Theory that says a country's trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short run.
Refers to the historical pattern that stock prices rise in the first few days of January. Studies have suggested this holds only for small-capitalization stocks. In recent years, there is less evidence of a January effect.
Established in 1886, the Johannesburg Stock Exchange is the only stock exchange in South Africa. Gold and mining stocks form the majority of shares listed.
An agreement between two or more firms to share risk and financing responsibility in purchasing or underwritingsecurities, or an account owned jointly by two or more persons at a bank or brokerage house.
Municipal bondunderwriting in which the account is undivided and syndicate members are responsible for unsold bonds in proportion to their participation, regardless of how many bonds they may have already sold. A firm with 20% of the account is responsible for selling 20% of the unsold bonds even if has already sold 25% of the total debtissue, for example. See: Severally but not jointly.
In the case of a joint account, on the death of one account holder, ownership of the account assets is transferred to the remaining account holder or holders.
The tendency for persistent time series (0.50<H<1.00), to have trends and cycles. The term "Joseph
Effect" was coined by Mandelbrot in reference to Joseph's interpretation of
Pharaoh's dream of seven fat years followed by seven lean years.
Used in the context of general equities. (1) Deal in which no trading house
has exclusivity (each firm is in direct
competition for a piece of business); (2) no preference in picking a particular
side (buy/sell) of a stock as profile,
indicated during the block call, indicate
that the sales force could have the stock either way.
A mortgage that will be satisfied only
after more senior mortgages have been satisfied. E.g., a first mortgage will
be satisfied prior to a second or a third mortgage.
A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower. Junk or high-yield bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & Poors and Moody's Investor Services, provide the rating systems for companies' credit.
A method of forecasting using a composite forecast prepared by a number of individual experts. The experts form their own opinions initially from the data given, and revise their opinions according to the others' opinions. Finally, the individuals' final opinions are combined.