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( 6332) 415- 8700

ACCC (Australian Competition and
Consumer Commission)


Accommodative monetary policy
Acquisition
ADB (Asian Development Bank)
ADR -

After-hours trading or after-hours
market

After-market
Aggregate financing
Alpha - 1. A measure of performance on a risk-adjusted basis.
Alpha takes the volatility (price risk) of a mutual fund and
compares its risk-adjusted performance to a benchmark index.
The excess return of the fund relative to the return of the
benchmark index is a fund's alpha. 2. The abnormal rate of
return on a security or portfolio in excess of what would be
predicted by an equilibrium model like the capital asset pricing
model (CAPM).

Alternative asset - Any non-traditional asset with potential
economic value that would not be found in a standard
investment portfolio. Due to the unconventional nature of
alternative assets, valuation of some of these assets can be
difficult.

,


Antidumping -,
ARM (Adjustable Rate Mortgage) also called
"variable-rate mortgage" or a "floating-rate
mortgage".

Asset ,
Asset allocation
Asset bubble
Asset management ,
2

Austerity measures ,

B
Beige book - A commonly used name for the Fed report
called the Summary of Commentary on Current
Economic Conditions by Federal Reserve District.


Bailout
Balance sheet ,
Bank lending
Basic point ,
BCC (British Chamber of
Commerce)

Bear market
Benchmark
Binding contract, deal
Black Swan theory - An event or
occurrence that deviates beyond
what is normally expected of a
situation and that would be
extremely difficult to predict.

Blind trust - A trust in which the
executors have full discretion over
the assets, and the trust
beneficiaries have no knowledge of
the holdings of the trust.

Bloomberg China-US Equity
Index
-


Bond maturity
Book value
Bottom out
Break- even point (BEP)
Budget - inexpensive ,
3

Build-to-let housing (for rent)
Bull market
Bund
Business Climate Index ?
Buyback
C
CAGR Compound Annual Growth Rate
Call option ()
Capacity
Capital buffer
Capital gain - 1. An increase in the value
of a capital asset (investment or real
estate) that gives it a higher worth than
the purchase price. The gain is not realized
until the asset is sold. A capital gain may
be short term (one year or less) or long
term (more than one year) and must be
claimed on income taxes. A capital loss is
incurred when there is a decrease in the
capital asset value compared to an
asset's purchase price.

2. Profit that results when the price of a
security held by a mutual fund rises above
its purchase price and the security is sold
(realized gain). If the security continues to
be held, the gain is unrealized. A capital
loss would occur when the opposite takes
place.

Capital goods
Capital spending
Carryover
Carry trade
Cash rate ()
Cash flow
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CBO Congressional Budget Office -

CBOT (Chicago Board of Trade)
CBRC China Banking Regulatory
Commission


CCI Consumer Confidence Index
CDO (Collateralized Debt Obligation) ()
CDO (Chief Development Officer)
Circuit breaker - Refers to any of the measures used by stock
exchanges during large sell-offs to avert panic selling.
Sometimes called a "collar."

Comex commodity exchange (-
)
Common stock
Confidence index
Consumer discretionary
Consumer sentiment, confidence
Consumer spending
Consumer staples ,

Corporate banking
Corporate governance
CPI Consumer Price Index
Credit market ,
Current account
Current account surplus
Current asset ,
Current asset investment

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Cyclical industry
D
Debt capital
Defensive stock
Deleverage
Deregulation
Derivatives
Dilution
Divest to sell off ,
Dodd Frank Act -
Down market (adj) Upmarket (syn) ; ,
; ;
,
DPI (Disposable Personal Income)
Due diligence (DD)
Dumping
E
Earnings (
)
Earnings before taxes = pretax =
pretax income

Ease off = ease up , ,
Easy Monetary Policy
EBA (European Banking Authority)
ECB (European Central Bank)
EEAS (European External Action Service)
EFSF (European Financial Stability
Facility)


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Emerging market
EMU (Economic and Monetary Union) ,

Entry point - The price at which an
investor buys an investment.

EPS (Earnings per Share)
ETF (Exchange-Traded Fund)
ETP (Exchange Traded Product)
Equal weight
Equally weighted index
Equity capital , ,
Equity market
Equity portfolio
ESM (European Stability Mechanism)

Ex-dividend
F
FDI Foreign Direct Investment
Fear index or volatility index
(VIX)

Federal probe
Fixed asset
Fixed asset investment or FAI
Fixed cost
Fixed-income assets
Floating rate loan
Forex FX - The market in which currencies are traded. The forex
market is the largest, most liquid market in the world with an average
?
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traded value that exceeds $1.9 trillion per day and includes all of the
currencies in the world.
Forex market
Forward contract - A cash market transaction in which
delivery of the commodity is deferred until after the
contract has been made. Although the delivery is made in
the future, the price is determined on the initial trade date.
,
Follow-on offering IPO-
FOMC Federal Open Market
Committee, a committee within the
Federal Reserve System

Frontier market
FSA (Financial Services Authority)
FTA Free Trade Area
Futures ( )
G
Gain
GFC (Global Financial Crisis)
Global Sourcing

Going long or long position
Going public IPO ,

Gross profit margin, gross margin
GSCI Commodity index
Guilts
H
Haircut - 1. The difference between prices at which a
market maker can buy and sell a security. 2. The
percentage by which an asset's market value is reduced for
the purpose of calculating capital requirement, margin and
collateral levels.

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Hard landing
Hard commodity Hard commodities are typically
natural resources that must be mined or extracted (gold,
rubber, oil, etc.)
?
HDI (Human Development Index)
Hedge fund
HKEX (Hong Kong Exchanges)
Hot money
House edge (in some casino games)
H-shares

()
I
IATA (International Air Transport
Association)

IDC International Data Corporation
IEA (International Energy Agency)
IMF (International Monetary Fund)
Incentive payments, bonus ,

Inflation hedge
Input prices
Insider trading The buying or selling of a security
by someone who has access to material, nonpublic
information about the security.

(

)
Interest payment
Interest Rate Swap - An agreement between two parties (known
as counterparties) where one stream of future interest payments is
exchanged for another based on a specified principal amount.
Interest rate swaps often exchange a fixed payment for a floating
payment that is linked to an interest rate (most often the LIBOR). A
company will typically use interest rate swaps to limit or manage

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exposure to fluctuations in interest rates, or to obtain a marginally
lower interest rate than it would have been able to get without the
swap.
Inventory
Investment banking
Investor confidence
Investment grade
IPO

IPO lockup IPO-
Islamic banking - A banking system that is based on the
principles of Islamic law (also known Shariah) and guided by
Islamic economics. Two basic principles behind Islamic
banking are the sharing of profit and loss and,
significantly, the prohibition of the collection and payment of
interest. Collecting interest is not permitted under Islamic
law.

Islamic economics
ITEM Club (Independent Treasury
Economic Model) is an economic
forecasting group based in the United
Kingdom. It produces quarterly forecasts.
Ernst & Young-
J
Jobless claims
Junk bond A bond rated 'BB' or lower
because of its high default risk. Also known
as a "high-yield bond" or "speculative
bond".

Junk rate
K
Knock-out option - An option that loses its entire value
in the event the underlying asset crosses a predetermined
price level.

L
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Labor pool
LBO Leveraged Buyout
Leverage
Libor (London Interbank Offered Rate)
()
Liquidity
Liquid asset ,
LLC (Limited Liability Company)
LME (London Metal Exchange)
LNG Liquefied Natural Gas
Long position or going long
Loose credit = Easy Monetary Policy =
Accommodative monetary policy

LTE (Long Term evolution) or 4G LTE 4G
M
M1 - A category of the money supply that includes all physical
money such as coins and currency; it also includes demand deposits,
which are checking accounts, and Negotiable Order of Withdrawal (NOW)
Accounts.
M1


M2 - A category within the money supply that includes M1 in addition to
all time-related deposits, savings deposits, and non-institutional money-
market funds. M2 is a broader classification of money than M1.
Economists use M2 when looking to quantify the amount of money in
circulation and trying to explain different economic monetary conditions.
M2


M3 - The category of the money supply that includes M2 as well as all
large time deposits, institutional money-market funds, short-term
repurchase agreements, along with other larger liquid assets. This is the
broadest measure of money; it is used by economists to estimate the
entire supply of money within an economy.
M3


M&A (Mergers and Acquisitions) ,
Margin
Marginal tax rate - The amount of tax paid on an
additional dollar of income. The marginal tax rate for an

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individual will increase as income rises. This method of
taxation aims to fairly tax individuals based upon their
earnings, with low income earners being taxed at a lower
rate than higher income earners.
Market capitalization or "market cap."
Market maker
Market Penetration
Market share
MBS (Mortgage Backed Security) Also known as a
"mortgage-related security" or a "mortgage pass
through."


MMO game (Massively multiplayer online)

MPL (Marginal Product of Labor) measure of the physical increase in the output of a
firm or economy; it is the output that results from hiring one additional worker, all
other factors remaining constant.
MSCI World Stock Market Index
Mutual fund
N
NAB Business Confidence - A key measure of
business confidence in Australia, published monthly and
quarterly by National Australia Bank.



NAVPS (Net Asset Value per Share)

NDRC (National Development and
Reform Commission)


Neutral
Neutrality of money or neutral money
Nominal GDP - A gross domestic
product (GDP) figure that has not
been adjusted for inflation.

Non-farm payroll

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Nonperforming loan (NPL)
NYMEX New York Mercantile Exchange -
O
OECD (Organization for Economic
Cooperation and Development)
,

Off-balance sheet loan
OMT (Outright Monetary Transaction)
Operating profit
OPM Office of Personnel Management
Option
Option trading (trader)
Organic growth
Origination The process of creating a home loan or mortgage.
During the origination process, a borrower submits a variety of
financial information - tax returns, prior paychecks, credit card info,
bank balances, etc. - to the mortgage lender, who uses it to
determine the type of loan the borrower is eligible for and what
interest rate he or she will pay. The lender will also rely on the
borrower's credit report and other information to determine loan
eligibility.

Outsourcing outer source
using

Outstanding Share
Overcapacity
Overhang
Overhead cost -
Overprice
Overshooting
Overweight
Overweighted
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P
Partial offer
Payroll ,
Payroll employment
Payroll tax ,
PBOC or PBC (Peoples Bank of
China)

PE Ratio (Price-Earnings Ratio)
PMI Purchasing Managers Index

Pork barrel spending
Portfolio
Portfolio manager
Ponzi scheme
PPP (Purchasing Power Parity)
PPI Production Price Index
Preferred share
Pre-market
Premium ?
Pretax profit margin
Pricing power
Principal - 1. The amount borrowed or the amount still owed on a
loan, separate from interest. 2. The original amount invested,
separate from earnings. 3. The face value of a bond. 4. The owner of
a private company. 5. The main party to a transaction, acting as
either a buyer or seller for his/her own account and risk.



Private equity ,
Profit margin
Proprietary trading
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Prospectus (
)
Protectionism
Psychological level ,
, , ( )
PT price target for target price
Public yield cap
Pullback
Put option ()
Q
QE Quantitative (monetary)
Easing
,

Quoted price
R
Rate of return
Real GDP
Rebalancing
Recapitalize
Receivables
Redemption
Reflation
Regulator = regulatory agency =
regulatory authority = regulatory body
,
REIT (Real Estate Investment
Trust)
?
Rent-seeking - When a company, organization or individual uses
their resources to obtain an economic gain from others without
reciprocating any benefits back to society through wealth creation.

Repeat business - A situation that
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arises when a customer returns
and again to purchase a good
or service from a business. Offering
repeat business is the hallmark of a
steady customer that is usually
highly valued by businesses that
they patronize since they typically
require minimal
additional marketing efforts to retain.
Repo rate ,

Retail banking
Retail investor
Retention bonus, payment,
package
?
Return on investment (ROI)
Reverse-repurchase agreement - The purchase of securities with the
agreement to sell them at a higher price at a specific future date.

For the party selling the security (and agreeing to repurchase it in the
future) it is a repo; for the party on the other end of the transaction
(buying the security and agreeing to sell in the future) it is a reverse
repurchase agreement.


Risk aversion
Risk tolerance
Road show
ROE Return On Equity
RPI (Retail Prices Index) in US
RRR Required Rate of Return or
Required Reserve Ratio


RS Restricted Stock
RSU Restricted Stock Unit
S
Scrappage program - is a government budget program
to promote the replacement of old vehicles with modern
vehicles.



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Sell-off ,
SEC (Securities and Exchange Commission) ,
()
Shadow banking system
Shipments A quantity of goods or cargo that are
shipped together.

Short-selling
SME (Small and Medium Enterprises)
Social financing

Soft commodity A commodity such as coffee, cocoa,
sugar and fruit. This term generally refers to commodities
that are grown, rather than mined.

Soft landing
Sovereign Bond
Sovereign Wealth Fund (SWF)
Spin-off - The creation of an independent company
through the sale or distribution of new shares of an
existing business/division of a parent company. A spinoff
is a type of divestiture.

Spot market = Cash market = Physical market
Spread - 1. The difference between the bid and the ask
price of a security or asset. 2. An options position
established by purchasing one option and selling another
option of the same class but of a different series.

SSM (Single Supervisory Mechanism)

Sterilization

Stock compensation - A way corporations use stock
options to reward employees. Stock compensation can be
very profitable for the employee if the stock prices
increases. New companies tend to be riskier than long
standing corporations which have a record of proven
performance, so they often use stock options to attract
long-term employees.

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Stress test (Bank stress test)
Swap ,
Syndicated loan
T
Tail risk
Tankan survey - An economic survey of Japanese
business issued by the central Bank of Japan, which it
then uses to formulate monetary policy.



Target market
Tax revenue
Tight Monetary Policy
TIPS market (Treasury Inflation Protected
Securities)

(- )
Trading platform - Software through
which investors and traders can open, close
and manage market positions.

Trading sideways
Treasury
Trickle-down theory or economics

U
Umbrella account - Simply put, an umbrella account is the ability for one entity to
manage multiple entities underneath it.
Underweight
Utility - A company that generates, transmits and/or
distributes electricity, water and/or gas from facilities that
it owns and/or operates.


V
Value chain - A high-level model of how businesses receive
raw materials as input, add value to the raw materials through
various processes, and sell finished products to customers.

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VAT (Value Added Tax)
Venture capital - Money provided by investors to startup firms and
small businesses with perceived long-term growth potential. This is
a very important source of funding for startups that do not have
access to capital markets. It typically entails high risk for the
investor, but it has the potential for above-average returns.



Vested interest -
W
War chest - Slang for the reserve of cash a corporation sets
aside to attempt a takeover or to defend against a hostile
takeover.


Warrant - A derivative security that gives the holder the right to
purchase securities (usually equity) from the issuer at a specific
price within a certain time frame. Warrants are often included in
a new debt issue as a "sweetener" to entice investors.

Wholesale banking
WPI Wholesale Price Index

Write-down

What is
difference
between
revenue,
income, and
gain?

Revenue is the amount earned from a companys main activities such
as selling merchandise or providing services.
A gain results from a peripheral activity, such as selling the old delivery
truck. A gain is the amount received that is in excess of the assets
carrying amount (book value). For example, if the company receives
$3,000 for the truck, and its carry amount was $600, the company will
report a gain of $2,400.
Income is sometimes used instead of the word revenue: some people
refer to the rent they receive as rent income. Generally, accountants
use the word income to mean net of revenues and expenses. For
example, a retailers income from operations is sales minus the cost of
goods sold minus operating expenses.
X

Y
Yield
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Z
Zero-sum game - A situation in which one participant's gains result
only from another participant's equivalent losses. The net change in
total wealth among participants is zero; the wealth is just shifted
from one to another.