1 Flashcards
Dutch Book Theorem
profit opportunities will arise when inconsistent probabilities that violate the Bayesian approximation are assumed in a given context.
Started by bookmakers on horse racing
bottom up security selection approach
A bottom-up investing approach focuses on the analysis of individual stocks. In bottom-up investing, therefore, the investor focuses his or her attention on a specific company rather than on the industry in which that company operates, or on the economy as a whole,
price collusion
تبانی قیمت گذاری
autarky
economic independence or self-sufficiency.
“rural community autarchy is a Utopian dream”
a country, state, or society which is economically independent.
plural noun: autarkies; plural noun: autarchies
Accrued expenses
goods and services that have been delivered but not yet billed.
Utilities used for the month but an invoice has not yet been received before the end of the period
Wages that are incurred but payments have yet to be made to employees
Services and goods consumed but no invoice has been received yet
Call options
financial contracts that give the option buyer the right but not the obligation to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.
Callable Bond
also known as a redeemable bond, is a bond that the issuer may redeem before it reaches the stated maturity date.
put provision
A put provision allows a bondholder to resell a bond back to the issuer at par, or face value, after a specified period but prior to the bond’s maturity date.
BPS
Basis points refer to a common unit of measure for interest rates and other percentages in finance
Underwriting
the process through which an individual or institution takes on financial risk for a fee.
Debt assumption
a special form of debt refinancing, involving three parties—the creditor, the original debtor, and a new debtor who assumes the debt obligation.
investment grade.
Bond rating firms like Standard & Poor’s and Moody’s use different designations, consisting of the upper- and lower-case letters “A” and “B,” to identify a bond’s credit quality rating. “AAA” and “AA” (high credit quality) and “A” and “BBB” (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations (“BB,” “B,” “CCC,” etc.) are considered low credit quality, and are commonly referred to as “junk bonds.”
insolvency
ورشکستگی
to manage the insolvency;
plc
public limited company
A public limited company (PLC) is a public company in the United Kingdom. PLC is the equivalent of a U.S. publicly traded company that carries the Inc. or corporation designation.
Excise taxes
Excise taxes are taxes required on specific goods or services like fuel, tobacco, and alcohol. Excise taxes are primarily taxes that must be paid by businesses, usually increasing prices for consumers indirectly. Excise taxes can be ad valorem (paid by percentage) or specific (cost charged by unit).
Consideration
Something of value to which a party is not already entitled, given to the party in exchange for contractual promises. Consideration can take various forms, including a: Monetary payment. Promise to do something. Promise to refrain from doing something.
Warrant
Warrants are a derivative that give the right, but not the obligation, to buy or sell a security—most commonly an equity—at a certain price before expiration.
time deposit,
A time deposit, also referred to as term deposit, is an interest-bearing bank account with a fixed term. It allows depositors to grow their money with higher interest rates compared to a regular savings account. When the term is over, depositors can withdraw their money or it can be renewed and held for another term.
