An index of all NASDAQ-listed shares, both domestic and foreign, weighted by market capitalization. A widely followed, broad-based index of nearly 3,000 companies.
Morgan Stanley Capital International Indices are global, regional and national equity and fixed income market indices. They are widely used by portfolio managers and institutional investors to assess the performance of their funds against those of the underlying markets.
The New York Stock Exchange, also known as the “Big Board,” is the largest equity exchange in the world based on the total market capitalization of its listed securities. Formerly a private company, it went public in 2006 and at the same time acquired electronic trading exchange Archipelago. The parent company of the New York Stock Exchange is now called NYSE Euronext, following a merger with the Euronext group of European exchanges in 2007.
A long or short position in the market that has not been hedged or covered. Gains and losses are greater when a position is unhedged.
The current market worth of a mutual fund share. Calculated daily by taking the funds total assets securities, cash and any accrued earnings deducting liabilities, and dividing the remainder by the number of shares outstanding.
Total direct debt of a municipality less all self-supporting debt, any sinking funds, and short-term debt such as tax anticipation notes and revenue anticipation notes.
The traditional method of calculating bids for new issues of municipal securities. The total dollar amount of interest over the life of the bonds is adjusted by the amount of premium or discount bid, and then reduced to an average annual rate. The other method is known as the true interest cost (see also true interest).
Unadjusted for inflation. A calculation of nominal economic growth simply adds up the total of goods and services in current cash terms and makes no adjustment for inflation, which may lead to great overstatement of the real position.
A bond that cannot be called for redemption by the issuer before its specified maturity date.
Bonds not considered suitable for preservation of invested capital; ordinarily, those rated Baa3 or below by Moody’s Investors Service, or BBB- or below by Standard & Poor’s Corporation. Bonds that are non-investment grade are also called high-yield bonds.
A pension plan that does not meet the requirements for preferential tax treatment. This type of plan allows an employer more flexibility and freedom with coverage requirements, benefit structures, and financing methods.
Short-term bonds to pay specified amounts of money secured by specified sources of future revenues, such as taxes, federal and state aid payments, and bond proceeds.
A stated principal amount in an interest rate swap on which the swap is based.
The hypothetical amount on which interest payments are based in products such as interest rate swaps and forward rate agreements.