A share of a company incorporated in the Chinese mainland that is listed on the Hong Kong Stock Exchange or other foreign exchange. H-shares are still regulated by Chinese law, but they are denominated in Hong Kong dollars and trade the same as other equities on the Honk Kong exchange. H-shares on the exchange are automatically included in the Hang Seng China Enterprise Index, provided that they maintain the Hong Kong exchange regulatory requirements. Taobiz explains H-Shares H-shares are available for more than 90 Chinese companies, giving investors at least some access to most of the major economic sectors such as financials, industrials and utilities. In 2007, the Chinese government decided to allow mainland investors to invest in the Hong Kong exchange, which greatly increased the demand for H-shares, as mainland investors were previously forbidden from investing in the exchange. China still offers A-shares in many of the same companies, but only mainland residents can invest in them.
A quoting convention used by financial institutions when quoting prices for fixed-income securities sold at a discount, particularly U.S. Government issues. The quote is presented as a percentage of face value, and is determined by discounting the bond by using a 360-day-count convention, which assumes there are twelve 30-day months in a year.Also referred to as "discount yield". |||Differences in the day count convention used by the firm quoting a fixed-income security is subtle, but important. Over longer maturities, the day count convention will have a greater impact on the current 'price' of a bond than if the time to maturity is much shorter.The 30/360 day-count convention is the standard when quoting government treasury bonds for banks.
The possibility that a news story will adversely affect a stock's price. Headline risk can also impact the performance of the stock market as a whole. Taobiz explains Headline Risk For example, in the aftermath of the housing crisis, mortgage lenders such as Bank of America, JP Morgan Chase and CitiGroup faced significant headline risk. One way a company can mitigate headline risk is through effective public relations campaigns. Successful public relations efforts can promote positive images of a company that can help counteract any negative stories as well as provide swift damage control if such a story is released. Individual investors can counteract headline risk by using a buy-and-hold investing strategy that ignores the short-term changes in the market that are triggered by headlines.
A fixed-income instrument that is owned by whoever is holding it, rather than having a registered owner. Coupons representing interest payments are likely to be physically attached to the security and it is the bondholder's responsibility to submit the coupons for payment. As with registered bonds, bearer bonds are negotiable instruments with a stated maturity date and coupon interest rate. |||Bearer bonds are getting harder and harder to find these days, especially within developed economies. While they are fairly common in many parts of the world (mainly places where anonymity is an issue), the fact that little protection or recourse exists for holders against issues such as theft has taken away their applicability in recent decades. Furthermore, most bond instruments aren't even physically issued anymore, but exist only in the computerized records of brokers and custodians.
The effect that negative news in the popular press has on a corporation or an economy. Whether it is justified or not, the investing public's reaction to various headlines can be very dramatic. Many economists believe that negative news headlines make consumers more reluctant to spend money. Taobiz explains Headline Effect An example of a headline effect is the media's extensive coverage of the impact of rising gas prices on consumers. Some economists believe that the more attention that is paid to small increases in the price of gasoline, the more likely it is that consumers will be more cautious about spending their discretionary dollars. The headline effect can be regarded as the difference between rationally justifiable decreases in discretionary spending and those that occur as the result of a newsworthy event.
A long-term stock market indicator that evaluates the percentage of Harvard Business School graduates that accept "market sensitive" jobs in fields such as investment banking, securities sales & trading, private equity, venture capital and leveraged buyouts. If more than 30% of a year's graduating class take jobs in these areas, the Harvard MBA Indicator creates a sell signal for stocks. Conversely, if less than 10% of graduates take jobs in this sector, it represents a long-term buy signal for stocks. Taobiz explains Harvard MBA Indicator Started and maintained by consultant and HBS graduate Roy Soifer, the Harvard Indicator gave sell signals in 1987 and in 2000, which were both terrible years for the stock market. The esoteric indicator is meant to represent long-term signals based on the relative attractiveness of Wall Street jobs. The more grads that are enticed to go there, the more bloated Wall Street becomes and the more likely the market is nearing a top. When stock markets are doing poorly, fewer grads want to enter the sector. This indicator runs on a similar theme to the old market adage that when everyone else is looking to get in, it's time to get out.
A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks to capture some of Harry Potter's success by investing in selected movie producers, merchandisers and advertisers currently associated with the franchise. The success of the Harry Potter franchise has snowballed since the first of many Harry Potter books, "Harry Potter and the Sorcerer's Stone", by J. K. Rowling, was first published in 1997. With the addition of movies, toys, games and other accessories, Harry Potter has created an industry generating billions of dollars in sales. With each new book edition or movie release, StockPickr believes investors can benefit by investing in companies involved with Harry Potter branded items. Taobiz explains Harry Potter Stock Index The Harry Potter Stock Index includes such firms as Scholastic (SCHL), who publishes the Harry Potter books, and Time Warner (TWX), the series movie producer. Even Amazon (AMZN) is included, where Potter books are best sellers. Hasbro (HAS), Motorola (MOT), Electronic Arts (ERTS) and Coca Cola (KO) are a few other related companies included in the index. Is this a real stock index, like the S&P 500? Not really. It's more of a tongue-in-cheek version of a stock index. Note that stock portfolios and financial terms that are tied to celebrities tend to have a short shelf life, depending on how long the buzz lasts. For example, consider the term Bo Derek, which was most popular in the early 1980s, after the movie "10" first came out.
A widening of the yield curve caused by long-term rates increasing at a faster rate then short-term rates. This causes a larger spread between the two rates as the long-term rate moves further away from the short-term rate. |||This widening yield curve is similar to a bull steepener except with a bear steepener this is driven by the changes in long-term rates, compared to a bull steepener where short-term rates have a greater effect on the yield curve.