer is required to do so, and must therefore have a sufficiency of CAPITAL to meet obligations. Also known as MONOLINER.
palgrave
0
39.37
13.6
15.9
11.84
14.7
11.78
16.666667
16.18
MONOLINE POLICY
An INSURANCE CONTRACT that only covers one LINE or class of RISK. If a loss occurs in the referenced PERIL, the INSURED is covered to a net amount that reflects a DEDUCTIBLE and POLICY CAP. See also MULTILINE POLICY.
palgrave
0
66.74
7.2
10.5
7.7
6.5
9.54
7.166667
9.3
MONOLINER
See MONOLINE INSURER.
palgrave
0
34.59
9.2
0
9.23
9.9
14.31
1.5
14.53
MONOPSONY
A market that features only one buyer of goods or services, suggesting the buyer has an ability to influence the prices paid to suppliers. See also DUOPSONY, MONOPOLY, OLIGOPSONY.
palgrave
0
48.3
10.1
0
11.3
10.4
10.35
8.75
12.7
MONTE CARLO SIMULATION
A computer-intensive statistical process that generates ASSET paths based on user-defined inputs and drawings from a ran- dom number generator. Monte Carlo simulation is widely used for pricing DERIVATIVES, computing CREDIT RISK exposures and scenarios, and measur- ing PORTFOLIO RISKS. See also SIMULATION.
palgrave
0
23.12
13.6
14.1
16.64
14.7
14.99
10.833333
15.95
MORAL HAZARD
Altering behavior by becoming less conservative and more reckless, knowing that INSURANCE or RISK protection exists to com- pensate for damage or loss. INSURERS attempt to protect against moral hazardby remaining diligent in the UNDERWRITING procedures and requiring prospective INSUREDS to bear a portion of the economic exposure through DEDUCTIBLES, COINSURANCE, and/or POLICY CAPS. See also ADVERSE SELECTION.
palgrave
0
26.51
14.4
16.7
17.4
17.1
13.03
15.333333
18.75
MORAL SUASION
The process of attempting to convince institutions (e.g., BANKS) to follow a particular policy or set of actions, without specifically mandating such through laws, rules, or REGULATIONS. Moral suasion may be used by a CENTRAL BANK or monetary authority in the pursuit of a specificMONETARY POLICY.
palgrave
0
31.21
14.6
0
13.52
15.9
12.33
17
17.9
MORATORIUM
A sovereign suspension of INTEREST and/or PRINCIPAL pay- ments on DEBT, and a direct manifestation of SOVEREIGN RISK. Declaration of a moratorium, which may apply to all or selected classes of debt, is generally considered an EVENT OF DEFAULT under CREDIT agreements and may ultim- ately lead to a RESCHEDULING of payment terms and a write-off of the debt by the LENDERS/INVESTORS.
palgrave
0
31.55
16.6
0
12.31
18.4
11.54
21.5
18.85
MORNING NOTES
Late-breaking research information conveyed to INVESTORS by research analysts of INVESTMENT BANKS and SECURITIES FIRMS during morning conference calls.
palgrave
0
9.89
16.6
0
22.68
21
14.55
15.5
18.13
MORTGAGE BOND
See MORTGAGE-BACKED BOND.
palgrave
0
59.97
5.6
0
15.03
16.2
19.58
1.5
1.2
MORTGAGE DEBENTURE
A LOAN granted by a BANK or other FINANCIAL INSTITUTION that is secured on a specific real property of the BORROWER.
palgrave
0
41.7
12.7
0
8.94
10.6
9.94
15.5
17.92
MORTGAGEE
A LENDER of funds who takes as SECURITY a pledge of some underlying property. See also MORTGAGOR.
palgrave
0
62.85
6.6
0
7.62
5.2
11.49
4.75
10.46
MORTGAGEE IN POSSESSION
A LENDER that has completed FORE- CLOSURE on a MORTGAGE in DEFAULT and assumes control of the underlying property. As mortgagee in possession the lender is entitled to any INCOME produced by the property and to any proceeds generated upon its sale.
palgrave
0
50.16
11.5
0
10.91
12.3
10.69
14
14.11
MORTGAGOR
A BORROWER of funds who pledges an underlying property as SECURITY. See also MORTGAGEE.
palgrave
0
38.99
9.6
0
9.87
7
11.88
4.5
14.23
MOS
See MUTUAL OFFSET SYSTEM.
palgrave
0
33.58
9.6
0
7.25
6.5
15.68
2
11.6
MOST FAVORED NATION (MFN)
Favorable TRADE status granted to cer- tain nations, where IMPORTS from trading partner countries are treated no less favorably than imports from other countries, and no other foreign goods face a lower TARIFF than the partner country. Countries seek MFN status in order to bolster their trade activities and ultimately expand their own GROSS DOMESTIC PRODUCT.
palgrave
0
43.06
14.2
0
14.1
18.2
11.23
16.5
14.77
MOVING AVERAGE
A TECHNICAL ANALYSIS charting technique that computes the average price of a SECURITY or INDEX over a particular time period, depicting general upward or downward trends. The averaging period rolls with each new observation period, which is generally set to daily, weekly, or monthly intervals.
palgrave
0
23.26
15.6
0
14.45
16
11.77
18.25
18.78
MPC
See MONETARY POLICY COMMITTEE.
palgrave
0
-8.73
15.5
0
14.5
12.4
15.68
4
31.6
MPT
See MODERN PORTFOLIO THEORY.
palgrave
0
8.2
13.1
0
11.6
10
15.68
3
21.6
MTN
See MEDIUM-TERM NOTE.
palgrave
0
93.81
0.9
0
7.32
9.9
9.05
0.5
1.2
MUDARABA
A form of silent PARTNERSHIP used in ISLAMIC FINANCE. See also MUSHARAKA.
palgrave
0
65.39
5.6
0
8.17
5.9
9.2
3
9.07
MULTICURRENCY NOTE FACILITY
A short- or medium-term EURONOTE facility that permits an ISSUER to float NOTES in any one of several CURRENCIES. Although the BORROWER can select the borrowing currency, the LENDER can demand repayment in another currency at MATURITY.
palgrave
0
35.78
12.9
0
13.11
13.2
10.96
14.25
14.97
MULTIFACTOR MODEL
A type of mathematical model used in the pri- cing of INTEREST RATE DERIVATIVES in which all of the uncertainty related to the future movement of interest rates is captured by two or more factors. The factors vary by model and may include a short-term real interest rate and INFLATION, a short-term rate and a long-term rate, a short-term rate and amean-reverting drift parameter, a short-term rate and a volatility parameter, and so forth. See also FORWARD RATE MODEL, SHORT RATE MODEL, SINGLE FACTOR MODEL.
palgrave
0
42.75
14.3
14.6
10.86
16.2
9.13
18.166667
15.56
MULTIFACTOR OPTION
See MULTI-INDEX OPTION.
palgrave
0
9.21
12.7
0
11.15
13
19.58
1.5
1.2
MULTIFACTOR RISK MODEL
An ASSET pricing model used to estimate EXPECTED RETURNS on the basis of more than one RISK FACTOR. Common multifactor risk models include MACROECONOMIC FACTOR MODELS, STATISTICAL FACTOR MODELS, and FUNDAMENTAL FACTOR MODELS. The generic form of a linear factor model is given as:where ri is the asset return of the i-th asset, bix are the sensitivities to the com- mon risk factors, ei is the idiosyncratic return of the i-th asset. Also known as FACTOR MODEL. See also ARBITRAGE PRICING THEORY.
palgrave
0
46.37
10.9
11.2
10.84
10.6
10.03
10.2
11.44
MULTI-INDEX NOTE
A STRUCTURED NOTE that pays INVESTORS an enhanced COUPON based on the performance of multiple INDEXES drawn from the same, or different, ASSET classes/markets. The most common multi- index notes are based on broad EQUITY indexes.
palgrave
0
53.21
10.3
0
12.7
13
12.42
12.5
11.64
MULTILATERAL DEVELOPMENT BANK
A supranational organization that is constituted to provide financing and financial and economic advice, pri- marily to developing nations. Such institutions are generally funded through contributions from the governments of industrialized nations. See alsoAFRICAN DEVELOPMENT BANK, ASIAN DEVELOPMENT BANK, EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, INTER-AMERICAN DEVELOPMENT BANK.
palgrave
0
-14.48
19.8
18.9
23.37
21.7
11.84
16.666667
19.79
MULTILATERAL NETTING
A form of NETTING between three or more COUNTERPARTIES. Since it involves more than two institutions, such netting is often carried out by an independent CLEARINGHOUSE or EXCHANGE. See also BILATERAL NETTING.
palgrave
0
52.15
8.6
10.5
12.91
10
8.11
6
10.53
MULTILINE POLICY
An INSURANCE CONTRACT that covers multiple PERILS within the COMMERCIAL LINES areas. The standard multiline policy contains common policy declarations and conditions and details on specificcoverages, each with their own declarations and coverage forms. If a loss occurs in any of the mentioned perils, the INSURED is covered to a net amount that reflects a DEDUCTIBLE and POLICY CAP. Also known as MIXED PERIL CONTRACT, PACKAGE POLICY. See also MONOLINE POLICY, MULTIPLE PERIL POLICY.
palgrave
0
39.53
11.4
13.3
13.62
12.1
10.56
10.6
10.78
MULTIPLE
See PRICE/EARNINGS RATIO.
palgrave
0
59.97
5.6
0
15.03
16.2
14.31
0.5
1.2
MULTIPLE BARRIER OPTION
An OVER-THE-COUNTER COMPLEX OPTION package that contains at least two BARRIER OPTIONS that cre- ate or extinguish an underlying EUROPEAN OPTION. Sine the multiple barrier option has two barriers the PROBABILITY of knock-in or knock- out increases. See also TWIN-IN BARRIER OPTION, TWIN-OUT BARRIER OPTION.
palgrave
0
39.33
11.5
14.6
14.38
13.4
9.29
11.5
13.11
MULTIPLE OPTION FACILITY (MOF)
A medium-term EURONOTE facility that allows an ISSUER to access funds in a range of CURRENCIES, reference INTEREST RATES, and MATURITIES. The range of options available to the BORROWER are contained within the MOF agreement.
palgrave
0
45.25
11.3
0
13.11
12.9
13.53
11.75
13.86
MULTIPLE STRIKE OPTION
An OVER-THE-COUNTER COMPLEX OPTION that grants the buyer a PAYOFF based on the best or worst performing of a series of ASSETS, each with a specific STRIKE PRICE. Option references may be drawn from the same, or different, asset classes/markets. See also MULTI-INDEX OPTION.
palgrave
0
56.55
9
11.9
11.13
10.5
10.83
8.666667
8.61
MULTIRISK PRODUCT
An INSURANCE POLICY that combines multiple RISKS in a single structure, allowing the client to obtain a consolidated, and often cheaper and more efficient, RISK MANAGEMENT solution. See alsoMULTIPLE PERIL POLICY, MULTIPLE TRIGGER PRODUCT.
palgrave
0
20.38
14.6
0
16.35
15.5
13.3
14
17.39
MULTITRADING FACILITY
Any alternative or electronic EXCHANGE for TRADING of SECURITIES, permissible in Europe under the MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE.
palgrave
0
1.43
17.8
0
19.67
18.5
12.89
16.5
22.34
MUNICIPAL BOND INSURANCE
An INSURANCE CONTRACT written by an INSURER (e.g., a MONOLINE INSURER) to cover an event of DEFAULT by the ISSUER of a MUNICIPAL BOND. The insurance, which may assume the form of a FINANCIAL GUARANTEE, is designed to protect INVESTORS from loss of PRINCIPAL and/or COUPON interest.
palgrave
0
47.62
12.5
0
10.8
13.9
11.19
16.25
15.36
MURABAHA
A TRUST sale scheme used in ISLAMIC FINANCE, where a FINANCING is structured as a credit sales contract with a markup over a negotiated invoice price. See also IJARA, SALAM, SUKUK.
palgrave
0
64.2
8.2
0
9.57
9.1
11.54
8.25
10.07
MUSHARAKA
A form of simple PARTNERSHIP used in ISLAMIC FINANCE. See also MUDARABA.
palgrave
0
48.47
8
0
7.7
5.5
9.2
3.5
12.4
MUTUAL ASSENT
A condition that only permits a CONTRACT to become valid when both parties have agreed to the terms and conditions.
palgrave
0
59.64
9.9
0
10.27
11.2
10.94
12
12
MUTUAL OFFSET SYSTEM (MOS)
A formal arrangement between two EXCHANGES where EXCHANGE-TRADED DERIVATIVE CONTRACTS initiated on one exchange can be transferred to, or closed out on, another exchange. The MOS extends TRADING hours significantly, and can increase the LIQUIDITY of a given contract. In order for the MOS mechanism to work the contracts on the participating exchanges must be fungible.
palgrave
0
35.57
12.9
13.6
14.5
14.3
10.2
12.666667
13.19
MUTUAL ORGANIZATION
A corporate structure where members, rather than external INVESTORS, own the organization. Although the mutual has the advantage of limiting external influence on corporate affairs, it generally caps the amount of CAPITAL that is available for expansion.
palgrave
0
27.32
14
0
16.13
15.6
11.38
15.25
17.13
N.A.
See NATIONAL ASSOCIATION.
palgrave
0
-50.02
21
0
16.95
16.2
14.31
2.5
27.87
NAAMLOZE VENNOOTSCHAP (NV)
In the Netherlands and Belgium, a CORPORATION that is publicly traded. In the Netherlands Antilles, a SUBSIDIARY established as a TAX SHELTER.
palgrave
0
60.31
7.6
0
12.39
10
10.64
5.5
8.04
NAKED CALL
An OPTION position where the seller of a CALL OPTION does not own the UNDERLYING ASSET that must be delivered if the buyer EXERCISES the CONTRACT. Selling naked calls is generally a high RISK strat- egy since the seller must acquire the asset in the open market should exercise occur, at a prevailing price that will be higher than the STRIKE PRICE. See alsoCOVERED CALL, NAKED OPTION, NAKED PUT.
palgrave
0
56.59
11.1
12.5
9.99
12.4
10.04
14.166667
13.84
NAKED DEBENTURE
In the United Kingdom, a DEBENTURE that is not secured.
palgrave
0
78.25
4.8
0
6.76
5.2
7.29
4
4
NAKED OPTION
An OPTION position where the seller of the option does not own the UNDERLYING ASSET or cash that must be delivered if the buyer EXERCISES the CONTRACT. Selling naked options is generally a high RISK strategy since the seller must acquire the underlying asset in the open market or source cash should exercise occur. Also known as UNCOVERED OPTION. See also COVERED OPTION, NAKED CALL, NAKED PUT, NAKED N WRITER.
palgrave
0
53.71
10.1
11.7
10.21
10.4
9.69
11
11.57
NAKED POSITION
An outright LONG POSITION or SHORT POSITION that is not protected by an offsetting HEDGE. A naked position may be exposed to elements of MARKET RISK, CREDIT RISK, and/or LIQUIDITY RISK. See alsoCOVERED POSITION.COVERED PUT, NAKED CALL, NAKED OPTION.
palgrave
0
49.82
9.5
13
11.88
10.6
9.95
8.5
11.35
NAKED SHORTING
An illegal SHORT SALE of SECURITIES that are not cer- tain to exist. In certain jurisdictions parties contemplating a short sale must first confirm that sufficient securities exist and can be borrowed to fulfill the short.
palgrave
0
53.21
10.3
0
12.06
12
9.79
12
12.76
NAKED SWAP
A SWAP transaction that creates a LONG POSITION or SHORT POSITION in a series of CASH FLOWS, without any offsetting position from other sources.
palgrave
0
47.12
12.7
0
11.78
14.3
10.09
17
14.6
NAKED WRITER
The seller of a NAKED OPTION that does not have the UNDERLYING ASSET (deliverable under a CALL OPTION) or sufficient cash on hand to acquire the asset (under a PUT OPTION) should EXERCISE occur. A naked writer attempts to earn PREMIUM income through a relatively high RISK strategy. See also COVERED WRITER.
palgrave
0
53.92
10
11.9
10.21
10.4
9.66
11
12.3
NAMED INSURED
The party in an INSURANCE POLICY that is designated as an INSURED.
palgrave
0
42.38
10.3
0
7.93
6.1
9.5
8
14.8