Month: November 2020

Cum laude is Latin for with distinction or with honor and represents an academic level of achievement. Educational institutions use the phrase to signify an academic degree that was received with honor.

An options contract is an agreement between two parties to facilitate a potential transaction on the underlying security at a preset price, referred to as the strike price, prior to the expiration date.

The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rather than lend out or invest. This is a requirement determined by the country’s central bank, which in the United States is the Federal Reserve. It is also known as the cash reserve ratio.

A Walrasian Market is an economic model of a market process in which orders are collected into batches of buys and sells and then analyzed to determine a clearing price that will decide the market price. This is also referred to as a call market.

A blotter is a record of trades and the details of the trades made over a period of time (usually one trading day). The details of a trade will include such things as the time, price, order size, and a specification of whether it was a buy or sell order. The blotter is usually created through a trading software program that records the trades made through a data feed.

Structural unemployment is a longer-lasting form of unemployment caused by fundamental shifts in an economy and exacerbated by extraneous factors such as technology, competition, and government policy. Structural unemployment occurs because workers’ lack the requisite job skills or workers live too far from regions where jobs are available and cannot move closer. Jobs are available, but there is a serious mismatch between what companies need and what workers can offer.

A blue chip is a nationally recognized, well-established, and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.

Yield pickup is the additional interest rate an investor receives by selling a lower-yielding bond and buying a higher-yielding bond. The yield pickup is done to improve the risk-adjusted performance of a portfolio.

A blue chip is a nationally recognized, well-established, and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.

Yield pickup is the additional interest rate an investor receives by selling a lower-yielding bond and buying a higher-yielding bond. The yield pickup is done to improve the risk-adjusted performance of a portfolio.