A mutual fund or other investment vehicle that will only invest in companies that are deemed socially conscious in their business dealings or directly promote environmental responsibility. A green fund can come in the form of a focused investment vehicle for companies engaged in environmentally supportive businesses, such as alternative energy, green transport, water and waste management, and sustainable living. A green fund's strategy can be based on avoiding negative company criteria (businesses such as guns, alcohol, gambling, pornography, animal testing, etc.), choosing positive company criteria (environmental programs, energy conservation, fair trade, etc.), or a combination of both strategies. based on performance, it is not yet clear whether green funds and socially responsible investing can consistently create better returns for investors. But they do represent a proactive step toward environmental consciousness, which many investors appreciate. Socially conscious investing is on the rise, which is due largely to increased worldwide exposure to the issue, as well as increased federal funding for alternative energy and other programs.
A classification used by the Commodity Futures Trading Commission (CFTC) to describe traders that use the futures market primarily to hedge their business activities. This type of classification is usually given to futures commission merchants, foreign brokers, clearing members or even investment banks that buy index futures to hedge current long positions. An increase in commercial traders' long positions in a certain commodity may mean these traders believe the price of the commodity will increase, in which case they would not want to be adversely affected by missing out on a price increase.
The region classification for a division of an international company that operates in Europe, the Middle East and Africa. The division that operates in the EMEA will often be run by a separate executive and focus the international brand towards the needs of the EMEA region. |||The EMEA abbreviation will often be placed alongside the international company's name to denote that its operations are focused on the EMEA. For example, Microsoft EMEA is run by a different CEO than Microsoft USA and its focus is solely on the EMEA region.
The percentage of a mutual fund's total assets that are currently held in cash or cash equivalents. While mutual fund cash level can refer to the cash level of an individual fund, it most often refers to the aggregate level of cash held across a wide demographic of mutual funds, which is used as a barometer of institutional buying power and market sentiment. Watch: Mutual Funds Most mutual funds need to keep around 5% cash available at all times in order to handle the day-to-day redemptions of shares. Cash levels outside of this range can signal a collective sense of fear or optimism about the broad markets. For instance, if aggregate mutual fund cash levels are above 10%, this would signal that fund managers are generally bearish about the market and holding back on making new purchases. On the other hand, cash levels in the range of 5-8% would signal a generally bullish stance, as most available cash is being put to work in the market. Some investors view mutual fund cash levels as a contrarian indicator, as cash levels generally reach their peak at market bottoms.
A second, unsolicited bidder in a corporate takeover. A gray knight enters the scene in order to take advantage of any problems between the first bidder and the target company. Think of a gray knight as a circling vulture waiting to pick clean the leftovers. In some parts of the world gray is spelled "grey."
The currency abbreviation for the Slovenian tolar (SIT), the currency for Slovenia from October 1991 until December of 2006. The Slovenian tolar was made up of 100 stotinov. The correct pronunciation of the currency depended on the amount of currency to which the speaker was referring. 2 SIT were called 2 "tolarja"; 3 or 4 SIT were called 3 or 4 "tolarji"; "tolarjev" referred to 5 SIT or more. |||The tolar was introduced as the currency of Slovenia in 1991, replacing the Yugoslav dinar at par. When Slovenia joined the European Monetary Union in January of 2007, the tolar was replaced by the euro at a rate of 239.64:1.
An acronym referring to the geographical area that includes these three regions. These regions represent the most developed areas outside of North America. |||Owning an index fund comprised of companies from the EAFE area is one way to invest in those international markets. Indexes, such as the MSCI EAFE, are used as a benchmark for North American equity performance.
The other party that participates in a financial transaction. Every transaction must have a counterparty in order for the transaction to go through. More specifically, every buyer of an asset must be paired up with a seller that is willing to sell and vice versa. All trades require some sort of counterparty. For example, the counterparty to the option buyer would be the option writer. One of the risks involved in any transaction is counterparty risk, which is the risk that the counterparty will be unable to fulfill his or her duties. However, in many financial transactions the counterparty is unknown.