Glossary 5 Flashcards
Backing Away
Illegal practice in which the dealer fails to honor a firm price quote.
Balance of Payment
Difference between the amount of money that a country spends overseas. The balance of payment is often divided into the current account and the capital account/
Balance Sheet
Portion of a financial statement detailing a company’s assets, liabilities , and stock holders’ equity on a particular date.
Bank Qualified issues
Municipal bonds with a feature attractive to banks: 80% of the interest that a bank pays on deposits that have been used to buy bank-qualified bond is tax deductible.
Banker’s Acceptance
Post dated check sent by a domestic importer to a foreign exporter, when the check has been accepted or guaranteed by a bank. Exporters also initiate banker’s acceptance to transact their international business.
At the close
Order intended to be executed as close to the day’s closing price as possible
At the money
For put options, when the strike price is the same as the market price of the underlying security
At the opening
Order intended to be executed at a stock’s opening price (or as close as possible) on a given day.
Auction Market
Securities marketplace that has a physical trading floor, where prices are established by competitive bids and offers. One specialist creates an orderly market for each stock and operates from a trading piost on the floor.
Auditor
Independent accounting firm hired by a mutual fund to compule its financial statements and a list of the securities in its portfolios.
Authorized stock
Amount of stock a corporation’s charter allows it to sell.
Average Life
Expected maturity of a pool of mortgages, given the prepayment speed predicted by the PSA model
Away from the market
Term for any order that is not at the current market price.
