abu yahya's definitions
(ECONOMICS) money that is used by a business to buy fixed capital or circulating capital. For a very new company or a company expanding extremely quickly, finance capital can sometimes be used to pay workers (before revenues overtake operating costs).
Finance capital can be borrowed from a commercial bank, raised by an investment bank (through an issue of stock; see initial public offering) or though a bond issue, commercial paper, or even a repurchase agreement.
Finance capital can be borrowed from a commercial bank, raised by an investment bank (through an issue of stock; see initial public offering) or though a bond issue, commercial paper, or even a repurchase agreement.
by Abu Yahya September 25, 2010
Get the finance capitalmug. (ECONOMICS) seasonally adjusted annualized rate.
Economic statistics are often reported as rates of change from month to month, or quarter to quarter. However, some months, such as November and December, have very high retail sales, while May through September have very high home sales. For this reason, data is sometimes "seasonally adjusted" to offset ordinary seasonal variations.
The US Federal Reserve System reports changes in GDP from quarter to quarter in annualized form; so, for example, during the last quarter of 2004, US GDP was (about) $3,044.6 billion. But it was reported as an annualized (and seasonally adjusted) $11734.9. If you divide that by 4 you get 2957.8, which reflects the fact that the Fed shaved 86.8 billion off its estimate of economic activity for 2004Q4 and reallocated it to Q1 & Q2.
The reason the Fed (and everyone else) does this is to measure economic change separately from the usual seasonal change in business activity.
Economic statistics are often reported as rates of change from month to month, or quarter to quarter. However, some months, such as November and December, have very high retail sales, while May through September have very high home sales. For this reason, data is sometimes "seasonally adjusted" to offset ordinary seasonal variations.
The US Federal Reserve System reports changes in GDP from quarter to quarter in annualized form; so, for example, during the last quarter of 2004, US GDP was (about) $3,044.6 billion. But it was reported as an annualized (and seasonally adjusted) $11734.9. If you divide that by 4 you get 2957.8, which reflects the fact that the Fed shaved 86.8 billion off its estimate of economic activity for 2004Q4 and reallocated it to Q1 & Q2.
The reason the Fed (and everyone else) does this is to measure economic change separately from the usual seasonal change in business activity.
In Brazil, household spending continued to ease to 0.8% quarter-to-quarter (3.1% SAAR) from 1.4% q/q (5.6% SAAR) in Q1 2010, and investment lost momentum, increasing 2.4% q/q (9.8% SAAR) compared with 7.3% q/q (32.4% SAAR) in Q1.
{Nouriel Robuini, "RGE's Wednesday Note - Brazil's Economy Exhales" (10 Sep 2010)}
{Nouriel Robuini, "RGE's Wednesday Note - Brazil's Economy Exhales" (10 Sep 2010)}
by Abu Yahya September 8, 2010
Get the SAARmug. (FINANCE) a financial derivative that entitles the owner to buy a fixed amount of X for a fixed price (the strike price) by a specific date in the future. If this is an equity derivative, X is referred to as the underlying stock.
A call option allows one to reap profits from an increase in price of a traded item without actually buying the asset itself. Since it is an option, one is not compelled to exercise it if it not advantageous to do so; however, the party that initially issued the option (i.e., the one who "wrote" the option) is legally obligated to honor the option.
When the strike price of a call option is more than the current market price of the asset (i.e., its "spot price"), then it has no intrinsic value and is "out of the money."
A call option allows one to reap profits from an increase in price of a traded item without actually buying the asset itself. Since it is an option, one is not compelled to exercise it if it not advantageous to do so; however, the party that initially issued the option (i.e., the one who "wrote" the option) is legally obligated to honor the option.
When the strike price of a call option is more than the current market price of the asset (i.e., its "spot price"), then it has no intrinsic value and is "out of the money."
Buying a call option is one way to take a long position on the underlying asset.
Writing a call is a way to take a short position.
Writing a call is a way to take a short position.
by Abu Yahya April 15, 2010
Get the call optionmug. (FINANCE) market price of a traded stock, commodity, currency, or bond at a specific point in time. For example, right now it's 5 April 2010 08:10 (GMT), and the spot price of WTI crude is $85.56/bbl. Spot price is the price at a specified time on a specific market.
by Abu Yahya April 5, 2010
Get the spot pricemug. to introduce a thing as currency, e.g., silver, gold, copper. In nearly all cases, when something has been monetized, it is legal tender and debtors are legally obligated to accept it as payment for debt.
Debt can also be monetized. A government can either buy the debt of companies whose growth it favors as a matter of policy (as in pre-War Japan) or permit its own bonds to be be used as banking reserves (for the creation of money).
Debt can also be monetized. A government can either buy the debt of companies whose growth it favors as a matter of policy (as in pre-War Japan) or permit its own bonds to be be used as banking reserves (for the creation of money).
by Abu Yahya January 23, 2009
Get the monetizemug. (ECONOMICS) debt owned by a national government to all creditors foreign and domestic. Backed by the national government's power to tax.
Even after the International Monetary Fund worked out a bailout for Greece, other sovereign debt crises could still arise in Spain, Portugal, and Italy.
by Abu Yahya May 5, 2010
Get the sovereign debtmug. In economics, a policy in which the authorities insist on some permanent, precise guarantee of the value of the local currency to some other thing: a unit measure of gold, the US dollar, the euro, or the pound. Historically, the US dollar had a hard peg to gold from 1946 to 1971, while other currencies in the developed world had a hard peg to the US dollar. Since 1971, most of the world's money is in floating currency (whose relative value is set by the free market).
Nonetheless, advocates of hard pegs frequently downplay the ... difficulties of establishing greater nominal flexibility in fiscal spending and wages...
by abu yahya June 24, 2008
Get the hard pegmug.