Glossary of Stock Market Terms & Definitions - Mark Berch

August 6, 2014

Glossary of Stock Market Terms & Definitions - Mark Berch:

Participant risk
The risk associated with the credit of the participants and possibility of non-performance.

Integrated financial market
A market in which there are no barriers to financial flows, and the same risk asset commands the same expected return, irrespective of domicile. Mark E. Berch

Divestiture
A complete asset or investment disposal such as outright sale or liquidation. Mark E. Berch

Coverage
See: Fixed-charge coverage

Mark Berch:Greenshoe option
Option that allows the underwriter for a new issue to buy and resell additional shares.

Underfunded pension plan
A pension plan that has a negative surplus (i.e., liabilities exceed assets).

Subperiod return
The return of a portfolio over a shorter period of time than the evaluation period.Mark E. Berch

Interest-only loan
A loan in which payment of principal is deferred and interest payments are the only current obligation.

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Mark Berch:Program trading

June 30, 2014

Financial Dictionary - Mark E. Berch:

Fully valued
Used in the context of general equities. Said of a stock that has reached a price at which analysts think the underlyingcompany'sfundamentalearnings power has been fully recognized by the market.

Favorable Balance of Trade
The value of a nation's exports in excess of the value of its imports. Mark Berch

Risk lover
A person willing to accept lower expected returns on prospects with higher amounts of risk. Mark E. Berch

Marriage penal...

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Mark Berch

October 25, 2012

Mark Berch

Public debt
Issues of debt by governments to compensate for a lack of tax revenues.

Institutionalization
The gradual domination of financial markets by institutional investors, as opposed to individual investors. This process has occurred throughout the industrialized world.

Exact matching
A bondportfolio managementstrategy that involves finding the lowest cost portfolio generating cash inflows exactly equal to cash outflows that are being financed by investment.( ...

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Mark Berch

September 25, 2012

Mark Berch
Composite tape
See: Tape

Book to bill
The book-to-bill ratio is the ratio of orders taken (booked) to products shipped and bills sent (billed). The ratio measures whether the company has more orders than it can deliver (>1), equal amounts (=1), or less (

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Mark Berch - Repatriation

August 13, 2012

Mark Berch

Repatriation
The return from abroad of the financialassets of an organization or individual.

To be announced (TBA)
A contract for the purchase or sale of an MBS to be delivered at an agreed-upon future date but does not include a specified pool number and number of pools or precise amount to be delivered.

NRA (Non-Resident Alien) Tax
The tax which must be withheld by the corporation or its disbursing agent (usually 15% or 30%, depending on the hold's citizenship).( ...

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Mark Berch - Gilt-edged securities

June 25, 2012

Mark Berch
Gilt-edged securities
British and Irish government securities. Blue Chip.

Holder
The purchaser of an option.

Long leg
The part of an option spread in which an agreement to buy the underlying security is made.( - Mark Berch)

Mark Berch: Stable Paretian, or Fractal Hypothesis
In the characteristic function of the fractal family of distributions, the characteristic exponent alpha can range between one and two. See: Alpha, Fractal Distributions, Gaussian.

Disclai...

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Mark Berch - Overweight

June 25, 2012

Mark Berch
Overweight
Usually refers to recommendation that leads an investor to increase their investment in a particular security or asset class. The increase is usually with respect to a benchmark. Suppose that U.S. equities compose 40% of the benchmark portfolio. If one thinks the U.S. will outperform, the investor may increase the exposure to U.S. equity to more than 40%.

European exchange rate mechanism (ERM)
The system that countries in the European Union once used to pay e...

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Mark Berch: Inventory loan

June 25, 2012

Mark Berch
Net present value (NPV)
The present value of the expected future cash flows minus the cost.

Information asymmetry
Condition that information is known to some, but not all, participants.

Yield advantage
The advantage gained by purchasing convertible securities instead of common stock, which equals the difference between the rates of return of the convertible security and the common shares.( - Mark Berch)

Mark Berch: Inventory loan
A securedshort-termloan to purch...

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Mark Berch, Mark E. Berch

June 15, 2012

Mark Berch

Income tax
A state or federal government's levy on individuals as personal income tax and on the earnings of corporations as corporate income tax.

Syndicated Eurocredit loans
Funding provided by a group (or syndicate) of banks in the Eurocreditmarket.( - Mark Berch)

Mark Berch: Right
Privilege granted shareholders of a corporation to subscribe to shares of a new issue of common stock before it is offered to the public. Such a right, which normally has a life of...

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Mark Berch - Trade house

June 13, 2012

Mark Berch

Trade house
A firm that deals in actual commodities.

Mortgage life insurance
A life insurance policy that pays off the remaining balance of the insured person's mortgage at death.

London Metal Exchange (LME)
A market for trading base metals, where tradedoptions contracts are available against the underlyingfutures contract.( - Mark Berch)

Mark Berch: Dirty price
Bond price including accrued interest, i.e., the price paid by the bond buyer.

Outstanding shares
Sh...

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