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20 Cards in this Set
- Front
- Back
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Liquid Yield Option Note (LYON)
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Another name for a zero coupon bond.
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listed security
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Any security that trades on a physical exchange.
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load fund
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A mutual fund in which the shareholder pays a fee (a brokerage commision) in order to buy shares in the fund.
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loan-to-value ratio
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The amount of a real estate loan divided by the market value of the collateral.
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long bond
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The most recently issued 30-year U.S. Treasury bond.
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loss aversion
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The desire to avoid financial loss, indluding effort to reduce its phychological impact.
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low PE effect
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The market anomaly in which stocks with low price-earning ratios show higher returns than stocks with higher PEs.
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M squared
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Performance measurment technique that expresses relative performance in risk-adjusted basis points by ensuring that the portfolio being evaluated and the benchmark have the same standard deviation.
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Macaulay duration
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The original, mathematical measure of interest rate risk based on the average term to maturity on a bond's cash flows.
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maintenance margin
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Established by Federal Reserve Board Regulation T, this requirement determines how badly a margined position can deteriorate before the investor must deposit more equity into the account.
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Malkeil's theorems
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A set of relationships among bond prices, time to maturity, coupon rates, and market interest rates.
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management fee
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Compensation paid to a mutual fund's investment advisor or fund manager, based on a percentage of assets.
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margin account
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A type of brokerage account in which the investor may borrow from the brokerage firm part of the cost of the investments.
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margin call
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A requirement to deposit additional equity to a brokerage account because the account equity fell below the maintenance margin limit.
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margin loan indicator
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The extent to which market participants have borrowed money to buy stocks.
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market conversion price
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The market value of a bond divided by its conversion ratio.
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market model
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A backward-looking linear regression model used to estimate beta.
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market order
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The most common type of order to buy or sell securities. It is to be executed as soon as possible after reaching the exchange floor.
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market portfolio
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A theoretical portfolio containing a percentage of all investable assets in proportion to their market capitalization.
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market risk
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Undiversifiabe risk, systematic risk.
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