- 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
The sale of a share and its repurchase shortly after the beginning of a new tax year. This allows shareholders to register a capital loss or profit for tax purposes while retaining ownership of the shares.
Industry:Financial services
A two-way price comprises a bid, or the price at which a dealer is willing to buy, and an ask (or offer) at which a dealer is willing to sell. The bid, by definition, is always below the ask and is always the first quoted price. The difference between the two quotes is known as the spread. A spread between the best bid and best offer is called ‘the touch’. See also Ask, Bid.
Industry:Financial services
A light-hearted index devised by The Economist magazine which compares the price of McDonald’s Big Mac burgers, a fast food staple available around the world, as a guide to whether currencies are overvalued or undervalued. It’s based on the assumption that similar goods should cost the same wherever they are purchased. If the prices are different there is an anomaly in the valuation of the local currency. For example, if a Big Mac costs $1 in Washington and 20 pesos in Ruritania then the dollar/peso exchange rate should be 20 pesos to the dollar. If it’s out of line then the peso is either overvalued or undervalued on the basis of purchasing-power parity, which says exchange rates should move towards a level which equalizes the price of an identical basket of goods. Critics say the Big Mac index ignores the effects of taxes, profit margins and the price of raw materials in different countries.
Industry:Financial services
An international organization that fosters international monetary and financial co-operation and serves as a bank for central banks and international financial organizations. It accepts deposits from central banks and also makes short-term loans to them. The BIS is concerned with safeguarding the stability of international financial markets and ensuring that all banks have sufficient capital to support their operating needs. It acts as a forum for regular meetings of the central bank governors of the G10 group of major industrialized countries. The Basel Committee of the BIS sets standards and guidelines for best banking practice. www.bis.org See also Central Bank, G10, Basel Committee. www.bis.org/cbanks.htm (lists central bank websites)
Industry:Financial services
A widely used option pricing formula for European style options, which have a fixed expiry time, created by Fischer Black and Myron Scholes in 1973. It allows assessment of the value of a call option at any particular time up to expiry. See also Option.
Industry:Financial services
Bank of England. The UK’s central bank. www.bankofengland.co.uk See also Central Bank.
Industry:Financial services
