Archive for 'Economy Terms'
U.S. income tax
Federal income taxes haven’t always been a certainty. In the early 20th century, people lived without being bothered by the federal income tax – or by televisions, microwaves, computers, voice mail, and all those other complications. Beginning in 1913, Congress set up a system of graduated tax rates, starting with a rate of only 1 [...]
Full StoryFinancial markets
From an economic perspective, a market is any set of arrangements that enables voluntary agreements to be reached among its participants. There are three crucial elements in the definition. First, the set of arrangements can include diffuse, largely unorganized networks, such as foreign exchange markets, as well as highly organized institutions, such as futures markets. [...]
Full StoryArbitrage
Arbitrage plays a central role in financial markets and in theories of asset prices. Arbitrage strategies are – roughly speaking – patterns of trades motivated by the prospect of profiting from discrepancies between the prices of different assets but without bearing any price risk. This quest for profit has an important influence on market prices, [...]
Full StoryAccountability
The term accountable originates from the Latin computare: to count. To be accountable required a person to produce “a count” of either the properties or money that had been left in his or her care.
This meaning has endured in all those forms of accountability that are exercised through financial bookkeeping or budgetary records. But more [...]
Multinationals
Although multinationals (MNCs) appeared in the early 1800s it was not until the 1870s that MNCs developed in a form that we would recognize today.
Technological developments and organizational innovations allowed the creation of vast global enterprises, most of which were based in Europe. Some of these, such as British American Tobacco, Nestl´e and Michelin, are [...]
Macroeconomics
Macroeconomics is the study of whole economies, as opposed to “microeconomics,” which looks at how individual industries, households, and businesses function. While macroeconomics is a vital concern of governments, it is also essential to businesses, especially those with operations overseas. Macroeconomic concerns, such as currency exchange, inflation, unemployment levels, economic development, and international trade, are [...]
Full Storyeconomy terms acronyms and abbreviations – x and y
XETRA
Dealing system of the Deutsche Borse.
Yankee bond
A US dollar bond issued in the USA by a non-USA corporation.
Yield
Internal rate of return expressed as a percentage.
Yield curve
For securities that expose the investor to the same credit risk, a graph showing the relationship at a given point in the time between yield and current maturity. Yield curves [...]
economy terms acronyms and abbreviations – w
Warrant agent
A bank appointed by the issuer as an intermediary between the issuing company and the (physical) warrant holders, interacting when the latter want to exercise the warrants.
Warrants
An option which can be listed on an exchange, with a lifetime of generally more than one year.
World trade organization (WTO)
WTO is intended to solve this problem by [...]
economy terms acronyms and abbreviations – u
Underlying asset
The asset from which the future or option’s price is derived.
Undersubscribed
Circumstance when people have applied for fewer shares than are available in a new issue.
Underwriters
Institutions which agree to take up shares in a new issue if it is undersubscribed. They will charge an underwriting fee.
Unit trust
A system whereby money from a number of investors [...]
economy terms acronyms and abbreviations – t
TACT
Dealing system for the Tel Aviv Stock Exchange (Tel Aviv Continuous Trading).
Take-over
When one company obtains more than 50% of another company’s shares.
TARGET
Trans European Automated Real time Gross settlement Express Transfer – system linking the real-time gross settlements for euros in the 15 European Union countries.
Tax Exempt Special Savings Account (TESSA)
Scheme whereby certain savings plans will [...]
