input stringlengths 1 125 | context stringlengths 8 1.18k | output int64 0 1 |
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Low/No Documentation Loan | A low/no documentation loan allows a potential borrower to apply for a mortgage while providing little or no information regarding their employment, income, or assets. Regulation of these loans has evolved significantly since 2008, but they remain an option for some borrowers in nontraditional financial situations. | 1 |
Combined Loan-To-Value Ratio (CLTV Ratio) | The combined loan-to-value (CLTV) ratio is the ratio of all secured loans on a property to the value of a property. Lenders use the CLTV ratio to determine a prospective home buyer's risk of default when more than one loan is used. | 1 |
Nonforfeiture Clause | A nonforfeiture (sometimes hyphenated) clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment. Standard life insurance and long-term care insurance may have nonforfeiture clauses. The clause may involve... | 1 |
Discretionary spending | Government spending authorized by Congress on an annual basis. | 1 |
DEBT TO ASSETS | A measure of a company’s FINANCIAL LEVERAGE, or the degree to which DEBT features on the overall BALANCE SHEET. It is com- puted as:where D is the company’s total debt, TA is the company’s total ASSETS.The higher the ratio, the great the company’s financial leverage. See alsoCONTINGENTS TO ASSETS, DEBT TO EQUITY. | 0 |
EMTN | See EURO MEDIUM-TERM NOTE. | 0 |
CROSSED TRADE | A practice where ORDERS to buy and sell listed SECUR- ITIES are matched without being channeled through an EXCHANGE; once crossed, the details may be reported to the exchange. Crossed trades are not permitted in certain market jurisdictions as they are thought to reduce trans- parency and leave open the possibility for... | 0 |
ANNUAL DEPRECIATION ALLOWANCE | The decrease in BOOK VALUE assigned to an ASSET as a result of DEPRECIATION, typically as a certain per- centage per year. | 0 |
BRICKS AND MORTAR | The physical branches and infrastructure of a BANK or SECURITIES FIRM, distinct from the electronic banking platforms many institutions also operate. | 0 |
Financial literacy | Having knowledge of financial matters and applying that knowledge to one's life. | 1 |
Stock Appreciation Right (SAR) | Stock appreciation rights (SARs) are a type of employee compensation linked to the company's stock price during a predetermined period. SARs are profitable for employees when the company's stock price rises, which makes them similar to employee stock options (ESOs). However, employees do not have to pay the exercise pr... | 1 |
Bond Rating Agencies | Bond rating agencies are companies that assess the creditworthiness of both debt securities and their issuers. These agencies publish the ratings used by investment professionals to determine the likelihood that the debt will be repaid. | 1 |
Business Activities | Business activities include any activity a business engages in for the primary purpose of making a profit. This is a general term that encompasses all the economic activities carried out by a company during the course of business. Business activities, including operating, investing and financing activities, are ongoing... | 1 |
Tiger economies | The fast-growing developing economies of Asia, at least before their crisis in the late 1990s. | 1 |
MINORITY SHAREHOLDER RIGHTS | A set of rights accorded to the MINORITY SHAREHOLDERS to ensure that they are not treated unfairly by the MAJORITY INTERESTS. Specific rights vary by jurisdiction, but include access to FINANCIAL STATEMENTS, ability to take legal actions, and so forth. Also known as MINORITY PROTECTION. | 0 |
RED-LINING | Refusal by a BANK to provide funds, or an INSURER to supply INSURANCE cover, in particular areas or sectors as a result of previous negative experiences and/or losses. Red-lining that is discriminatory or preju- dicial is illegal in many jurisdictions. | 0 |
EXEMPT GILTS | A form of GILT in which the TAX payable on INTEREST COUPONS is deducted by the government before distribution to INVESTORS. | 0 |
TAKE-OUT | The replacement of one form of FINANCING with another one,often associated with the replacement of a temporary BRIDGE LOAN with along-term BOND or LOAN. | 0 |
Unconsolidated Subsidiaries | An unconsolidated subsidiary is a company that is owned by a parent company but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, an unconsolidated subsidiary appears in the consolidated financial statements of... | 1 |
Guaranteed Lifetime Withdrawal Benefit (GLWB) | A Guaranteed Lifetime Withdrawal Benefit (GLWB) is a rider to a variable annuity contract that allows for withdrawals, either regular or occasional, to be made from an annuity during the accumulation phase without penalty. The annuitant pays for the GLWB rider with additional fees that are added to the total value of t... | 1 |
LSE | See LONDON STOCK EXCHANGE. | 0 |
Held by Production Clause | Held by production is a provision in an oil or natural gas property lease that allows the lessee, generally an energy company, to continue drilling activities on the property as long as it is economically producing a minimum amount of oil or gas. The held-by-production provision thereby extends the lessee's right to op... | 1 |
Internal Controls | Internal controls are the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. Besides complying with laws and regulations and preventing employees from stealing assets or committing fraud, internal control... | 1 |
Joint supply | Some products or production processes have more than one use. For instance, cows can both provide milk and be eaten. If farmers increase the number of cows they own in response to an increase in DEMAND for milk, they are also likely to increase, a little later, the supply of meat, causing beef prices to fall. | 1 |
X-Efficiency | X-efficiency refers to the degree of efficiency maintained by firms under conditions of imperfect competition. Efficiency in this context means a company getting the maximum outputs from its inputs, including employee productivity and manufacturing efficiency. In a highly competitive market, firms are forced to be as e... | 1 |
CROSS-ASSET HEDGE | A proxy or substitute HEDGE that is used when an exact replicating hedge is not available, generally by identifying a refer- ence (e.g., a DERIVATIVE) that has a high degree of CORRELATION with the underlying RISK exposure requiring protection. Although a highly correlated cross-asset hedge introduces elements of BASIS... | 0 |
Deferred Tax Liability | A deferred tax liability is a tax that is assessed or is due for the current period but has not yet been paid—meaning that it will eventually come due. The deferral comes from the difference in timing between when the tax is accrued and when the tax is paid. A deferred tax liability records the fact the company will, i... | 1 |
Impeachment | Impeachment, as authorized by Article II, Section 4 of the U.S. Constitution, is the formal process that allows Congress to bring charges of "Treason, Bribery, or other high Crimes and Misdemeanors" against high-ranking civil officers, such as the president. | 1 |
Hyperledger Composer | Hyperledger Composer is a set of open source tools that allows business owners, operators, and developers a way to create blockchain applications and smart contracts aimed at solving business problems and/or improving operational efficiencies. It is an example of a commercial application of blockchain-as-a-service (Baa... | 1 |
LONG THE BASIS | An ARBITRAGE or TRADING strategy where a LONG POSITION in a cash instrument is HEDGED by a SHORT POSITION in FUTURES or FORWARDS. | 0 |
Insurtech | Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a combination of the words “insurance” and “technology,” inspired by the term fintech. | 1 |
LOGNORMAL DISTRIBUTION | A single-tailed statistical distribution of a RANDOM VARIABLE where the logarithm is normally distributed, i.e., for any normally distributed variable x, y = exp(x) features a lognormal distribution. Financial ASSETS are often modeled using the lognormal distribution. The probability density function is given as:1where... | 0 |
SNIF | See STANDBY NOTE ISSUANCE FACILITY. | 0 |
Capital Leases | A capital lease is a contract entitling a renter to the temporary use of an asset, and such a lease has the economic characteristics of asset ownership for accounting purposes. The capital lease requires a renter to book assets and liabilities associated with the lease if the rental contract meets specific requirements... | 1 |
FAANG Stocks | In finance, “FAANG” is an acronym that refers to the stocks of five prominent American technology companies: Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX); and Alphabet (GOOG) (formerly known as Google). | 1 |
Underlying Variable | A variable on which the price of an option or other derivative depends. | 0 |
TERM REPURCHASE AGREEMENT | A REPURCHASE AGREEMENT with a final MATURITY ranging from 7 to 30 days; the opposite side of the transaction is referred to as a term REVERSE REPURCHASE AGREEMENT. See also OPEN REPURCHASE AGREEMENT, OVERNIGHT REPURCHASE AGREEMENT.CASE RISK EXPOSURE, TERMINAL WORST-CASE RISK EXPOSURE. | 0 |
EQUITY BRIDGE | See BRIDGE EQUITY. | 0 |
STRIKING PRICE | See STRIKE PRICE. | 0 |
Cost-Benefit Analysis | A cost-benefit analysis is a systematic process that businesses use to analyze which decisions to make and which to forgo. The cost benefit analyst sums the potential rewards expected from a situation or action and then subtracts the total costs associated with taking that action. Some consultants or analysts also buil... | 1 |
SURPLUS NOTES | SUBORDINATED DEBT that functions in a manner simi- lar to CONTINGENT , except that SECURITIES are issued directly by the company rather than through a TRUST. Surplus notes haveMATURITIES ranging from 10 to 30 years, and must generally be approved byINSURANCE REGULATORS. | 0 |
Housing Bubble | A housing bubble, or real estate bubble, is a run-up in housing prices fueled by demand, speculation, and exuberant spending to the point of collapse. Housing bubbles usually start with an increase in demand, in the face of limited supply, which takes a relatively extended period to replenish and increase. Speculators ... | 1 |
MANDATORY BID | In the United Kingdom, a requirement under the CITY CODE stipulating that an acquiring company must submit a formal BID for a TAKEOVER target once it has amassed 30% of the target’s SHARES in the market. | 0 |
DISCRETIONARY TRUST | A TRUST or INVESTMENT trust where a TRUSTEE or other designated person has the ability to invest the BENEFICIARY’S ASSETS as deemed best, without specific constraints or within certain general param- eters. See also BLIND TRUST. | 0 |
agency costs | costs that arise when an agent (e.g., a manager) does not act solely in the interests of the principal (e.g., the shareholder). | 0 |
Quant Fund | A quant fund is an investment fund whose securities are chosen based on numerical data compiled through quantitative analysis. These funds are considered non-traditional and passive. They are built with customized models using software programs to determine investments. | 1 |
Brand Equity | Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. Mass marketing campaigns also help t... | 1 |
branches | Additional offices of banks that conduct banking operations. | 0 |
Volatility Quote Trading | Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security. Volatility is often measured as either the standard deviation or variance between returns from that same security or market index. | 1 |
Historic Pricing | Historic pricing is a unit pricing method used to calculate the value of an asset using the last valuation point calculated. Historic pricing is used when the value of an asset does not update in real time. | 1 |
Stochastic Variable | A variable whose future value is uncertain. | 0 |
DEUTSCHE BUNDESBANK | See BUNDESBANK.which generally arises from the interaction of free market forces over a period of time. | 0 |
Sale | A sale is a transaction between two or more parties in which the buyer receives tangible or intangible goods, services, or assets in exchange for money. In some cases, other assets are paid to a seller. In the financial markets, a sale can also refer to an agreement that a buyer and seller make regarding the price of a... | 1 |
capital markets | Includes longer-term, relatively riskier securities. | 0 |
Justified Wage | A justified wage refers to an income level determined by market dynamics, work experience, education, and skill. A justified wage is the wage level that is high enough to attract workers but low enough to enable employers to offer employment. The divergence between a justified wage and the legal minimum wage may depend... | 1 |
Average cost | Refer to cost, average. | 1 |
Understanding Estoppel | Estoppel is a legal principle that prevents someone from arguing something or asserting a right that contradicts what they previously said or agreed to by law. It is meant to prevent people from being unjustly wronged by the inconsistencies of another person's words or actions. | 1 |
Cash advance | A short-term loan from a bank or alternative lender that features fast approval and quick funding, but it often comes with higher fees than other options. | 1 |
Marketing Mix | A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan. The term often refers to a common classification that began as the four Ps: product, price, placement, and promotion. | 1 |
Four Percent Rule | The Four Percent Rule is a rule of thumb used to determine how much a retiree should withdraw from a retirement account each year. This rule seeks to provide a steady income stream to the retiree while also maintaining an account balance that keeps income flowing through retirement. Experts are divided on whether the 4... | 1 |
Credit union | A nonprofit financial institution that is owned by its members. | 1 |
COMMODITY | A nonfinancial good representing an input or raw material for production or consumption. A commodity can be bought or sold in the MARKETS in cash or DERIVATIVE form, and can be divided into various sectors, including:Precious Metals: Gold, Silver, Platinum, Palladium, Iridium, Osmium, Rhodium, RutheniumIndustrial Meta... | 0 |
Implied Correlation | Correlation number implied from the price of a credit derivative using the Gaussian copula or similar model. | 0 |
tax-protected retirement plans | Employer-sponsored and other plans that protect either contributions or investment earnings from taxes, at least until after retirement. | 0 |
Risk-Neutral World | A world where investors are assumed to require no extra return on average for bearing risks. | 0 |
European System of Central Banks @ESCB@ | A banking system that consists of the European Central Bank @ECB@ and the national central banks @NCBs@ of all 28 member states of the European Union @EU@. | 0 |
Total Enterprise Value (TEV) | Total enterprise value (TEV) is a valuation measurement used to compare companies with varying levels of debt. Total enterprise value includes not only a company's equity value but also the market value of its debt while subtracting out cash and cash equivalents. | 1 |
PROBABILITY OF RUIN | The likelihood that the distribution of average losses exceeds a BENCHMARK SOLVENCY value (i.e., a minimum amount of CAPITAL surplus or tangible NET WORTH), leading to a company’s BANKRUPTCY. Probability of ruin is incorporated in certain DEFAULT models. | 0 |
Market Basket | A market basket is a selected group of products or assets designed to track the general performance of a specific market segment. This is sometimes known as a basket of goods. | 1 |
WMBA | See WHOLESALE MARKETS BROKERS ASSOCIATION. | 0 |
S&P 500 Dividend Aristocrats Index | The S&P 500 Dividend Aristocrats Index is a list of companies in the S&P 500 with a track record of increasing dividends for at least 25 consecutive years. | 1 |
DELTA | The change in the value of an OPTION for a change in the value of the UNDERLYING market reference, all other variables held constant. Thus, the value of a purchased CALL OPTION increases as the price of the underlying asset increases, by an amount estimated through delta. Similar determinations can be made for LONG POS... | 0 |
Key Rate Duration | Key rate duration measures how the value of a debt security or a debt instrument portfolio, generally bonds, changes at a specific maturity point along the entirety of the yield curve. When keeping other maturities constant, the key rate duration is used to measure the sensitivity in a debt security's price to a 1% cha... | 1 |
FIRM QUOTE | A BID and/or OFFER supplied by a DEALER or MARKET MAKER to a BROKER or client that can be regarded as reliable and action- able. Also known as FIRM PRICE. See also INDICATIVE QUOTE, QUOTED SPREAD. | 0 |
LAG | The time period between the occurrence of a loss, or filing of a CLAIM by the INSURED, and the receipt of a SETTLEMENT from the INSURER. | 0 |
Primary dealers | Banks and securities broker-dealers that trade in U.S. government securities with the Federal Reserve Bank of New York. | 1 |
E-Mini | An E-mini is an electronically traded futures contract that is a fraction of the value of a corresponding standard futures contract. E-minis are predominantly traded on the Chicago Mercantile Exchange (CME) and are available on a wide range of indexes, such as the NASDAQ 100, S&P 500, S&P MidCap 400, and Russell 2000, ... | 1 |
Hot IPO | The term hot IPO refers to an initial public offering with significant demand. These IPOs are popular, drawing a tremendous amount of interest from investors and the media even before they hit the market. This hype and attention generally lead to a significant rise in share prices after the company goes public. Hot IPO... | 1 |
AVERAGE OPTION | See ASIAN OPTION. | 0 |
PRICE SPREAD | See BEAR SPREAD, BULL SPREAD. | 0 |
Options | Options are financial instruments that are derivatives based on the value of underlying securities such as stocks. An options contract offers the buyer the opportunity to buy or sell—depending on the type of contract they hold—the underlying asset. Unlike futures, the holder is not required to buy or sell the asset if ... | 1 |
Puttable Bond | A bond where the holder has the right to sell it back to the issuer at certain predetermined times for a predetermined price. | 0 |
DISCOUNT WINDOW | In the United States, a facility, made available by the FEDERAL RESERVE BANKS, that permits authorized MEMBER BANKS to bor- row short-term funds on an emergency basis in order to balance cash outflows. | 0 |
NET BOOK VALUE | The value of an ASSET on the corporate BALANCE SHEET, typically reflecting the original cost of purchase or the latest valuation, less accumulated DEPRECIATION. Also known as BOOK VALUE, DEPRECIATED VALUE. | 0 |
TREATY FACILITY | A mechanism allowing a CAPTIVE to access the REINSURANCE markets for large exposures. The facility generally reinsures a small percentage of the captive’s exposures and then RETROCEDES the bal- ance through TREATY REINSURANCE. | 0 |
PROXY | (1) A document that conveys a COMMON STOCK SHAREHOLDER’s right to vote. (2) A person or institution authorized to vote on behalf of a shareholder. | 0 |
Welfare Economics | Welfare economics is the study of how the allocation of resources and goods affects social welfare. This relates directly to the study of economic efficiency and income distribution, as well as how these two factors affect the overall well-being of people in the economy. In practical terms, welfare economists seek to p... | 1 |
Depository institution | A financial institution such as a savings bank, commercial bank, savings and loan association, or credit union that is legally allowed to accept monetary deposits from consumers. | 1 |
comparison universe | The set of money managers employ-ing similar investment styles, used for assessing the relative performance of a portfolio manager. | 0 |
DEBT SERVICE | Contractually required CASH FLOWS that a BORROWER must pay on a LOAN, BOND, LEASE, or other form of DEBT, generally com- prised of COUPON INTEREST, a fractional portion of PRINCIPAL (payable into a SINKING FUND), and/or a LEASE payment. See also COVERAGE. | 0 |
Income tax | A much-loathed method of TAXATION based on earnings. It was first collected in 1797 by the Dutch Batavian Republic. In the UK it was introduced in 1799 as a “temporary” measure to finance a war against Napoleon, abolished in 1816 and reintroduced, forever, in 1842. In most countries, people do not pay it until their IN... | 1 |
ALTERNATIVE INVESTMENT | The broad category of INVESTMENTS that excludes the traditional classes of EQUITIES, FIXED INCOME, and cash. Alternative investments can include HEDGE FUNDS, COMMODITIES, real estate, PRIVATE EQUITY, managed FUTURES, and INSURANCE-LINKED SECURITIES. Alternatives are often selected by investors as they can be uncorrelat... | 0 |
PRESENTING BANK | A BANK that seeks payment on a BILL OF EXCHANGE, DRAFT, or CHECK from the bank on which the order has been drawn. | 0 |
Fungible | You can't tell them apart. Something is fungible when any one single specimen is indistinguishable from any other. Somebody who is owed $1 does not care which particular dollar he gets. Anything that people want to use as money must be fungible, whether it be gold bars, beads or shells. | 1 |
Nasdaq Capital Market | The Nasdaq Capital Market is one of Nasdaq's U.S. market tiers containing early-stage companies that have relatively lower market capitalizations. Listing requirements for companies on the Nasdaq Capital Market are less stringent than for the two other Nasdaq market tiers, which focus on larger companies with higher ma... | 1 |
Convexity | A measure of the curvature in the relationship between bond prices and bond yields. | 0 |
Range Forward Contract | The combination of a long call and short put or the combination of a short call and long put. | 0 |
Godfather Offer | A Godfather offer is an irrefutable takeover bid made to a target company by an acquirer. Typically, the offer is priced at an extremely generous premium compared with the target's prevailing share price, making it difficult for management to reject the bid without angering shareholders and being accused of breaching t... | 1 |
PRIVATE COMPANY | A company whose SHARES are held by the DIRECTORS and SHAREHOLDERS, but which do not trade publicly. A private company is not typically subject to the same public disclosure rules as PUBLIC COMPANIES. See also CLOSE COMPANY, CLOSELY HELD COMPANY. | 0 |
Substitution rule | A rule which asserts that if the price of one factor falls while all other factor prices remain t by sub-stituting the now-cheaper factor for all the other factors. The rule is a corollary of the least-cost rule. Supply curve @ or supply schedule@. A schedule showing the quantity of a good that suppli... | 1 |
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