Aa
ABS
An
asset-backed security (ABS) is an investment security—a bond or note—which is
collateralized by a pool of assets, such as loans, leases, credit card
debt, royalties, or receivables. An
ABS is similar to a mortgage-backed security,
except that the underlying securities are not mortgage-based.
AGM
An annual
general meeting (AGM) is a mandatory yearly gathering of a company's
interested shareholders.
Arbitrage
The simultaneous purchase of a security on one
stock market and the sale of the same security on another stock market at
prices which yield a profit.
Arbitrageur
An arbitrageur is a type of investor who
attempts to profit from market inefficiencies. These inefficiencies can relate
to any aspect of the markets, whether it is price or dividends or regulation.
The most common form of arbitrage is price.
Assets
Everything a company or person owns, including
money, securities, equipment and real estate. Assets include everything that is
owed to the company or person. Assets are listed on a company's balance sheet
or an individual's net worth statement.
Asset Management
Asset management is the direction of all or part of
a client's portfolio by a financial services institution, usually an investment
bank, or an individual. Institutions offer investment services along
with a wide range of traditional and alternative product offerings that might
not be available to the average investor.
Asset Class
An asset
class is a grouping of investments that exhibit similar characteristics and are
subject to the same laws and regulations.
Averages and Indices
Statistical tools that measure the state of the
stock market or the economy, based on the performance of stocks, bonds or other
components.
Averaging Down
Buying more of a security at a price that is lower
than the price paid for the initial investment. The aim of averaging down is to
reduce the average cost per unit of the investment.
AML
Anti-money laundering (AML) refers to a set of
laws, regulations, and procedures intended to prevent criminals from disguising
illegally obtained funds as legitimate income. Though anti-money-laundering
laws cover a relatively limited range of transactions and criminal behaviors,
their implications are far-reaching.
Bb
Basis Risk
Basis risk is the financial risk that offsetting
investments in a hedging strategy will not experience price changes in entirely opposite directions from each
other.
Better-Price-Limit Orders
An order with a limit price better than the best
price on the opposite side of the market.
Book
An electronic record of all pending buy and sell
orders for a particular stock.
Booked Orders
Orders that do not trade immediately
upon entry. These orders are also known as outstanding orders.
Bought-Deal underwriting
A type of underwriting where the
brokerage firm acts as principal. The brokerage firm risks its own capital to
purchase all of the securities to be issued. If the price of the securities
decreases before the brokerage firm has had a chance to resell the securities
to its clients, the firm absorbs the loss.
Broker or Brokerage Firm
A securities firm or a registered
investment advisor affiliated with a firm. Brokers are the link between
investors and the market. When acting as a broker for the purchase or sale of
listed stock, the investment advisor does not own the securities but acts as an
agent for the buyer and seller and charges a commission for these services.
Bonus shares
Bonus shares are additional shares given to the current shareholders without any
additional cost, based upon the number of shares that a shareholder owns. These are company's
accumulated earnings which are not given out in the form of dividends, but are
converted into free shares.
Business Day
Any day from Saturday to Wednesday, excluding
statutory holidays.
Buy-In
If a broker fails to deliver securities sold to
another broker on the settlement date, the receiving broker may buy the
securities at the current market price of the stock and charge the delivering
broker the cost difference of such a purchase.
Backwardation
Backwardation is when the current price—spot—price
of an underlying asset is higher than prices trading in the futures market.
Backwardation is sometimes confused with an inverted futures curve.
Bid-Ask Spread
A bid-ask spread is the amount by which the ask
price exceeds the bid price for an asset in
the market. The bid-ask spread is essentially the difference between the
highest price that a buyer is willing to pay for an asset and the lowest price
that a seller is willing to accept.
Cc
Call Option
An option, which gives the holder
the right, but not the obligation, to buy a fixed amount of a certain stock at
a specified price within a specified time. Calls are purchased by investors who
expect a price increase.
Capital
To an economist, capital means machinery,
factories and inventory required to produce other products. To investors,
capital means their cash plus the financial assets they have invested in
securities, their home and other fixed assets.
Capital Gains
Distribution
A taxable
distribution out of taxable gains realized by the issuer. It is generally paid
to security holders of trusts, partnerships, and funds. Like all distributions,
it may be paid in securities or cash. The amount, payable date, and record date
are established by the issuer. The exchange that the issue is listed on sets
the ex-dividend/distribution (ex-d) date for entitlement.
Capital Stock
All shares representing ownership of a company,
including preferred and common stocks.
Capital Trust
A form of
financial trust that differs from other trusts in that it looks more like a
fixed income instrument than an equity issue. Capital trusts are generally
issued by banks or other financial intermediaries.
Capitalization
Change
Any change in
the issued and outstanding listed securities of an issuer. This change may
involve the issuance, repurchase, or cancellation of listed securities or
listed securities that are issuable upon conversion or exchange of other
securities of an issuer.
Capitalization
Effective Date
The date that
the capitalization change is reflected in the issuer’s, share register,
regardless of when it is reported to the Exchange.
Cash Dividend / Distribution
A
dividend/distribution that is paid in cash.
Changes in
Stock List
Any modification
to the list of tradable issues of an exchange. These modifications include new
listings, supplemental security listings, substitutional listings, deletions,
name changes, and stock symbol changes.
Close Price
The price of the last board lot trade executed
at the close of trading.
Closed- End Fund
A closed-end fund is a portfolio of pooled assets that raises
a fixed amount of capital through an initial public offering (IPO)
and then lists shares for trade on a stock exchange.
Closed-End
Investment Fund
An investment trust that
issues a fixed number of securities that trade on a stock exchange or in the
over-the-counter market.
Commission
The fee charged by an investment advisor or
broker for buying or selling securities as an agent on behalf of a client.
Common Stock
or Ordinary Share
Securities that represent part
ownership in a company and generally carry voting privileges. Common
shareholders may be paid dividends, but only after preferred shareholders are
paid.
Corporate Action
A corporate action is any
activity that brings material change to an organization and impacts its stakeholders,
including shareholders, both common and preferred, as well as bondholders.
CAPM
The Capital Asset Pricing
Model (CAPM) is a model that describes the relationship between the expected
return. The return on the investment is an unknown variable that has different
values associated with different probabilities. and risk of investing in a
security.
CSD
A central securities depository (CSD) is a
specialist financial organization holding securities such
as shares either in certificated or uncertificated (dematerialized) form so that ownership can be easily transferred
through a book entry rather than the transfer of physical
certificates.
CCP
Central Counterparty Clearing House (CCP) is an entity that
helps facilitate trading in equities markets. Typically operated by the major
banks in each country, CCPs strive to introduce efficiency and stability into
various financial markets. It reduces counterparty, operational, settlement,
market, legal, and default risk for traders.
Clearing House
A clearing house acts as an intermediary between a buyer and
seller and seeks to ensure that the process from trade inception to settlement
is smooth. Its main role is to make certain that the buyer and seller honor
their contract obligations.
Collateral
Collateral is
an asset that a lender accepts as security for extending a loan. If the
borrower defaults, then the lender may seize the collateral.
Credit Risk
Credit risk
is the possibility of loss due to a borrower's defaulting on a loan or not
meeting contractual obligations.
Crowdfunding
Crowdfunding is the use of small amounts of capital from a
large number of individuals to finance a new business venture.
Circuit Breaker
Circuit breakers are regulatory measures to temporarily halt in trading on an exchange, which are in place to curb panic-selling.
Contango
Contango is a situation where
the futures price of a commodity is higher than the spot price. Contango usually
occurs when an asset price is expected to rise over time.
Capital Gain
Capital gain is a rise in the value of a capital asset (investment
or real estate) that gives it a higher worth than the purchase price. The gain
is not realized until the asset is sold. A capital gain may be short-term (one
year or less) or long-term (more than one year) and must be claimed on income
taxes.
Capital Loss
A capital
loss is the loss incurred when a capital asset that has decreased in value is
sold for a lower price than the original purchase price.
Capital Structure
The capital structure is the particular combination of debt and equity used by a company
to finance its overall operations
and growth.
Capital Budgeting
Capital budgeting is the process a business undertakes to
evaluate potential major projects or investments.
Corporate Governance
It is the collection of mechanisms, processes and
relations by which corporations are controlled and operated.
Credit Rating Agency
A credit rating is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a particular
debt or financial obligation. A credit rating can be assigned to any entity
that seeks to borrow money—an individual, corporation, state or provincial
authority, or sovereign government.
CFT
Combating the Financing of Terrorism (CFT) involves
investigating, analyzing, deterring, and preventing sources of funding for
activities intended to achieve political, religious, or ideological
goals. CFT is achieved through violence and the threat of violence against
civilians.
Cross Listing
Cross-listing is the listing of a company's common shares on
a different exchange than its primary and original stock exchange.
Copy/ Mirror Trading
Mirror trading is a methodology of trade selection used
primarily in forex markets. It is a strategy that allows investors to
copy the trades of experienced and successful forex investors and implement the
same trades, in almost real time, in their own accounts.
Dd
Distribution
The portion of the issuer's equity paid directly
to the security holders. It is generally paid to security holders of trusts,
partnerships, and funds. The issuer or its representative provides the amount,
frequency (monthly, quarterly, semi-annually, or annually), payable date, and
record date.
Dividend
The portion of the issuer's equity paid directly
to shareholders. It is generally paid on common or preferred shares. The issuer
or its representative provides the amount, frequency (monthly, quarterly,
semi-annually, or annually), payable date, and record date.
Default Risk
Default risk is the risk that a lender takes on in the chance
that a borrower will be unable to make the required payments on their
debt obligation.
Derivative
A derivative is a financial security with a value that is reliant upon or derived from, an underlying
asset or group of assets—a benchmark. The derivative itself is a contract
between two or more parties, and the derivative derives its price from
fluctuations in the underlying asset.
Dual Listing
Dual listing refers to a listing of any security on
two or more different exchanges.
Companies use dual listing because of its benefits such as additional
liquidity, increased access to capital, and the ability for its shares to trade
for longer periods if the exchanges on which its shares are listed are in different
time zones outweigh the costs of a second listing.
Ee
EBIT
Earnings before interest and taxes (EBIT) is an indicator of
a company's profitability. EBIT can be calculated as revenue minus
expenses excluding tax and interest.
Equity Option
An option
contract that grants the holder the right to buy or sell a specific number of
shares of stock at a specified price during a specific period of time.
Equity Share
Equity shares are long-term financing sources for any
company. These shares are issued to the general public and are
non-redeemable in nature. Investors in such shares hold the right to
vote, share profits and claim assets of a company.
Exchange-Traded
Fund (ETF)
A special type of financial trust that allows
an investor to buy an entire basket of stocks through a single security, which
tracks and matches the returns of a stock market index. ETFs are considered to
be a special type of index mutual fund, but they are listed on an exchange and
trade like a stock.
E-AGM
A virtual AGM sees your annual shareholders
meeting taking place exclusively online without a corresponding
physical meeting, and shareholders are only able to participate
and vote online.
E-Voting
Electronic voting (also known as e-voting) is voting that
uses electronic means to either aid or take care of casting and
counting votes.
Embedded Put Options
An embedded option is a component of a financial security
that gives the issuer or the holder the right to take a specified action in the
future.
Endowment
An endowment
is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a
specific purpose. An endowment can also refer to the total of a nonprofit
institution's investable assets, also known as its principal or
corpus, which is meant to be used for operations or programs that are
consistent with the wishes of the donor(s).
Ff
Frequency
Frequency refers to the given time period on an
intraday, daily, weekly, monthly, quarterly or yearly perspective. Typically,
choosing a weekly or monthly perspective when looking at several years of data
makes it easier to identify long-term trends. Daily charts are useful for
active traders and short-term time period charts.
Futures
Contracts to buy or sell underlying assets at a
future date.
Forward Contracts
A forward contract is a customized contract between two
parties to buy or sell an asset at a specified price on a future date. A
forward contract can be used for hedging or speculation, although its
non-standardized nature makes it particularly apt for hedging.
Financial Inclusion
It is defined as the availability and equality of
opportunities to access financial services. It refers to a process
by which individuals and businesses can access appropriate, affordable, and
timely financial products and services.
Financial Leverage
Financial leverage which is also known as leverage or
trading on equity, refers to the use of debt to acquire additional assets. The
use of financial leverage to control a greater amount of assets (by
borrowing money) will cause the returns on the owner's cash investment to be
amplified.
Financial statements
Financial statements are written records that convey the
business activities and the financial performance of a company. Financial
statements are often audited by government agencies, accountants, firms, etc.
to ensure accuracy and for tax, financing, or investing purposes.
Gg
Growth Stock
The shares of
companies that have enjoyed better-than-average growth over recent years and
are expected to continue their climb.
Hh
Hedge
A strategy used to limit investment loss by
making a transaction that offsets an existing position.
Halt
A trading halt is a temporary suspension of trading
for a particular security or securities at one exchange or across numerous
exchanges.
Hair Cut
In financial markets, a haircut refers to
a reduction applied to the value of an asset. It is expressed as a percentage.
Hedger
A hedge is an investment to reduce the risk of adverse price
movements in an asset. Normally, a hedge consists of taking an offsetting
position in a related security.
Hurdle Rate
A hurdle rate is the minimum rate of return on a project or investment required by a
manager or investor. It allows companies to make important decisions on whether
or not to pursue a specific project. The hurdle rate describes the appropriate
compensation for the level of risk present—riskier projects generally have
higher hurdle rates than those with less risk.
Ii
Index
A statistical measure of the state of the stock
market, based on the performance of stocks.
Initial Public Offering (IPO)
A company's first issue of shares to the general
public.
Investment
The purchase or ownership of a security in order
to earn income, capital or both.
Investment
Advisor
A person
employed by an investment dealer who provides investment advice to clients and
executes trades on their behalf in securities and other investment products.
Investment
Capital
Initial
investment capital necessary for starting a business. Investment capital
usually consists of inventory, equipment, pre-opening expenses and leaseholds.
Investment
Counsellor
A specialist in
the investment industry paid by fee to provide advice and research to investors
with large accounts.
Investment
Dealer
Securities firms
that employ investment advisors to work with retail and institutional clients.
Investment dealers have underwriting, trading and research departments.
Investment
Fund
A closed-end
fund that offers investors the ability to buy a security that represents a
portfolio of investments with a specific investment strategy. These products
use funds raised through a public offering to invest in a portfolio of
securities, which are actively managed to create income streams for investors,
typically through a combination of dividends, capital gains, interest payments,
and in some cases, income from derivative investment strategies.
Investment Bank
An investment bank is a financial services company or corporate division that engages in advisory-based financial
transactions on behalf of individuals, corporations, and governments.
Intellectual Property
Intellectual property is a broad categorical description for
the set of intangible assets owned and legally protected by a company from outside use or
implementation without consent. An intangible asset is a non-physical asset
that a company owns.
Ijarah SUKUK
Ijarah SUKUK are
certificates of equal value which are issued by the owner of an existing
property or asset either on his own or through a financial intermediary, for
the purpose of leasing it against a rental from the subscription proceeds.
Istisna SUKUK
Certificates of
equal value (sukuk)
that are issued for the purpose of mobilizing funds to be used in the
production of goods or construction of buildings. Once produced, the istisna'a goods
become owned by the sukuk holders.
These sukuk are issued by the manufacturer (al-mustasni’)
who sells the intended product to the sukuk subscribers.
Issue Status
The trading
status of a class or series of an issuer's listed securities, such that a class
or series of listed securities of an issuer may be halted, suspended, or
delisted from trading.
Issued and
Outstanding Securities
Commonly refers to
the situation where the number of issued securities equals the number of
outstanding securities.
IOSCO
The International Organization of Securities Commissions (IOSCO)
is the international body that brings together the world's securities
regulators and is recognized as the global standard setter for the securities
sector.
IFSB
The Islamic Financial Services Board (IFSB) is an
international standard-setting organization that promotes the soundness and
stability of Islamic banking, by issuing global prudential standards and guiding principles in the
areas of capital adequacy, corporate
governance, risk management, and transparency, among others.
ISIN
An International Securities Identification Number (ISIN) is
a code that uniquely identifies a specific securities issue. The organization
that allocates ISINs in any particular country is the country's respective
National Numbering Agency (NNA).
ICO
An Initial Coin Offering (ICO) is the cryptocurrency
industry’s equivalent to an Initial Public Offering (IPO).
ICOs act as a way to raise funds, where a company looking to raise money to
create a new coin, app, or service launches an ICO.
Kk
KYC
The Know Your Customer or Know Your
Client (KYC) guidelines in financial services requires that professionals make an effort to
verify the identity, suitability, and risks involved with maintaining a business
relationship.
Li
Limit Order
An order to buy
or sell stock at a specified price. The order can be executed only at the
specified price or better.
Liquidity
This refers to how easily securities can be
bought or sold in the market. A security is liquid when there are enough units
outstanding for large transactions to occur without a substantial change in
price. Liquidity is one of the most important characteristics of a good
market.
Mm
Market
Capitalization
The number of
issued and outstanding securities listed for trading for an individual issue
multiplied by the board lot trading price. Should a trading price not be
available, a bid price, a price on another market, or if applicable, the price
for an issue of the same issuer which the first issue is convertible into, may
be used. Total market capitalization for a market is obtained by adding
together all individual issue market capitalizations (warrants and rights
excluded).
Market Maker
A trader
employed by a securities firm who is required to maintain reasonable liquidity
in securities markets by making firm bids or offers for one or more designated
securities up to a specified minimum guaranteed fill.
Mortgage
A mortgage is
a debt instrument,
secured by the collateral of specified real estate property, that the borrower
is obliged to pay back with a predetermined set of payments.
Mutual Fund
A fund managed
by an expert who invests in stocks, bonds, options, money market instruments or
other securities. Mutual fund units can be purchased through brokers or, in
some cases, directly from the mutual fund company.
Murabaha Sukuk
Murabaha, also
referred to as cost-plus financing,
is an Islamic financing structure in which the seller and buyer agree to the
cost and markup of an asset.
Musharakah Sukuk
Certificates
of equal value that are issued for the purpose of investing the mobilized funds
of musharakah for
establishing a new project, developing an existing project or financing a business
activity on the basis of Shari’a complied partnership contract. In these sukuk,
the sukuk holders become the owners of the project or the assets of the activity
according to respective shares.
MBS
A mortgage-backed
security (MBS) is a type of asset-backed
security which is secured by
a mortgage or collection of mortgages. The mortgages are
aggregated and sold to a group of individuals (a government agency or
investment bank) that securitizes,
or packages, the loans together into a security that investors can buy.
Margin
Margin
is the money borrowed from a brokerage firm to purchase an investment. It is
the difference between the total value of securities held in an investor's
account and the loan amount from the broker.
MARR
The Minimum
Acceptable Rate of Return, often abbreviated MARR, or hurdle
rate is the minimum rate of return on
a project a manager or company is willing to accept before starting a project,
given its risk and the opportunity
cost of forgoing other projects.
Nn
New Issuer
Listing - IPO (Initial Public Offering)
An IPO (initial public offering) is an
issuer's first offering of its securities made to the public in accordance with
a prospectus. The offering is often made in conjunction with an issuer's
initial application for listing on an exchange.
Oo
Option
The right, but not the obligation, to buy or
sell certain securities at a specified price within a specified time. A put
option gives the holder the right to sell the security, and a call option gives
the holder the right to buy the security.
Offsetting
An offset involves assuming an opposite position in relation
to an original opening position in the securities markets. The goal of
offsetting is to reduce an investor's net position in an investment to zero so
that no further gains or losses are experienced from that position.
Open-End Fund
An open-end fund is a diversified portfolio of pooled
investor money that can issue an unlimited number of shares. The fund sponsor
sells share directly to investors and redeems them as well.
Pp
Portfolio
Holdings of securities by an individual or
institution. A portfolio may include various types of securities representing
different companies and industry sectors.
Pledge
A pledged asset is a valuable possession that is
transferred to a lender to secure a debt or loan. A pledged asset is
collateral held by a lender in return for lending funds.
Private Equity
Private equity is an alternative investment class and consists of capital that is not listed
on a public exchange. Private equity is composed of funds and investors that
directly invest in private companies, or that engage in buyouts of public
companies, resulting in the delisting of
public equity.
Portfolio Management
Portfolio management is the art and science of selecting and
overseeing a group of investments that meet the long-term financial objectives
and risk tolerance of a client, a company, or an institution.
Private Placement
It is a sale of stock shares or bonds to pre-selected investors
and institutions rather than on the open market. It is an alternative to
an initial public offering (IPO) for a company seeking to raise capital for
expansion.
Rr
Revenue
The total amount of funds generated by a
business.
Rights
A temporary privilege that lets shareholders
purchase additional shares directly from the issuer at a stated price. The
price is usually less than the market price of the common shares on the day the
rights are issued. The rights are only valid within a given time period.
Risk
The future probability of loss.
Repurchase Agreement (Repo)
It is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government
securities to investors,
usually on an overnight basis, and buys them back the following day at a
slightly higher price.
Right Offering
A rights offering (rights issue) is a group of rights offered
to existing shareholders to purchase additional stock shares, known as
subscription warrants, in proportion to
their existing holdings.
Ss
Securities
Transferable certificates of ownership of
investment products such as notes, bonds, stocks, futures contracts and
options.
Settlement
The process that follows a transaction when the
seller delivers the security to the buyer and the buyer pays the seller for the
security.
Social Trading
It is a form of investing that allows investors to observe
the trading behavior of their peers and expert traders and
to follow their investment strategies using copy trading or mirror trading.
SGF
Settlement Guarantee Fund (SGF) is assumed as a
financial container to ensure fulfillment of the obligations of all parties
involved in securities transactions by assuming
counter-party risks.
Systematic Risk
Systematic risk refers to the risk inherent to the entire
market or market segment.
Systematic risk, also known as “undiversifiable risk,” “volatility” or “market
risk,” affects the overall market, not just a particular stock or
industry.
Specific (unsystematic) Risk
Unsystematic risk, or specific risk, is that which is
associated with a particular investment such a company's
stock. Unsystematic risk can be mitigated through diversification,
and so is also known as diversifiable risk. Once diversified, investors
are still subject to market-wide systematic risk.
Swap
A swap is a derivative contract
through which two parties exchange the cash flows or liabilities from two
different financial instruments. Most swaps involve cash flows based on a notional principal amount such as a loan or bond, although the instrument
can be almost anything.
Speculator
A speculator is a person or an entity that trades
securities essentially as bets that the price will go up or down, and as such,
typically has an above-average risk tolerance.
Securitization
Securitization is the procedure where an issuer designs a
marketable financial instrument by merging or pooling various financial assets into one group. The
issuer then sells this group of repackaged assets to investors.
Short Selling
The selling of a
security that the seller does not own (naked or uncovered short) or has
borrowed (covered short). Short selling is a trading strategy. Short sellers
assume the risk that they will be able to buy the stock at a lower price, cover
the outstanding short, and realize a profit from the difference.
SUKUK
A sukuk is an Islamic financial certificate,
similar to a bond in Western finance, that complies with Islamic religious law
commonly known as Sharia.
Tt
Treasury Bills
A Treasury Bill (T-Bill) is a short-term U.S. government debt
obligation backed by the Treasury Department with a maturity of one year or less.
Treasury Notes
A Treasury note (T-note for short) is a marketable U.S.
government debt security with
a fixed interest rate and a maturity between one and 10 years.
Treasury Bonds
Treasury bonds (T-bonds) are government debt securities issued by the federal government that have maturities greater
than 10 years. T-bonds earn periodic interest until maturity, at which point
the owner is also paid a par amount equal to the principal.
Tokenization
The process of converting a sensitive piece of data, such as
a primary account number, into a unique, nonsensitive equivalent — a “token” —
that retains the original data’s essential information without compromising
security.
Uu
Underwriting
The purchase for resale of a new issue of
securities by an investment dealer or group of dealers who are also known as
underwriters. The formal agreements for these transactions are called
underwriting agreements.
Vv
VC
Venture capital is a form of private equity and a type of
financing that investors provide to startup companies and
small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks and any
other financial institutions.
VC Fund
Venture capital funds are investment funds that manage the
money of investors who seek private equity stakes in startup and small- to
medium-sized enterprises with strong growth potential. These investments are
generally characterized as high-risk/high-return opportunities.
Ww
WACC
The weighted average cost of capital (WACC) is a calculation
of a firm's cost of capital in which each category of capital is
proportionately weighted. All sources of capital, including common stock,
preferred stock, bonds, and any other long-term debt, are included in a WACC
calculation.
Warrant
A security giving the holder the right to
purchase securities at a stipulated price within a specified time limit.
Exercise of the warrant is solely at the discretion of the holder. Warrants are
not exercisable after the expiry date. A warrant is often issued in conjunction
with another security as part of a financing. A warrant may be traded as a
listed security or it may be held privately.
Wealth management
Wealth management is an investment advisory service that
combines other financial services to address the needs of affluent clients. It is a consultative
process whereby the advisor gleans information about the client's wants and
tailors a bespoke strategy utilizing appropriate financial products and
services.
Yy
YTM
Yield To Maturity (YTM) is the total return anticipated on a
bond if the bond is held until it matures. Yield to maturity is considered a
long-term bond yield but
is expressed as an annual rate.
Zz
Zero-coupon
A zero-coupon bond is a debt security that does not pay
interest but instead trades at a deep discount, rendering a profit at maturity,
when the bond is redeemed for its full face value.