Options
An investor that has entered into a debit spread hopes the difference between the two premiums will
Widen
This security provides the highest safety of principal and interest with a fixed maturity date
U.S. Government Debt
The primary exchange where most U.S. blue-chip stocks are traded
New York Stock Exchange (NYSE)
This bond can be sold at face value back to the issuer prior to maturity at pre-determined times
Puttable Bond
In this ordering of cash flows, the operations and maintenance are paid first
Net Revenue Pledge
An investor expecting significant price movement in the underlying stock will pay two premiums to establish this long position
Long Straddle
This Nobel laureate published CAPM in his 1970 book "Portfolio Theory and Capital Markets"
William Sharpe
This measurement is used to value corporate stock by comparing the market price to its earnings per share
Price-to-earnings Ratio (P/E Ratio)
This type of bond typically offers a higher yield to compensate for the risk of being repaid before its maturity
Callable Bond
The coupon yield offered by a Capital Appreciation Bond
Zero
This three-position strategy allows the investor to lock in an exit price for the stock by buying a put, while simultaneously committing to sell those shares at the short call’s strike price
Collar
Founded by Harry Markowitz, this theory asserts that investors can maximize expected returns by diversifying their investments based on level of risk they will assume
Modern Portfolio Theory
When a foreign company declares a dividend, a bank will convert that foreign divided payment into US dollars for the holder of this security
American Depository Receipt (ADRs)
This term for a bond's interest payment, expressed as a percentage of its face value
Coupon Rate
This is where the covenants of a revenue bond are listed
Trust Indenture
VIX Put/Call Ratio - Volume
Calls: 74,876
Puts: 97,223
The current investor sentiment on index and Value (Ratio)
Bearish - 1.3
This technique is used when an investor opens a short stock position on a stock they already own. This removes the risk of the investor’s long position and can be used to defer a taxable gain.
Shorting against the box
Under penny stock rules, someone who has made at least three penny stock purchases of different issuers on different days or held an account with the BD for at least one year is defined as this
Established Customer
Reducing the yield on a bond issue, this item is preferred by the bondholder as it reduces risk with the issuer setting aside capital each year to retire the bond
Sinking Fund Provision
This bond is backed by a revenue producing facility and a non-binding pledge of the legislature
Moral Obligation Bond
1 JBR Oct 150 Put at 12
The premium for this put option after JBR undergoes a 3:4 stock split and a 7.5% stock dividend.
12
Common stocks in the material sector, real estate, and precious metals likely benefit in this financial environment
Inflationary
This pricing model commonly used to calculate the theoretical value of options, incorporates variables such as stock price, strike price, volatility, time until expiration, and risk-free interest rate
Black-Scholes Model
This method is used when a bond's duration is adjusted for the curvature of its price-yield relationship
Convexity Adjustment
These three major NRSROs evaluate thousands of issuers and their municipal bonds
Standard and Poors (S&P)
Moody's
Fitch Rating