Finance Dictionary ( daily finance terms and concepts will be added and discussed)

birendra.trivedi

Par 100 posts (V.I.P)
This forum will post daily 1 or more then one term of finance and any one having doubt on this financial terms will be discussed.

Warning : this terms of great help when you go for interview go guys daily add a new fiancial term to your dictionary so that you have an edge in the interview among others .

pls share any term you come across and we will discuss if anyone has a doubt on that term



:SugarwareZ-191:
 

birendra.trivedi

Par 100 posts (V.I.P)
Alpha Alpha measures a stock's monthly move if the S&P 500 index is unchanged.* For example, a stock with a high alpha of 7 would be expected to rise 7% in a month given an unchanged S&P 500 index.
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birendra.trivedi

Par 100 posts (V.I.P)
Finance Dictionary ( daily finance terms and concepts will be added and discussed

American Depositary Receipt
Known as ADRs, these securities are created by a U.S. bank and represent foreign securities that trade in the U.S. financial markets.
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birendra.trivedi

Par 100 posts (V.I.P)
Annual Report
Companies send their shareholders an annual report at the end of a fiscal year.* The magazine or brochure sizes up company operations and displays earnings, sales, balance sheets and financial footnotes.
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birendra.trivedi

Par 100 posts (V.I.P)
Arbitrage
Arbitrageurs make their living by seizing on price differences for a security that is traded on a different market or in a different form, such as an option or a futures contract.* Someone who buys, say, a soybean contract on one market and sells a soybean contract on* another exchange is practicing arbitrage by locking in a profit.
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birendra.trivedi

Par 100 posts (V.I.P)
Ask
This is the quoted ask, or the lowest price an investor will accept to sell a stock.* Practically speaking, this is the quoted offer at which an investor can buy shares of stock.
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birendra.trivedi

Par 100 posts (V.I.P)
Basis Point
In the bond market, the smallest measure used for quoting yields is a basis point.* One basis point is 0.01 percent of a bond's yield.* Basis points also are used for interest rates.* An interest rate of 5 percent is 50 basis points greater than an interest rate of 4.5 percent.
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birendra.trivedi

Par 100 posts (V.I.P)
Beta
This measures the volatility of a share of stock.* A high beta stock, for example, will rise more in value than the stock market average on a day when shares in general are rising.* And it will fall more sharply than the average on a day when shares are falling.* The Standard & Poor's 500 Index of stocks, an index that represents large-company stocks, has a beta of 1.
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birendra.trivedi

Par 100 posts (V.I.P)
Bid
This is the quoted bid, or the highest price an investor is willing to pay to buy a security.* Practically speaking, this is the available price at which an investor can sell shares of stock.
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birendra.trivedi

Par 100 posts (V.I.P)
Bond
Bonds are debt and are issued for a period of more than one year.* The U.S. government, local governments, water districts, companies and many other types of institutions sell bonds.* When an investor buys bonds, he or she is lending money.* The seller of the bond agrees to repay the principal amount of the loan at a specified time.* Interest-bearing bonds pay interest periodically.
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birendra.trivedi

Par 100 posts (V.I.P)
Book to Bill
Book to bill is the semiconductor book to bill ratio.* It reports on the amount of semiconductor chips that are booked for delivery as compared with those that companies already have billed for.*
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birendra.trivedi

Par 100 posts (V.I.P)
Book Value
A company's book value is this: total assets minus intangible assets and liabilities such as debt.* A company's book value might be more or less than the market value of the company.
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birendra.trivedi

Par 100 posts (V.I.P)
Breadth
This is one of those technical terms you might hear mentioned in a trading room.* It simply demonstrates how broadly a market is moving.* When three-quarters of the stocks on the New York Stock Exchange, for example, rise during a given day, an observer might say the stock market had good breadth.* Often, observers will measure the number of stocks advancing against the number declining as one way of monitoring breadth.
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birendra.trivedi

Par 100 posts (V.I.P)
Buy Price
Enter here the price you paid for a security.* If, for example, you paid 8 1/4 a share for a security, enter* 8 1/4.
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birendra.trivedi

Par 100 posts (V.I.P)
Call option
This security gives investors the right to buy a security at a fixed price within a given time frame.* An investor, for example, might wish to have the right to buy shares of a stock at a certain price by a certain time in order to protect, or hedge, an existing investment.**
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