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The annual rate of return that when compounded t times, would have
given the same t-period holding return as actually occurred from period 1 to period t.
An option is at-the-money if the strike price of the option is equal to the market price of the
underlying security. For example, if xyz stock is trading at 54, then the xyz 54 option is at-the-money.
An offering of securities at a fixed price.
The amount of securities believed to be available for immediate purchase, that is, in the
hands of dealers and investors wanting to sell.
Also called dirty price, the price of a bond including accrued interest. Related: flat price.
Mortgage-backed securities (MBS) on which registered holders receive an aggregate principal and
interest payment from a central paying agent on all of their certificates. Principal and interest payments are
disbursed on the 20th day of the month. GNMA-II MBS are backed by multiple-issuer pools or custom pools
(one issuer but different interest rates that may vary within one percentage point). Multiple-issuer pools are
known as “Jumbos.” Jumbo pools are generally longer and offer certain mortgages that are more
geographically diverse than single-issuer pools. Jumbo pool mortgage interest rates may vary within one
This is an order to immediately buy or sell a security at the current trading price.
A cash surplus generated by the sale of one block of securities and the purchase of another, e.g.
selling a block of bonds at 99 and buying another block at 95. Also, a bid made to a seller of a security that is
designed (and generally agreed) to take him out of the market.
An inventory system in which the balance in the Inventory account is adjusted for the units sold only at the end of the period.
a method of determining interest in which interest is earned only on the original investment (or principal) amount
Bond with a rating below Baa or BBB.
An unemployed person who gives up looking for work and so is no longer counted as in the labor force.
The value of consumption services obtained by owning one’s house rather than having to pay rent.
A method for calculating wages for hourly employees that involves
the multiplication of the wage rate per hour times the number of hours
worked during the work week.
Money, goods or services that someone is obligated to pay someone else in accordance with an expressed or implied agreement. Debt may or may not be secured.