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20 Cards in this Set

  • Front
  • Back
Liquid Yield Option Note (LYON)
Another name for a zero coupon bond.
listed security
Any security that trades on a physical exchange.
load fund
A mutual fund in which the shareholder pays a fee (a brokerage commision) in order to buy shares in the fund.
loan-to-value ratio
The amount of a real estate loan divided by the market value of the collateral.
long bond
The most recently issued 30-year U.S. Treasury bond.
loss aversion
The desire to avoid financial loss, indluding effort to reduce its phychological impact.
low PE effect
The market anomaly in which stocks with low price-earning ratios show higher returns than stocks with higher PEs.
M squared
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.
Macaulay duration
The original, mathematical measure of interest rate risk based on the average term to maturity on a bond's cash flows.
maintenance margin
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.
Malkeil's theorems
A set of relationships among bond prices, time to maturity, coupon rates, and market interest rates.
management fee
Compensation paid to a mutual fund's investment advisor or fund manager, based on a percentage of assets.
margin account
A type of brokerage account in which the investor may borrow from the brokerage firm part of the cost of the investments.
margin call
A requirement to deposit additional equity to a brokerage account because the account equity fell below the maintenance margin limit.
margin loan indicator
The extent to which market participants have borrowed money to buy stocks.
market conversion price
The market value of a bond divided by its conversion ratio.
market model
A backward-looking linear regression model used to estimate beta.
market order
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.
market portfolio
A theoretical portfolio containing a percentage of all investable assets in proportion to their market capitalization.
market risk
Undiversifiabe risk, systematic risk.