An option contract that cannot be sold for cash quickly at the prevailing market price. Illiquid options have very low or no open interest. Most options are illiquid when they are far away from their expiration dates. If you're holding an illiquid option, you will usually notice a very large bid-ask spread on the contract. This is because there are not enough buyers to accommodate those wanting to sell. Unfortunately, if you are trying to sell an illiquid option, there is a good chance you'll be selling at a discount, if at all.
A strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders. To window dress, the fund manager will sell stocks with large losses and purchase high flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings. Performance reports and a list of the holdings in a mutual fund are usually sent to clients every quarter. Another variation of window dressing is investing in stocks that don't meet the style of the mutual fund. For example, a precious metals fund might invest in stocks that are in a hot sector at the time, disguising the fund's holdings, so clients really have no idea what they are paying for. Window dressing may make a fund appear more attractive, but you can't hide poor performance for long.
A monthly economic survey. The ZEW Economic Sentiment is an almalgamation of the sentiments of approximately 350 economists and analysts regarding the economic future of Germany for the next six months. The survey shows the balance between those analysts who are optimistic about Germany's economic future and those who are not. |||The ZEW Economic Sentiment covers the economic futures of several other countries as well. This survey includes analyst opinions for Europe, the UK, Japan and the U.S. An index value greater than zero indicates optimism while a value below zero indicates pessimism.
1. The act of attempting to predict the future direction of the market, typically through the use of technical indicators or economic data. 2. The practice of switching among mutual fund asset classes in an attempt to profit from the changes in their market outlook. Some investors, especially academics, believe it is impossible to time the market. Other investors, notably active traders, believe strongly in market timing. Thus, whether market timing is possible is really a matter of opinion. What we can say with certainty is that it's very difficult to be successful at market timing continuously over the long-run. For the average investor who doesn't have the time (or desire) to watch the market on a daily basis, there are good reasons to avoid market timing and focus on investing for the long-run.
An organization comprised of scholars and specialists from various areas of financial concern. |||The IAFE allows professionals within various areas of finance to converge and share their knowledge with one another. It serves to improve one's skills within finance and provides rewards for individuals with innovative ideas.
Bank for International Settlements The Bank for International Settlements (BIS), based in basel Switzerland, is an international organization which fosters international monetary and financial cooperation and serves as a bank for central banks. It was originally formed by the Hague Agreements of 20 January, 1930, with the purpose of facilitating Germany's payment of reparations following World War I. At the close of World War II, the BIS narrowly avoided being dissolved when it came to light that the bank had been heavily involved with Nazi interests. Today, the BIS is a focal point for research and cooperation in international banking regulation. It sponsors the basel Committee on Banking Supervision.
The amount consumer awareness or popularity surrounding a particular product. It refers to consumer's perception of particular brands or products compared to their rivals. One of the primary goals of advertising is to make consumers think of certain brand names more than others. Mindshare is just a marketing term for the amount of talk or mention generated by a product within the public or media. The goal of companies is to have customers think of their products or services before competitors. For example, most consumers may think of McDonald's when asked to name a fast food restaurant, or Nike when asked to name a company that makes running shoes.
An investment strategy that attempts to profit from the differences between actual and theoretical futures prices of the same stock index. This is done by simultaneously buying (or selling) a stock index future while selling (or buying) the stocks in that index. This is done with program trading. Using software that monitors both a stock index and futures contracts on the index, traders can be notified when there is a larger than normal gap.