| A
|
|
| Account statement |
A statement of the transactions done on the account. |
| Account operator |
A legal entity who is a participant of the central depository and intermediates securities account
services to investors.
|
| Activity based accounting |
Accounting method that accounts for revenues and expenses when they occur even if they have not actually
been paid or received.
|
| Administration |
A service offered by banks which guarantees that the assets of the customer are preserved and that
expedient security transactions are concluded; a relationship with the bank where the bank concludes the
ownership actions of the customer according to the customer's orders.
|
| ADR |
A negotiable certificate held in a U.S. bank representing a specific number of shares of a foreign stock
traded on a U.S. stock exchange. ADRs make it easier for Americans to invest in foreign companies.
|
| American-style option |
An option which can be exercised at any time between the purchase date and the expiration date. Opposite
of European-style option.
|
| Annuity |
A series of equal payments paid periodically by a customer for repayment of a loan. If a loan is repaid on
the basis of an annuity schedule, the amounts paid every month are of the same size and consist of a loan
principle repayment and interest calculated on the outstanding loan.
|
| Arbitrage |
Attempting to profit by exploiting price differences of identical or similar financial instruments, on
different markets or in different forms. Ideally, a pair of opposite transactions that take place
simultaneously and generate profit with zero risk.
|
| Asset allocation |
The process of dividing investments among different kinds of assets, such as stocks, bonds, real estate
and cash, to optimize the risk/reward tradeoff based on an individual's or institution's specific situation
and goals.
|
| At-the-money |
A condition in which the strike price of an option is equal to (or nearly equal to) the market price of
the underlying security.
|
| B
|
|
| Balance of payments |
An accounting record of all transactions made by a country with over a certain time period, comparing the
amount of foreign currency taken in to the amount of domestic currency paid out.
|
| Balance sheet |
A quantitative summary of a company's financial condition at a specific point in time, including assets,
liabilities and net worth.
|
| Bankcard |
a card issued by a credit institution to accountholders or persons determined by accountholders for doing
card transactions.
|
| Banking day |
A day when banks are open to carry out banking operations. |
| Basis point |
The change in the price of a bond, per 100 nominal, for a 1 basis point change in its yield to maturity.
|
| Beta |
A quantitative measure of the volatility of a given stock, mutual fund, or portfolio, relative to the
overall market. A beta above 1 is more volatile than the overall market, while a beta below 1 is less
volatile.
|
| Black-Scholes model |
A model used to calculate the value of an option, by considering the stock price, strike price and
expiration date, risk-free return, and the standard deviation of the stock's return. Blue chip - Stock of a
large, national company with a solid record of stable earnings and / or dividend growth and a reputation for
high quality management and / or products. More generally, anything of very high quality.
|
| Bond |
A debt instrument issued for a period of more than one year with the purpose of raising capital by
borrowing.
|
| Bond yield |
The annual rate of return on an investment, expressed as a percentage. For bonds and notes, it is the
coupon rate divided by the market price.
|
| Borrower |
A customer who has obtained a loan from the bank. |
| Broker |
Any individual or firm which is in the business of buying and selling securities for itself and others.
|
| C
|
|
| Call |
An option contract that gives the holder the right to buy a certain quantity of an underlying security
from the writer of the option, at a specified price (the strike price) up to a specified date (the
expiration date).
|
| Capital gain |
The amount by which an asset's selling price exceeds its initial purchase price. A realized capital gain
is an investment that has been sold at a profit.
|
| Cash flow |
A measure of a company's financial health. Equals cash receipts minus cash payments over a given period of
time; or equivalently, net profit plus amounts charged off for depreciation, depletion, and amortization.
|
| CD (certificate of deposit) |
Short- or medium-term, interest-bearing debt instrument offered by banks and savings and loans. Low risk,
low return.
|
| Clean price |
The present value of a bond net of accrued interest - i.e. interest accrued since the last coupon date.
Most markets quote bonds on a clean price basis, except when the bond is into its final coupon period, when
it may be quoted dirty.
|
| Clearing |
The process of calculating market participants' obligations towards each other and executing cash
transfers as part of the settlement process.
|
| Closed investment fund |
A fund with a fixed number of shares outstanding, and one which does not redeem shares the way a typical
mutual fund does. Such funds are often listed on a major stock exchange and trade like other securities.
Unlike a typical mutual fund, a closed-end fund's share price can trade above or below its net asset value.
|
| Closing price |
The price of the last transaction for a given security at the end of a given trading session. |
| Collateral |
Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of
default.
|
| Commission |
A fee charged by a broker or agent for his/her service in facilitating a transaction, such as the buying
or selling of securities.
|
| Common stock |
Securities representing equity ownership in a corporation, providing voting rights, and entitling the
holder to a share of the company's success through dividends and/or capital appreciation.
|
| Compounding |
A process whereby the value of an investment increases exponentially over time due to compound interest.
|
| Convertible bond |
A corporate bond that can be exchanged, at the option of the holder, for a specific number of shares of
the company's preferred stock or common stock.
|
| Corporate actions |
The term referring to any action involving a company's issued security other than market trading.
Corporate actions can be intitatied by the company or by the holder of the securities. (Rights issues,
takeovers, debt repayments, announcements of annual or extraordinary general meetings, dividends, etc.)
|
| Corporate bond |
A bond issued by a corporation. |
| Counterpart |
One party of the transaction. A trade takes place between two counterparties. |
| Coupon |
The interest rate on a fixed income security, determined upon issuance, and expressed as a percentage of
par. Also, the term for each interest payment made to the bondholder.
|
| CP |
An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as
accounts receivable and inventory.
|
| CPI |
An inflationary indicator that measures the change in the cost of a fixed basket of products and services,
including housing, electricity, food, and transportation.
|
| Credit card |
A bankcard which allows card transactions to be done within the extent of the credit limit established in
the agreement.
|
| Credit rating |
A published ranking, based on detailed financial analysis by a credit bureau, of one's financial history,
specifically as it relates to one's ability to meet debt obligations.
|
| Credit risk |
The likelihood of non-payment of credit. |
| Creditworthiness |
The ability of the customer to receive credit on the basis of the previous and present credit
activities.
|
| Currency option |
The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount
of currency at a specified price (the strike price) during a specified period of time.
|
| Current account |
An account on which all current settlements are reflected. |
| Current assets |
A balance sheet item which equals the sum of cash and cash equivalents, accounts receivable, inventory,
marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one
year.
|
| Current rate |
A rate quoted separately for every transaction. |
| Current yield |
The annual rate of return on an investment, expressed as a percentage. For bonds, it is the coupon rate
divided by the market price.
|
| Custodian |
An entity, often a bank, that safekeeps and administers securities for its customers and that may provide
various other services, including clearance and settlement, cash management, foreign exchange and securities
lending.
|
| Custody |
There are generally three types of custody arrangements: domestic custody, global custody and master
custody.
|
| Day order |
A buy or sell order which automatically expires if it is not executed during that trading session. |
| Debit card |
A bank card which allows card transactions to be done within the amount of the money on the account. |
| Default interest |
A sanction for failure to fulfil monetary obligations in time. |
| Deflation |
A decline in general price levels, often caused by a reduction in the supply of money or credit. Opposite
of inflation.
|
| D
|
|
| Day order |
A buy or sell order which automatically expires if it is not executed during that trading session. |
| Debit card |
A bank card which allows card transactions to be done within the amount of the money on the account. |
| Default interest |
A sanction for failure to fulfil monetary obligations in time. |
| Deflation |
A decline in general price levels, often caused by a reduction in the supply of money or credit. opposite
of inflation.
|
| Delivery versus payment |
The simultaneous transfer of securities and cash that ensures that delivery of securities occurs only if
delivery of funds occurs.
|
| Dematerialised securities |
Electronically held securities for which the physical certificates of ownership have been replaced by book
entry records.
|
| Deposit |
Money invested in the bank for a certain period. |
| Depreciation |
The allocation of the cost of an asset over a period of time for accounting and tax purposes. Also, a
decline in the value of a property due to general wear and tear or obsolescence; opposite of appreciation.
|
| Derivative |
A financial instrument whose characteristics and value depend upon the characteristics and value of an
underlying instrument or asset, typically a commodity, bond, equity or currency. Examples are futures,
options, and mortgage-backed securities.
|
| Devaluation |
A substantial drop in the value of a currency, relative to the price of gold or the currencies of other
countries.
|
| Direct debit order |
A type of payment where the customer authorises the bank to transfer a certain amount to the account of a
certain beneficiary upon the demand of the latter.
|
| Dirty price |
The present value of a bond including accrued interest - i.e. interest accrued since the last coupon
payment date.
|
| Discounted bond |
A bond which is sold at a price below its face value and returns its face value at maturity. |
| Diversification |
A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as
stocks, bonds, and real estate, which are unlikely to all move in the same direction.
|
| Dividend |
A declared by a company's board of directors and given to its shareholders out of the company's current or
retained earnings.
|
| Dividend reinvestment |
Using the dividends from an investment to buy more of that investment.
Domestic custody involves holding assets held in a country on behalf of its clients, including assets held
under sub-custodial arrangements.
|
| Domestic payment |
a payment in case of which the accounts of the remitter and the beneficiary are in the same country. |
| Double Taxation Agreement |
Inter-governmental treaty developed to avoid the double taxation of income. If interest or dividend income
is taxed at source, the investor will not be required to pay the tax in its country of residency.
|
| Duration |
A measure of the average maturity of a series of cash flows, such as coupons and principal, on a bond.
Duration can be used to calculate the market risk associated with a change in yield to maturity.
|
| E
|
|
| EPS |
Total earnings divided by the number of shares outstanding. Companies often use a weighted average of
outstanding stock over the reporting term.
|
| Euro |
The common currency of the European Monetary Union, which became valid on January 1999. The European
Monetary Union consists of countries who met the economic criteria determined in the Maastricht Treaty of
the European Union in 1998. The Euro became valid as a settlement currency from the beginning of 1999. On
January 1st 2002, the System of European Central Banks put into circulation banknotes with nominal values of
5, 10, 20, 50, 100, 200 and 500 euros and coins with nominal values of 1, 2, 5, 10, 20 and 50 cents and 1
and 2 euros.
|
| Eurobond |
A bond issued and traded outside the country whose currency it is denominated in, and outside the
regulations of a single country; usually a bond issued by a non-European company for sale in Europe.
|
| Euro currency |
Currency deposited by companies and federal governments in banks outside their own country, usually
currency of a non-European country deposited in Europe.
|
| European style option |
An option which can only be exercised for a short, specified period of time just prior to its expiration,
usually a single day.
|
| Ex-dividend day |
The first day of the ex-dividend period. also called reinvestment date. |
| Expiration date |
The date on which an option, right or warrant expires, and becomes worthless if not exercised. |
| F
|
|
| Fill or kill |
An order given to a broker that must immediately be filled in its entirety or, if this is not possible,
totally canceled.
|
| Foreign bond |
A bond issued outside of the issuer_s domicile. Generally the nominal currency of the bond is the currency
in circulation in the country the issue will be carried out.
|
| Forward |
Cash market transaction in which a seller agrees to deliver a specific cash commodity to a buyer at some
point in the future.
|
| Free cash flow |
Operating cash flow (net income plus amortization and depreciation) minus capital expenditures and
dividends.
|
| Free of payment |
The movement of securities which is not dependent on the simultaneous movement of cash countervalue. |
| FRN (Floating Rate Notes) |
A bond on which the coupon is reset periodically in line with a money market reference rate such as
LIBOR.
|
| Fund manager |
The individual responsible for making portfolio decisions for a mutual fund, pension fund, or insurance
fund.
|
| Fundamental analysis |
A method of security valuation which involves examining the company's financials and operations,
especially sales, earnings, growth potential, assets, debt, management, products, and competition.
|
| Futures |
A standardised, transferable, exchange-traded contract that requires delivery of a commodity, bond,
currency, or stock index, at a specified price, on a specified future date.
|
| G
|
|
| GDP |
The total market value of all final goods and services produced in a country in a given year; equals total
consumer, investment and government spending, plus the value of exports minus the value of imports.
|
| GTC (good till cancelled) |
An order to buy or sell which remains in effect until it is either executed or cancelled. |
| Guarantor |
A person who enters into the obligation to pay the debt for the debtor. |
| I
|
|
| Index |
A benchmark against which financial or economic performance is measured. |
| Indexing |
A passive investment strategy in which a portfolio is designed to mirror the performance of a stock
index.
|
| Inflation |
A macroeconomic indicator which shows the increase of the general price level; the inflation rate is the
speed of price increases.
|
| Insider |
An officer or director of a company whos has not publicly known information. Also, any individual who has
inside information.
|
| Institutional investor |
Entity with large amounts to invest, such as investment companies, mutual funds, brokerages, insurance
companies, pension funds, investment banks.
|
| Interest |
Interest is the fee payable for the use of borrowed money. Simple interest is calculated only on the basis
of the loan amount, compound interest on the basis of the sum of the loan and the previous period’s
interest. Floating interest rates change during the agreement period according to the conditions set in the
agreement. Floating interest rates are usually reviewed twice a year, whereas interest is calculated on the
basis of the 6 months EURBOR as of the date of review. EURIBOR (European Interbank Offered Rate) is the
all-European interbank interest rate of the EURO. A fixed interest rate is valid during the entire duration
of the loan agreement.
|
| Interest rate |
The interest rate on a fixed income security, determined upon issuance, and expressed as a percentage of
par. Also, the term for each interest payment made to the bondholder.
|
| Interest rate risk |
The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in
interest rates.
|
| Interest swap |
An exchange of two debt obligations that have different payment streams. |
| International payment |
A payment in case of which the accounts of the remitter and the beneficiary are in different banks and the
banks are in different countries.
|
| In-the-money |
Situation in which an option's strike price is below the current market price of the underlier (for a call
option) or above the current market price of the underlier (for a put option).
|
| Investment fund |
Firm that invests the pooled funds of retail investors for a fee. There are two types: open-end (mutual
funds) and closed-end (investment trusts).
|
| IPO (initial public offering) |
The first sale of stock by a company to the public. |
| ISIN |
International Securities Identification Number. A coding system developed by ISO with the purpose of
creating one unique number on a global basis for identifing securities.
|
| Issue |
A stock or bond which has been offered for sale by a corporation or government entity, usually through an
underwriter or in a private placement.
|
| Issue prospectus |
A legal document offering securities or mutual fund shares for sale. It must explain the offer, including
the terms, issuer, objectives (if mutual fund) or planned use of the money (if securities), historical
financial statements, and other information that could help an individual decide whether the investment is
appropriate for him/her.
|
| Issuer |
A company or municipality offering (or having already offered) securities for sale to investors. |
| L
|
|
| Leasing |
A transaction where the bank purchases the property which the customer is interested in and allows the
latter to use the same for a certain fee.
|
| LIBOR |
The interest rate that the largest international banks charge each other for loans. |
| Limit order |
An order to a broker to buy a specified quantity of a security at or below a specified price or to sell it
at or above a specified price (called the limit price).
|
| Loan limit |
An amount given to the customer on the basis of a resolution of the loan committee that must be used for
the agreed purpose.
|
| Loan schedule |
A loan repayment schedule. |
| Long-term loan |
Loans whose deadline exceeds 1 year. |
| M
|
|
| Macaulay duration |
Macaulay duration is a measure of the weighted average life of a bond, taking into account: a) The size of
each cash flow b) It´s timing.
|
| Market |
A public place where buyers and sellers make transactions, directly or via intermediaries. |
| Market cap |
The sum of a corporation's long-term debt, stock and retained earnings. also called invested capital.
Also, the market price of an entire company, calculated by multiplying the number of shares outstanding by
the price per share.
|
| Market maker |
A brokerage or bank that maintains a firm bid and ask price in a given security by standing ready,
willing, and able to buy or sell at publicly quoted prices (called making a market).
|
| Market order |
A buy or sell order in which the broker is to execute the order at the best price currently available.
|
| Master custody |
The custody of domestic and foreign assets of a domestically domiciled, whose assets the master custodian
has primary control over, providing a single point of reporting and integration of value added services.
|
| Maturity date |
The date on which a debt becomes due for payment. |
| Modified duration |
A measure of the market risk on a bond. Defined as the percentage change in the market value of a bond
investment for a 100 basis point change in yield.
|
| Monetary committee |
A monetary system in case of which the independent issuer (Bank of Estonia) may change the amount of money
circulating in the state only according to how the gold and foreign currency reserves of the issuer change.
This system allows people to always change their money into a foreign currency on the basis of a fixed rate.
In addition to Estonia, the monetary committee system is also used in Hong Kong, Singapore and Argentina.
|
| Money market fund |
An open-end mutual fund which invests only in money markets. |
| Mortgage loan |
Credit which is secured with the property of the borrower and in case of which the conditions of the loan,
the methods of repayment, liquidity, the right to purchase the mortgage and the possibilities of
reacquisition have been particularly emphasised.
|
| MTN |
MTN's are debt instruments predominantly of one to ten years maturity which are issued under one set of
master documentation over a period of several years. For this reason they are also referred to as
continuously-offered products.
|
| Municipal bond |
Bond issued by a state, city, or local government to finance operations or special projects. |
| Mutual fund/open-ended fund |
An open-ended fund operated by an investment company which raises money from shareholders and invests in a
group of assets, in accordance with a stated set of objectives. Benefits include diversification and
professional money management. Shares are issued and redeemed on demand, based on the fund's net asset value
which is determined at the end of each trading session.
|
| N
|
|
| NAV |
The dollar value of a single mutual fund share, based on the value of the underlying assets of the fund
minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business
day.
|
| O
|
|
| Option |
The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount
of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a
specified period of time.
|
| OTC-market |
The computer and phone system through which over the counter (as well as listed) securities are traded.
|
| Out-of-the-money |
A call option whose strike price is higher than the market price of the underlying security, or a put
option whose strike price is lower than the market price of the underlying security.
|
| Overdraft |
Allows money to be overdrawn from the account within the extent of a determined limit. |
| P
|
|
| P / B ratio |
A stock's capitalisation divided by its book value. |
| P / E ratio |
The most common measure of how expensive a stock is. Equal to a stock's capitalisation divided by its
after-tax earnings over a 12-month period.
|
| Payment |
A transfer of monies from one account to another by bank transfer or cash done in a bank. |
| Payment balance |
A ratio of the total amount of payments received from foreign countries and paid from the state to foreign
countries within a certain time: the balance is active if the amount of outgoing payments is bigger and
passive in the opposite case; a report which identifies all the financial transactions of one state with
other states; people who travel will not have to waste time and money on currency exchange; consumers can
buy services and goods in each country for comparable prices, which increases competition and reduces
prices; inflation decreases and interest rates drop; the negative influence arising from the fluctuation of
currency rates on the economies of the states will disappear; trading in the customs-free inner market of
the European Union will become easier; the export costs of companies, first and foremost the smaller ones,
will decrease.
|
| Payment date |
The date on which a dividend, mutual fund distribution, or bond interest payment is made or scheduled to
be made.
|
| Periodic payment order |
A customer’s order to the bank to transfer a certain amount to one specific beneficiary after certain
intervals of time.
|
| Position |
The amount of a security either owned (a long position) or owed (a short position) by an investor or
dealer.
|
| PPI |
An inflationary indicator to evaluate wholesale price levels in the economy. |
| Preferred share |
Stock type which provides a specific dividend that is paid before any dividends are paid to common stock
holders, and which takes precedence over common stock in the event of a liquidation. Usually does not carry
voting rights.
|
| Primary market |
The market for new securities issues. |
| Principal |
The amount borrowed, or the part of the amount borrowed which remains unpaid (excluding interest). |
| Private placement |
The sale of securities directly to institutional investors, such as banks, mutual funds, insurance
companies, pension funds. Does not normally require registration with a country´s Securities Board.
|
| Prospectus |
A legal document offering securities or mutual fund shares for sale. It must explain the offer, including
the terms, issuer, objectives (if mutual fund) or planned use of the money (if securities), historical
financial statements, and other information that could help an individual decide whether the investment is
appropriate for him/her.
|
| Public offering |
The making available of a new securities issue to the public through an underwriting. |
| Put |
An option contract that gives the holder the right to sell a certain quantity of an underlying security to
the writer of the option, at a specified price (strike price) up to a specified date (expiration date).
|
| Q
|
|
| Qualitative analysis |
Determining the value of an investment, especially a stock, by examining its non-numeric characteristics,
such as management, employee morale, customer loyalty, and brand value.
|
| Quantitative analysis |
The process of determining the value of a security by examining its numerical, measurable characteristics
such as revenues, earnings, margins, and market share.
|
| Quotation |
A definition of the price of goods or the price of securities in the stock exchange. |
| Quoted security |
A security that is in accordance with a trading provisions of a licensed stock exchange and that can be
traded on this exchange.
|
| R
|
|
| Record date |
Date on which an individual must own shares in order to be eligible to receive a declared dividend or
capital gains distribution.
|
| Reference number |
A combination of figures characterising a specific account and the payment related thereto, which connects
the invoice submitted by the seller to the customer and the payment order made on the basis thereof.
|
| Repo |
A contract in which the seller of debt securities agrees to buy them back at a specified time and price.
|
| Rights |
A privilege allowing existing shareholders to buy shares of an issue of common stock shortly before it is
offered to the public, at a specified and usually discounted price, and usually in proportion to the number
of shares already owned.
|
| Risk/reward trade-off |
The relation between risk and return that usually holds, in which one must be willing to accept greater
risk if one wants to pursue greater returns
|
| Risk capital |
Funds made available for start-up firms and small businesses with exceptional growth potential. Managerial
and technical expertise are often also provided.
|
| Risk/income ratio |
a ratio between the growth potential of an investment and the possibility of a loss. |
| ROA |
A measure of a company's profitability, equal to a fiscal year's earnings divided by its total assets,
expressed as a percentage.
|
| ROE |
A measure of how well a company used reinvested earnings to generate additional earnings, equal to a
fiscal year's after-tax income (after preferred stock dividends but before common stock dividends) divided
by book value, expressed as a percentage.
|
| S
|
|
| S.W.I.F.T. |
The Society for Worldwide Interbank Financial Telecommunication, established to service payments needs of
banking industry through standardised, electronic messages. The securities markets became involved in 1987
with the acceptance of stock exchanges, brokers and depositories into the SWIFT network.
|
| Same day payment |
The day of receipt/making the payment is both the remitter’s value date and the beneficiary’s value
date.
|
| Savings deposit |
Money deposited in the bank for a certain period to which the customer may make additional payments if
desired, i.e. the principal amount may be increased.
|
| Secondary market |
A market in which an investor purchases a security from another investor rather than the issuer,
subsequent to the original issuance in the primary market.
|
| Security account |
Whenever a client enters into a custody agreement, Swedbank opens an account in its books in the name of
client for depositing securities belonging to that client. A cash account is a precondition for opening a
securities account.
|
| Security type |
Different securities as stock, bond, fund share etc. |
| Settlement date |
Legal transfer of the title of ownership on securities or other assets. It is normally the completion of a
transaction, by which the seller transfers securities or other financial instruments to the buyer and the
buyer transfers money to the seller.
|
| Share |
An investment which represents ownership in an enterprise or investment fund. |
| Short sale |
Borrowing a security from a broker and selling it, with the understanding that it must later be bought
back (hopefully at a lower price) and returned to the broker.
|
| Short-term liabilities |
Liabilities payable within 12 months like short-term debt, long-term debt interest etc. |
| Short-term loan |
A loan whose deadline is less than 1 year. |
| Standard deviation |
A statistical measure of the historical volatility of a mutual fund or portfolio. More generally, a
measure of the extent to which numbers are spread around their average.
|
| Standard statement |
An account statement approved by the Banking Association and a regulation of the president of the Bank of
Estonia.
|
| Stock |
An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on
its proportionate share in the corporation's assets and profits.
|
| Stock exchange |
An exchange on which shares of stock and common stock equivalents are bought and sold. |
| Stock option |
An option in which the underlier is the common stock of a corporation, giving the holder the right to buy
or sell its stock, at a specified price, by a specific date. Also called equity option.
|
| Stop order |
A market order to buy or sell a certain quantity of a certain security if a specified price (the stop
price) is reached or passed.
|
| Strike price |
The specified price on an option contract at which the contract may be exercised, whereby a call option
buyer can buy the underlier or a put option buyer can sell the underlier.
|
| Sub-Custodian |
Institution that administers securities of a custodian and/or custodian clients in a local market. |
| Subscription |
To agree to purchase securities in a new issue. |
| Swap |
An exchange of streams of payments over time according to specified terms. The most common type is an
interest rate swap, in which one party agrees to pay a fixed interest rate in return for receiving a
adjustable rate from another party.
|
| Symbol |
A system of letters used to uniquely identify a stock or mutual fund. |
| T
|
|
| TALIBOR |
Tallinn Interbank Offered Rate and TALIBID (Tallinn Interbank Bid rate) are the average of the interest
rates quoted by contributor banks on the loans and deposits for specific tenors, which are calculated and
published by Bank of Estonia on daily basis. The list of contributor banks is approved by BOE and currently
consists of the 5 banks most active on the Estonian money market.
|
| Tax |
An amount paid on certain services/benefits/income as established by the state. |
| Tax reclaim |
Reclaiming (if entitled to do so) excess tax withheld on an interest or dividend payment. |
| Technical analysis |
A method of evaluating securities by relying on the assumption that market data, such as charts of price,
volume, and open interest, can help predict future (usually short-term) market trends.
|
| Term deposit |
Money deposited in the bank for a certain period whereas the principal amount of the money does not
change.
|
| Trade date |
The date on which the transaction occurs. |
| V
|
|
| Value date |
The day when the settlements related to a securities transaction are done. The value date is a certain
number of days after the date of the transaction.
|
| Volatility |
The relative rate at which the price of a security moves up and down; found by calculating the annualised
standard deviation of daily change in price.
|
| W
|
|
| Warrant |
A security usually issued along with a bond or preferred stock, entitling the holder to buy a specific
amount of securities at a specific price, usually above the current market price, for an extended period,
anywhere from a few years to forever.
|
| Y
|
|
| Yield to maturity (YTM) |
Yield that would be realized on a bond or other fixed income security if the bond was held until the
maturity date. It is greater than the current yield if the bond is selling at a discount and less than the
current yield if the bond is selling at a premium.
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