|
|
|
|
|
|
Abbrev. Standard & Poor's 500.
|
|
|
|
|
|
|
Abbrev. synthetic agreement for foreign exchange.
|
|
|
|
|
|
|
|
A framework established by a regulatory body, such as the Australian Securities Commission, ...
|
|
|
|
|
|
|
|
A form of off-balance-sheet financing in which instead of borrowing on the security of, say, ...
|
|
|
|
|
|
top
|
|
A form of 'indirect taxation' levied by the Australian government since 1930 on the wholesale ...
|
|
|
|
|
|
|
|
Immediate value transactions. See also: bank-cheque funds, exchange settlement account, ...
|
|
|
|
|
|
|
|
(1915 - )winner of the Nobel Prize for Economics in 1970, professor emeritus of economics ...
|
|
|
|
|
|
|
|
Yen-denominated bonds issued in Japan by a foreign borrower. The bonds are registered with ...
|
|
|
|
|
|
|
|
Banks whose main role was to gather deposits from the public and lend to home-buyers. Savings ...
|
|
|
|
|
|
top
|
|
A US financial institution which mainly lends funds to home-buyers - similar to building societies ...
|
|
|
|
|
|
|
|
'supply creates its own demand', a notion which emerged in the wake of the Industrial Revolution ...
|
|
|
|
|
|
|
|
Speculative buying and selling of shares and securities to make a quick profit. The commercial ...
|
|
|
|
|
|
|
|
The economic factor that decrees hen's teeth, rocking-horse manure - any item that is hard ...
|
|
|
|
|
|
|
|
A reorganising of a company's capital structure or its debts which is binding on creditors ...
|
|
|
|
|
|
top
|
|
(1883 - 1950)minister of finance for Austria after the First World War. Schumpeter held the ...
|
|
|
|
|
|
|
|
Abbrev. shared currency options under tender.
|
|
|
|
|
|
|
|
A useful method of remembering that in a foreign-exchange transaction, you always get the ...
|
|
|
|
|
|
|
|
A document showing entitlement to a parcel of shares; an abbreviation of 'subscriptions'. ...
|
|
|
|
|
|
|
|
A bonus issue of shares to existing shareholders, made in proportion to their shareholdings. ...
|
|
|
|
|
|
top
|
|
Odd lots of securities such as bills of exchange or promissory notes - the money market equivalent ...
|
|
|
|
|
|
|
|
Abbrev. special drawing rights.
|
|
|
|
|
|
|
|
Abbrev. Stock Exchange Automated Quotations.
|
|
|
|
|
|
|
|
The revision of numbers (statistics) to compensate for fluctuations resulting from regular ...
|
|
|
|
|
|
|
|
Membership of an exchange. The term is no longer used in the Australian stockmarket, which ...
|
|
|
|
|
|
top
|
|
Abbrev. Stock Exchange Automated Trading System.
|
|
|
|
|
|
|
|
Abbrev. Securities and Exchange Commission.
|
|
|
|
|
|
|
|
A separate stock exchange listing of small companies with relatively few shareholders and ...
|
|
|
|
|
|
|
|
A security over an asset, say, a house, that already has a mortgage on it. The interest rate ...
|
|
|
|
|
|
|
|
Shares of industrial companies which fall short of being tagged 'blue-chip' but which are ...
|
|
|
|
|
|
top
|
|
One where existing securities are traded, as against the primary market where they are issued. ...
|
|
|
|
|
|
|
|
Someone who has rights not only against the debtor personally but against specific assets ...
|
|
|
|
|
|
|
|
In the context of financial markets, written undertakings securing repayment of money. They ...
|
|
|
|
|
|
|
|
The US watchdog over the country's securities industry, established in 1943. Abbrev. SEC.
|
|
|
|
|
|
|
|
Legislation on the securities industry was introduced in Australia in 1970 and by 1971 had ...
|
|
|
|
|
|
|
|
A borrowing-lending process that does not require any movement of cash; the lender of the ...
|
|
|
|
|
|
|
|
Converting an asset such as a loan into a marketable commodity by turning it into securities. ...
|
|
|
|
|
|
|
|
In the legal sense, a right against a particular asset belonging to another; for example, ...
|
|
|
|
|
|
|
|
Funds provided to start up a new business or enterprise, often associated with venture capital ...
|
|
|
|
|
|
top
|
|
An organisation operating in the financial markets which undertakes to enforce regulations ...
|
|
|
|
|
|
|
|
The situation in the futures market where a trade has taken place at a given price but there ...
|
|
|
|
|
|
|
|
Where demand outpaces supply so that there are more buyers than there are goods for sale. ...
|
|
|
|
|
|
|
|
Stock issued by a state government entity such as an electricity authority or a water board. ...
|
|
|
|
|
|
|
|
Debt ranked ahead of other debt. It has priority if debt has to be redeemed in cases of liquidation.
|
|
|
|
|
|
top
|
|
Futures market shorthand for September.
|
|
|
|
|
|
|
|
A zero-coupon bond issued directly by the US treasury, selling the interest and principal ...
|
|
|
|
|
|
|
|
A group of options with the same exercise date, same strike price and of the same type, ie, ...
|
|
|
|
|
|
|
|
Abbrev. Stock Exchange of Singapore Dealing and Automated Quotation system
|
|
|
|
|
|
|
|
When default arises, the right of the non-defaulting party to reduce its debt to the defaulter ...
|
|
|
|
|
|
top
|
|
The date on which money and securities change hands following a market transaction.
|
|
|
|
|
|
|
|
The official closing price, established by the exchange at the close of each trading day and ...
|
|
|
|
|
|
|
|
The risk that a counterparty might not pay on time or as expected. Settlement risk is an incentive ...
|
|
|
|
|
|
|
|
Abbrev. Sydney Futures Exchange Clearing House.
|
|
|
|
|
|
|
|
A trader who 'shades a rate' is narrowing the spread between the buy/sell quotes on a currency, ...
|
|
|
|
|
|
top
|
|
A sudden shift in activity or prices that forces speculators to sell their holdings or forces ...
|
|
|
|
|
|
|
|
Part of the ownership of a company. A person who buys a portion of a company's capital becomes ...
|
|
|
|
|
|
|
|
The equity of a company contributed by shareholders. See also: authorised capital, issued ...
|
|
|
|
|
|
|
|
The document issued by a company to a shareholder showing the number of shares held, the amount ...
|
|
|
|
|
|
|
|
See also: Individual Share Futures.
|
|
|
|
|
|
top
|
|
Futures contracts based on a recognised stock index - in Australia, the Australian Stock Exchange ...
|
|
|
|
|
|
|
|
The record showing the holdings of a company's shareholders.
|
|
|
|
|
|
|
|
See also: stockbroker.
|
|
|
|
|
|
|
|
Insurance against the foreign-exchange risk associated with tendering for contracts involving ...
|
|
|
|
|
|
|
|
What belongs to the shareholders of a company: issued capital and retained profits. Such money ...
|
|
|
|
|
|
top
|
|
The net amount of a company's funds that belongs to its shareholders. The shareholders' ratio ...
|
|
|
|
|
|
|
|
See also: scheme of arrangement.
|
|
|
|
|
|
|
|
A company which has been created but has ceased trading. Its memorandum and articles can be ...
|
|
|
|
|
|
|
|
An association of shipping owners who have grouped together to coordinate freight charges.
|
|
|
|
|
|
|
|
A bond issue made publicly in Japan, not denominated in yen. The first such issue was made ...
|
|
|
|
|
|
top
|
|
See also: short position.
|
|
|
|
|
|
|
|
Buying securities such as bills or a commodity such as foreign exchange to cover a 'short' ...
|
|
|
|
|
|
|
|
Swaps, usually of one currency for another, which span periods of less than one week. ...
|
|
|
|
|
|
|
|
A position taken to protect against a fall in prices.
|
|
|
|
|
|
|
|
An excess of sales over purchases (a net liability position and the opposite of long position). ...
|
|
|
|
|
|
top
|
|
Selling a security or commodity that you do not yet own, believing it will fall in price and ...
|
|
|
|
|
|
|
|
Generally, a loan, deposit or security that has less than six months and certainly less than ...
|
|
|
|
|
|
|
|
Buying futures as a hedge against a commitment to sell in the cash or spot market.
|
|
|
|
|
|
|
|
The category of securities such as bonds, bills or notes which have less than one year to ...
|
|
|
|
|
|
|
|
The sector of the financial market which caters for the borrowing and lending of money for ...
|
|
|
|
|
|
top
|
|
A technique which followed development of the revolving underwriting facility (RUF), providing ...
|
|
|
|
|
|
|
|
The short-term version of a RUF, whereby members of an underwriting syndicate have a short-term ...
|
|
|
|
|
|
|
|
The difference between the amount expected and the amount achieved. A borrower issues securities ...
|
|
|
|
|
|
|
|
Abbrev. Securities Institute of Australia.
|
|
|
|
|
|
|
|
Abbrev. Singapore Inter Bank Offered Rate.
|
|
|
|
|
|
top
|
|
Markets, prices and interest rates are said to have moved sideways if they have shifted only ...
|
|
|
|
|
|
|
|
The Thursday in March 1980 when the American brothers Nelson Bunker Hunt and Herbert Hunt, ...
|
|
|
|
|
|
|
|
Abbrev. Singapore International Monetary Exchange.
|
|
|
|
|
|
|
|
Interest calculated on the principal amount only of a loan for each period on which interest ...
|
|
|
|
|
|
|
|
A statistical term for goods which are taken only one or two steps beyond the raw material ...
|
|
|
|
|
|
top
|
|
Facilities provided by financial institutions to clients who want an asset or liability in ...
|
|
|
|
|
|
|
|
The rate charged in the Singapore interbank market; similar to LIBOR in the euromarkets and ...
|
|
|
|
|
|
|
|
Singapore's futures exchange, established in 1984 as a commodity exchange, trading initially ...
|
|
|
|
|
|
|
|
See also: interest-rate swap.
|
|
|
|
|
|
|
|
A fund maintained by regular payments or contributions which will eventually pay off an amount ...
|
|
|
|
|
|
top
|
|
Abbrev. Superannuation Industry (Supervision) Act.
|
|
|
|
|
|
|
|
Cheated, screwed, as in 'I've been skinned a few points'.
|
|
|
|
|
|
|
|
An attractive share whose appeal has yet to be recognised. Recognition of its potential pushes ...
|
|
|
|
|
|
|
|
More or less a depression; an extreme form of recession, the worst in history being in the ...
|
|
|
|
|
|
|
|
(1723 - 90)Scottish philosopher and political economist. Between 1752 and 1763 he lectured ...
|
|
|
|
|
|
top
|
|
A decision taken in December 1971 by the Group of Ten countries to devalue the $US against ...
|
|
|
|
|
|
|
|
The industrial mid-west of the United States, encompassing established heavy industries such ...
|
|
|
|
|
|
|
|
The practice of retaining part of the profits of a good year and using it to boost the apparent ...
|
|
|
|
|
|
|
|
The matrix of rates under the European Joint Float which existed from April 1972 until the ...
|
|
|
|
|
|
|
|
Abbrev. short-term note issuance facility.
|
|
|
|
|
|
top
|
|
Abbrev. stop-on-close order.
|
|
|
|
|
|
|
|
A consortium of more than 2200 member banks, based in Brussels but operating a worldwide system ...
|
|
|
|
|
|
|
|
What determines that some people are rich and famous while others - from the other side of ...
|
|
|
|
|
|
|
|
Abbrev. Swiss Options and Financial Futures Exchange.
|
|
|
|
|
|
|
|
One which is not in demand in world markets and which would not be used as a 'reserve currency'. ...
|
|
|
|
|
|
top
|
|
An easing in the pace of growth from excessively rapid to more sustainable levels (often referred ...
|
|
|
|
|
|
|
|
Money lent on favourable terms which the borrower could not get in the commercial market. ...
|
|
|
|
|
|
|
|
Fixed-interest money made available by solicitors (acting as brokers) from investment funds ...
|
|
|
|
|
|
|
|
An often-used example of how reckless business enthusiasm can lead to boom-and-bust. The South ...
|
|
|
|
|
|
|
|
The extra dimension of risk involved in international, as distinct from domestic, transactions. ...
|
|
|
|
|
|
top
|
|
Abbrev. Standard Portfolio Analysis of Risk.
|
|
|
|
|
|
|
|
International reserve assets used since 1969 by the International Monetary Fund countries ...
|
|
|
|
|
|
|
|
Cooperatively owned industry bodies which are supervised by the Australian Financial Institutions ...
|
|
|
|
|
|
|
|
Gold and silver used to back paper money, or money in the form of precious metal (usually ...
|
|
|
|
|
|
|
|
A bond or note rated no higher than BB by Standard & Poor's or no higher than Ba1 by Moody's ...
|
|
|
|
|
|
top
|
|
A trader in any market who uses the market purely to make a profit, who may not have any direct ...
|
|
|
|
|
|
|
|
Abbrev. share-price index futures contract.
|
|
|
|
|
|
|
|
Abbrev. Standard & Poor's 500 Index Subordinated Notes.
|
|
|
|
|
|
|
|
A unit trust offering a combination of units producing either income or capital growth, with ...
|
|
|
|
|
|
|
|
In foreign-exchange and gold markets, spot trading is today's trade, deliverable two days ...
|
|
|
|
|
|
top
|
|
Rolling funding arrangements offered by gold banks to gold-producers, structured with no fixed ...
|
|
|
|
|
|
|
|
The part of the market calling for spot settlement of transactions. The precise meaning of ...
|
|
|
|
|
|
|
|
The closest listed contract in futures trading, and usually the most active.
|
|
|
|
|
|
|
|
The price or rate for spot settlement of a transaction.
|
|
|
|
|
|
|
|
Foreign-exchange shorthand for a trader's spot position against his or her forward position, ...
|
|
|
|
|
|
top
|
|
A term applied to a currency transaction for spot value against that of the next working day ...
|
|
|
|
|
|
|
|
The difference between the buying and selling rate (also the margin above a benchmark rate ...
|
|
|
|
|
|
|
|
An option strategy to lock in an interest-rate spread. See also: option spread.
|
|
|
|
|
|
|
|
An order to buy or sell a series of options in a specified spread. The order is carried out ...
|
|
|
|
|
|
|
|
A worksheet, consisting of columns and rows, which has been used more extensively in financial ...
|
|
|
|
|
|
top
|
|
See also: spread option.
|
|
|
|
|
|
|
|
Balanced. A trader is square if purchases and sales, borrowings and loans, all match. The ...
|
|
|
|
|
|
|
|
Loudspeaker system used in foreign-exchange and fixed-interest trading between brokers and ...
|
|
|
|
|
|
|
|
Most commonly used in futures to indicate that pressure is being applied to the market - as ...
|
|
|
|
|
|
|
|
Abbrev. statutory reserve deposit.
|
|
|
|
|
|
top
|
|
Abbrev. self-regulatory organisation.
|
|
|
|
|
|
|
|
Abbrev. State Supervisory Authorities.
|
|
|
|
|
|
|
|
Someone who makes a quick killing on the stockmarket by subscribing to a new issue and selling ...
|
|
|
|
|
|
|
|
Abbrev. sterling transferable accruing government securities.
|
|
|
|
|
|
|
|
A disgruntled stockmarket animal; a former optimist who has run out of steam, become disenchanted ...
|
|
|
|
|
|
top
|
|
A duty imposed at state level on certain legal instruments and commercial transactions. The ...
|
|
|
|
|
|
|
|
An influential US corporate credit-rating bureau. See also: Dunn & Bradstreet, Moody's ...
|
|
|
|
|
|
|
|
A US stockmarket measure, based on the performance of 500 widely held shares, calculated by ...
|
|
|
|
|
|
|
|
Created by Salomon Brothers Inc and traded on the New York Stock Exchange, these notes incorporate ...
|
|
|
|
|
|
|
|
In statistics, a measure of the spread of data; the degree to which observations differ from ...
|
|
|
|
|
|
top
|
|
Developed in 1988 by the Chicago Mercantile Exchange, this has become the most widely used ...
|
|
|
|
|
|
|
|
See also: Australian Financial Institutions Commission.
|
|
|
|
|
|
|
|
In a commercial context, a statement may be: a financial statement such as a profit-and-loss ...
|
|
|
|
|
|
|
|
An agreement on economic policy first made between the Australian Labor Party and the Australian ...
|
|
|
|
|
|
|
|
A list of assets and liabilities, similar to a balance sheet, of an insolvent company or individual ...
|
|
|
|
|
|
top
|
|
The collection, analysis and interpretation of figures; the word can also mean the numbers ...
|
|
|
|
|
|
|
|
See also: lien.
|
|
|
|
|
|
|
|
A percentage of its deposits that a bank was required to lodge in an account with the Reserve ...
|
|
|
|
|
|
|
|
A security designed to provide a generous spread over LIBOR during the initial years of its ...
|
|
|
|
|
|
|
|
An interest-rate swap with a drop in the fixed-rate payment over the life of the swap; or ...
|
|
|
|
|
|
top
|
|
A cap that includes an incremental strike price at each rollover.
|
|
|
|
|
|
|
|
Floating-rate bonds with interest calculated using a formula based on a theoretical ten-year ...
|
|
|
|
|
|
|
|
An interest-rate swap with an increase in the fixed rate at some point in the swap's life, ...
|
|
|
|
|
|
|
|
Central bank intervention in foreign-exchange markets where the impact on domestic liquidity ...
|
|
|
|
|
|
|
|
A UK copy of the US's TIGRs and CATs, these are euro-sterling zero-coupon government bonds ...
|
|
|
|
|
|
top
|
|
Abbrev. short-term money market.
|
|
|
|
|
|
|
|
Developing in accordance with a model built on probability; a mathematical process tracking ...
|
|
|
|
|
|
|
|
Interchangeable with equities, shares and bonds. It can also mean a company's inventory of ...
|
|
|
|
|
|
|
|
The marketplace for trading equities (shares), government bonds and other fixed-interest securities. ...
|
|
|
|
|
|
|
|
The London Stock Exchange's price information system for international securities - the exchange's ...
|
|
|
|
|
|
top
|
|
The computer-assisted trading system developed by the Australian Stock Exchange. Abbrev. SEATS.
|
|
|
|
|
|
|
|
Launched in February 1987, this is a screen-based trading system operating as a second securities ...
|
|
|
|
|
|
|
|
See also: share-price index futures.
|
|
|
|
|
|
|
|
A person whose business is buying and selling shares and securities on behalf of others (clients), ...
|
|
|
|
|
|
|
|
See also: stop-loss order.
|
|
|
|
|
|
top
|
|
A client's instruction to a broker to sell if the stock falls to a particular price. A sharp ...
|
|
|
|
|
|
|
|
A futures market order left resting in the market so that if the stop-loss is activated within ...
|
|
|
|
|
|
|
|
A volatility-based options trade whose purpose is to allow profits to be made by traders who ...
|
|
|
|
|
|
|
|
A forward-rate agreement (FRA) written on 12 March for value on 12 June qualifies as a straight-date ...
|
|
|
|
|
|
|
|
See also: combination option.
|
|
|
|
|
|
top
|
|
An inexperienced dealer (the money market's equivalent of the racehorse trainer's stableboy), ...
|
|
|
|
|
|
|
|
Marking a portfolio of derivatives (options, futures contracts, swaps) to market and then ...
|
|
|
|
|
|
|
|
The price at which an option on a particular futures contract may be exercised. The strike ...
|
|
|
|
|
|
|
|
Abbrev. separate trading of registered interest and principle of securities.
|
|
|
|
|
|
|
|
A series of risk-management positions using forward or option contracts whose expiry dates ...
|
|
|
|
|
|
top
|
|
A bond whose coupon has been separated from the bond certificate, enabling the bondholder ...
|
|
|
|
|
|
|
|
See also: deficit.
|
|
|
|
|
|
|
|
See also: bear floater, inverse floater, reverse floater.
|
|
|
|
|
|
|
|
Abbrev. short-term underwriting facility.
|
|
|
|
|
|
|
|
See also: moral suasion.
|
|
|
|
|
|
top
|
|
A type of loan which ranks behind other debts should a company be wound up. Typical providers ...
|
|
|
|
|
|
|
|
An instruction issued by a court to a person to appear in court or before an examiner or referee ...
|
|
|
|
|
|
|
|
Someone who agrees to buy shares or other securities such as bonds.
|
|
|
|
|
|
|
|
Payment for shares or other securities.
|
|
|
|
|
|
|
|
See also: warrant.
|
|
|
|
|
|
top
|
|
A company under the parentage of another company which controls its board. Unlike a branch, ...
|
|
|
|
|
|
|
|
Government or other support of an industry, or section of the community or company or individual, ...
|
|
|
|
|
|
|
|
A shareholder whose shares total more than 10 per cent of a company's issued capital. Substantial ...
|
|
|
|
|
|
|
|
High-technology manufacturing industries featuring automated and computerised processes. On ...
|
|
|
|
|
|
|
|
A provision, inserted in a set of regulations, for the expiry of specified arrangements should ...
|
|
|
|
|
|
top
|
|
A pension or payment to a person retiring from full-time work on reaching a legislated age. ...
|
|
|
|
|
|
|
|
Similar to life insurance bonds in concept but with a different tax structure and subject ...
|
|
|
|
|
|
|
|
A minimum level of superannuation contribution which employers have to make on behalf of most ...
|
|
|
|
|
|
|
|
The key piece of legislation governing superannuation funds, it underpins the authority of ...
|
|
|
|
|
|
|
|
The law of economics that formalises the commonsense notion that the price of any item is ...
|
|
|
|
|
|
top
|
|
The economic approach that focuses on encouraging production instead of controlling demand. ...
|
|
|
|
|
|
|
|
Abbrev. step-up recovery FRNs.
|
|
|
|
|
|
|
|
What the life office will pay if you choose to cash in your policy before its expiry date.
|
|
|
|
|
|
|
|
Foreign-currency bonds issued by a Japanese company, aimed at Japanese investors, often insurance ...
|
|
|
|
|
|
|
|
A temporary halt in trading in a company's shares. The suspension can be at the instigation ...
|
|
|
|
|
|
top
|
|
A situation where a client transacts a swap with one party and then assigns the swap to another ...
|
|
|
|
|
|
|
|
The reversal of an existing swap, with the difference in market value of the swap paid out, ...
|
|
|
|
|
|
|
|
See also: swap assignment.
|
|
|
|
|
|
|
|
The fixed-rate payment on a swap.
|
|
|
|
|
|
|
|
A bond or note launched simultaneously with an agreement to a swap transaction.
|
|
|
|
|
|
top
|
|
The exchange of one entitlement for another. They can be interest-rate swaps (the larger category) ...
|
|
|
|
|
|
|
|
See also: interest-rate swap option.
|
|
|
|
|
|
|
|
A condition added to a share issue or offering of securities that enhances its appeal to investors; ...
|
|
|
|
|
|
|
|
Abbrev. Society for Worldwide Interbank Financial Telecommunications.
|
|
|
|
|
|
|
|
Switzerland's electronic financial futures and options exchange which began trading in 1988. ...
|
|
|
|
|
|
top
|
|
Foreign-exchange dealers' shorthand for Swiss francs.
|
|
|
|
|
|
|
|
Simultaneous selling and buying of securities which differ in maturity or coupon or type, ...
|
|
|
|
|
|
|
|
Abbrev. Sydney Computerised Overnight Market.
|
|
|
|
|
|
|
|
An after-hours screen-trading system introduced by the Sydney Futures Exchange in November ...
|
|
|
|
|
|
|
|
Established in 1960 as the Sydney Greasy Wool Futures Exchange. The exchange was renamed in ...
|
|
|
|
|
|
top
|
|
The clearing-house system developed by the SFE which began operating in December 1991. SFECH ...
|
|
|
|
|
|
|
|
Pooling of resources by financial institutions in a financing project to spread the risk. ...
|
|
|
|
|
|
|
|
A forward-rate agreement in foreign currency which operates like a hedge contract for a specific ...
|
|
|
|
|
|
|
|
A product that is created using forwards or futures to allow a company to control its losses ...
|
|
|
|
|
|
|
|
The risk of an event affecting the whole financial system. It arises from the threat of a ...
|
|
|
|
|
|
