Financial Glossary

Babe Bolyai University, Cluj Napoca Faculty of Economics and Business Administration
Financial English Glossary
Mic Iulia 2nd year - Marketing
No. 1.
Word/Expression Credit-default swaps
2.
Subsidiary
Definition A credit default swap (CDS) is a swap contract and agreement in which the protection buyer of the CDS makes a series of payments (often referred to as the CDS "fee" or "spread") to the protection seller and, in exchange, receives a payoff if a credit instrument (typically a bond or loan) experiences a credit event. It is a form of reverse trading. A subsidiary, in business matters, is an entity that is controlled by a separate higher entity. The controlled entity is called a company, corporation, or limited liability company; and in some cases can be a government or state-owned enterprise, and the controlling entity is called its parent (or the parent company). Fair value, also called fair price (in a commonplace conflation of the two distinct concepts), is a concept used in accounting and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or asset.
Context Credit-default swaps are insurance-like contracts between two parties.
Source http://www.businessw eek.com/articles/201205-17/how-jpmorganlost-2-billion-withoutreally-trying http://businessfinance mag.com/article/getready-new-globalaccounting-standards0101?page=0%2C2
3.
Fair value
4.
Fiscal policy
Government's revenue (taxation) and spending policy designed to counter economic cycles in order to achieve lower unemployment, achieve low or no inflation, and achieve sustained but controllable economic growth. In a recession, governments stimulate the economy with deficit spending (expenditure exceeds revenue). Over the past few years, the World Bank has put significant resources into activities meant to have global impact. One is debt relief, and under the enhanced Heavily Indebted Poor Countries Initiative, 26 poor countries have received debt relief, which will save them 41$ billion over time. 1. Any country other than one's own; same as foreign. 2. Out in the sea, not on land.
5.
Debt relief
"Certainly for significant U.S. subsidiaries of multinational companies listed in the EU, 2005 is a real deadline, and most of these companies should be in the midst of IFRS implementation," Braverman says. " "What all of this probably means is that once the IASB adopts fair value accounting, the SEC will probably watch for a year or two to see how the European companies report and to assess that the reporting is sufficiently relevant and reliable," Freedman predicts. Fiscal policy is said to be tight or contractionary when revenue is higher than spending (i.e., the government budget is in surplus) and loose or expansionary when spending is higher than revenue (i.e., the budget is in deficit). Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations.
http://businessfinance mag.com/article/getready-new-globalaccounting-standards0101?page=0%2C3
http://www.econlib.org /library/Enc/FiscalPoli cy.html
http://englishnetlinks.h omestead.com/files/Bu siness.htm
6.
Offshore
The U.S. government needs to be tougher on offshore tax crimes than it has been, says U.S. Representative Richard Neal, a Massachusetts Democrat and one of the sponsors of the legislation.
http://www.businessw eek.com/articles/201205-17/why-foreignbanks-are-shunningamerican-millionaires
7.
Bondholder
The owner of a government or corporate bond. Being a bondholder is often considered safer than being a shareholder because if a company liquidates, it must pay its bondholders before it pays its shareholders. A product offered by an insurance company or an employer to which one makes contribution(s) and immediately or later begins receiving payments, which usually last the remainder of the annuitant's life. An annuity usually refers to a retirement account into which the annuitant makes payments over his/her working life. A situation in which a mortgage lender takes possession of the property because the borrower has not made payments on interest or principal for a certain period of time. Once the lender takes over the property, it usually sells at a discounted price so as to recover the amount lost on the mortgage loan.
8.
Annuity
9.
Foreclosure
Marconi staved off collapse in May last year thanks to a restructuring in which banks and bondholders agreed to write off most of the company's debt in return for control. The need for a product is clear: people are living ever longer, which creates risk for institutions such as corporate pension schemes and annuity providers that will have to provide retirement incomes for longer than expected. As a homeowner who is facing a foreclosure, don't expect that a short sale will not leave any marks on your credit record.
http://www.guardian.c o.uk/business/2004/sep /02/money1
http://www.economist. com/node/21547998
10.
Lender
A person or organization that makes a loan. That is, a lender gives money to a borrower with the expectation of repayment in a timely manner, almost always with interest.
11.
Linger
1. To be slow in leaving, especially out of reluctance; tarry. 2. To remain feebly alive for some time before dying. 3. To persist: an aftertaste that lingers. 4. To proceed slowly; saunter. 5. To be tardy in acting; procrastinate. A statement that shows the financial position of a business enterprise at a specified date by listing the asset balances and the claims on such assets.
12.
Balance sheet
Bankia, a merger of seven savings banks and the largest property lender in Spain, is not Mr Rajoys only banking problem, but it is a good place to start. As late as last year, many luxury properties in the Los Angeles area lingered on the market for weeks or months, according to Stephen Shapiro, co-founder of Westside Estate Agency in Beverly Hills. These are genuine liabilities but they are not recorded properly on the balance sheet.
http://bx.businessweek .com/shortsales-vsforeclosure/view?url=h ttp%3A%2F%2Fheyw ardhomes.blogspot.co m%2F2009%2F12%2 Fthree-reasons-whyshort-sale-isbetter.html http://www.economist. com/node/21554545
http://www.businessw eek.com/articles/201205-24/bidding-warsare-back-for-losangeles-luxury-homes http://www.economist. com/blogs/buttonwood /2012/05/publicsector-pensions
13.
Cash-flow
1. The movement of money into and out of a business 2. A prediction of such movement over a given period
A shortage of bank credit means they may be reluctant to put at risk the cash-flow needed to start a price war. An analysis of recent data points by Now-Casting, which publishes "realtime" economic forecasts, points once more toward contraction in the second quarter.
14.
Forecast
1. To estimate or calculate in advance, especially to predict (weather conditions) by analysis of meteorological data. 2. To serve as an advance indication of; foreshadow: price increases that forecast inflation. 3.To calculate or estimate something in advance; predict the future. 4.A prediction, as of coming events or conditions. 1. The act or process of accumulating; an increase. 2. Something that accumulates or increases.
http://www.economist. com/blogs/freeexchang e/2012/05/businesscycles
15.
Accrual
16.
Long-term debt
17.
Liability
A debt security with a maturity in the long-term. While there is no set definition of what constitutes the long-term, it is generally accepted that long-term bonds are those that mature several years in the future, often more than 15 or 20. One of the most low-risk long-term bonds, the U.S. Treasury Bond, usually has a maturity of 30 years. In personal finance, liabilities are the amounts you owe to creditors, or the people and organizations that lend you money. Typical liabilities include your mortgage, car and educational loans, and credit card debt. Seller. Contrast with donor, who transfers property by gift, and testator, who transfers property under a will.
But it does mean that action has to be taken in the form of higher contributions and in stopping the accrual of future liabilities at the same pace as before; if you're in a hole, stop digging. There's nothing original in noting that Medicare, Medicaid and Social Security are the main drivers of America's long-term debt problem.
http://www.economist. com/blogs/buttonwood /2011/01/pensions_and _risk_management
http://www.economist. com/blogs/democracyi namerica/2012/02/bara ck-obamas-budget
Many small businesses are exposed to the risk of product liability claims, including manufacturers, vendors, suppliers, and exporters. Many small businesses are exposed to the risk of product liability claims, including manufacturers, vendors, suppliers, and exporters Private equity managers would invest long-term capital in poorly run companies, undertake complicated reorganizations that were not possible in prior corporate forms, and would exploit market inefficiencies.
http://www.businessw eek.com/smallbiz/cont ent/jun2008/sb200806 18_537185.htm http://www.businessw eek.com/smallbiz/cont ent/jun2008/sb200806 18_537185.htm http://www.businessw eek.com/managing/con tent/mar2009/ca20090 324_088569.htm
18.
Vendor
19.
Equity
Ownership interest in a firm. Also, the residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. In real estate, dollar difference between what a property could be sold for and debts claimed against it. In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. Equity is also shorthand for stock market investments.
20.
Depreciation
21.
Volatility
22.
Bond market
23.
Liquidating dividend
A non-cash expense (also known as non-cash charge) that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets. A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return from now to the expiration of the option. There are volatility indexes. Such as a scale of 1-9; a higher rating means higher risk. The supply and demand for the buying and selling of bonds. The bond market involves both government and corporate bonds in both the primary market (the first sale at issue) and the secondary market (all subsequent sales). Most transactions involving bonds occur over-the-counter. Bond prices both affect and are affected by the current state of the stock market. A dividend paid to shareholders out of a company's capital or assets, rather than its earned income. That is, a liquidating dividend occurs when a company pays more than its total profit in dividends. This usually happens when shareholders believe that the company is no longer sustainable or profitable. Therefore, liquidating dividends are considered a return of shareholders' investments, rather than profit on them. All of the firm's debts must be paid before it can pay liquidating dividends. The amount of a dividend that a publicly-traded company decides to pay out to shareholders. The dividend policy may change from time to time. Factors affecting a dividend policy include the company's earnings for the relevant period and its expected performance in the near future. Many companies, especially startups, have a rather stingy dividend policy because they plow back much of their earnings into further development.
But macroeconomic adjustment without depreciation looks increasingly difficult; it will mean more hardship and perhaps a lot more. Volatility makes it almost impossible to value an asset, bankers say.
http://www.economist. com/blogs/freeexchang e/2012/05/euro-crisis-4 http://www.economist. com/node/21555931
Central banks are the biggest players in many rich-world government-bond markets.
"There is no personal liability for corporate income taxes unless there is a liquidating dividend or the shareholders fail to maintain clear delineation between corporate finances and personal finances," says Robert McKenzie, tax attorney for Arnstein & Lehr LLP.
http://www.entreprene ur.com/article/202620
24.
Dividend policy
Dividends policy and partial surrenders of the base policy can be received up to the owner's investment in the contract without creating taxable income.
25.
Stock split
The act of a publicly-traded company increasing the number of outstanding shares while maintaining the same market capitalization. In other words, a company engages in a stock split in order to decrease its share price by increasing the number of shares available. Current holders of the stock are given more shares so that they maintain the same percentage of ownership in the company. Integrated Pest Management (IPM) is an effective and environmentally sensitive approach to pest management that relies on a combination of common-sense practices. IPM programs use current, comprehensive information on the life cycles of pests and their interaction with the environment. This information, in combination with available pest control methods, is used to manage pest damage by the most economical means, and with the least possible hazard to people, property, and the environment. 1. To negotiate. For example, if the asking price for a house is $300,000 and a potential buyer does not want to pay that much, he may bargain with the seller to lower the price to $280,000. 2. A purchase with a price lower than fair market value, or at least lower than competitors' prices. A sudden, unexpected profit or gain. A windfall may occur, for example, after a company announces an earnings surprise and its stock consequently jumps significantly. Companies may also experience windfall when demand for their products skyrockets; for example, an umbrella manufacturer may see windfall during an especially rainy year. A general term, especially in the United Kingdom, for a fund or account.
A reverse stock split helped J2 Global Communications of Hollywood avoid delisting in early 2001, attracting media attention.
26.
Integrated pest management
This is the meaning of the term integrated: both chemical and biological...promoting innovative techniques such as integrated pest management.
http://www.ft.com/intl/ cms/s/8b626158-0ed211df-bd7900144feabdc0
27.
Bargain
28.
Windfall
Britain's annual inflation rate fell to its lowest level in more than two years last month as bargains on the high street and a post-Easter cut in air fares helped keep price increases in check. The transfer of the Royal Mail pension scheme to the state provided a 28bn windfall for the exchequer in April, resulting in a monthly surplus of 16.5bn. The transfer of the Royal Mail pension scheme to the state provided a 28bn windfall for the exchequer in April, resulting in a monthly surplus of 16.5bn. Once the one-off Royal Mail effect was stripped out, however, net borrowing in April stood at 11.5bn up from 9.1bn in the same month in 2011.
http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king
29.
Exchequer
http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king
30.
Borrow
To receive money from another party with the agreement that the money will be repaid. Most borrowers borrow at interest, meaning they pay a certain percentage of the principal amount to the lender as compensation for borrowing. Most loans also have a maturity date by which time the borrower must have repaid the loan.
31.
Core inflation
32.
Benchmark
33.
Threshold
34.
Outpace
A measure of inflation that attempts to predict future inflation by excluding price volatility. It is thought to be a better measure of underlying inflation as it does not account for temporary price shocks. Some economists who measure core inflation exclude certain markets that tend to be volatile, such as energy and food, while others include all markets but exclude the markets that have had the greatest volatility over the last given period. A standard against which a security's performance is compared. A benchmark is usually an index of securities of the same or similar class. Stocks are usually compared against stocks; bonds against bonds, etc. Another type of benchmark considers securities according to industry: a telecommunications stock may be compared to other telecommunications stocks. 1. Boundary beyond which a radically different state of affairs exists. 2. Minimum or maximum value (established for an attribute, characteristic, or parameter) which serves as a benchmark for comparison or guidance and any breach of which may call for a complete review of the situation or the redesign of a system. To surpass or outdo (another), as in speed, growth, or performance.
So-called "core inflation", which strips out energy and food costs, also dropped sharply last month, from 2.5% to 2.1%.
http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king
The cost of living measured by the Retail Prices Index used as the benchmark for many pay deals was up 3.5% in the year to April, after rising by 3.6% in the year to March.
http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king
Consumers will be better off at the end of the year after a dramatic slowdown in inflation and rise in the personal tax threshold, according to a report by the Ernst & Young Item Club. Wage growth will finally begin to outpace inflation and our pay packets will also be boosted by the tax changes announced in the budget. Only the top 10% of the income distribution, earning above 36,000, and the bottom 10%, who aren't liable for income tax, won't benefit from the increase in the personal allowance account. But poorer working families who get housing and council tax benefits will be just 33 a year better off from the threshold rise because as their income goes up their benefits fall.
http://www.guardian.c o.uk/business/2012/ma y/28/consumeroutlook-brighter-sayexperts http://www.guardian.c o.uk/business/2012/ma y/28/consumeroutlook-brighter-sayexperts http://www.guardian.c o.uk/business/2012/ma y/28/consumeroutlook-brighter-sayexperts http://www.guardian.c o.uk/business/2012/ma y/28/consumeroutlook-brighter-sayexperts
35.
Allowance account
A reserve fund created by a charge against profits in order to provide for changes in the value of a company's assets
36.
Council tax
A tax levied on households by local authorities; based on the estimated value of the property and the number of people living in it
37.
Endanger
1. To expose to harm or danger; imperil. 2. To threaten with extinction.
38.
Shore up
Be the physical support of; carry the weight of.
39.
Incentive
1. a motivating influence; stimulus 2. (Business / Commerce) an additional payment made to employees as a means of increasing production.
40.
Unbanked
Describing a person or group of people who do not have an account at any bank. Unbanked persons are either paid in cash or cash their paychecks rather than deposit them. Unbanked persons are often poor; lack of a bank account often renders one ineligible to buy a house or take advantage of some social services. Describing a situation when an issuer or syndicate manager has difficulty finding enough underwriters to place a new issue with investors.
The must be prepared to take the steps necessary to counter the growth of asset bubbles before they get large enough to endanger the economy. Central banks also have the responsibility to shore up the economy and help to move it back toward full employment. If businesses expect that prices will be 15% to 18% higher three years from now it will give them more incentive to invest today, since they will be able to sell what they produce at these higher prices. The rapidly growing prepaid market is attracting both banks and non-banks, and more Americans, especially those classified as unbanked or underbanked are using these cards as de facto checking accounts. The rapidly growing prepaid market is attracting both banks and non-banks, and more Americans, especially those classified as unbanked or underbanked are using these cards as de facto checking accounts. Eakes also called for the elimination of mandatory arbitration clauses in cardholder agreements and said prepaid cards shouldnt be subject to any kind of insufficient funds or overdraft penalties.
http://www.guardian.c o.uk/commentisfree/20 12/apr/11/bankingeuropean-central-bank http://www.guardian.c o.uk/commentisfree/20 12/apr/11/bankingeuropean-central-bank http://www.guardian.c o.uk/commentisfree/20 12/apr/11/bankingeuropean-central-bank
http://moneyland.time. com/2012/05/29/thegrowing-debate-overprepaid-debit-cards/
41.
Under-banked
42.
Overdraft
A situation in which a bank customer withdraws more from his/her account than he/she had previously deposited. For example, if an account holder has $1,000 in the account and withdraws $1,200, this is an overdraft of $200. The bank may or may not honor the overdraft, depending on its policies and the importance of the customer. Usually, however, an overdraft incurs a relatively steep penalty fee.
43.
Acid test
A stern measure of a company's ability to pay its short term debts, in that stock is excluded from asset value. (liquid assets/current liabilities).
The quick ratio, sometimes called the acid-test, is a more stringent test of liquidity than the current ratio.
http://bizfinance.about. com/od/financialratios/ f/finratioanal4.htm
45.
Direct Deposit
46.
Asset turnover
An electronic service in which a payment, especially but not limited to a paycheck, pension, or tax refund, is transferred immediately into the recipient's bank account. The direct deposit replaces a check for which the recipient would otherwise have to wait to arrive in the mail. A direct deposit service also allows the recipient to have access to his/her funds immediately without waiting on the holding period, which is required for many check deposits. A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.
Eakes and others who spoke during the panel discussion as well as in the open-mic session that followed unanimously said that theres no place for credit via overdraft or direct deposit advances, which advocates call payday lending by another name in a prepaid debit card The DuPont analysis article is important because it deals with something I don't see investors talk much about the asset turnover ratio.
http://www.gurufocus. com/news/122349/why -the-asset-turnoverratio-matters
47.
Capital employed
48.
Cash flow statement
The value of all resources available to the company, typically comprising share capital, retained profits and reserves, long-term loans and deferred taxation. Viewed from the other side of the balance sheet, capital employed comprises fixed assets, investments and the net investment in working capital (current assets less current liabilities). In other words: the total long-term funds invested in or lent to the business and used by it in carrying out its operations. One of the three essential reporting and measurement systems for any company. The cash flow statement provides a third perspective alongside the Profit and Loss account and Balance Sheet. The Cash flow statement shows the movement and availability of cash through and to the business over a given period, certainly for a trading year, and often also monthly and cumulatively. The availability of cash in a company that is necessary to meet payments to suppliers, staff and other creditors is essential for any business to survive, and so the reliable forecasting and reporting of cash movement and availability is crucial.
The single most important indicator of the inherent excellence of a business is the return on capital employed.
http://beginnersinvest.a bout.com/od/investstra tegiesstyles/a/aa10180 5_2.htm
This third entry in the Understanding Financial Statements series looks at the cash flow statement, the final of the 3 primary financial statements that all public companies must report to the SEC.
http://www.magicdilig ence.com/articles/unde rstanding-the-cashflow-statement
49.
Fixed assets
Assets held for use by the business rather than for sale or conversion into cash, eg, fixtures and fittings, equipment, buildings. In finance, the exchange rates (also known as the foreignexchange rate, forex rate or FX rate) between two currencies specify how much one currency is worth in terms of the other. It is the value of a foreign nations currency in terms of the home nations currency.[1] For example an exchange rate of 91 Japanese yen (JPY, ) to the United States dollar (USD, $) means that JPY 91 is worth the same as USD 1. The foreign exchange market is one of the largest markets in the world. By some estimates, about 3.2 trillion USD worth of currency changes hands every day. The weighted average of a country's currency relative to an index or basket of other major currencies adjusted for the effects of inflation. The weights are determined by comparing the relative trade balances, in terms of one country's currency, with each other country within the index. The average quantity of an item consumed or expended during a given time interval, expressed in quantities by the most appropriate unit of measurement per applicable stated basis.
Inland Chinas share of fixed-asset investment matched that of the coastal provinces for the first time in 2009, then exceeded it in 2010. In its latest World Economic Outlook, the IMF identifies four reasons: Chinas exchange rate, its terms of trade, global spending and Chinas own investment expenditure.
50.
Exchange rate
51.
Real effective exchange rate
The measure most economists watch is the real effective exchange rate (REER) adjusted for consumer-price inflation and weighted by trade.
52.
Consumption rate
It would require Chinas low consumption rate to move still lower to make room for so much investing and exporting.
53.
Gearing
The ratio of debt to equity, usually the relationship between long-term borrowings and shareholders' funds.
The campaign for lower fuel prices is gearing up again.
http://www.bbc.co.uk/ news/uk-england18210753
54.
Windfall tax
(Economics) A tax levied on an organization considered to have made excessive profits, especially a privatized utility company that has exploited a monopoly.
Mr Halfon called for a windfall tax on the oil companies (as opposed to just the North Sea oil companies, which the chancellor announced last year) to fund a fuel duty cut.
55.
Knock-on effect
A secondary or incidental effect.
"If fewer people are able to afford to travel [to our resorts] there is a knockon effect on our economy." Group sales for the nine weeks to 25 March were up 13.2% on the same period a year ago to 267.6m. Gross profit was up 13.5% on the year to 99.8m.
http://www.bbc.co.uk/ news/uk-england18210753 http://www.bbc.co.uk/ news/business17836617
56.
Gross profit
Sales less cost of goods or services sold. Also referred to as gross profit margin, or gross profit, and often abbreviated to simply 'margin'.
57.
Working capital
Current assets less current liabilities, representing the required investment, continually circulating, to finance stock, debtors, and work in progress.
Mr Grier has denied knowing that Ticketus were funding the purchase, and his PR team has claimed he was only aware of a much smaller arrangement of around 5m with the finance firm to fund a working capital shortfall. A leading insolvency expert has told the BBC that if the allegations of a conflict are proved, Duff and Phelps should resign. I couldn't contact the bank by telephone or internet so I visited the local branch in Stockport and made a telegraphic transfer.
http://www.bbc.co.uk/ news/uk-scotlandglasgow-west18212287
58.
Insolvency
The lack of financial resources.
http://www.bbc.co.uk/ news/uk-scotlandglasgow-west18212287 http://news.bbc.co.uk/2 /hi/business/6999453.s tm
59.
t/t (telegraphic transfer)
International banking payment method: a telegraphic transfer payment, commonly used/required for import/export trade, between a bank and an overseas party enabling transfer of local or foreign currency by telegraph, cable or telex. Also called a cable transfer. The terminology dates from times when such communications were literally 'wired' - before wireless communications technology.
60.
Restricted funds
61.
Initial public offering
62.
Flotation
These are funds used by an organization that are restricted or earmarked by a donor for a specific purpose, which can be extremely specific or quite broad, eg., endowment or pensions investment; research (in the case of donations to a charity or research organization ); or a particular project with agreed terms of reference and outputs such as to meet the criteria or terms of the donation or award or grant. The source of restricted funds can be from government, foundations and trusts, grant-awarding bodies, philanthropic organizations, private donations, bequests from wills, etc. The practical implication is that restricted funds are ring-fenced and must not be used for any other than their designated purpose, which may also entail specific reporting and timescales, with which the organization using the funds must comply. An Initial Public Offering (IPO being the Stock Exchange and corporate acronym) is the first sale of privately owned equity (stock or shares) in a company via the issue of shares to the public and other investing institutions. In other words an IPO is the first sale of stock by a private company to the public. IPOs typically involve small, young companies raising capital to finance growth. For investors IPOs can risky as it is difficult to predict the value of the stock (shares) when they open for trading. An IPO is effectively 'going public' or 'taking a company public'. a. the launching or financing of a commercial enterprise by bond or share issues b. the raising of a loan or new capital by bond or share issues
Mr. Earl, who works with Avon and Somerset Police and internet safety charity the South West Grid for Learning, said: "Cuts [to police force budgets] mean funds are restricted
One reason for the fall in shares since its initial public offering (IPO) is that Tuesday was the first day that options on Facebook stock began trading.
http://www.bbc.co.uk/ news/business18257043
63.
Liquidity ratio
Indicates the company's ability to pay its short term debts, by measuring the relationship between current assets ( those which can be turned into cash) against the short-term debt value. (current assets/current liabilities).
The flotation was disrupted on its first day of trading by technical glitches on the Nasdaq stock exchange. The share price has since slumped amid worries that the company was over-valued by advisers marketing the float. You have heard these complaints many times before from bankers, so you may be tempted to dismiss them as self-interested threats (lower capital and liquidity ratios allow banks to take greater bonus-generating risks).
64.
net present value (npv)
Accounting an assessment of the long-term profitability of a project made by adding together all the revenue it can be expected to achieve over its whole life and deducting all the costs involved, discounting both future costs and revenue at an appropriate rate Abbreviation NPV Real Estate Investment Trust - an investment trust that owns and manages a pool of commercial properties and mortgages and other real estate assets; shares can be bought and sold in the stock market.
Both Maxim and Sepa have economically benefited from a review of the original terms without impacting the actual net present value of the lease. Shares in Hui Xian Real Estate Investment Trust (REIT) fell sharply to 4.83 yuan from its listing price of 5.24 yuan in early trade.
http://www.bbc.co.uk/ news/uk-scotlandscotland-business14334011
65.
REIT
66.
Investment trust
A financial institution that sells shares to individuals and invests in securities issued by other companies.
The investment trust's main asset is Oriental Plaza, a massive retail, office and residential complex in Beijing.
67.
IPO
A corporation's first offer to sell stock to the public.
Investors gave a tepid response to the initial public offering (IPO) and it was priced at the lowest end of a 5.24-5.58 yuan range, raising 10.48bn yuan ($1.6bn,969m). China has been trying to promote the yuan as an alternative global reserve currency to the US dollar.
68.
Reserve currency
A currency which is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. It also tends to be the international pricing currency for products traded on a global market, and commodities such as oil, gold, etc. The tax rate that would have to be paid on any additional dollars of taxable income earned.
69.
Marginal tax rate
Time, yet again, to watch the projector being fired up, don a name tag and make polite conversation about Laffer curves and marginal tax rates. "The region is learning, at some cost, that housing market cycles are typically extended and pronounced."
http://www.bbc.co.uk/ news/uk-politics17486346
70.
Market cycle
The period between the 2 latest highs or lows of the S&P 500, showing net performance of a fund through both an up and a down market. A market cycle is complete when the S&P is 15% below the highest point or 15% above the lowest point (ending a down market).
http://www.bbc.co.uk/ news/uk-northernireland-15757929
71.
Labour market
Labour economics seeks to understand the functioning and dynamics of the market for labour. Labour markets function through the interaction of workers and employers. Labour economics looks at the suppliers of labour services (workers), the demanders of labour services (employers), and attempts to understand the resulting pattern of wages, employment, and income.
72.
Medium-term note
73.
Credit rating
74.
Value Added Tax
75.
Tangible asset
76.
Hard currency
A medium term note (MTN) is a debt note that usually matures (is paid back) in 510 years, but the term may be less than one year or as long as 50 years. They can be issued on a fixed or floating coupon basis. A credit rating estimates the credit worthiness of an individual, corporation, or even a country. It is an evaluation made by credit bureaus of a borrowers overall credit history. A credit rating is also known as an evaluation of a potential borrower's ability to repay debt, prepared by a credit bureau at the request of the lender (Black's Law Dictionary). Credit ratings are calculated from financial history and current assets and liabilities. A form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting view, by his stage of its manufacture or distribution. The buyer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes he had previously paid on the inputs. An asset whose value depends on particular physical properties. These include reproducible assets such as buildings or machinery and non-reproducible assets such as land, a mine, or a work of art. Also called real assets. Hard currency or strong currency, in economics, refers to a globally traded currency that can serve as a reliable and stable store of value. Factors contributing to a currency's hard status can include political stability, low inflation, consistent monetary and fiscal policies, backing by reserves of precious metals, and long-term stable or upward-trending valuation against other currencies on a trade-weighted basis.
Although first-time buyers are still facing difficulties in terms of accessing mortgage finance and continuing uncertainty in the labour market, house price to income rations clearly show that in comparison to a few years ago Northern Ireland's housing market is now much more affordable. Moody's believes that Greece will still face medium-term note solvency challenges. Moody's has cut Greece's credit rating again, citing a risk of default despite a recent debt write-off deal.
http://www.bbc.co.uk/ news/business17238523 http://www.bbc.co.uk/ news/business17238523
The IMF's technical expert on the UK economy, Ajai Chopra said: "I think the sort of measures we have in mind are, one could consider cutting the Value Added Tax.
Stanley Gibbons said "we are witnessing an increasing international interest in the ownership of tangible assets, such as collectibles. Its announcement coincides with news that major money exchange houses in the nearby United Arab Emirates have stopped handling Iranian rials over the last few weeks, something that has further reduced Iran's ability to trade and acquire hard currency.
77.
Certificate of deposit
Also called a time deposit, this is a certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. A CD bears a maturity date and a specified interest rate, and can be issued in any denomination. The duration can be up to five years. A civil action brought in a court of law in which a plaintiff, a party who claims to have incurred damages as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint. If the plaintiff is successful, judgment will be given in the plaintiff's favor, and a variety of court orders may be issued to enforce a right, award damages, or impose an injunction to prevent an act or compel an act. A declaratory judgment may be issued to prevent future legal disputes. A pyramid scheme is a non-sustainable business model that involves promising participants payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part, rather than supplying any real investment or sale of products or services to the public. Non-interest bearing deposits held in reserve for depository institutions at their district Federal Reserve Bank. Also, excess reserves lent by banks to each other.
78.
Countersuit
Mr. Stanford, 60, is accused of running a scheme that persuaded investors to buy certificates of deposit from Stanford International Bank, located in Antigua. He has been in custody since June 2009. Texan billionaire Allen Stanford has filed a countersuit against US prosecutors, accusing them of depriving him of his constitutional rights.
79.
Pyramid scheme
The lawsuit claims prosecutors "undertook illegal tactics" in their investigation of Mr. Stanford's alleged pyramid scheme that they claim defrauded investors of $7bn (4.3bn). Puerto Rican voters, who elect a governor for the island, have tended to favour parties that support the union with the US. Puerto Ricans do not pay US income tax, and the island receives federal funds The "301 Group" of newer MPs caused friction in the run-up to the ballot by fielding a "slate" of candidates in an attempt replace the "old guard". "This investment, allied to strong market growth, a continued commitment to innovation and the best suited portfolio to target the most profitable opportunities, will provide the basis for future value growth for our company."
80.
Federal funds
http://www.bbc.co.uk/ news/world-us-canada17139243
81.
Friction
The "stickiness" involved in making transactions; the total process including time, effort, money, and tax effects of gathering information and making a transaction such as buying a stock or borrowing money.
82.
Future value
The value that a sum of money invested at compound interest will have after a specified period.
83.
Emerging market
A financial or consumer market in a newly developing country or former communist country.
84.
Capital expenditure
Expenditure on acquisitions of or improvements to fixed assets.
85.
Joint venture
A partnership or conglomerate, formed often to share risk or expertise.
Drinks firm Chivas Brothers has outlined a 40m investment program as it seeks to meet growing demand for whisky in emerging markets. Chivas Brothers chairman and chief executive Christian Porta commented: "We are committed to a capital expenditure of 40m annually to further increase our distillation capacity and production facilities. The firm's accounts state that it has decided to pull out of a joint venture with the McGinnis house-building group and write off the value of their investment in that project.
http://www.bbc.co.uk/ news/uk-scotlandscotland-business18266192 http://www.bbc.co.uk/ news/uk-scotlandscotland-business18266192
86.
Pre-tax loss
A loss reported before tax benefits are considered.
The property firm which owns the Bloomfield shopping centre in Bangor has announced a 26m pre-tax loss for 2010.
87.
Gross
The amount before any subtractions are made. For example, the amount that a person earns from an employer represents his gross income. He then subtracts his tax liability and other deductions to arrive at his net income. Money given to a broker or brokerage for investment purposes. One manages one's brokerage account differently according to the type of brokerage; that is, one may meet with a broker, call on the telephone, or give orders over the Internet. Brokerage accounts are divided into two main categories: advisory accounts and discretionary accounts. Brokers are only allowed to conduct transactions on advisory accounts on the specific orders of the account holder, or under very specific instructions.
The firm now has gross assets of about 340m compared to around 460m in 2009.
88.
Brokerage account
89.
Bank guarantee
A promise made by a bank to provide payment to another bank or lender on a bond, loan, or other liability in the event of default. Banks often make guarantees on behalf of certain clients to promise payment on loans. Bank guarantees reduce the risk to loans and liabilities and usually improve the credit agency ratings of bonds.
90.
Land bank
A bank that provides loans for agricultural or other rural use. Most loans from federal land banks are for commercial agriculture, but they also finance personal and recreational projects.
91.
Housing market
92.
Pre-tax profit
General market of houses being purchased and sold between buyers and sellers either directly by owners or indirectly through brokers. Net income before federal income taxes are subtracted.
93.
Share capital
Share capital (UK English) or capital stock (US English) refers to the portion of a company's equity that has been obtained (or will be obtained) by trading stock to a shareholder for cash or an equivalent item of capital value. For example, a company can issue shares in exchange for computer servers, instead of purchasing the servers with cash. 1. The practice of selling multiple products as if they were one. For example, all seven books in the Harry Potter series may be bundled and sold as a box set. 2. The practice of compiling a number of financial products and selling them as securities. Mortgages are frequently bundled as mortgage-backed securities.
The accounts suggests that after selling their stake in the project and writing off a loan and bank guarantee, their involvement in the venture returned a loss of about 12m. Mortgages registered with Companies House suggests the project related to a site at Rathgael in Bangor. In 2009 , the two firms teamed up, via a completely different company called Dermont LLP, to take control of an 87-acre land bank which had been owned by the failed Taggart housebuilding group. However, over the past three years the housing market has followed a relentless downward path. The restaurant business, which employs around 350 people, made a pre-tax profit of 824,000 on turnover of 34m which compares to a 705,000 loss the year before. A note in the account states that Mr. Herbert no longer owns Lebreh with his wife Lesley now controlling 100% of the company's share capital.
http://www.bbc.co.uk/ news/uk-northernireland-18055426 http://www.bbc.co.uk/ news/uk-northernireland-18055426
94.
Bundling
MPs also concluded the bundling together of train manufacture and financing in large procurement exercises would skew the market towards larger multinational firms, possibly at the expense of excellence in train design and domestic manufacturing.
http://www.bbc.co.uk/ news/uk-englandderbyshire-16178039
95.
Bidder
A potential buyer. The term may apply regardless of what the bidder is seeking to buy. To give only a few examples, bidders seek to buy houses, stocks, bonds, and whole companies. A bidder may be an individual or a corporation. Generally speaking, a seller finds the bidder who offers the best deal and executes the sale with him or her. The price a potential buyer is willing to pay for a security. Sometimes also used in the context of takeovers where one corporation is bidding for (trying to buy) another corporation. In trading, we have the bid-ask spread which is the difference between what buyers are willing to pay and what sellers are asking for in terms of price. The act in which a bank submits a financial instrument to another bank and demands payment on the instrument.
Canadian-owned Bombardier announced it was cutting 1,400 jobs after Siemens was named as the preferred bidder for the lucrative contract. Ms Ellman said: "We could not evaluate whether the decision to choose Siemens was arrived at correctly because all of the bids were and remain confidential.
96.
Bid
97.
Indictment
Unite union general secretary Len McCluskey said: "The select committee's report is a damning indictment of the government. It also says the biggest banks should go further than this and have a safety cushion of between 17% and 20% of assets, made up of highest-quality assets topped up with bonds that can be easily converted to equity. The idea was to provide a government safety-net return for workers who fell on hard times.
98.
Safety cushion
In a contingent immunization strategy, the difference between the initially available immunization level and the safety-net return.
99.
Safety-net return
In an actively-managed portfolio, the minimum return the portfolio must make in order to remain actively managed. If the return falls below this minimum, the portfolio automatically initiates an immunization strategy to reduce the portfolio's risk. The safety-net return is part of a contingent immunization strategy. Deductions from paychecks or other payments made to National Insurance in the United Kingdom. National Insurance pays for the state pension, unemployment benefits and also funds the National Health Service. Both employees and employers must make National Insurance contributions, and employers must make further contributions on certain employee benefits. They do not fund other government functions, but the government may borrow against them
http://www.bbc.co.uk/ newsbeat/10078062
100.
National Insurance Deductions
If you have a job, then you pay National Insurance Deductions.
101.
Selling short
102.
Wholesaler
103.
Retail price
104.
Rogue trading
105.
Seniority
To sell borrowed securities. In selling short, one borrows securities, usually from a brokerage, and sells them. One then buys the same securities in order to repay the brokerage. Selling short is practiced if one believes that the price of a security will soon fall. That is, one expects to sell the borrowed securities at a higher price than the price at which one buys in order to return the securities. Selling short is one of the most common practices of hedge funds. A company that purchases large quantities of goods from a manufacturer and sells them to stores, where they are resold to consumers. A wholesaler generally is able to extract a better price from the manufacturer because it buys so many good relative to an individual retailer. In theory, this enables the retailer to sell the good at a better price for the consumer. The price the end user of a product pays. That is, if one buys a vacuum in order to use it instead of to sell it to another store, one likely pays the retail price. The retail price includes all expenses the retailer incurs, plus a mark-up. The practice of trading securities using another person or institution's money without input or oversight from others. For example, an employee of an investment bank may trade with the bank's money without receiving authorization from or reporting it to his supervisor. Rogue trading generally is risky and usually is discovered when it leads to a large loss. The condition or status of a security that has priority over other securities by the same issuer with respect to the payment of income (that is, interest or dividends) and repayment of principal. As an example, for the same issuer, bonds have seniority over preferred stock and preferred stock has priority over common stock. Market abuse may arise in circumstances where financial investors have been unreasonably disadvantaged, directly or indirectly, by others who: have used information which is not publicly available (insider dealing); have distorted the price-setting mechanism of financial instruments; have disseminated false or misleading information.
"The other is that there are some suppliers who are engaging in selling short measures," said Mr. MacBeth.
Giving evidence to the assembly's committee for enterprise, trade and investment, James MacBeth of the OFT said the strongest evidence for this came from a wholesaler monitoring the market. "Their view was that on a number of occasions they had seen retail prices below the level at which they were wholesaling," said Mr. MacBeth. The possibility of rogue trading shocked the committee and its chairman Alban Maginness MLA said it was a cause for concern
http://www.bbc.co.uk/ news/uk-northernireland-15482349 http://www.bbc.co.uk/ news/uk-northernireland-15482349
The FSA said it took the matter seriously because of his seniority.
106.
Market abuse
The FSA said that while Mr. Hannam had not deliberately set out to commit market abuse, his failings were serious because of his experience and senior position at JP Morgan.
107.
Separation property
108.
Deception
109.
Share repurchase
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. Deception, beguilement, deceit, bluff, mystification, and subterfuge are acts to propagate beliefs that are not true, or not the whole truth (as in half-truths or omission). Deception can involve dissimulation, propaganda, sleight of hand. It can employ distraction, camouflage or concealment. Program by which a corporation buys back its own shares in the open market. It is usually done when shares are undervalued. Since it reduces the number of shares outstanding and thus increases earnings per share, it tends to elevate the market value of the remaining shares held by stockholders. A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.[2]
In court, Lee claimed the 1m payment related to a separation property deal he had with Mr. Collins.
He was convicted earlier this month of obtaining the money by deception.
110.
Supply chain
111.
War chest
Cash kept aside for a takeover or for defense against a takeover bid.
112.
To surge
To rise and move in a billowing or swelling manner.
113.
Stockpile
- A supply stored for future use, usually carefully accrued and maintained. - To accumulate and maintain a supply of for future use.
"Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program." "We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure," Apple chief executive Tim Cook said in a statement. Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. Apple shares have surged to about $600 in recent days, making it the world's most valuable company, with a stock market value of more than $500bn. "This is consistent with what we, and I think most, expected them to do, which is to address shareholder concerns around the huge cash stockpile.
114.
Buyback
115.
To bolster
The covering of a short position by purchasing a long contract, usually resulting from the short sale of a commodity. See: Short covering, stock buyback. Also used in the context of bonds. The purchase of corporate bonds by the issuing company at a discount in the open market. Also used in the context of corporate finance. When a firm elects to repurchase some of the shares trading in the market. To support or reinforce; strengthen.
"This, plus the buyback, should continue to bolster the soaring share price."
"This, plus the buyback, should continue to bolster the soaring share price." Last year its return on average shareholders' equity was 6.6%, less than half its stated target of reaching 13% by 2013 and considerably below the 11% or so cost of its equity.
116.
Shareholders` equity
In finance, shareholders' equity (or stockholders' equity, shareholders' funds, shareholders' capital employed) is ownership equity spread out among shareholders whose class of share may have special rights attached to it. If all shareholders are in one and the same class, they share equally in ownership equity from all perspectives. In financial accounting, it is the owners' interest in the assets of the enterprise after deducting all its liabilities.[1] It appears on the balance sheet, one of four financial statements. The per-share or per-bond compensation of a selling group for participating in a corporate underwriting.
117.
Concession
118.
Hedge fund
A very specialized, volatile, open-end investment company that permits the manager to use a variety of investment techniques usually prohibited in other types of funds. These techniques include borrowing money, selling short, and using options. Hedge funds offer investors the possibility of extraordinary gains with above-average risk.
According to well-placed sources, leading institutional shareholders believe that the concessions unexpectedly offered by Barclays do not address their fundamental concern - which is that the bank rewards its top executives disproportionately in relation to the rewards available for shareholders. In other words, Barclays would win the motions - but in the teeth of considerable opposition from conventional, long-term British shareholders, who manage the savings of millions of British people. Barclays would be relying on the votes of overseas investors, hedge funds and others investors who do not typically become exercised by remuneration.
119.
Cost of equity
The required rate of return that a stockholder demands from a publicly-traded company in exchange for buying a share and assuming the risk associated with it. It is calculated thusly: Cost of Equity = ( Dividends per share / Price per share ) + Dividend growth rate. To increase a firm's amount of debt. In general, a firm leverages up by issuing a bond, often in order to finance an expansion of operations. A publicly-traded company may leverage up to repurchase its own stock, which usually increases the share price; this was a relatively common way to discourage hostile takeovers in the 1980s.
Right now Barclays, like many of the western world's big banks, is earning considerably less than its cost of equity.
120.
Leverage up
The reason some investors don't like return on equity as a formal target is that banks can boost it in a very simple but potentially dangerous way, by lending much more relative to their equity - or by "leveraging up" to use the jargon.
121.
Credit crunch
A shortage of available credit for businesses and consumers. This situation could arise when lenders are reluctant to lend because of uncertainty of defaults or are willing to lend only at high interest rates thus making it difficult for businesses and consumers to secure credit. The difference between estimated transaction costs and actual transaction costs. The difference is usually composed of revisions to price difference or spread and commission costs. One, who attempts to anticipate price changes and, through buying and selling contracts, aims to make profits. A speculator does not use the market in connection with the production, processing, marketing or handling of a product. A suspension of movement or progress, especially a temporary one.
In other words, when a bank has a formal target of improving the return on equity, it has an incentive to take the kind of dangerous risks that led to the credit crunch and banking crisis of 2007-8. Deputy Jones said: "There has been some slippage, because obviously we've had an election and a new board." The AA blamed speculators for pushing up oil prices and said the government should do more to tackle the problem. The average petrol price has risen to a new high of 142.48p per liter after a brief halt to weeks of rises, motoring association the AA says. The proper accounting method for such transactions is to spread the income over the lifetime of a contract, the SEC ruled last month.
122.
Slippage
http://www.bbc.co.uk/ news/world-europeguernsey-18263176 http://www.bbc.co.uk/ news/business17777367 http://www.bbc.co.uk/ news/business17777367 http://www.bbc.co.uk/ news/business15985203
123.
Speculator
124.
Halt
125.
Spread income
Also called margin income, the difference between income and cost. For a depository institution, the difference between the assets it invests in (loans and securities) and the cost of its funds (deposits and other sources).
126.
Restatement
127.
Purchasing managers index
128.
Sterilized intervention
The release of a previously issued financial statement amended with new information. For example, if a company issues a profit-loss statement and then discovers new information that affects the statement, it may amend the profitloss statement to reflect the new information. When it releases this to the public, the company is said to make a restatement. An index tracking the decisions that purchasing managers make. Purchasing managers are responsible for buying the goods that a company needs to function. The index goes up if purchasing managers are buying more than before, and it goes down if they are buying less. It is used as an indicator of the direction of an economy. The index derives its value from monthly surveys of purchasing managers in representative industries. Foreign exchange market intervention in which the monetary authorities have insulated their domestic money supplies from the foreign exchange transactions with offsetting sales or purchases of domestic assets.
Mr. Draghi said a "fundamental restatement" of the region's fiscal rules was key to restoring confidence.
Markit's purchasing managers' index (PMI) of activity dropped to 46.4 last month, from 47.1 in October.
129.
Weighted average cost of capital
130.
Borrowing cost
Expected return on a portfolio of all a firm's securities. Used as a hurdle rate for capital investment. Often the weighted average of the cost of equity and the cost of debt The weights are determined by the relative proportions of equity and debt in a firm's capital structure The amount of money paid in interest on a loan or other debt. In other words, it is what one must spend in order to receive money. Borrowing costs are expenses for both personal and business loans. (Economics, Accounting & Finance / Banking & Finance) Brit the rate of interest used by individual commercial banks as a basis for their lending rates. Stock that has fallen out of favor with investors; stock that tends to have a low P/E (price-to-earnings ratio).
Will the government recommend to the Bank of England the use of a policy of sterilized intervention on the exchange rates in order to reduce the value of the pound - The Lord Taverne. Total bids exceeded the 10bn on offer by 850m with the highest accepted rate being 6.6% - giving a weighted average cost of capital of 5.949%, the Bank said. The Bank of England has lent banks and financial institutions 10bn in a move analysts expect to ease the impact of a credit crunch and high borrowing costs. However most banks had to pay above base rate for the loans. No wallflower Yahoo is still a huge player in the online advertising market, earning billions from a sprawling range of web properties.
http://news.bbc.co.uk/2 /hi/uk_news/politics/6 16587.stm
http://news.bbc.co.uk/2 /hi/business/7149153.s tm
131.
Base rate
132.
Wallflower
http://news.bbc.co.uk/2 /hi/business/7149153.s tm http://www.bbc.com/n ews/technology14820161
133.
Yankee bond
A foreign bond denominated in U.S. dollars and traded in the United States. In order to raise capital from American investors, a non-American company may choose to sell a bond in the United States. Most of the time, the issuers must register Yankee bonds with the SEC. 1. A check made payable to a certain person, organization or to cash, and signed by the writer with the amount of the check left blank. That is, a blank check allows the payee (or anyone else) to determine the amount of the check. A blank check can be very dangerous, especially if one is made to a person the writer does not trust or if the payee does not know how much is in the writer's account. It easily can lead overdrafts. 2. Informal for a situation or transaction requiring a great deal of trust between the parties. A person or company that owns a municipal or corporate bond. The bond represents a debt that the bond issuer owes to the bondholder. Thus, a bondholder usually has the right to receive principal and interest on this debt, though some derivatives separate the two. In the event of the bankruptcy of the issuer, bondholders have priority over shareholders in the liquidation of assets. 1. To start a company with personal finances rather than through loans or venture capital. This is obviously a large risk to the entrepreneur as he/she has no recourse should the business fail. 2. To calculate the yield curve on a zero-coupon Treasury bill. Because the U.S. Treasury does not issue new T-bills constantly, bootstrapping is used to create a yield curve by filling in the missing yields on the T-bills. A bond issued by the International Bank for Reconstruction and Development to Latin American countries starting in 1989 and continuing into the 1990s. It effectively refinanced the bonds issued by Latin American countries after many defaulted on their national debt in the 1980s. Many bonds issued in the region prior to this were illiquid; Brady bonds were tradable and, for that reason, were more attractive to investors. Because many of them were guaranteed by U.S. Treasury bonds, they also carried less risk. In 1999, Ecuador defaulted on its Brady bonds.
134.
Blank check
The government plans to issue $38bn in domestic bonds. It also wants to raise more money overseas after its successful $1bn Yankee dollar bond last year, in order to stimulate China's integration into world capital markets. I'd prefer they just write their cronies a blank check without buying anything.
http://news.bbc.co.uk/2 /hi/business/249684.st m
http://news.bbc.co.uk/2 /hi/europe/6709745.st m
135.
Bondholder
The brewery is a member of a bondholder scheme which aims to bring local businesses together and help promote the image of the area.
http://www.bbc.co.uk/ news/uk-englandlancashire-17386205
136.
Bootstrap
It had originally hoped to produce the devices in the UK - "we want to help bootstrap the UK electronics industry" the group wrote in a blog post - but that turned out not to be possible at the right price.
http://www.bbc.com/n ews/technology17190918
137.
Brady bond
But the idea, borrowed from so-called Brady bonds that were used to help Latin American countries cut their massive debt burdens 20 years ago, is that the funds in the special purpose vehicle would act as a form of insurance, to cover the risk that Greece would eventually default on the new 30-year loans.
138.
Breakeven point
139.
Bucket shop
140.
Bulge bracket
141.
Carry trade
Refers to the price at which a transaction produces neither a gain nor a loss. In the context of options, the term has the additional definitions: 1. Long calls and short uncovered calls: strike price plus premium. 2. Long puts and short uncovered puts: strike price minus premium. 3. Short covered call: purchase price of underlying stock minus premium. 4. Short put covered by short stock: short sale price of underlying stock plus premium. An illegal brokerage firm that accepts customer orders but does not attain immediate executions. A bucket shop broker promises the customer a certain price, but waits until a price discrepancy is present and the trade is advantageous to the firm and then keeps the difference as profit. Alternatively, the broker may never fill the customer's order but keep the money. In bracketing, an underwriting firm responsible for placing a certain amount of a new issue with investors. If a bulge bracket firm is the single largest underwriter, it may be responsible for assigning parts of the issuer to other underwriters. Brackets are listed in order of size on an advertisement detailing each new issue, known as the tombstone. For the bond market, this refers to a trade where you borrow and pay interest in order to buy something else that has higher interest. The carry return is the coupon on the bonds minus the interest costs of the short-term borrowing.
"The likelihood of reaching the government's 70p plus breakeven point [for the share price] seems a long way off, even if Lloyds is making slow and steady progress, whilst the absence of a dividend is another drag on enticing potential buyers."
The sharp rises could mean an end to the 'bucket shop' flights which British passengers have been enjoying.
But it is not clear whether Thursday's merger will be enough to propel Deutsche Bank into the top league "bulge bracket" of Wall Street banks.
142.
Cartel
A group of businesses or nations that act together as a single producer to obtain market control and to influence prices in their favor by limiting production of a product. The United States has laws prohibiting cartels. A dividend clawback is an arrangement whereby the equity owners commit to use dividends they have received in the past to finance the cash needs of the project or corporation in the future.
The banks could carry out the simplest and most profitable of "carry trades", borrowing from the ECB at 1% and buying say Italian or Spanish bonds or quality corporate bonds, yielding say 5%. An estimated 50,000 people have been killed and more than 5,000 have gone missing since the crackdown on cartels began in 2006. Lloyds Bank last week took back 2m in bonuses from senior executives, and HSBC said it, too, had exercised "clawback".
http://www.bbc.co.uk/ news/world-latinamerica-18321154 http://www.bbc.co.uk/ news/business17176332
143.
Clawbank
144.
Letter of comfort
145.
Consortium
1. Before or during a new issue, a statement by an auditor stating that, while a full audit has not been done, a review of the issue's prospectus has revealed nothing inaccurate or misleading. The letter of comfort also states that the auditor is confident that a full audit would not uncover anything unusual that would negatively affect the issue. 2. A letter that a parent company submits to a bank on behalf of a subsidiary. When the subsidiary is applying to borrow funds from the bank, the letter of comfort states that the parent company approves of and supports the application. A group of independent companies participating in a joint venture for mutual benefit. Companies in a consortium cooperate with one another, often sharing technology as needed. A consortium allows the companies to conduct operations that they would not be able to do individually. It is important to note, however, that a consortium is not a merger and the companies remain independent. The act of exchanging a convertible security for the underlying common stock. For example, if one holds a convertible bond in company A, conversion occurs when the holder gives the convertible bond back to company A and, in return, either receives for free or buys at a stated price, common shares in the same company. DTC is the world's largest central securities depository. It accepts deposits of over 2 million equity and debt securities issues (valued at $23 trillion) from over 65 countries for custody, executes book-entry deliveries (valued at over $116 trillion in 2000) records book-entry pledges of those securities, and processes related income distributions DTC is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law, a registered clearing agency with the Securities and Exchange Commission, and is owned by the Depository Trust and Clearing Corporation (DTCC), which is in turn owned primarily by most of the major banks, broker-dealers, and exchanges on Wall Street.
The States should send out a "letter of comfort" to calm concerns over the lack of a cash deposit protection scheme in Guernsey, a group of deputies has said.
http://news.bbc.co.uk/2 /hi/europe/jersey/7680 303.stm
The consortium had appealed against Highland Council's decision to refuse planning permission.
http://www.bbc.co.uk/ news/uk-scotlandhighlands-islands18299014
146.
Conversion
It is an incentive for farmers to change their methods. And although farmers have to buy new machinery, unlike organic agriculture, there is no lengthy conversion period, when land is taken out of production. Lipkin said that he had sent false reports to the Depository Trust Co, which is a clearing house for buying and selling securities.
http://news.bbc.co.uk/2 /hi/europe/5274100.st m
147.
Depository Trust Company
148.
Effective margin
Used with SAT performance measures, the amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario. An investment company that invests exclusively in real estate and mortgages. The REIT issues a fixed number of shares at its establishment, and afterward neither increases nor decreases the number of shares. An REIT is actively managed, meaning that the real estate underlying the trust change from time to time in accordance with the fund's investment goals. A shareholder may trade shares in the REIT as if they were stocks. The value of shares in a real estate investment trust is determined by supply, demand, and the trust's net asset value. Importantly, the REIT itself is not taxed; rather taxes are passed on to shareholders. The seven-member governing body of the Federal Reserve System, which is responsible for setting reserve requirements, and the discount rate, and making other key economic decisions.
149.
REIT
This does have the effect of reducing the number of people on whose answers the final voting intention figures are based - which in turn raises the effective margin of error. Shares in Hui Xian Real Estate Investment Trust (REIT) fell sharply to 4.83 yuan from its listing price of 5.24 yuan in early trade.
150.
Federal Reserve Board
151.
Incremental basis
1. The process of increasing in number, size, quantity, or extent. 2. Something added or gained: a force swelled by increments from allied armies. 3. A slight, often barely perceptible augmentation. 4. One of a series of regular additions or contributions: accumulating a fund by increments. In economics and contract theory, information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other. This creates an imbalance of power in transactions which can sometimes cause the transactions to go awry. Examples of this problem are adverse selection and moral hazard. Most commonly, information asymmetries are studied in the context of principal-agent problems.
The three men leading the reviews are Bill Winters, JP Morgan's former head of investment banking, Ian Plenderleith, who had a long career at the Bank before leaving in 2002, and David Stockton, former head of economic research at the US Federal Reserve Board. If Nepal does allow them to go, UN officials say that the US authorities will only allow the refugees to enter America on an incremental basis of around 10,000 a year.
http://news.bbc.co.uk/2 /hi/south_asia/5409358 .stm
152.
Information asymmetries
Financial managers need to recognize these information asymmetries and find ways to reassure investors that there are no nasty surprises on the way.
153.
Second-stage financing
Working capital for the initial expansion of a company that is producing, shipping, and has growing accounts receivable and inventories. Also known as Second-round financing.
154.
Salvage value
155.
Valuation horizon
156.
Operating expenses
157.
Return on equity ( ROE )
In accounting, an estimate of the value of an asset at the end of its depreciation. For example, a firm's computer depreciates each year. When it breaks down or becomes obsolete, it has a residual value; it is calculated by the best guess of the net cash inflow when it is sold at the end of its life. It will never be above the blue book value.Also residual value. In finance, the terminal value (continuing value or horizon value) of a security is the present value at a future point in time of all future cash flows when we expect stable growth rate forever. It is most often used in multi-stage discounted cash flow analysis, and allows for the limitation of cash flow projections to a several-year period. An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is an ongoing cost for running a product, business, or system. Its counterpart, a capital expenditure (CAPEX), is the cost of developing or providing non-consumable parts for the product or system. For example, the purchase of a photocopier involves CAPEX, and the annual paper, toner, power and maintenance cost represents OPEX. For larger systems like businesses, OPEX may also include the cost of workers and facility expenses such as rent and utilities. Indicator of profitability. Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for stock splits). Result is shown as a percentage. Investors use ROE as a measure of how a company is using its money. ROE may be decomposed into return on assets (ROA) multiplied by financial leverage (total assets/total equity). The relationship between long-term funds provided by creditors and funds provided by owners. A firm's debt-toequity ratio is calculated by dividing long-term debt by owners' equity. Both items are shown on the balance sheet. A high debt-to-equity ratio, which indicates very aggressive financing or a history of large losses, results in very volatile earnings.
"We have a lot more listening still to do, including a full second-stage financing, starting in September 2011, ahead of submitting a planning application until in mid-2012." Council documents suggest the site could fetch between 40,000140,000, a price reflected in an assessment stating the pier had only a scrap and salvage value. The value of a business is usually computed as the discounted value of free cash flows out to a valuation horizon (H), plus the forecasted value of the business at the horizon, also discounted back to present value. More than 1,000 jobs were lost between its offices in Edinburgh and Lytham St Annes near Blackpool as the firm moved to cut operating expenses by 25%.
http://www.bbc.co.uk/ news/uk-englandlondon-12184675
http://www.bbc.co.uk/ news/uk-wales12988391
http://www.bbc.co.uk/ news/uk-wales12988391
Sony is also attempting to improve dramatically its return on equity (ROE), which is its profits divided by the total value of all its shares.
158.
Debt-to-equity ratio
The last time the debt-to-equity ratio was so high was in the late 1980s, when many private equity investments were hit by the eventual economic downturn and rising interest rates.
159.
Issuer
160.
Ballpark
An organization that registers, distributes, and sells a security on the primary market. An issuer can be a private company or a government. For example, if a company registers a stock with the SEC, makes arrangements to underwrite it, and keeps the proceeds from its sale, it is said to be the issuer of that stock. Informal; an estimate. For example, when analysts are in the process of determining a company's earnings, they may release a "ballpark" as they continue their calculations.
Euro notes and coins would all be redenominated into the currency of their issuing national central bank (euro notes have serial number prefix letters identifying the issuer). "Even if [these figures] are inaccurate, there's a high level of uncertainty - at least you're getting some ballpark of the problem," CAF chief executive John Low told the BBC. As I have pointed out here before, if the Debt Management Office hadn't done quite such a brilliant job in borrowing for long maturities - such that the average maturity of UK debt is just under 14 years - the UK might well be like Italy in finding it very hard to borrow at any price right now. Chairman Rob Walton had 12.6% voting against his reappointment, while chairman of the audit committee Christopher Williams had 13.3% of votes cast against him. By 13:00 GMT, shares on the Athens Stock Exchange had dropped by 3.5%. The London FTSE-100 index was down 1.7%, the Frankfurt Dax fell by 1.95% and in Paris, the Cac-40 saw losses of 2.27%. Confirming the fines, Martin Currie said unlisted investments, which accounted for less than 1% of Martin Currie's total assets under management, was a specialist part of its business which had now been closed down.
http://www.bbc.co.uk/ news/magazine18193962
http://www.bbc.co.uk/ news/uk-18009714
161.
Average maturity
In a mutual fund containing debt securities, the average amount of time until the debt securities mature. It is calculated by adding together the total amount of time until maturity and dividing by the number of debt securities in the mutual fund. The shorter the average maturity is, the less the fund's share price will fluctuate with changes in interest rates.
162.
Audit
An examination of a company's accounting records and books conducted by an outside professional in order to determine whether the company is maintaining records according to generally accepted accounting principles. See: accountant's opinion. A major securities exchange in Greece. It was established as the Athens Stock Exchange in 1876. In 2002, it became the Athens Exchange in a merger with the Athens Derivatives Exchange. It trades stocks, bonds and derivatives. More than 300 publicly traded companies are listed on the Athens Exchange. The money or other assets for which an investment advisory firm makes investment decisions for a client. Assets under management may refer to the assets for a particular client, or to the total amount managed for all clients. For example, a company may say that it has more than $2 billion under management. Asset management often opens more potential investment vehicles to the client.
163.
Athens Stock Exchange
http://www.bbc.co.uk/ news/world-europe18055629
164.
Assets under management
165.
Amsterdam exchanges ( AEX)
166.
Mandatory convertible bond
167.
Minimum price contract
Exchange that comprises the AEX-Effectenbeurs, the AEXOptiebeurs (formerly the European Options Exchange or EOE) and the AEX-Agrarische Termijnmarkt. AEX-Data Services is the operating company responsible for the dissemination of data from the Amsterdam Exchange via its integrated Mercury 2000 system. A bond that must be converted into common stock in the company issuing it on or before a certain date. An advantage of a mandatory convertible to the investor is the fact that it guarantees a certain return up to the conversion date, after which there is no guaranteed return but the possibility of a much higher return. A publicly-traded company issues mandatory convertibles when it needs to raise the capital provided by issuing stock, but when doing so would put a strain on the price of existing shares. A forward contract where the underlying asset is guaranteed to have a minimum price upon delivery. A minimum price contract exists in order to reduce the risk of fluctuations in the forward's price. This is useful for farmers and other producers of commodities, as well as for investors wishing to hedge the risk in their positions. An Individual Savings Account (ISA; pronounced /as/) is a financial product available to residents in the United Kingdom. It is designed for the purpose of investment and savings with a favourable tax status. Money is contributed from after tax income and not subjected to income tax or capital gains tax within a holding or upon withdrawal. Cash and a broad range of investments can be held and there is no requirement to withdraw money before any particular age. The mini Isa is principally targeted at savers who want to hold some of their money in an account which pays interest. You can have a mini cash Isa and a mini stocks and shares Isa, each from different financial product providers so you can shop around for each individual element. The maxi Isa is aimed at those who want mainly to invest in stocks and shares. Your entire maxi Isa investment must be with one financial company such as a bank or fund management group.
NYSE Euronext runs the New York, Paris, Lisbon, Brussels and Amsterdam exchanges.
HVB has been reportedly planning a "mandatory convertible bond", a type of loan that buyers are forced to convert into shares - effectively, a delayed rights issue.
But as for Government help for the industry, he said there was little he could do. It was contrary to EU law to set a minimum price contract and neither could it dictate what went into farmers' contracts Out went the confusing concepts of mini- and maxi- ISAs, leaving the new set-up much easier to understand.
168.
Mini ISA
169.
Maxi ISA
Out went the confusing concepts of mini- and maxi- ISAs, leaving the new set-up much easier to understand.
170.
Tax shield
171.
Earnings cap
The reduction of one's taxable income as the result of a properly qualified deduction. Examples of tax shields include mortgage interest deductions, charitable donations, and others. The mortgage interest deduction is a particularly important tax shield to middle-class households because the value of their properties constitutes the greatest part of their net worths. Creating tax shields is also important to wealthy individuals to help them avoid as many taxes as possible A limit applied to the contributory salary of certain scheme members who are high earners.
When Mr. Sarkozy came to power in 2007, he introduced a "tax shield" that capped tax at 50% of all income.
172.
Estate duty
173.
Ethical investments
174.
Depositary receipt
A tax on the money or assets that one inherits from an estate, as opposed to a tax on the estate itself. In the United States, inheritance taxes are levied at the state level and apply to the inheritors rather than the estate of the deceased. Generally speaking, inheritance taxes vary according to the inheritor's relationship with the deceased. For example, a spouse rarely, if ever, is responsible for an inheritance tax. It should not be confused with an estate tax, which is a tax on the estate before it is distributed. Any investment philosophy that recommends investment decisions based upon a decision's ethical implications for individuals and companies. For example, an individual may have a moral objection to smoking, and therefore refrain from investing in tobacco companies. Ethical investing may be both positive and negative; that is, it may inform where an individual makes investments (e.g. in environmentally friendly companies) and where he/she does not make investments (e.g. in arms manufacturers). Some mutual funds, and even whole subdivisions of companies, are dedicated to promoting ethical investing. A negotiable certificate that represents a company's publicly traded debt or equity. Depositary receipts are created when a company's shares or bonds are delivered to a depositary's custodian bank, which instructs the depositary to issue the receipts. Depositary receipts facilitate trading of foreign securities.
"Benefits will be calculated ignoring the effect of the earnings cap (currently 97,200 a year)," Mr. Roden wrote. Estate duty has been levied by the Austrian authorities on this inheritance.
http://news.bbc.co.uk/2 /hi/business/8107501.s tm http://www.bbc.co.uk/ news/10237355
The Scandanavians' global pension fund is worth more than 300bn, with which it owns 2% of the world's stock markets, making strategic and ethical investments around the world.
http://www.bbc.co.uk/ news/uk-scotland17056479
The handbag maker said in a filing to the Hong Kong stock exchange on Friday that it will issue up to 293.6 million Hong Kong depositary receipts, a method that allows companies already publicly traded elsewhere to list in Hong Kong.
175.
Evaluation period
The time period in which a money manager's performance is measured against some subjective or objective standard. This is done periodically to assess the effectiveness of a money manager's work for his/her firm. The evaluation period is especially important at the beginning of employment, but remains so throughout one's career.
'Evaluation period' Gen Petraeus and Mr. Crocker began on Tuesday by testifying before the Senate Armed Services Committee, then moved on to the Senate Foreign Relations Committee.
http://news.bbc.co.uk/2 /hi/middle_east/73367 31.stm
176.
Excess accumulation penalty
177.
Exercise price
A 50% tax that one must pay if one neglects to take the required minimum distribution from one's IRA. The required minimum distribution is the portion of an IRA that must begin to be distributed to an annuitant by the age of 70.5 or the date of retirement, whichever comes later. The amount of the minimum required distribution is determined by the value of the IRA, the length of time the annuitant has contributed, and the amount of contributions. In any case, the excess accumulation penalty exists in order to prevent an IRA from becoming unfairly valuable during the annuitant's retirement. The price at which the security underlying an options contract may be bought or sold.
A BBC Scotland investigation into a property factor has revealed allegations that it was trying to bully clients into paying excessive accumulation penalty charges running into thousands of pounds.
http://news.bbc.co.uk/2 /hi/uk_news/scotland/8 249553.stm
"The company was in fact issuing backdated options with an exercise price lower than the fair market value on the grant date," he said. Strong Credit and Residual Losses: Credit and residual losses on World Omni's portfolio and securitizations are currently low, having improved in 2010?2012, supported by strong credit quality and elevated used vehicle values, with mostly RV gains recorded on most models during this period. "In short, I think that the reform of retail banking in this country cannot move ahead unless we tackle the issue of free in-credit banking, and have a much better sense of what we are paying for and how we are paying," Mr Bailey said in a speech.
http://news.bbc.co.uk/2 /hi/business/6082472.s tm http://www.reuters.co m/article/2012/06/04/i dUS132117+04-Jun2012+BW20120604
178.
Residual losses
The loss of the attenuator at the minimum setting of the attenuator.
179.
Retail banking
Banking services that are offered to individual customers through local branches of the bank. Examples of retail banking services include checking and savings accounts, credit cards, personal lines of credit, mortgages, and so forth. Some retail banks offer basic brokerage services, though this is not always the case. Retail banking contrasts with commercial banking, which primarily offers services to businesses.
180.
Retail investor
181.
Retailer card
An investor who invests small amounts of money for himself/herself rather than on behalf of anyone else. Retail investors are the polar opposite of institutional investors, which are large firms who invest on behalf of clients. Some investment vehicles require minimum investments so as to discourage retail investors from them. Retail investors are thought to be risk-averse and poorly informed compared to other investors, though there is disagreement as to how true that is. A plastic payment card issued by a specific retailer or group of retailers for limited use at their own outlets.
Tom Spender, head of retail enforcement at the FSA, said Mr. O'Donnell "had absolutely no understanding" of the regulatory restrictions in place which prohibit advisers from selling UCIS to the vast majority of UK retail investors.
The company, which is the biggest card retailer in the UK, went into administration last week. Comparing the expenses of synthetic and plain vanilla ETFs tracking major global stock market indices, it shows that investors do benefit. But not by very much.
http://www.bbc.co.uk/ news/uk-scotlandscotland-business18181276 http://www.bbc.co.uk/ news/business13961625
182.
Tracking stock
183.
Bombay Stock Exchange ( BSE)
184.
Board of directors
A stock in a department (but not an independent corporation) of a publicly-traded company. For example, a company may issue tracking stock representing its new green energy division. A tracking stock allows the company to gauge the performance of a new or untested product or department while still maintaining control over it. They were common during the dotcom bubble, as established companies formed internet divisions and wished to observe their performance. One of the oldest stock exchanges in India, responsible for approximately one third of the country's trading volume. Tracing its origins to the 1830s, it is notable for the Sensex, an index of the 30 most actively traded stocks on its floor that is considered one of the most important benchmark indices in India. It is also known as Stock Exchange, Mumbai or BSE. A group of persons chosen to govern the affairs of a corporation or other large institution board - a committee having supervisory powers; "the board has seven members" staggered board of directors - a board of directors a portion of whose members are elected each year instead of all members being elected annually management - those in charge of running a business
India's most important financial market, the Bombay Stock Exchange (BSE), is facing a legal battle over its use of the word Sensex.
The Centre for Policy Studies (CPS) is on the other side of the political and organizational divide, having been founded by Sir Keith Joseph and Margaret Thatcher in 1974, employing just five full-time staff and being a limited company with a board of directors.
http://news.bbc.co.uk/2 /hi/uk_news/magazine/ 7189094.stm
185.
Demand shock
186.
Disposable income
Any sudden event that dramatically but (usually) temporarily increases or decreases demand for one or more goods or services. The event may result from government intervention, such as a change in money supply, or may be a random occurrence in the market. For example, a company announcing that it is discontinuing a certain product may see an increase in demand for that product because people want to buy it while they can. This results in an increase in price for that product. However, if that company decides not to discontinue the brand, demand will likely taper off, resulting in a return to equilibrium. A person's income after he/she has paid taxes. Disposable income determines what sort of lodging one can afford, how often one can go out to eat, how much one can save, etc. A negative disposable income indicates that an individual is borrowing in order to cover his/her expenses. A country's average disposable income is an important indicator of economic health. A clause in an insurance policy that provides for payment of double the face value of the contract in case of accidental death.
Foreign demand shocks, which we see are already having relatively outsized effects on Asia's smaller, more open, economies.
Rahul and Rajat realized that this would mean there would be more young employees with disposable income, but there was no brand completely dedicated to India's youth.
187.
Double indemnity
He said Cain, whose other works include Serenade and Double Indemnity, worked on revisions to the novel until close to his death and that handwritten changes appear in margins of the manuscript. Under the Efficient Market Hypothesis, at any one time a company's share price will correctly reflect all known information about its prospects.
http://www.bbc.co.uk/ news/entertainmentarts-15001324
188.
Efficient Market Hypothesis
States that all relevant information is fully and immediately reflected in a security's market price, thereby assuming that an investor will obtain an equilibrium rate of return. In other words, an investor should not expect to earn an abnormal return (above the market return) through either technical analysis or fundamental analysis. Three forms of efficient market hypothesis exist: weak form (stock prices reflect all past information in prices), semi-strong form (stock prices reflect all past and current publicly available information), and strong form (stock prices reflect all relevant information, including information not yet disclosed to the general public, such as insider information).
189.
Operating costs
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. a flexible pension scheme with low charges, in which contributors can stop and restart payments and switch funds to another scheme without paying a penalty
190.
Stakeholder pension plan
191.
Overlap the market
Used in the context of general equities. Create a crossed market by expressing a willingness to sell on the bid side of the market and buy on the offer side. Expenses that one must pay from one's personal, instead of business, income. Out-of-pocket expenses include mundane, recurring expenses such as paying the home electric bill or buying groceries. Often, however, the term refers to expenses incurred by an employee in the service of the employer. For instance, an employee may buy a more efficient computer program to accomplish his/her office work. In general, this means to do better than some particular benchmark. Mutual Fund XYZ is said to outperform the S&P500 if its return exceeds the S&P500 return. However, this language does not take risk into account. That is, one might have a higher return than the benchmark in a particular year because of higher risk exposure. Outperform is also a term used by analysts to describe the prospects of a particular company. Usually, this means that the company will do better than its industry average.
They also indicate employment costs are down 12% to 8.03m and operating costs have reduced by 19% to 3.63m. The other possibility would be to take a transfer from the employer's scheme into a personal or stakeholder pension plan from which you could then purchase a pension annuity, the value of which would depend on prevailing rates (not particularly good at the moment) as well as your age. If you are considering doing this you should probably consult an Independent Financial Adviser before proceeding. Taylor Woodrow and Wimpey have US operations that overlap the market.
http://www.bbc.co.uk/ sport/0/football/17936 371 http://news.bbc.co.uk/2 /hi/business/8118736.s tm
http://news.bbc.co.uk/2 /hi/business/6494387.s tm http://www.bbc.co.uk/ news/uk-england-bedsbucks-herts-14417069
192.
Out-of-pocket expenses
The volunteer councillors receive outof-pocket expenses and the charity has a few hours of paid secretarial support each week.
193.
Outperform
Pirc had said that pay was not sufficiently linked to performance: "It is not clear, in the remuneration report, why a bigger emphasis was made on rewarding the chief executive for still being employed after a few years, rather than for leading the bank to outperform."
194.
Overnight rate
The interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans. The Fed funds rate, as it is called, often points to the direction of US interest rates. The most sensitive indicator of the direction of interest rates, since it is set daily by the market, unlike the prime rate and the discount rate. In the United Kingdom, a dividend declared and paid before the company has compiled or released its final financial statements for a given year. In the U.K., dividends are commonly declared twice per year; the dividend given before a company's annual meeting (at which financial statements are announced) is called the interim dividend. It is often, but not always, smaller than the final dividend. Land and the improvements on it. Real estate is one of the primary (and indeed one of the only) assets whose value does not depreciate over time. Depending on the particular title, ownership of real estate may include mineral rights to any geophysical aspects occurring thereon. Ownership of real estate does not automatically include the right to develop it, depending on local regulations. However, development of real estate (for example by building a house on it) usually increases the value. Describing a bond with a medium or high rating. Bonds rated Baa3 by Moody's or BBB- by S&P or Fitch. Investment-grade bonds are considered sufficiently low-risk that the law allows banks to invest in them. In addition to being low-risk, investment-grade bonds are low-return, greatly reducing the cost on the issuer. Most American Treasury and municipal bonds are investment-grade. Increased earnings due to increased sales and cost controls, as compared to artificial profits created by inflation of inventory or other asset prices.
Now under the traditional theology, if the Bank of England cuts its overnight bank lending rate.
195.
Interim dividend
Wolseley has raised its interim dividend 33% to 20 pence per share.
196.
Real estate
Hong Kong-listed Sun Hung Kai Properties is Asia's most valuable real estate company and the second most valuable in the world, after a shopping mall operator in America
197.
Investment grade
This has worried foreign investors and threatened the country's investment grade credit rating.
198.
Quality of earnings
"When I took a look at the big banks, you saw a nice big positive earnings surprise, but I really questioned the quality of the earnings," said Fred Dickson, market strategist at Oregonbased DA Davidson & Co.
199.
Quiet period
1. A time during which the issuer is not allowed to promote a new issue. The quiet period begins on the filing date when the issuer registers the security with the SEC and ends 25 days after the security is actually issued. 2. A time during which a company's employees may not change the portfolios of their retirement plans. This usually occurs when the company sponsoring the plans is making some administrative changes. It is more commonly called a lockdown. Wash trading, bucketing, cross trading, or other schemes which give the appearance of trading. Actually, no bona fide, competitive trade has occurred.
This is only after a sharp, seamless, breathless 4 song run-through including Into The Ground and Long Distance, belying their recent quiet period and lack of practice.
http://www.bbc.co.uk/ blogs/acrosstheline/20 11/11/lafaro_fighting_ with_wire_cell.html
200.
Fictitious trading
It added that "in an effort to ensure that its reported information would be used by the reporting firms, Dynegy caused West Coast to submit information misrepresenting that West Coast was a counter-party to fictitious trading". With house repossessions predicted to rise over the next year, financial experts are warning financially vulnerable homeowners to be cautious of risky financial lease option agreements which could put their property in jeopardy. Whether a so-called gross leverage ratio of 20 achieves the correct balance between risks and rewards is moot: some would argue it should be lower still.
201.
Financial lease
A long-term lease in which the lessee must record the leased item as an asset on his/her balance sheet and record the present value of the lease payments as debt. Additionally, the lessor must record the lease as a sale on his/her own balance sheet. A capital lease may last for several years and is not callable. It is treated as a sale for tax purposes. It is also called a financial lease. In risk analysis, any ratio that measures a company's leverage. One example of a gearing ratio is the long-term debt/capitalization ratio, which is calculated by taking the company's long-term debt and dividing it by its long-term debt added to its preferred and common stock. Another example is a simple debt-to-equity ratio, which is calculated by dividing total debt by total equity. Generally, companies with higher leverage as determined by a leverage ratio are thought to be more risky because they have more liabilities and less equity. A leverage ratio is also called a gearing ratio or an equity multiplier.
202.
Leverage ratio
203.
Foreclosure
204.
Forecasting
A situation in which a mortgage lender takes possession of the property because the borrower has not made payments on interest or principal for a certain period of time. Once the lender takes over the property, it usually sells at a discounted price so as to recover the amount lost on the mortgage loan. Foreclosure results in a loss for the lender and is obviously quite detrimental to the borrower; as a result, it is the last resort. Most of the time, lenders attempt to work with the borrower to come up with a better solution, such as extending the repayment period in order to lower payments The act or process of using certain data to predict future market movements. Various methods exist for forecasting; experts differ on which ones, if any, work
Five of the biggest US banks have agreed to provide $25bn (16bn) to homeowners to settle claims over improper foreclosure practices.
205.
Forfeiture
The loss of a right or property. Forfeiture usually occurs when one has neglected to fulfill one's obligations necessary to keep the right or property. For example, one may forfeit one's house if the mortgage defaults. Payment Protection Insurance, (also known as PPI, Credit Protection Insurance, Loan Repayment Insurance, not to be confused with Income Protection or credit card cover) is an insurance product that is designed to cover a debt that is currently outstanding. This debt is typically in the form of a loan or an overdraft, and is most widely sold by banks and other credit providers as an add-on to the loan or overdraft product. It typically covers the borrower against an accident, sickness, unemployment or death, circumstances that may prevent them from earning a salary/wage by which they can service the debt. On AUTEX, to cancel an order such that it leaves no record either on the electronic board or in the historical archives of the board. A straight cancellation leaves a record in the archives of AUTEX, which may not be desirable for some traders who do not wish other traders to know that they were once interested in a certain transaction. Expunging the order removes this risk.
The entertainment retailer recently surprised the City by forecasting a return to profit in 2013 despite estimated losses of about 19m for the past financial year. The 25-year-old did not contest the forfeiture of the cash at Hamilton Sheriff Court. They will be told they may have been mis-sold a payment protection insurance (PPI) policy some time in the past.
http://www.bbc.co.uk/ news/uk-englandlondon-18284304
http://www.bbc.co.uk/ news/uk-scotlandglasgow-west18206181 http://www.bbc.co.uk/ news/business17299871
206.
Payment Protection Insurance
207.
Expunge
And, if you had put an embarrassing photo online a few years ago, would you expect to be able to expunge all trace of it now?
http://www.bbc.com/n ews/technology16732881
208.
Extra dividend
209.
Explicit cost
210.
Market maker
A nonrecurring additional payment to stockholders that is brought about by special circumstances. An extra dividend may be issued when a firm in a cyclical industry has an especially profitable period and wishes to distribute some extra funds to its stockholders. Also called extra, special dividend. A direct expense that a business incurs in conducting an activity. Examples of explicit costs include salaries, wages, materials, etc. An explicit cost can be recurring, or it can be a one-off expense. Likewise, it can be predictable, like the rent, or it can vary from time to time, like the electric bill. Less commonly, an explicit cost is called an outlay cost. Used in the context of general equities. One who maintains firm bid and offer prices in a given security by standing ready to buy or sell round lots at publicly quoted prices.
This could take the form of Vodafone stepping up its share buyback program or paying extra dividends.
Removing that cross-subsidy could lead banks to increase the explicit costs of credit.
http://www.bbc.co.uk/ blogs/thereporters/robe rtpeston/2008/06/the_c redit_insurance_ripoff. html http://www.bbc.co.uk/ blogs/thereporters/robe rtpeston/2010/04/the_i mplications_of_goldm ans_d.html http://news.bbc.co.uk/2 /hi/entertainment/7571 152.stm
211.
Market maven
Informal; a well respected investor or analyst who is known as a leader in giving accurate and timely opinions on the performance of one or more securities.
212.
Market jitters
Anxiety among many investors, causing them to sell stocks and bonds, pushing prices down.
And it says that the normal practice of a market maker - and part of Goldman's role in this deal was as market maker - is not to "disclose the identities of a buyer to a seller and vice versa". This is merely a stupid, cruel idea invented by some marketing maven who thinks only of the convenience of supermarket shelf stackers and nothing of the way in which children come to books. The timing, in August last year, coincided with a round of market jitters over the euro-zone. So for a futures contract, what it would be worth if realized today rather than at the specified future date. Also marked-to-market. 'Fair Value,' or 'Mark to Market' in the US, really dresses up balance and sheets and is wonderful until no one wants to buy the marked up ass
http://www.bbc.co.uk/ news/business17142170 http://news.bbc.co.uk/2 /hi/uk_news/magazine/ 7642138.stm http://www.economist. com/blogs/schumpeter/ 2012/05/accountingstandards
213.
Marked-to-market
An arrangement whereby the profits or losses on a futures contract are settled each day.
214.
Mark-to-market (MTM)
Recording the value of an asseton a daily basis according to current market prices. So for a Greek government bond, the MTM is how much it could be sold for today. Banks are not required to mark to market investments that they intend to hold indefinitely (in what is called the "banking book" in accounting jargon). Instead, these investments are valued at the price at which they were originally purchased, minus any impairment charges .
215.
Monetary policy
216.
Monoline insurance
217.
MPC
The policies of the central bank. A central bank has an unlimited ability to create new money. This allows it to control the short-term interest rate, as well as to engage in unorthodox policies such as quantitative easing - printing money to buy up government debts and other assets. Monetary policy can be used to control inflation and to support economic growth. Monolines were set up in the 1970s to insure against the risk that a bondwill default. Companies and public institutions issue bonds to raise money. If they pay a fee to a monoline to insure their debt, the guarantee helps to raise the credit rating of the bond, which in turn means the borrower can raise the money more cheaply. The Monetary Policy Committee of the Bank of England is responsible for setting short-term interest rates and other monetary policy in the UK, such as quantitative easing.
The effect of conventional and unconventional monetary policy rules on inflation expectations
http://www.economist. com/blogs/freeexchang e/2012/03/monetarypolicy-0
Monolines insurances were set up in the 1970s to insure against the risk that a bond will default.
http://news.bbc.co.uk/2 /hi/uk_news/magazine/ 7642138.stm
218.
Keynesian economics
219.
Inflation
The economic theories of John Maynard Keynes. In modern political parlance, the belief that the state can directly stimulate demand in a stagnating economy, for instance, by borrowing money to spend on public works projects such as roads, schools and hospitals. The upward price movement of goods and services.
Nearly everyone with a vote on UK monetary policy thinks they are doing enough to support the economy: the Monetary Policy Committee (MPC) voted 8-1 against injecting more money into the economy last month. "I also have to thank Ricky Ross for introducing me to Keynesian economics - 'Sipping down raki and reading Maynard Keynes' - who writes songs about economists these days? The inflation forecast was narrowed from between 2.1% and 2.7% to between 2.3% and 2.5%. However that was wiped out by impairment charges - mainly relating to bad property loans - of 72.5m. Portugal had fulfilled all the bailout criteria set by inspectors from the EU, European Central Bank and International Monetary Fund (IMF), Mr. Gaspar said.
http://www.bbc.co.uk/ news/uk-scotland17994639
http://www.bbc.co.uk/ news/business18339334 http://www.bbc.co.uk/ news/uk-northernireland-18016074 http://www.bbc.co.uk/ news/business18321468
220.
Impairment charge
The amount written off by a company when it realizes that it has valued an asset more highly than it is actually worth.
221.
IMF
The International Monetary Fund is an organization set up after World War II to provide financial assistance to governments. Since the 1980s, the IMF has been most active in providing rescue loans to the governments of developing countries that run into debt problems. Since the financial crisis, the IMF has also provided rescue loans, alongside the European Union governments and the ECB, to Greece, the Irish Republic and Portugal.
222.
Debt restructuring
223.
Deficit
A situation in which a borrower renegotiates the terms of its debts, usually in order to reduce short-term debt repayments and to increase the amount of time it has to repay them. If lenders do not agree to the change in repayment terms, or if the restructuring results in an obvious loss to lenders, then it is generally considered a default by the borrower. However, restructurings can also occur through a debt swap - a voluntary agreement by lenders to switch existing debts for new debts with easier easier repayment terms - in which case it can be very hard to determine whether the restructuring counts as a default. The amount by which spending exceeds income over the course of a year.
S&P upgraded the crisis-hit nation to "CCC" from "selective default" after the country completed the biggest debt restructuring in history earlier this year.
Voters - given the chance - opted to support a pact that will enforce greater budgetary discipline and reduce deficits. Even those countries that have made the greatest progress still need assistance, more so now than perhaps a couple of years ago, because the financial crisis has led to significant instability as the foreign banks that dominate central and eastern European banking have undergone aggressive deleveraging.
224.
Deleveraging
225.
Dodd-Frank
A process whereby borrowers reduce their debt loads. Primarily this occurs by repaying debts. It can also occur by bankruptcies and debt defaults, or by the borrowers increasing their incomes, meaning that their existing debt loads become more manageable. Western economies are experiencing widespread deleveraging, a process associated with weak economic growth that is expected to last years. Households are deleveraging by repaying mortgage and credit card debts. Banks are deleveraging by cutting back on lending. Governments are also beginning to deleverage via austerity programs - cutting spending and increasing taxation. Legislation enacted by the US in 2011 to regulate the banks and other financial services. It includes: restrictions on banks' riskier activities (the Volcker rule) a new agency responsible for protecting consumers against predatory lending and other unfair practices regulation of the enormous derivatives market a leading role for the central bank, the Federal Reserve, in overseeing regulation higher bank capital requirements new powers for regulators to seize and wind up large banks that get into trouble
In the United States, a new law section 1502 of the Dodd-Frank legislation - demands that any company that might be using conflict minerals register with the Securities and Exchange Commission.
226.
Double-dip recession
227.
Euro-bond
228.
Glass-Steagall
229.
Haircut
A recession that experiences a limited recovery then dips back into recession. The exact definition is unclear, as the definition of what counts as a recession varies between countries. A widely-accepted definition is one where the initial recovery fails to take total economic output back up to the peak seen before the recession began. A term increasingly used for the idea of a common, jointlyguaranteed bond of the euro-zone governments. It has been mooted as a solution to the euro-zone debt crisis, as it would prevent markets from differentiating between the creditworthiness of different government borrowers. A US law dating from the 1930s Great Depression that separated ordinary commercial banking from investment banking. Like the UK's planned ring-fence, the law was intended to protect banks which lend to consumers and businesses - deemed vital to the US economy - from the risky speculation of investment banks. The law was repealed in 1999, largely to enable the creation of the banking giant Citigroup - a move that many commentators say was a contributing factor to the 2008 financial crisis. A reduction in the value of a troubled borrower's debts, imposed on, or agreed with, its lenders as part of a debt restructuring.
Bringing forward infrastructure investment now would help to boost an economy that's been pushed into a double-dip recession by this Government's mistakes EU leaders have started summit talks in Brussels with Germany resisting pressure to launch euro-bonds as a way to ease the euro-zone crisis. "We don't want to return to the crude Glass-Steagal separation of retail banking and investment banking," Mr. Osborne insisted.
230.
Securitization
Turning something into a security. For example, taking the debt from a number of mortgages and combining them to make a financial product, which can then be traded (see mortgage backed securities). Investors who buy these securities receive income when the original home-buyers make their mortgage payments
So presumably, if the deal is allowed to proceed, the ECB will ensure that all the risk actually remains with Bankia and the Spanish government and therefore with Spanish taxpayers by imposing a massive discount (or haircut) on the amount of cash it would exchange for the bonds. This could cost upwards of $100bn, and the IMF says that "the challenge is now to find a clear and permanent solution while continuing to support US mortgage securitization."
231.
Shadow banking
232.
Naked short selling
233.
Negative equity
A global financial system - including investment banks, securitization, SPVs, CDOs and monoline insurers - that provides a similar borrowing-and-lending function to banks, but is not regulated like banks. Prior to the financial crisis, the shadow banking system had grown to play as big a role as the banks in providing loans. However, much of shadow banking system collapsed during the credit crunch that began in 2007, and in the 2008 financial crisis. A version of short selling, illegal or restricted in some jurisdictions, where the trader does not first establish that he is able to borrow the relevant asset before selling it on. The aim with short selling is to buy back the asset at a lower price than you sold it for, pocketing the difference. Refers to a situation in which the value of your house is less than the amount of the mortgage that still has to be paid off.
The latest Business Daily podcast looks at whether the next financial crisis could come out of the unregulated shadow banking sector.
A committee of MEPs has voted in favour of restricting the practice of "naked" short selling.
234.
Ponzi scheme
235.
Profit warning
Similar to a pyramid scheme, an enterprise where funds from new investors - instead of genuine profits - are used to pay high returns to current investors. Named after the Italian fraudster Charles Ponzi, such schemes are destined to collapse as soon as new investment tails off or significant numbers of investors simultaneously wish to withdraw funds. When a company issues a statement indicating that its profits will not be as high as it had expected.
The National Asset Management Agency (NAMA) has launched a scheme to boost the housing market by protecting buyers against negative equity. Bankers perched precariously on an unstable global Ponzi scheme, and needed to earn higher returns fast to balance losses elsewhere - and avoid systemic failure. The firm's shares dropped as much as 18% on the Australian Securities Exchange after the profit warning. The Bank of England has once again left UK interest rates unchanged at 0.5% and announced no expansion to its quantitative easing (QE) program.
236.
Quantitative easing
Central banks increase the supply of money by "printing" more. In practice, this may mean purchasing government bonds or other categories of assets, using the new money. Rather than physically printing more notes, the new money is typically issued in the form of a deposit at the central bank. The idea is to add more money into the system, which depresses the value of the currency, and to push up the value of the assets being bought and to lower longer-term interest rates, which encourages more borrowing and investment. Some economists fear that quantitative easing can lead to very high inflation in the long term.
237.
Rating agency
A company responsible for issuing credit ratings. The major three rating agencies are Moody's, Standard & Poor's and Fitch. To inject fresh equity into a firm or a bank, which can be used to absorb future losses and reduce the risk of insolvency. Typically this will happen via the firm issuing new shares. The cash raised can also be used to repay debts. In the case of a government recapitalizing a bank, it results in the government owning a stake in the bank. In an extreme case, such as Royal Bank of Scotland, it can lead to nationalization, where the government owns a majority of the bank. A period of negative economic growth. In most parts of the world a recession is technically defined as two consecutive quarters of negative growth - when economic output falls. In the United States, a larger number of factors are taken into account, such as job creation and manufacturing activity. A currency that is widely held by foreign central banks around the world in their reserves. The US dollar is the pre-eminent reserve currency, but the euro, pound, yen and Swiss franc are also popular. A recommendation of the UK's Independent Commission on Banking. Services provided by the banks that are deemed essential to the UK economy - such as customer accounts, payment transfers, lending to small and medium businesses should be separated out from the banks other, riskier activities. They would be placed in a separate subsidiary company in the bank, and provided with its own separate capital to absorb any losses. The ring-fenced business would also be banned from lending to or in other ways exposing itself to the risks of the rest of the bank - in particular its investment banking activities. An annual general meeting, which companies hold each year for shareholders to vote on important issues such as dividend payments and appointments to the company's board of directors. If an emergency decision is needed - for example in the case of a takeover - a company may also call an exceptional general meeting of shareholders or EGM.
Meanwhile, ratings agency Moody's has cut the credit ratings of six German banks and three in Austria. "Recapitalization is not your first port of call but over the next few weeks we will continue to discuss with banks what further steps we can take that would help lending, particularly to small- and medium-sized businesses."
http://www.bbc.co.uk/ news/business18340717 http://news.bbc.co.uk/2 /hi/business/7810651.s tm
238.
Recapitalization
239.
Recession
Greece is in the midst of a recession that has been described as the longest ever recorded.
240.
Reserve currency
241.
Ring fence
Analysts have long said that opening up its financial markets was key to Beijing's efforts of pushing the yuan as an alternative to the US dollar as a global reserve currency. In the UK, it may mean revisiting whether the proposed ring fence between retail banking and investment banking is protection enough for essential banking services.
http://www.bbc.co.uk/ news/business-yourmoney-18031239
242.
AGM
There were significant protest votes against Wal-Mart directors at last week's annual general meeting (AGM), the retailer has announced.
243.
Austerity
Economic policy aimed at reducing a government's deficit (or borrowing). Austerity can be achieved through increases in government revenues - primarily via tax rises - and/or a reduction in government spending or future spending commitments.
244.
Basel accords
The Basel Accords refer to a set of agreements by the Basel Committee on Bank Supervision (BCBS), which provide recommendations on banking regulations. The purpose of the accords is to ensure that financial institutions have enough capital to meet obligations and absorb unexpected losses.
245.
Carry trade
246.
Chapter 11
Typically, the borrowing of currency with a low interest rate, converting it into currency with a high interest rate and then lending it. The most common carry trade currency used to be the yen, with traders seeking to benefit from Japan's low interest rates. Now the dollar, euro and pound can also serve the same purpose. The element of risk is in the fluctuations in the currency market. The term for bankruptcy protection in the US. It postpones a company's obligations to its creditors, giving it time to reorganize its debts or sell parts of the business, for example. A financial structure that groups individual loans, bonds or other assets in a portfolio, which can then be traded. In theory, CDOs attract a stronger credit rating than individual assets due to the risk being more diversified. But as the performance of many assets fell during the financial crisis, the value of many CDOs was also reduced. The Consumer Prices Index is a measure of the price of a bundle of goods and services from across the economy. It is the most common measure used to identify inflation in a country. CPI is used as the target measure of inflation by the Bank of England and the ECB.
Ms Merkel's insistence on economic austerity and budget discipline has alienated many Europeans who say the policy is strangling growth and piling more debts on the struggling "periphery" countries like Greece and Spain. Finally, it may try to design a new system of global regulation of finance, but it would first have to reach a consensus on what the principles of regulation should be, and whether these should override existing rules, such as the Basel Accords, which regulate banking. He believes that the "carry trade" I mentioned yesterday - of banks borrowing from central banks to finance the purchase of high yielding assets - is less prevalent than many bankers tell me, and de minimis for RBS. The firm made the Chapter 11 bankruptcy filing after making a $6.3bn bet on European sovereign debt. Two hedge funds operated by Bear Stearns have lost billions of dollars from collateralized debt obligations (CDOs) - complex financial products made up of bonds, loans and derivatives which are, in turn, funded by home loan debts. However, it also said that it considered that CPI inflation was as likely to be above its 2% target as below in the medium term without any extra stimulus measures, suggesting no further action was required.
http://www.bbc.co.uk/ blogs/thereporters/robe rtpeston/2010/01/heste r_halfanswers_bonus_ quest.html
http://www.bbc.co.uk/ news/business18328084 http://news.bbc.co.uk/2 /hi/business/6230334.s tm
247.
Collateralized
248.
CPI
249.
Currency peg
250.
Dead cat bounce
A commitment by a government to maintain its currency at a fixed value in relation to another currency. Sometimes pegs are used to keep a currency strong, in order to help reduce inflation. In this case, a central bank may have to sell its reserves of foreign currency and buy up domestic currency in order to defend the peg. If the central bank runs out of foreign currency reserves, then the peg will collapse. A phrase long used on trading floors to describe the small rebound in market prices typically seen following a sharp fall.
But the record of currency pegs, and intervention in the markets to support them, is mixed at best. Indeed, it was precisely because European countries found it so hard to fix their exchange rates that the euro ever got off the ground. He attributed some of the pick-up in spending by Western companies to a "dead cat bounce" because 2009 was so difficult. The Newry-based firm First Derivatives has made a profit of almost 7m this year.
http://www.bbc.co.uk/ news/business12644340 http://www.bbc.co.uk/ news/uk-northernireland-18232889
251.
Derivative
252.
Ebitda
A financial contract which provides a way of investing in a particular product without having to own it directly. For example, a stock market futures contract allows investors to make bets on the value of a stock market index such as the FTSE 100 without having to buy or sell any shares. The value of a derivative can depend on anything from the price of coffee to interest rates or what the weather is like. Credit derivatives such as credit default swaps depend on the ability of a borrower to repay its debts. Derivatives allow investors and banks to hedge their risks, or to speculate on markets. Futures, forwards, swaps and options are all types of derivatives. Earnings (or profit) before interest payments, tax, depreciation and amortization. It is a measure of the cash flow at a company available to repay its debts, and is much more important indicator for lenders than the borrower's profits.
253.
EFSF
The European Financial Stability Facility is currently a temporary fund worth up to 440bn euros set up by the eurozone in May 2010. Following a previous bail-out of Greece, the EFSF was originally intended to help other struggling eurozone governments, and has since provided rescue loans to the Irish Republic and Portugal. More recently, the euro-zone agreed to broaden the EFSF's mandate, for example by allowing it to support banks.
"We currently estimate that the closure of Heathrow and Stansted due to volcanic ash will have a total impact on 2010 adjusted EBITDA (adjusted earnings before interest, tax, depreciation and amortization) of 28m." The French finance minister has said today that the Eurozone's rescue fund the European Financial Stability Facility (EFSF) - could be used to help Spain in the short term.
254.
ESM
255.
Freddie Mac, Fannie Mae
256.
FTSE 100
The European Stability Mechanism is a 500bn-euro rescue fund that will replace the EFSF and the EFSM from June 2013. Unlike the EFSF, the ESM is a permanent bail-out arrangement for the euro-zone. Unlike the EFSM, the ESM will only be backed by members of the euro-zone, and not by other European Union members such as the UK. Nicknames for the Federal Home Loans Mortgage Corporation and the Federal National Mortgage Association respectively. They don't lend mortgages directly to homebuyers, but they are responsible for obtaining a large part of the money that gets lent out as mortgages in the US from the international financial markets. Although privately-owned, the two operate as agents of the US federal government. After almost going bust in the financial crisis, the government put them into "conservatorship" - guaranteeing to provide them with any new capital needed to ensure they do not go bust. An index of the 100 companies listed on the London Stock Exchange with the biggest market value. The index is revised every three months.
But next month the eurozone will have a new 500bn-euro rescue fund, the European Stability Mechanism (ESM), which should make it easier for countries in trouble to access credit. Suggesting he was a Washington insider, but one no-one could work with, that he'd taken money from the hated Freddy Mac and Fannie Mae government mortgage companies (as "a historian") and that he was a loose cannon.
257.
GDP
Gross domestic product. A measure of economic activity in a country, namely of all the services and goods produced in a year. There are three main ways of calculating GDP - through output, through income and through expenditure. The amount written off by a company when it realizes that it has valued an asset more highly than it is actually worth. A US investment bank, whose collapse in September 2008 sparked the most intense phase of the financial crisis.
Shares in Europe also suffered sharp falls, with the Dax falling 3.4% and the Cac losing 2.2%. London's FTSE 100, which is closed on Monday for a public holiday, lost more than 1% on Friday. Globally, family businesses are extremely prevalent, and contribute an estimated 70% to global GDP, according to the Family Firm Institute. However that was wiped out by impairment charges - mainly relating to bad property loans - of 72.5m. Lehman Brothers has said it will begin paying out $22.5bn to creditors next week, double its initial estimate for the first round of repayments. That is why, as I've mentioned before, it is pointless looking at Libor and euribor interest rates for signs of banking stress, because they are semiirrelevant markets these days.
http://www.bbc.co.uk/ news/business18261045 http://www.bbc.co.uk/ news/uk-northernireland-18016074 http://www.bbc.co.uk/ news/business17688368 http://www.bbc.co.uk/ news/business18287916
258.
Impairment charge
259.
Lehman Brothers
260.
Libor
London Inter Bank Offered Rate. The rate at which banks in London lend money to each other for the short-term in a particular currency. A new Libor rate is calculated every morning by financial data firm Thomson Reuters based on interest rates provided by members of the British Bankers .
261.
Mortgage-backed securities (MBS)
Banks repackage debts from a number of mortgages into MBS, which can be bought and traded by investors. By selling off their mortgages in the form of MBS, it frees the banks up to lend to more homeowners.
262.
Sticky prices
263.
Sub-prime mortgages
A phenomenon observed by Depression-era economist John Maynard Keynes. Workers typically strongly resist falling wages, even if other prices - and therefore the cost of living - is falling. This can mean that, particularly during deflation, wages can become uncompetitive, leading to higher unemployment. The implication is that periods of deflation usually go hand-inhand with very high unemployment. Many economists warn that this may be the fate of Greece and other struggling economies within the euro-zone. These carry a higher risk to the lender (and therefore tend to be at higher interest rates) because they are offered to people who have had financial problems or who have low or unpredictable incomes. Monetary policy or fiscal policy aimed at encouraging higher growth and/or inflation. This can include interest rate cuts, quantitative easing, tax cuts and spending increases. A derivative that involves an exchange of cash-flows between two parties. For example, a bank may swap out of a fixed longterm interest rate into a variable short-term interest rate, or a company may swap a flow of income out of a foreign currency into their own currency. A calculation of the strength of a bank in terms of its capital, defined by the Basel Accords, typically comprising ordinary shares, disclosed reserves, retained earnings and some preference shares. A tax on financial transactions, originally proposed by economist James Tobin as a levy on currency conversions. The tax is intended to discourage market speculators by making their activities uneconomic, and in this way, to increase stability in financial markets.
In the UK, Northern Rock quantified its exposure to US sub-prime mortgages, with 200m invested in US collateralized debt obligations (CDOs) and 75m in US home equity mortgage-backed securities (MBS). In the language of economists, Britain is suffering from "sticky prices".
It collapsed in the face of billions of dollars of losses in the US sub-prime mortgage market. Comments from the European Central Bank that it was not inclined to provide more stimulus failed to stop the rally. BP's attempted share swap with Rosneft last year was part of an ambitious plan by the UK company to develop oil fields in the Arctic. But the landmark deal was blocked in the courts by BP's partners. When the new EU rules are passed, banks will have to hold more of the least-risky Tier 1 capital - 4.5% compared to 2% under current rules. Tory assembly leader Andrew RT Davies said: "It is all very well for the first minister to deny he is antibanking but giving his agreement for a Tobin Tax to be implemented.
http://www.bbc.co.uk/ news/business17688361 http://www.bbc.co.uk/ news/business18349576 http://www.bbc.co.uk/ news/business18328424
264.
Stimulus
265.
Swap
266.
Tier 1 capital
http://www.bbc.co.uk/ news/business18079781 http://www.bbc.co.uk/ news/uk-walespolitics-17128489
267.
Tobin tax
268.
Toxic debts
269.
Troika
270.
Underwriters
Debts that are very unlikely to be recovered from borrowers. Most lenders expect that some customers cannot repay; toxic debt describes a whole package of loans that are unlikely to be repaid. During the financial crisis, toxic debts were very hard to value or to sell, as the markets for them ceased to function. This greatly increased uncertainty about the financial health of the banks that owned much of these debts. The term used to refer to the European Union, the European Central Bank and the International Monetary Fund - the three organizations charged with monitoring Greece's progress in carrying out austerity measures as a condition of bailout loans provided to it by the IMF and by other European governments. The bailout loans are being released in a number of tranches of cash, each of which must be approved by the troika's inspectors. The financial institution pledging to purchase a certain number of newly-issued securities if they are not all bought by investors. The underwriter is typically an investment bank who arranges the new issue. The need for an underwriter can arise when a company makes a rights issue or a bond issue. To unwind a deal is to reverse it - to sell something that you have previously bought, or vice versa, or to cancel a derivative contract for an agreed payment. When administrators are called in to a bank, they must do the unwinding before creditors can get any money back. A proposal by former US Federal Reserve chairman Paul Volcker that US commercial banks be banned or severely limited from engaging in risky activities, such as proprietary trading (taking speculative risks on the markets with their own, rather than clients' money) or investing in hedge funds. The Volcker Rule follows similar logic to the Glass-Steagall Act and the UK ring-fence proposal, and a modified version of the rule was included in the Dodd-Frank financial regulation law passed in the wake of the financial crisis. A document entitling the bearer to receive shares, usually at a stated price.
This means that some companies are saddled with toxic debts, even though their core business is sound.
It clears the way for the government to get another 4bn euro ($5bn; 3.2bn) of funds from the so-called troika.
271.
Unwind
Much of the blame for the fall in share price is being pinned on lead underwriters Morgan Stanley and the Nasdaq exchange itself, with many commentators saying that the sale was over-priced. Like many Londoners at the end of a busy working week, they have come to unwind over a few drinks.
272.
Volcker Rule
The surprise losses at JP Morgan have revived the debate over whether regulators should tighten the so-called Volcker rule.
273.
Warrants
In addition to the 12 people connected to American Airlines, warrants were issued for workers at Ground Motive Dependable, a company that provides baggage handling at the airport.
274.
Write-down
Reducing the book value of an asset, either to reflect a fall in its market value (see mark-to-market) or due to an impairment charge.
275.
NAMA
Is a body created by the Government of Ireland in late 2009. It is in response to the Irish financial crisis and the deflation of the Irish property bubble. NAMA will function as a bad bank, acquiring property development loans from Irish banks in return for government bonds, primarily with a view to improving the availability of credit in the Irish economy.
Part of the reason for the big increase in Thomas Cook's losses was a one-off charge of 300m after it was forced to write-down the value of parts of its business. The National Asset Management Agency (NAMA) has launched a scheme to boost the housing market by protecting buyers against negative equity.
276.
QFII
Is a program that was launched in 2002 in People's Republic of China to allow licensed foreign investors to buy and sell yuandenominated "A" shares in China's mainland stock exchanges (in Shanghai and Shenzhen). Is a committee of the Bank of England, which meets for two and a half days every month to decide the official interest rate in the United Kingdom (the Bank of England Base Rate). It is also responsible for directing other aspects of the government's monetary policy framework, such as quantitative easing. Agreement that a mutual fund will disburse automatic periodic redemptions to the investor.
The Qualified Foreign Institutional Investor (QFII) scheme is one of the main channels used by foreign firms to invest in Chinese financial markets. At May's monetary policy committee (MPC) meeting, only David Miles voted for an extra 25bn of quantitative easing (QE). The firm made the announcement despite withdrawing plans for a scheme to design and manufacture wind turbines. In 1904 the WCE established a futures market for wheat.
277.
MPC
278.
Withdrawal plan
http://www.bbc.co.uk/ news/uk-englandsouth-yorkshire18032176 http://www.thecanadia nencyclopedia.com/arti cles/winnipegcommodity-exchange http://www.economist. com/node/18587436
279.
Winnipeg Commodity Exchange (WCE)
280.
Whisper stock
An exchange in Canada on which futures and options contracts on barley, canola and wheat are traded. It is Canada's only futures exchange for commodities. It was established in 1887. In 2007, it became a subsidiary of the Intercontinental Exchange. A stock rumored to be the target of a takeover bid, drawing speculators who hope to make a profit after the takeover is completed.
Industrial production grew vigorously during the first quarter, and the whisper stock-market rose over 4%.
281.
Non-cash fringe benefit
A non-cash benefit that is afforded to company employees. These benefits can include such things as a company car, a cellular phone, discounted gym memberships, memberships to a country club, and other material awards. The value of these fringe benefits must be added to the employees' gross income amount. An expense incurred by activities not relating to the core operations of the business. Accountants may remove nonoperating expenses or revenues in order to examine the performance of the business, ignoring effects of financing or irrelevant issues. A type of portfolio that is well diversified across a wide variety of areas, typically with a significant number of holdings. Because these portfolios contain a large number of positions over many areas, they are considered to have a lower overall risk profile. Conversely, portfolios that have "low granularity" have fewer positions or contain highly correlated assets, are less diversified and have a higher overall risk profile.
282.
Non-operating expense
It would also include career's allowance and industrial injuries disablement benefit - although it would not include one-off benefits such as social fund loans and non-cash benefits such as free school meals or working tax credits. On the international side, the company achieved an operating profit of $20m in the fourth quarter, excluding nonoperating expense. These three indexes can be used to create ACWI. In our experiment, we rebalanced the mix of the three indices monthly so that the expected risk of the granular portfolio targeted the same risk as ACWI.
283.
Granular portfolio
http://seekingalpha.co m/article/309000getting-granular-withemerging-markets
284.
International reply coupon
285.
Gross revenue
Is a coupon that can be exchanged for one or more postage stamps representing the minimum postage for an unregistered priority airmail letter of up to twenty grams sent to another Universal Postal Union (UPU) member country. IRCs are accepted by all UPU member countries. 1. An individual's total personal income before taking taxes or deductions into account. 2. A company's revenue minus cost of goods sold. Also called "gross margin" and "gross profit". Funds deposited in a separate account, often as a cushion against a possible loss or debt servicing, or some emergency.
The first USPS employee advised me he was a veteran of the postal service for 30 years and had never heard of international reply coupons. In 2012/13 the gross revenue cost of running services at Lee Valley Regional Park is 20.5m. Attempts to persuade card issuers to restrict cash withdrawals have failed, and now the government is planning to get tough.
http://thesecularity.co m/viewtopic.php?f=23 &t=10178
http://www.bbc.co.uk/ news/uk-englandlondon-17429168 http://news.bbc.co.uk/2 /hi/business/2490695.s tm
286.
Restricted cash
287.
Growth market
An increase in the demand for a particular product or service over time. Market growth can be slow if consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price level. For example, a new technology might only be marketable to a small set of consumers, but as the price of the technology decreases and its usefulness in every day life increases, more consumers could increase demand. An illegal act or practice in which a person or company causes a price to be more favorable to an investor than market forces really justify. Rigged markets exist in order to attract investors to a company or project, but it is often not sustainable and in any case dupes the investor. There are a variety of ways to create a rigged market. Amendment to the Employee Retirement Income Security Act of 1974 providing more benefits for surviving spouses, lowering the age for participation, and addressing gender equity concerns the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. a plan which runs for a period of time and is updated regularly for the same period.
288.
Rigged market
Diageo Chief Executive Paul Walsh said: "We expect that success to continue, particularly in the high growth markets around the world, which is why we are announcing this major investment in Scotch whisky production, committing over 1bn in the next five years, to seize that opportunity for global growth. A supposedly open market that is rigged so far in one direction is no longer open; let us be honest about these things.
http://www.bbc.co.uk/ news/scienceenvironment17404438
289.
Retirement Equity Act of 1984
Retirement Equity Act of 1984amends ERISA.
http://findarticles.com/ p/articles/mi_m1153/is _v107/ai_3452850/
290.
Risk sharing
The government has also been looking at pension schemes in other countries where such risk sharing is more common.
291.
Rolling plan
292.
Roth option
An option available within some employer-sponsored qualified plans that allows for Roth tax treatment of employee contributions. The Roth option allows employees to deposit money into their retirement plans on an after-tax basis. This feature is available for both 401(k) and 403(b) plans.
Starting from today, O2 is rolling out plans that it says will more than double the number of free Wi-Fi hotspots available from services BT Open zone and the Cloud. Service members and Defense Department civilian employees who are eligible for the Thrift Savings Plan will soon have a new Roth option for retirement savings under the program, defense finance officials announced today.
http://www.defense.go v/news/newsarticle.asp x?id=67933
293.
Rubinomics
294.
Opt out vote
295.
Options market
Emphasizes the effect that balancing the government budget has on long term interest rates. Taxes should match government spending in the long run, and deficit-financed tax cuts are an ineffective way to increase growth. This can be seen as a form of the fiscal theory of the price level fiscal policy affecting long term inflation (as expressed by long term interest rates). A shareholder vote that is undertaken in order to determine if certain laws and regulations regarding corporate takeovers are to be waived during a particular corporate action. An opt-out vote, if successful, will remove certain legal restrictions that would have prevented a corporate takeover from occurring, or allow the takeover to occur sooner than it otherwise would have. A security exchange that primarily or exclusively trades option contracts. Often, options are traded on an exchange along with futures and other derivatives. However, some exchanges, like the CBOE, specialize in option transactions. The difference between a bond's face value and the amount for which it is sold by the issuer. Many bonds, especially those with low interest rates, are issued at a price less than par in order to entice buyers. Generally, the lower the interest rate, the greater the original issue discount, with zero-coupon bonds having the largest. Short of default, the original issue discount is a guaranteed profit for a bondholder, as bonds must be redeemed at face value. It is considered a form of interest and may be taxed as such. The total amount of principal owed on a mortgage before any payments are made.
Other Rubinomics theories are getting gobsmacked by data from the real world.
http://www.realitybase .org/journal/2008/6/13/ rubinomics-incrisis.html
There is nothing wrong in not liking his art. You can easily opt out vote.
http://www.bbc.co.uk/ news/world-asia-india16649501
296.
Original Issue Discount
We want to come up with other options for the market. We don't want it to go the same way as the Corn Exchange, which is a profit-making enterprise. The following is an overview of the economics and tax considerations regarding Original Issue Discount.
http://www.bbc.co.uk/ news/uk-englandleeds-17738203
https://www.wsc.com/ portal/hps/oid_tutorial. html
297.
Original principal balance
298.
Over-the-Counter
A security traded off exchanges such as the NYSE, TSX, and AMEX. The phrase over the counter can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. It also refers to debt securities and other financial instruments, such as derivatives, which are traded through a dealer network.
The increasing principal balance also raises future interest amounts charged against the loan. ... compound interest, the bank will only charge interest on the original principal balance taken out by borrowers. They were all asked to pay in advance, either by bank transfer, or by going into a bank branch and paying over the counter.
http://www.wisegeek.c om/what-is-monthlycompound-interest.htm
299.
Zero-sum game
300.
Yield to maturity
301.
Written-down value
A situation where the gain of one person equates to the loss of another person. That is, for every dollar one person makes in a zero sum transaction, another person loses a dollar. Not every transaction is a zero sum game; stock trading is not because some trades are mutually beneficial to the buyer and the seller. Options and commodity markets, however, are zero sum games because wealth cannot be created from these transactions, only shifted. The percentage rate of return paid on a bond, note, or other fixed income security if the investor buys and holds it to its maturity date. The calculation for YTM is based on the coupon rate, length of time to maturity, and market price. It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate. The current book value of an asset or liability; that is, its original book value net of any accounting adjustments such as depreciation.
"This isn't a zero-sum game," says Janette Sadik-Khan, the commissioner of transportation for the city of New York.
Governments or companies borrow money and agree to pay a certain rate of interest (yield) for a period of time (maturity).
The business decides to calculate annual depreciation at the rate of 40% of the written-down value.
http://tutor2u.net/busin ess/accounts/assets_fix edassets_depreciation_ rbexample.asp

Financial Glossary

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Financial Glossary

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Babe Bolyai University, Cluj Napoca Faculty of Economics and Business Administration

Financial English Glossary

Mic Iulia 2nd year - Marketing

Word/Expression Credit-default swaps

Context Credit-default swaps are insurance-like contracts between two parties.

Source http://www.businessw eek.com/articles/201205-17/how-jpmorganlost-2-billion-withoutreally-trying http://businessfinance mag.com/article/getready-new-globalaccounting-standards0101?page=0%2C2

http://www.econlib.org /library/Enc/FiscalPoli cy.html

http://englishnetlinks.h omestead.com/files/Bu siness.htm

http://www.guardian.c o.uk/business/2004/sep /02/money1

http://bx.businessweek .com/shortsales-vsforeclosure/view?url=h ttp%3A%2F%2Fheyw ardhomes.blogspot.co m%2F2009%2F12%2 Fthree-reasons-whyshort-sale-isbetter.html http://www.economist. com/node/21554545

http://www.businessw eek.com/articles/201205-24/bidding-warsare-back-for-losangeles-luxury-homes http://www.economist. com/blogs/buttonwood /2012/05/publicsector-pensions

http://www.economist. com/blogs/freeexchang e/2012/05/businesscycles

http://www.economist. com/blogs/buttonwood /2011/01/pensions_and _risk_management

http://www.economist. com/blogs/democracyi namerica/2012/02/bara ck-obamas-budget

http://www.economist. com/blogs/freeexchang e/2012/05/euro-crisis-4 http://www.economist. com/node/21555931

Integrated pest management

http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king

http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king

http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king

http://www.guardian.c o.uk/business/2012/ma y/22/uk-inflationdrops-mervyn-king

1. To expose to harm or danger; imperil. 2. To threaten with extinction.

Be the physical support of; carry the weight of.

http://www.guardian.c o.uk/commentisfree/20 12/apr/11/bankingeuropean-central-bank http://www.guardian.c o.uk/commentisfree/20 12/apr/11/bankingeuropean-central-bank http://www.guardian.c o.uk/commentisfree/20 12/apr/11/bankingeuropean-central-bank

http://bizfinance.about. com/od/financialratios/ f/finratioanal4.htm

http://www.gurufocus. com/news/122349/why -the-asset-turnoverratio-matters

Cash flow statement

http://beginnersinvest.a bout.com/od/investstra tegiesstyles/a/aa10180 5_2.htm

http://www.magicdilig ence.com/articles/unde rstanding-the-cashflow-statement

Real effective exchange rate

The campaign for lower fuel prices is gearing up again.

A secondary or incidental effect.

http://www.bbc.co.uk/ news/uk-england18210753 http://www.bbc.co.uk/ news/business17836617

The lack of financial resources.

http://www.bbc.co.uk/ news/uk-scotlandglasgow-west18212287 http://news.bbc.co.uk/2 /hi/business/6999453.s tm

t/t (telegraphic transfer)

Initial public offering

net present value (npv)

A corporation's first offer to sell stock to the public.

Marginal tax rate

Value Added Tax

http://www.bbc.co.uk/ news/business17238523 http://www.bbc.co.uk/ news/business17238523

http://www.bbc.co.uk/ news/business16573771 http://www.bbc.co.uk/ news/business17390456

A financial or consumer market in a newly developing country or former communist country.

Expenditure on acquisitions of or improvements to fixed assets.

A partnership or conglomerate, formed often to share risk or expertise.

http://www.bbc.co.uk/ news/uk-scotlandscotland-business18266192 http://www.bbc.co.uk/ news/uk-scotlandscotland-business18266192

A loss reported before tax benefits are considered.

http://www.bbc.co.uk/ news/uk-northernireland-18055426 http://www.bbc.co.uk/ news/uk-northernireland-18055426

National Insurance Deductions

If you have a job, then you pay National Insurance Deductions.

http://www.bbc.co.uk/ news/uk-northernireland-15482349 http://www.bbc.co.uk/ news/uk-northernireland-15482349

He was convicted earlier this month of obtaining the money by deception.

To rise and move in a billowing or swelling manner.

http://www.bbc.co.uk/ news/business17434328 http://www.bbc.co.uk/ news/business17434328

http://www.bbc.co.uk/ news/business17434328 http://www.bbc.co.uk/ news/business17783917

http://www.bbc.co.uk/ news/world-europeguernsey-18263176 http://www.bbc.co.uk/ news/business17777367 http://www.bbc.co.uk/ news/business17777367 http://www.bbc.co.uk/ news/business15985203

Purchasing managers index

Weighted average cost of capital

http://news.bbc.co.uk/2 /hi/uk_news/politics/6 16587.stm

http://news.bbc.co.uk/2 /hi/business/7149153.s tm http://www.bbc.com/n ews/technology14820161

http://www.bbc.co.uk/ news/world-latinamerica-18321154 http://www.bbc.co.uk/ news/business17176332

http://news.bbc.co.uk/2 /hi/europe/jersey/7680 303.stm

Depository Trust Company