STOCHASTIC PROCESS
An attempt to generate value by the way an assets dynamic movement in the market is described without considering the assets history. Refer to markov process.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
An attempt to generate value by the way an assets dynamic movement in the market is described without considering the assets history. Refer to markov process.
The deviation of the focus of a hedge fund or investment company to generate alternate investment opportunities. This change in consistency may be risky because the new opportunity may not have been
A forward agreement to buy undrawn loans or credit agreements. The investor gets a commitment fee. AKA synthetic credit facility.
The smallest amount that can be traded in bonds and securities.
A banks core capital in the form of stocks, earnings, and reserves. Refer to tier 2 capital and economic capital.
A financial institution that cannot fail without effecting the market. So they are granted help from central bank and possibly given bail out.
When futures, options, and equity settle on the same day. This happens once each quarter.
Issuing securities on the primary market for an issuer. Or the act of predicting risk to ensure the possible gains are worth the risk. Refer to allornone underwriting, best efforts underwriting, and
a building that does not have any contents or inhabitants.
When distressed assets of uncertain worth are sold at a deep discount. Refer to fire sale and vulture fund.
An unsophisticated investor. They are protected from fraud or bad advice. Refer to aunt millie.
An over the counter swap with floating interest. The principal is notational. This type of exhange is also called index amoritizing rate, accreting, amoritizing, reverse index principle, or a variable principle swap
A corporation controlled by a family. Refer to outsider system.
Accounting rules accepted by all countries. Also called generally accepted accounting principles.
journal voucher financial data recorded so that credits equal debits. An audit trail of business transactions in a journal. an organization’s financial position and the effects of the transactions can be analyzed
Partner with subordinate, lesser rights, involvement, authority, accountability, risks, and rewards than any senior, superior/primary partners.
Spacing option of a paragraph or text block to force the first and last word in a line against the margins. Not considered suitable for personal communication, like letters. Used in books
Software named after the Muppet frog character in the children’s educational program, Sesame Street. Controls data exchanges between PCs and mainframe computers. It is an asynchronous file-transfer protocol, largely replaced by internet
Alternative to a private branch exchange (PBX) phone system, smaller, cheaper, but less flexible. Allows a caller to directly select outgoing lines, incoming calls, or use intercom and conference facilities via several
Another name for kilocalorie (Refer to calorie).