Financial Theory Terms

  1. Risk Premium

  2. Risk Seeking

  3. Risk-Free Asset

  4. Risk-Free Rate Of Return

  5. Risk-On Risk-Off

  6. Risk-Return Tradeoff

  7. RiskGrades - RG

  8. Robert F. Engle III

  9. Robert W. Fogel

  10. Rocket Scientist

  11. Roll's Critique

  12. Roy's Safety-First Criterion - SFRatio

  13. Rubinomics

  14. Rule Of 72

  15. Rule Of Thumb

  16. Russell Microcap Index

  17. Russell Midcap Index

  18. Sacred Cow

  19. Safe Asset

  20. Safety-First Rule

  21. Sample Selection Bias

  22. Sampling Error

  23. Say's Law Of Markets

  24. Scarcity Principle

  25. Scenario Analysis

  26. Scheffe's Test

  27. Seasonal Industry

  28. Seasonality

  29. Seasonally Adjusted Annual Rate - SAAR

  30. Secondary Mortgage Market Enhancement Act - SMMEA

  31. Sector Breakdown

  32. Secular Market

  33. Securities Exchange Act Of 1934

  34. Security Market Line - SML

  35. Self-Interest

  36. Sell Side

  37. Semi-Strong Form Efficiency

  38. Semivariance

  39. Sensitivity

  40. Senti-Meter

  41. Series 51

  42. Series 86/87

  43. Service Sector

  44. Shadowing

  45. Shapley Value

  46. Sharpe Ratio

  47. Sherman Antitrust Act

  48. Shirkah

  49. Short-Interest Theory

  50. Shortage

  51. Shortfall

  52. Signature Loan

  53. Silver ETF

  54. Singapore Exchange - SGX

  55. Six Forces Model

  56. Six Sigma

  57. Six-Force Model

  58. Skewness

  59. Small Firm Effect

  60. Small Minus Big - SMB

  61. Small-Value Stock

  62. Social Capital

  63. Social Choice Theory

  64. Social Good

  65. Social Sciences

  66. Socialism

  67. Socionomics

  68. Soft Landing

  69. Soft Metrics

  70. Solow Residual

  71. Sortino Ratio

  72. Speculative Bubble

  73. Speculative Flow

  74. Speculative Risk

  75. Spin Out

  76. Spread To Worst

  77. SSE Composite

  78. Stabilization Policy

  79. Standard Deviation

  80. Standby Letter of Credit - SLOC

  81. Standing Mortgage

  82. Star

  83. Starbucks Index

  84. Statistically Significant

  85. Statistics

  86. Steady State Economy

  87. Stimulus Package

  88. Stochastic Modeling

  89. Stochastic Volatility - SV

  90. Stock Market Crash Of 1929

  91. Stock Market Crash Of 1987

  92. Store Of Value

  93. Stress Testing

  94. Strong Form Efficiency

  95. Structured Investment Products - SIPS

  96. Stub

  97. Stutzer Index

  98. Style Analysis

  99. Sub-Asset Class

  100. Subjective Probability

Hot Definitions
  1. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  2. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  3. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
  4. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
  5. Yield Burning

    The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as "burning the yield," is done after the bond is placed in escrow for an investor who is awaiting repayment.
  6. Marginal Analysis

    An examination of the additional benefits of an activity compared to the additional costs of that activity. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions. Marginal analysis is also widely used in microeconomics when analyzing how a complex system is affected by marginal manipulation of its comprising variables.
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