A global recession is an extended period of economic decline around the world. The International Monetary Fund (IMF) uses a broad set of criteria to identify global recessions, including a decrease in per-capita gross domestic product (GDP) worldwide. According to the IMF’s definition, this drop in global output must coincide with a weakening of other macroeconomic indicators, like trade, capital flows, and employment.
Dim sum bond is a bond denominated in Chinese renminbi and issued in Hong Kong. Dim sum bonds are attractive to foreign investors who desire exposure to renminbi-denominated assets, but are restricted by China’s capital controls from investing in domestic Chinese debt.
A falling knife is a colloquial term for a rapid drop in the price or value of a security. The term is commonly used in phrases like, don’t try to catch a falling knife, which can be translated to mean, wait for the price to bottom out before buying it. A falling knife can quickly rebound – in what’s known as a whipsaw—or the security may lose all of its value, as in the case of a bankruptcy.
A quote is the last price at which a security or commodity traded, meaning the most recent price to which a buyer and seller agreed and at which some amount of the asset was transacted. The bid or ask quotes are the most current prices and quantities at which the shares can be bought or sold. The bid quote shows the price and quantity of which a current buyer is willing to purchase the shares, while the ask shows what a current participant is willing to sell the shares for.
Give up is a procedure in securities or commodities trading where an executing broker places a trade on behalf of another broker. It is called a give up because the broker executing the trade gives up credit for the transaction on the record books. A give up usually occurs because a broker cannot place a trade for a client based on other workplace obligations. A give up may also happen because the original broker is working on behalf of an interdealer broker or prime broker.
BAT is an acronym referring to Baidu Inc. (BIDU), Alibaba Group Holding Ltd. (BABA) and Tencent Holdings Ltd. (0700.Hong Kong, TCEHY), three large Chinese internet stocks often likened to Alphabet Inc. (GOOG) subsidiary Google, Amazon.com Inc. (AMZN) and Facebook Inc. (FB). The BATs are often compared to the FANGs—or variations—which comprise Facebook, Amazon, Netflix Inc. (NFLX) and Alphabet.
An unsuitable investment is when an investment— such as a stock or bond—does not meet the objectives and means of an investor. The investment strategy may also be unsuitable. For example, the portfolio asset mix could be wrong, or the investments purchased may be too aggressive or low-risk for what the client needs or wants.
BAT is an acronym referring to Baidu Inc. (BIDU), Alibaba Group Holding Ltd. (BABA) and Tencent Holdings Ltd. (0700.Hong Kong, TCEHY), three large Chinese internet stocks often likened to Alphabet Inc. (GOOG) subsidiary Google, Amazon.com Inc. (AMZN) and Facebook Inc. (FB). The BATs are often compared to the FANGs—or variations—which comprise Facebook, Amazon, Netflix Inc. (NFLX) and Alphabet.
An unsuitable investment is when an investment— such as a stock or bond—does not meet the objectives and means of an investor. The investment strategy may also be unsuitable. For example, the portfolio asset mix could be wrong, or the investments purchased may be too aggressive or low-risk for what the client needs or wants.
In an adhesion contract, one party has substantially more power than the other in creating the contract. For a contract of adhesion to exist, the offeror must supply a customer with standard terms and conditions that are identical to those offered to other customers. Those terms and conditions are not negotiable.