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sohomghosh
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FinRAD_Financial_Readability_Assessment_Dataset

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1
terms
stringlengths
1
156
definitions
stringlengths
3
4.2k
source
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
P/E effect
That low P/E stocks have exhibited higher aver-age risk-adjusted returns than high P/E stocks.
zvi
0
57.27
8.8
0
13.62
12.8
14.48
9
11.31
pairs trading
A form of statistical arbitrage in which stocks are paired up based on underlying similarities and long/short positions are established to exploit any relative mispricing between each pair.
zvi
0
26.14
16.6
0
16.13
19.8
11.79
22
22.63
par value
The face value of the bond. The payment to the bondholder on the bond™s maturity date.
zvi
0
80.28
4.1
0
5.35
3.5
7.98
4
8.2
pass-through security
Pools of loans @such as home mortgage loans@ sold in one package. Owners of pass-throughs receive all principal and interest payments made by the borrowers.
zvi
0
67.25
7
0
11.3
9.7
9.94
6.75
9.8
passive investment strategy
Investing in a well-diversified portfolio or market index without attempting to search out mispriced securities.
zvi
0
13.95
15
0
19.25
16.8
11.75
12.5
19.33
passive management
Buying a well-diversified portfolio, often a broad-based market index, without attempting to identify mispriced securities.
zvi
0
-2.98
17.4
0
22.32
20.3
13.85
12.5
19.33
passive market-index portfolio
A market-index portfolio that can be formed without conducting security analysis.
zvi
0
26.47
12.3
0
17.9
14.4
12.79
8.5
18.95
passive strategy
A portfolio decision that avoids any direct or indirect security analysis. See
zvi
0
25.46
12.7
0
13.73
10.9
12.13
11
21.47
peak
The transition from the end of an expansion to the start of a contraction.
zvi
0
74.19
6.4
0
7.01
6.1
7.71
9
14.17
personal trust
An interest in an asset held by a trustee for the benefit of another person.
zvi
0
64.71
8
0
5.73
5.5
8.59
10.5
11.33
plowback ratio
The proportion of the firm™s earnings reinvested in the business @and therefore not paid out as dividends@. The equals 1 minus the dividend payout ratio.
zvi
0
58.79
8.2
0
10.83
9.1
12.47
7.25
11.4
political risk
Possibility of the expropriation of assets, changes in tax policy, restrictions on the exchange of foreign currency for domestic currency, or other changes in the business climate of a country.Final PDF to printer 10
zvi
0
11.59
20.1
0
13.82
20.9
11.82
25
20.66
portable alpha
A strategy in which you invest in positive alpha positions, then hedge the systematic risk of that invest-ment, and, finally, establish market exposure where you want it by using passive indexes.
zvi
0
23.09
17.7
0
13.07
19.1
12.31
24.5
21.43
portfolio insurance
The practice of using options or dynamic hedge strategies to provide protection against investment losses while maintaining upside potential.
zvi
0
26.81
14.2
0
19.96
18.5
14.55
14.5
18.13
portfolio management
Process of combining securities in a portfolio tailored to the investor™s preferences and needs, monitoring that portfolio, and evaluating its performance.
zvi
0
16.32
16.2
0
19.2
19.4
13.7
18.5
21.73
portfolio opportunity set
The expected returnŒstandard deviation pairs of all portfolios that can be constructed from a given set of assets.
zvi
0
36.28
12.7
0
13.34
13
10.67
14
18.31
posterior distribution
Probability distribution for a variable after adjustment for empirical evidence on its likely value.
zvi
0
-1.96
17
0
17.74
14.8
11.1
12
19.89
preferred habitat theory
Holds that investors prefer specific maturity ranges but can be induced to switch if risk premiums are sufficient.
zvi
0
36.28
12.7
0
13.34
13
13.3
13
16.09
premium options
The purchase price of an option.
zvi
0
90.77
2.1
0
4.28
2.8
9.2
2
2.4
premium bond
A bond selling above par value.
zvi
0
90.77
2.1
0
3.35
2
11.83
2
2.4
present value of growth opportunities PVGO
Net present value of a firm™s future investments.
zvi
0
63.36
6.4
0
10.11
7.3
11.93
4
8.2
price value of a basis point
The change in the value of a fixed-income portfolio resulting from a 1 basis point change in the yield to maturity.
zvi
0
58.62
10.3
0
8.41
10.4
9.94
14.5
14.11
price-weighted average
Weighted average with weights proportional to security prices rather than total capitalization.priceŒearnings @P/E@ ratio The ratio of a stock™s price to its earnings per share. Also referred to as the P/E multiple.priceŒearnings multiple Price per share divided by earn-ings per share.
zvi
0
42.21
12.5
0
16.24
17.1
11.97
13.75
14.05
primary market
The market in which new issues of securities are offered to the public.
zvi
0
58.28
8.4
0
7.7
6.5
7.93
6.5
8.28
primitive security, derivative security
A primitive secu-rity is an instrument such as a stock or bond for which cash flows depend only on the financial status of its issuer.
zvi
0
54.56
11.9
0
8.07
11.8
10.56
16.5
14.8
prior distribution
Probability distribution for a variable before adjusting for empirical evidence on its likely value.
zvi
0
-1.96
17
0
17.74
14.8
11.1
12
19.89
private placement
Primary offering in which shares are sold directly to a small group of institutional or wealthy investors.
zvi
0
54.22
9.9
0
12.82
12
10.98
12.5
16.21
profit margin
Operating profits per dollar of sales; also called return on sales.
zvi
0
60.31
7.6
0
10.54
8.5
11.36
5.5
8.04
program trading
Coordinated buy orders and sell orders of entire portfolios, usually with the aid of computers, often to achieve index arbitrage objectives.
zvi
0
24.78
15
0
15.03
16
12.2
16.5
19.83
prospect theory
Behavioral @as opposed to rational@ model of investor utility. Investor utility depends on changes in wealth rather than levels of wealth.
zvi
0
52.36
8.6
0
12.73
10.3
10.92
6.25
9.91
protective covenant
A provision specifying requirements of collateral, sinking fund, dividend policy, etc., designed to protect the interests of bondholders.
zvi
0
2.44
17.4
0
19.14
19
15.06
17
24.98
protective put
Purchase of an asset combined with a put option on that asset to guarantee proceeds at least equal to the put™s exercise price.
zvi
0
65.05
9.9
0
9.23
11.6
10.27
13.5
12.68
proxy
An instrument empowering an agent to vote in the name of the shareholder.
zvi
0
66.74
7.2
0
8.63
7.2
9.14
8.5
14.43
prudent investor rule
An investment manager must act in accord with the actions of a hypothetical prudent investor.
zvi
0
39.33
11.5
0
12.29
10.9
10.7
10.5
11.33
public offering, private placement
A public offering consists of securities sold in the primary market to the general public; a
zvi
0
29.86
13.1
0
9.97
9.2
8.38
12
13.9
pure plays
Bets on particular mispricing across two or more securities, with extraneous sources of risk such as general market exposure hedged away.
zvi
0
33.24
13.8
0
14.5
15.3
11.45
16.5
17.92
pure yield curve
The relationship between yield to maturity and time to maturity for zero-coupon bonds.
zvi
0
24.44
13.1
0
13.96
11.9
11.57
10.5
11.35
pure yield pickup swap
Moving to higher-yield, longer-term bonds to capture the liquidity premium.
zvi
0
35.95
10.7
0
17.2
14.7
15.19
6
12
put bond
A bond that the holder may choose either to exchange for par value at some date or to extend for a given number of years.
zvi
0
71.48
9.5
0
5.29
9.3
7.4
12.5
10
put-call parity theorem
An equation representing the proper relation between put and call prices. Violation of parity implies the existence of arbitrage opportunities.
zvi
0
10.56
14.3
0
16.62
12.8
12.03
7.5
18
put/call ratio
Ratio of put options to call options outstand-ing on a stock.
zvi
0
68.77
6.4
0
7.35
5.9
9.92
5.5
4.4
quality of earnings
The realism and conservatism of the earnings number and the extent to which we might expect the reported level of earnings to be sustained.
zvi
0
55.58
11.5
0
10.8
13.3
8.77
15
14.6
quick ratio
A measure of liquidity similar to the current ratio except for exclusion of inventories. It equals cash plus receivables divided by current liabilities.
zvi
0
25.96
12.5
0
13.84
10.9
11.76
8.25
16.77
random walk
Describes the notion that stock price changes are random and unpredictable.Final PDF to printerfifi 11
zvi
0
47.79
10.3
0
15.77
13.7
13.85
8.5
11.33
rate anticipation swap
A switch made between bonds of different durations in response to forecasts of interest rates.
zvi
0
56.25
9.1
0
12.69
11.2
10.7
10.5
11.33
real interest rate
The excess of the interest rate over the inflation rate. The growth rate of purchasing power derived from an investment.
zvi
0
61.33
7.2
0
9.95
7.4
9.66
6
12
realized compound return
Compound rate of return assuming that coupon payments are reinvested until maturity.
zvi
0
33.92
11.5
0
16.63
13.2
12.13
8
14.8
rebalancing
Realigning the proportions of assets in a portfolio as needed.
zvi
0
35.95
10.7
0
11.4
8.5
12.03
7
16
registered bond
A bond whose issuer records ownership and interest payments. Differs from a bearer bond, which is traded without record of ownership and whose possession is its only evidence of ownership.
zvi
0
56.25
9.1
0
12.29
11
10.17
10.5
11.33
regression equation
An equation that describes the aver-age relationship between a dependent variable and one or more explanatory variables.
zvi
0
28.84
13.5
0
17.22
15.9
11.91
12.5
13.86
regret avoidance
Notion from behavioral finance that individuals who make decisions that turn out badly will have more regret when that decision was more unconventional.
zvi
0
31.21
14.6
0
15.55
16.7
10.27
16.5
17.9
reinvestment rate risk
The uncertainty surrounding the cumulative future value of reinvested bond coupon payments.
zvi
0
17
13.9
0
20
16
14.76
9
18.13
REIT
Real estate investment trust, which is similar to a closed-end mutual fund. s invest in real estate or loans secured by real estate and issue shares in such investments.
zvi
0
42.04
14.6
0
10.69
16
12.15
18.5
17.12
relative strength
The extent to which a security has out-performed or underperformed either the market as a whole or its particular industry.
zvi
0
34.26
13.5
0
12.3
13.1
9.37
15
16
remainderman
One who receives the principal of a trust when it is dissolved.
zvi
0
84.68
4.4
0
6.48
5
8.18
6
8.13
replacement cost
Cost to replace a firm™s assets. Also called reproduction cost.
zvi
0
57.94
6.4
0
8.44
6.5
13.36
2
6
representativeness bias
The tendency to believe that a small sample is reliably representative of a broad population and therefore to infer patterns too quickly.
zvi
0
32.22
14.2
0
13.05
14.4
10.47
15
16.07
repurchase agreements repos
Short-term, often over-night, sales of securities with an agreement to repurchase them at a slightly higher price. A reverse repo is a purchase with an agreement to resell at a specified price on a future date.
zvi
0
61.67
9.1
0
9.63
10.5
9.79
10.5
10.53
residual claim
Refers to the fact that shareholders are at the bottom of the list of claimants to assets of a corporation in the event of failure or bankruptcy.
zvi
0
60.99
11.5
0
8.36
12.8
9.65
16.5
15.24
residual income
Another term for economic value added @EVA@.
zvi
0
55.91
7.2
0
9.06
7.6
10.75
4.5
8.51
residuals
Parts of stock returns not explained by the explanatory variable @the market-index return@. They mea-sure the impact of firm-specific events during a particular period.
zvi
0
42.38
10.3
0
15.18
13
12.78
7
11.47
resistance level
A price level above which it is supposedly difficult for a stock or stock index to rise.
zvi
0
71.14
7.6
0
6.67
7
7.27
10.5
11.51
return on assets ROA
A profitability ratio; earnings before interest and taxes divided by total assets.
zvi
0
17
13.9
0
15.18
12.5
14.76
8
14.8
return on capital ROC
EBIT divided by long-term capital.
zvi
0
49.48
7.6
0
10.76
9.3
10.2
3.5
10
return on equity ROE
Ratio of net profits to common equity.
zvi
0
55.91
7.2
0
5.75
3.6
13.01
3.5
8.51
return on sales ROS
Operating profits per dollar of sales; also called
zvi
0
46.44
8.8
0
10.8
7.9
13.9
4
8.2
reversal effect
The tendency of poorly performing stocks and well-performing stocks in one period to experience reversals in following periods.
zvi
0
19.37
15
0
17.22
16.3
11.55
17
20.53
reversing trade
Entering the opposite side of a currently held futures position to close out the position.
zvi
0
47.79
10.3
0
11.13
9.9
9.64
12.5
16.67
reward-to-volatility or Sharpe ratio
Ratio of excess return to portfolio standard deviation.
zvi
0
21.06
12.3
0
14.46
10.8
13.9
5
13.2
riding the yield curve
Buying long-term bonds in anticipa-tion of capital gains as yields fall with the declining maturity of the bonds.
zvi
0
44.75
11.5
0
12.41
12.7
11.55
13
13.87
risk arbitrage
Speculation on perceived security mispric-ing, often in connection with merger and acquisition targets.
zvi
0
-0.95
16.6
0
21.1
18
15.21
11.5
17.51
risk averse
An investor who will consider risky portfo-lios only if they provide compensation for risk via a risk premium.
zvi
0
44.75
11.5
0
11.77
11.9
13.3
13
13.87
risk lover
An investor who is willing to accept lower expected returns on prospects with higher amounts of risk.
zvi
0
62.68
8.7
0
11.08
10.6
11.91
8.5
9.15
risk neutral
An investor who finds the level of risk irrelevant and considers only the expected return of risk prospects.
zvi
0
53.21
10.3
0
11.42
11.4
10.67
12
13.87
risk pooling
Adding uncorrelated, risky investments to the portfolio.
zvi
0
22.07
11.9
0
19.84
15.7
15.26
5.5
19.94
risk premium
An expected return in excess of that on risk-free securities. The premium provides compensation for the risk of an investment.
zvi
0
44.41
9.6
0
11.4
8.8
10.45
6.5
14
risk sharing
Spreading risk across many investors so that each investor bears only a fraction of the total risk.
zvi
0
71.14
7.6
0
10.38
10.1
10.98
7.5
6.8
risk-free asset
An asset with a certain rate of return; often taken to be short-term T-bills.
zvi
0
74.19
6.4
0
7.01
7.1
7.71
6
5.6
risk-free rate
The interest rate that can be earned with certainty, commonly taken to be the rate on short-term Treasury bills.riskŒreturn trade-off Assets with higher expected return entail greater risk.
zvi
0
34.6
15.4
0
15.55
19.8
12.36
19
16.91
risky asset
An asset with an uncertain rate of return.
zvi
0
71.82
5.2
0
5
3.2
7.98
4
8.2
scatter diagram
Plot of returns of one security versus returns of another security. Each point represents one pair of returns for a given holding period.
zvi
0
42.88
10.1
0
10.01
7.9
9.01
7.25
9.82
seasoned new issue
Stock issued by companies that already have stock on the market.
zvi
0
68.77
6.4
0
9.49
7.2
7.05
5.5
8.04
second-pass regression
A cross-sectional regression of portfolio returns on betas. The estimated slope is the Final PDF to printerfi˚ 12 measurement of the reward for bearing systematic risk during the period.
zvi
0
31.38
12.5
0
13.1
11.5
13.07
11.25
16.83
secondary market
Already existing securities are bought and sold on the exchanges or in the OTC market.
zvi
0
64.71
8
0
9.56
8.7
8.59
8.5
11.33
sector rotation
An investment strategy which entails shifting the portfolio into industry sectors that are forecast to outperform others based on macroeconomic forecasts.
zvi
0
16.32
16.2
0
19.43
19.1
14.45
16.5
19.83
securitization
Pooling loans for various purposes into standardized securities backed by those loans, which can then be traded like any other security.
zvi
0
33.24
13.8
0
14.21
15.1
11.45
15.5
17.92
security analysis
Determining correct value of a security in the marketplace.
zvi
0
20.04
12.7
0
13.19
9.8
9.35
6.5
16.93
security characteristic line SCL
A plot of the excess return on a security over the risk-free rate as a function of the excess return on the market.
zvi
0
65.05
9.9
0
5.98
9.1
8.21
12.5
10.94
security market line SML
Graphical representation of the expected returnŒbeta relationship.
zvi
0
-54.08
22.5
0
28.95
22.4
15.26
7.5
31.37
security selection
Choice of specific securities within a given asset class.
zvi
0
36.96
10.3
0
11.86
8.7
11.1
5.5
12.49
semistrong-form EMH
See efficient market hypothesis.
zvi
0
-8.73
15.5
0
17.4
14.7
11.73
3
21.6
separation property
The property that portfolio choice can be separated into two independent tasks: @1@ determination of the optimal risky portfolio, which is a purely technical problem, and @2@ the personal choice of the best mix of the risky portfolio and the risk-free asset.
zvi
0
20.39
20.8
0
12.32
23.9
11.73
31
24.42
shelf registration
Advance registration of securities with the SEC for sale up to 2 years following initial registration.
zvi
0
38.32
11.9
0
13.63
12.2
11.34
12
11.4
short position
The futures trader committing to deliver the underlying asset.
zvi
0
20.04
12.7
0
15.11
11.3
14.61
6.5
16.93
short rate
A one-period interest rate.
zvi
0
33.58
9.6
0
8.7
8.8
11.73
3
21.6
short sale
The sale of shares not owned by the investor but borrowed through a broker and later repurchased to replace the loan. Profit is earned if the initial sale is at a higher price than the repurchase price.
zvi
0
78.08
7
0
8.41
9
10.1
10.25
9.56
single-factor model
A model of security returns that decomposes the sources of return variability into one sys-tematic economywide factor and firm-specific factors.
zvi
0
0.42
18.2
0
18.1
18
14.89
16
20
single-index model
A model of stock returns that decom-poses influences on returns into a systematic factor, as measured by the return on a broad market index, and firm-specific factors.
zvi
0
27.15
16.2
0
12.25
16.7
11.99
17.5
15.24
single-stock futures
Futures contracts on single stocks rather than an index.
zvi
0
79.26
4.4
0
11.22
8.2
11.1
3.5
3.6
sinking fund
A bond indenture that calls for the issuer to periodically repurchase some proportion of the outstanding bonds prior to maturity.
zvi
0
25.8
14.6
0
14.33
14.5
13.31
16
20