A dramatic and unexpected improvement in the investment performance of an asset class driven partly by a stampede of investors who don't want to miss out on its rise rather than by fundamental improvements in the economy. Gains created by a melt up are considered an unreliable indication of the direction the market is ultimately headed, and melt ups often precede melt downs. Taobiz explains Melt Up Financial analysts saw the run-up in the stock market in early 2010 as a possible melt up because unemployment rates continued to be high, both residential and commercial real estate values continued to suffer and retail investors continued to take money out of stocks.
Companies having a market capitalization greater than $200 billion. Taobiz explains Mega Cap These are the big kahunas of the financial world. Examples include Wal-Mart, Microsoft and General Electric. Keep in mind that classifications such as "large cap" or "small cap" are only approximations that change over time. Also, the exact definition of these terms can vary between brokerage houses.
Dollar duration measures the dollar change in a bond's value to a change in the market interest rate. The dollar duration is generally used by professional bond fund managers as a way of approximating the portfolio's interest rate risk. Dollar duration is one of several different measurements of bond duration. |||Dollar duration is based on a linear approximation of how a bond's value will change in response to changes in interest rates. The actual relationship between a bond's value and interest rates is not linear. Therefore, dollar duration is an imperfect measure of interest rate sensitivity, and it will only provide an accurate calculation for small changes in interest rates.
Mexico's only securities market, the Mexican Stock Exchange (in Spanish, la Bolsa Mexicana de Valores, or BMV) has its headquarters in Mexico City. Established in 1886 as the Mexican Mercantile Exchange, it adopted its current name in 1975 and is the second-largest stock exchange in Latin America (after Brazil). Its trading system is fully electronic, and its main index is the IPC. Taobiz explains Mexican Stock Exchange (MEX) .MX The types of securities exchanged through the BMV include stocks, debentures, government and corporate bonds, warrants and other derivatives. Shares of initial public offerings can be made available through the BMV. The Mexican Stock Exchange's roles include facilitating securities trading, making securities information available to the general public, promoting fair market practices, ensuring transparency and contributing to the growth of jobs and the economy in Mexico.
1. A U.S. denominated bond that trades outside of the United States. Along with the principal, any coupon payments from the bond are paid in U.S. funds.2. A bond with a price that is quoted in dollars, rather than based on its yield to maturity. |||1. Non-U.S. firms and governments will often issue bonds denominated in U.S. currency in a bid to attract U.S. investors and/or hedge currency risks. There is less currency risk on dollar bonds for U.S.-based investors looking to access international debt markets when compared to the purchase of non-U.S. denominated bonds.2. For example, suppose that a 10-year bond has a current yield to maturity of 3.83% and a current price of $850. If this bond were quoted in terms of yield it would be quoted as 3.83% but if it were being quoted in dollar terms the bond would be quoted as $850.
A general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed. Taobiz explains Mergers And Acquisitions - M&A An example of a major merger is the merging of JDS Fitel Inc. and Uniphase Corp. in 1999 to form JDS Uniphase. An example of a major acquisition is Manulife Financial Corporation's 2004 acquisition of John Hancock Financial Services Inc. The term M&A also refers to the department at financial institutions that deals with mergers and acquisitions.
A guarantee placed on a loan on behalf of the borrowing party by the borrowing party's parent company or stockholder. By guaranteeing the loan for its subsidiary company, the parent company provides assurance to the subsidiary company's lenders that the subsidiary company will be able to repay the loan. The guarantee requires the parent company to repay the loan if the subsidiary is unable to. |||A downstream guarantee can be undertaken in order to help a subsidiary company obtain debt financing that it otherwise would be unable to obtain, or to obtain funds at interest rates that would be lower than it could obtain without the guarantee from its parent company. This is because, once backed by the financial strength of the parent company, the subsidiary company's risk of defaulting on its debt is considerably less. It is similar to one individual cosigning for another for a loan.
A non-cash asset paid to the shareholders of a corporation that is being acquired or is the target of a merger. Theses securities generally consist of bonds, options, preferred stock and warrants, among others. Taobiz explains Merger Securities Merger securities can become undervalued when large investment firms are required to sell them as a result of their strict investment requirements. For example, a large mutual fund may receive stock options from an acquiring company when one of the companies held in its portfolio is purchased. If the fund has a policy against holding options, it may be required to sell them, which can then cause the price of the options to fall to very low levels.