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United Kingdom-based news service and former financial market data provider that provides news reports from around the world to news media
A short-term debt instrument with a maturity usually no longer than two years, although terminology varies from country to country. Bill is often a shorthand reference to Treasury bills, which are short-term government debt. Medium-term debt instruments are notes and longer-term instruments are bonds. In some markets a note has a maturity of two to five years and a bond has a maturity longer than five years, but usage varies.
Industry:Financial services
Old financial instrument used to finance international trade. A bill of exchange is an order to pay a specified amount of money to the holder of the bill either at a set future date (a time draft) or on presentation of the bill (a sight draft). Also known as eligible bills, commercial bills, trade bills and BAs.
Industry:Financial services
An option that pays out a fixed amount if the underlying financial instrument which the option is based reaches the strike level either at expiry, or at any time during the life of the option. Also called all-or-nothing option, digital option or one-touch option. See also Option, Strike Price.
Industry:Financial services
An option pricing formula suggested by Cox, Ross, Rubinstein and Sharpe and used primarily to calculate the value of American-style options. See also American Option, Option.
Industry:Financial services
Large transactions usually performed by institutional buyers or sellers.
Industry:Financial services
A generic term for the stocks of major companies with sound earnings and dividend records and above-average share performance. Blue chip stocks are also known as income stock. Named after high-value poker chips, which were traditionally blue. See also Stock.
Industry:Financial services
Laws State laws in the United States aimed at protecting the public against securities frauds. They require new issue offerings to be registered and full financial details provided. The phrase is thought to derive from a reference by a Supreme Court judge that some investment schemes had about as much value as a patch of blue sky.
Industry:Financial services
A Spanish and Portuguese term for stock exchange. See also Stock Exchange.
Industry:Financial services
A bond is a legal contract in which a government, company or institution (the borrower) issues an IOU certificate, which promises to pay holders a specific rate of interest for a fixed duration and then redeem the contract at face value on maturity. In theory bonds are safer than equities because they have a fixed maturity and are repaid before any payments are made to shareholders. But if a company fails, its bond holders suffer just as much as its shareholders. See also Convertible Bond, Bearer Shares/Bearer Bonds, Bullet Bond, Fixed Income, Senior Secured Debt.
Industry:Financial services
A calculation that converts the yield of a money market instrument, such as a Treasury bill, into the equivalent yield of a Treasury bond in order to compare efficiency. Yields on Treasury bills are expressed as a discount from face value and their maturity is often less than a year, so a calculation is needed to convert their yield into the equivalent annual yield of a bond. See also Money Market.
Industry:Financial services
