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

Category: Finance Dictionary

STRAIGHTLINE DEPRECIATION

Applying reductions equally to a depreciable assets value in relation to predictions of its anticipated maturity. Refer to accelerated depreciation.

SURPLUS NOTES

Debt where securites are issued directly by a company not a trust. They mature in 10 to 30 years and must be approved by an insurance regulators.

TAILING A HEDGE

When a hedge is discounted using present value because the value changes daily.

TERM STRUCTURE

Mapping interest rates across time on a yield curve. Refer to expectation, liquidity preference, and market segmentation theory.

TIME SPREAD

A spread that takes advantage of volatility or percieved price in the forward market. This happens when options are traded with the same strike price but different maturity dates. AKA calendar spread

TWOTIER BID

When a take over happens because stockholders are offered a great price for a first cut off date. The remaining holders get a less attractive deal. Refer to anyandall bid and fair

UNISSUED STOCK

Stock that is available to be sold through corporate charter but isn’t.

VEGA

The price changes that occur compared to a %1 volatility change.

WEINER PROCESS

The process of comparing value to variable changes in the market. Part of the markov process. It is used in pricing options.

X TABLE

a term used to refer to a table in progress that is not yet able to be used in rating.

JPMORGAN CHASE

New York City-based financial services firm. One of the oldest firms of this type. Its credit card business serves the most individuals while providing varied consumer services.

JUNKET

With someone else paying, like taxpayers, taking an extravagant business and/or pleasure trip.

KARL MARX

The foundation of communism evolved from this revolutionary socialist thinker. He strongly opposed capitalism, believing it would destroy societies by increasing tensions and disparity between workers and owners. His theories and ideas

KEY LIFETIME

For encryption-decryption security, private decryption keys have no expiration, an indefinite lifetime. Secret keys, however, have terminal lifetimes that need to be defined in an organization’s security policy.

KEYSTONE MARKUP

Gross margin equaling cost price or half the sale price. Said another way, any item selling at twice the wholesale cost, purchased or produced, has a keystone markup.

KIT

One item under its own part number or SKU, comprised of several other finished goods (FG), each with its own SKU. Refer to separate stock keeping unit (SKU).

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