March 2011
Beginner
192 pages
4h 30m
English
Glossary
best execution.
The obligation of a broker to find the best price for his customer given the time of the order, the size of the order, and a variety of other factors.
bilateral contracts.
An agreement between two parties in which both parties exchange reciprocal promises.
Blue Sky.
The Blue Sky Laws are the regulatory framework created by the individual states that make up the United States. Thus, there are two tiers of regulation in the United States: a federal level and a state level.
central counterparty.
Acts as the seller to every buyer and the buyer to every seller to negate the risk that one party becomes insolvent before netting or settlement takes place.
collateralized debt obligation.
A financial instrument whose value is correlated to a portfolio of fixed income assets, such as bonds and loans.
credit risk.
The risk a counterparty will not settle a transaction. This can be the customer side of a transaction or the market side as a result of a market counterparty failing to settle a trade.
custodian.
Financial institution that is responsible for the record keeping and servicing of customer assets, typically a bank or broker.
custody risk.
Risk associated with the insolvency of a custodian of securities or cash or the occurrence of other circumstances preventing the custodian from delivering securities or cash on request.
debentures.
A debt security that has only a corporation's future profits as security for future payment.
dematerialized.
Not in physical form ...
