A market maker prediction as to the trading price range that a security will occupy within a reasonable period of time. The characteristics of a workout market are seen prevalently in thin markets. Taobiz explains Workout Market Prices quoted by the market maker are subject to the availability of a matching order. Also, there are usually significant mark-ups on the security being traded.
The book value of an asset after accounting for depreciation and amortization. Taobiz explains Written-Down Value Companies reduce the book value of assets because they are overvalued.
An increase made to the book value of an asset because it is undervalued compared to market values. Taobiz explains Write-Up A write-up will increase a company's accounting book value without any expenditures. For example, if an economy experiences significant inflation, a production company may decide to write up its inventory to better match the market price.
A situation that occurs when the Federal Reserve has lowered short-term interest rates to zero or nearly zero. When interest rates are this low, new methods of economic stimulus must be examined and implemented. Zero-bound can also refer to a stock that has negative downward momentum and is expected to eventually move to zero. Taobiz explains Zero-Bound As the Federal Reserve lowers interest rates, alternative procedures for monetary stimulus become necessary. Interest rates cannot usually be negative, so once interest rates reach zero or are close to zero, for example, 0.01%, monetary policy has to be altered to continue to stabilize or stimulate the economy.
A method of matching orders that involves using an auction-like process to trade securities. The orders are organized by both their prices and the time that they were taken. As soon as an order for a security is delivered, it is compared and matched with orders already in the order book. When a bid comes in that matches the price requested by another order, the two orders are executed and taken out of the order book. Taobiz explains Zaraba method The zaraba method is most often associated with the Japanese stock exchanges. Typically, the zaraba method is used during normal trading sessions, whereas a different order matching method, which is called the itayose method, is used to determine the opening and closing prices for each morning and afternoon trading session.
A series of indexes developed by Zacks Investment Research, Inc., to provide a benchmark for the lifecycle of target-date funds, with a different index for each target date. The Zacks Lifecycle Index constituents include U.S. equities, international equities, and domestic bonds. Taobiz explains Zacks Lifecycle Indexes Lifecycle or target-date funds have become popular with investors saving for retirement, especially those without the knowledge or interest to be actively involved in the management of their investments. As the target date approaches, the asset-mix allocation gradually becomes more conservative. Zacks Investments Research, Inc., uses proprietary selection rules to identify stocks and bonds with risk/return profiles consistent with general market benchmarks. The Zacks index will have 300 U.S. stocks, 100 international developed-markets equities and 100 debt securities.
A list of 40 publicly traded companies chosen for their ties to rural areas. The Yonder 40 is designed to reflect the economies of non-urban areas, and includes companies that are involved in agriculture and livestock raising, in addition to heavier industries such as construction. The index is not widely-followed. Taobiz explains Yonder 40 Index - Yonder 40 The Yonder 40 Index was popularized by Jim Branscome and John Borden - two veterans of Wall Street. They felt that the major indexes were too focused on companies operating in urban environments, and that the health of urban companies didn't properly take into account how rural Americans were faring. Despite the decidedly outside the big city intent, the original incarnation of the index covered several popular firms, such as ConAgra and Wal-Mart.
A type of mutual fund that allocates capital as a standard index, by replicating the holdings of a specified stock index, such as the Standard & Poor's 500 Index (S&P 500), except that the fund weights its holdings towards stocks that offer higher dividend yields. Stocks with higher dividend yields are given a greater portfolio weighting, making them represent more of the fund's portfolio than they otherwise would in the standard index. Taobiz explains Yield Tilt Index Fund The rationale behind the creation of yield tilt index funds is based on the fact that dividend payments issued to shareholders can be subject to "double taxation", meaning that they are taxed once at the corporate level and then once again at the shareholder level. Due to this effect, some investors contend that the market must value the share prices of high-yield stocks at somewhat of a discount to other stocks, so as to provide an increased return on high-yield stocks in order to compensate for the negative tax effects. The theory is that an investor who is able to purchase a yield tilt index fund in a tax-sheltered investment account may be able to outperform the index, since they receive the supposed valuation benefit but are sheltered from taxes on the dividends they receive.