see Forward rate agreement.
(finance) futures contracts on financial instruments, whereby the parties undertake to exchange predetermined financial assets in fixed quantities and at a set price on the expiration date. Futures are standardized contracts traded on regulated markets. Their prices are good indicators of market prospects.
see Commercial paper.
(finance) financial analysis method that correlates the market performance of a stock with the measurement of the issuer’s value through analysis of its financial statements and growth prospects. When the market price is lower than the fair value, the stock is undervalued and represents a good purchase opportunity.
see Tax leverage.
see Zero coupon.
see Floating rate note.
This is a strategy for business growth and distribution. The franchisor provides other entrepreneurs (franchisees) with its product trademark, the store sign under which they are marketed, or the patent that contains the secrets used to make them. The franchisees are independent entrepreneurs who independently assume the risk of their enterprise and who find it beneficial to carry on their business activity by exploiting the notoriety of other entrepreneurs’ distinctive marks and brands. This is why they are willing to pay an amount of money to the franchisor. Normally, a portion of this amount, called the entry fee, is a fixed sum, while the other portion is linked to the sales realized by the franchisee (which are called royalties).
see Franchising.
(statistics) threshold. If it represents one-fourth of a scale of values, it is also called quartile. If the scale is divided into tenths, each part is called a decile. An important fractile is the median, which is the point that divides the observations exactly in two.
see Forward rate agreement.
see Swaption.
(finance) a non-standard contract that allows the parties to exchange a determined quantity of goods or financial assets at a future date and at a pre-set interest rate, called the forward price. Due to this “personal” character, the forward rate agreement is not traded on the stock market, but is made under the form of a specific agreement between the parties (generally a bank and a business).
see Forward rate agreement.
(finance) medium/long-term variable rate securities denominated in a foreign currency (generally dollars) different from the national currency of the issuer. They are traded on the London market, and their interest rate is tied to Libor.
see Floating rate note.
see Mutual fund.
see Global coordinator.
see Option.
see Investment services.
see Future.
(finance) the combination of financial instruments that are characterized by risk/yield profiles that are not perfectly correlated. The total degree of the risk/yield of an investment is lower than what is given by the weighted average for the quantities of all assets held in the basket if they are not correlated with each other.
(finance) a financing contract for the purchase of goods, according to which the lender (lessor) directly acquires the good, and then leases it to the end user (lessee), who may opt to renew the lease for an extremely low fee, return the good, or purchase it at a pre-set price upon expiration.
see Fed funds.
(finance) reserves that United States investment and credit institutions are required to keep on deposit at one of the various branches of the Federal Reserve Bank. The Fed funds rate, which is highly volatile, is the benchmark rate for monetary policy.
see Raider.
(finance) professional activity involving the collection of other parties’ accounts receivable. The factor acquires the receivables by paying an amount less than their face value. The seller relieves itself of the risk of having to engage in long and costly negotiations to recover the receivables from delinquent debtors. The credit discounting contract does not always protect the seller against the risk of insolvency.