- Industry: News service
- Number of terms: 2877
- Number of blossaries: 0
- Company Profile:
United Kingdom-based news service and former financial market data provider that provides news reports from around the world to news media
Bridging, or a bridging loan, is short-term financing made available pending arrangement of intermediate or long-term financing.
Industry:Financial services
A term used in technical analysis. A price formation with the appearance of a horizontal triangle, with the apex on the left and the base at the right. The trend lines are widening so the base gets wider. Peaks and troughs get successively higher and lower, showing a market that has lost its way. See also Technical Analysis.
Industry:Financial services
Any trading date falling outside the standard periods traded in the forward markets. Also known as odd date. See also Forwards.
Industry:Financial services
(1) Norwegian company title: abbreviation of Bergenset Ansvar. (2) Bankers’ Acceptances. Sometimes known as time drafts, these are bearer-form short-term non-interest-bearing notes sold at a discount, redeemed by accepting banks for full face value at maturity. See also Bill of Exchange.
Industry:Financial services
The sale of a share and its repurchase shortly after the beginning of a new tax year. This allows shareholders to register a capital loss or profit for tax purposes while retaining ownership of the shares.
Industry:Financial services
A two-way price comprises a bid, or the price at which a dealer is willing to buy, and an ask (or offer) at which a dealer is willing to sell. The bid, by definition, is always below the ask and is always the first quoted price. The difference between the two quotes is known as the spread. A spread between the best bid and best offer is called ‘the touch’. See also Ask, Bid.
Industry:Financial services
A light-hearted index devised by The Economist magazine which compares the price of McDonald’s Big Mac burgers, a fast food staple available around the world, as a guide to whether currencies are overvalued or undervalued. It’s based on the assumption that similar goods should cost the same wherever they are purchased. If the prices are different there is an anomaly in the valuation of the local currency. For example, if a Big Mac costs $1 in Washington and 20 pesos in Ruritania then the dollar/peso exchange rate should be 20 pesos to the dollar. If it’s out of line then the peso is either overvalued or undervalued on the basis of purchasing-power parity, which says exchange rates should move towards a level which equalises the price of an identical basket of goods. Critics say the Big Mac index ignores the effects of taxes, profit margins and the price of raw materials in different countries.
Industry:Financial services
An international organisation that fosters international monetary and financial co-operation and serves as a bank for central banks and international financial organizations. It accepts deposits from central banks and also makes short-term loans to them. The BIS is concerned with safeguarding the stability of international financial markets and ensuring that all banks have sufficient capital to support their operating needs. It acts as a forum for regular meetings of the central bank governors of the G10 group of major industrialised countries. The Basel Committee of the BIS sets standards and guidelines for best banking practice. www.bis.org See also Central Bank, G10, Basel Committee. www.bis.org/cbanks.htm (lists central bank websites)
Industry:Financial services
A widely used option pricing formula for European style options, which have a fixed expiry time, created by Fischer Black and Myron Scholes in 1973. It allows assessment of the value of a call option at any particular time up to expiry. See also Option.
Industry:Financial services
