- Industry: News service
- Number of terms: 2877
- Number of blossaries: 0
- Company Profile:
United Kingdom-based news service and former financial market data provider that provides news reports from around the world to news media
A generic term for the stocks of major companies with sound earnings and dividend records and above-average share performance. Blue chip stocks are also known as income stock. Named after high-value poker chips, which were traditionally blue. See also Stock.
Industry:Financial services
Laws State laws in the United States aimed at protecting the public against securities frauds. They require new issue offerings to be registered and full financial details provided. The phrase is thought to derive from a reference by a Supreme Court judge that some investment schemes had about as much value as a patch of blue sky.
Industry:Financial services
A Spanish and Portuguese term for stock exchange. See also Stock Exchange.
Industry:Financial services
A bond is a legal contract in which a government, company or institution (the borrower) issues an IOU certificate, which promises to pay holders a specific rate of interest for a fixed duration and then redeem the contract at face value on maturity. In theory bonds are safer than equities because they have a fixed maturity and are repaid before any payments are made to shareholders. But if a company fails, its bond holders suffer just as much as its shareholders. See also Convertible Bond, Bearer Shares/Bearer Bonds, Bullet Bond, Fixed Income, Senior Secured Debt.
Industry:Financial services
A calculation that converts the yield of a money market instrument, such as a Treasury bill, into the equivalent yield of a Treasury bond in order to compare efficiency. Yields on Treasury bills are expressed as a discount from face value and their maturity is often less than a year, so a calculation is needed to convert their yield into the equivalent annual yield of a bond. See also Money Market.
Industry:Financial services
The complete contract specifying all the terms and conditions of a bond issue.
Industry:Financial services
When a bond-holder sells a security-cum-interest and buys it back after the coupon is paid so as to convert the interest income into a capital gain. This is worthwhile only where lower tax rates apply to capital gains. See also Bond, Coupon.
Industry:Financial services
When a company transfers money from its reserves to its permanent capital it makes a free issue of shares to shareholders. These new shares are then distributed to the existing holders in proportion to their existing holdings. Also known as capitalization issue, a free issue and a scrip issue.
Industry:Financial services
A trader’s record of purchases and sales in one or more financial instruments. Talking a book also means a trader commenting favourably or unfavourably on a financial instrument depending on whether he is long or short in that instrument. The ‘books’ is also a colloquial term referring to the overall accounting records of a business. See also Matched Book, Unmatched Book.
Industry:Financial services
An exercise by an investment bank, which is lead-managing a new issue to ascertain the likely levels of demand for a security at different prices. It is designed to prevent an issue being undersubscribed because of a large discrepancy between the issue price and the price at which the security starts trading on the secondary market.
Industry:Financial services
