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. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
Trading Center