In the world of finance, these are people with science and math degrees who work in the finance field building highly advanced quantitative finance models. These models help banking, insurance and investment firms to price financial instruments. If an investment firm hires a PhD student with a background in theoretical physics to create a model that prices futures and options, that person would be considered a "rocket scientist" by the traders in the investment firm because of the complexity and skill required to create these models that help traders of futures and options.
A slang phrase used in the equity market to refer to a trader's obligation to make calls and check possible prior obligations related to a security transaction. Prior obligations may include confirming certain transaction details, such as limit prices or conditional events. Taobiz explains Clean Your Skirts Most larger transactions, like those executed by financial institutions, require that traders clean their skirts. Before a trader is able to fill such an order, he or she will usually confirm the order is still executable; this will confirm that the trade is within the price limit and meets all of the client's conditions for an appropriate quantity.
A taxpayer that has met the criteria to be both a resident and nonresident alien in a single tax year. The duality of the taxpayer's status pertains only to residence, not citizenship. only non-U.S. citizens can meet the criteria for this status. Also known as "dual-status aliens." Dual-status taxpayers must apply different rules to the taxation of their income earned while a resident alien versus a nonresident. For the portion of the year in which they are classified as resident aliens, they are taxed on all forms of income regardless of source. For the nonresident portion, they are taxed only on income from domestic sources.
An investment entity for managing capital for an unlimited time horizon. A PCV is typically geared toward growing capital at the best long-term rate, and is therefore less focused on shorter-term performance. |||Good examples of PCVs would be pension funds or social security funds, which have expectations of liabilities extending out for hundreds of years into the future. College endowments or scholarship funds, which are intended to provide a specified amount of funds to select students every year for perpetuity, are another good example PCVs.These types of investment entities are not appropriate for investors who have a limited time horizon, such as middle-aged investors who are planning to withdraw their nest eggs in 10 years.
An income tax rate structure in which two different tax rates are charged depending on income levels. All income will be taxed at the lower rate up to the cutoff income tax point and all income above the cutoff point is taxed at the higher rate. This is similar to a flat tax structure but instead of just one rate, it has two. This tax structure is often considered to simplify the overall structure of the tax system by eliminating most tax deductions and loopholes. For example, an income tax system using a dual rate structure may charge 20% on all income up to $100,000 and charge 25% on every dollar of taxable income above $100,000. Therefore, if you had an income of $150,000, your tax owed would be $32,500 ($100,000 x 20% + $50,000 x 25%).
A term often used by traders to refer to increased trading caused by a takeover rumor. If firms A and C are both in the auto industry and rumors say that firm A will takeover firm C, an increase in trading in firms A and C's stock illustrates rumortrage.
1. Money or benefits that are distributed and then taken back as a result of special circumstances. 2. A retraction of stock prices or of the market in general. Taobiz explains Clawback 1. Purchasing certain investments provides taxable benefits contingent upon holding periods. When you sell these investments before they have reached maturity, the benefits must be returned. 2. In layman's terms, a fall in a stock's price right after an increase is called a clawback of the price.
A technical momentum indicator showing the relationship between two moving averages. To calculate the PPO, subtract the 26-day exponential moving average (EMA) from the nine-day EMA, and then divide this difference by the 26-day EMA. The end result is a percentage that tells the trader where the short-term average is relative to the longer-term average. Calculated as: |||The PPO and the moving average convergence divergence (MACD) are both momentum indicators that measure the difference between the 26-day and the nine-day exponential moving averages. The main difference between these indicators is that the MACD reports the simple difference between the exponential moving averages, whereas the PPO expresses this difference as a percentage. This allows a trader to use the PPO indicator to compare stocks with different prices more easily. For example, regardless of the stock's price, a PPO result of 10 means the short-term average is 10% above the long-term average.