Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

NO EVIDENCE

Admissible evidence absence or insufficiency to establish one or more essential case elements that the party having to bring proof must provide. The opposing party can ask the court to dismiss the

NODE

1. Device role to receive, send, or process data in a telecommunication network. 2. Point or nexus for two or more interfacing devices or two or more line or link terminals. 3.

NOYAU DUR

When the french have longstanding business with a company they expect this form of loyalty.

OPTION METHOD

When the exposure is measured through an option price framework.

PENNY JUMPING

When a manager only fills offers on one side keeping the rest until they see how the market is going to behave. If things go well all are let out but if

POINT BARRIER OPTION

A barrier option whose barrier kicks in at only one time. This time is usually maturity. AKA european barrier option. Refer to partial barrier option.

POSITIVE YIELD CURVE

When short term interest rates are lower than long term rates. This indicates normal market yield. AKA upward sloping yield curve. Refer to kinked and negative yield curve.

PUT ON THE WORST OF NASSETS

An option where the buyer is paid the difference between the strike price and the worse performing asset in a portfolio. Refer to call on the best of nassets, call on the

RANGE FLOATING RATE NOTE (FRN)

A note giving an investor a better coupon interest rate. If the interest rate falls outside the agreed upon range the investor loses the interest that day. AKA accrual note, day count

RECOVERY RATE

The percent a creditor or claim gets after a bankruptcy is filed. Refer to loss given default and recovery.

RESISTANCE LEVEL

A technique used to analyze and graph the index price level affected by repeated transfer via buying bouts to determine when a security rises above the resistance level. This can determine the

REVERSE HEAD AND SHOULDERS

The charting of an investment that predicts a reversal in value when the pattern shows a trough (viewed as a shoulder), followed by a rise then a lower trough followed by a

RISK AVERSION

A conservative view to investing when a party avoids risk believing the overall protection is worth the long term wait.

RISK TOLERANCE

The stability of a firms portfolio in regards to how much risk it can withstand.

SAMURAI

A bond issued by a foreign company using the yen as currency in the market in Japan. Refer to daimyo, geisha, shibosai, and shogun.

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