Financial Theory Terms

  1. Subprime Credit

  2. Subprime Credit Card

  3. Subprime Market

  4. Subprime Meltdown

  5. Subscription Right

  6. Super Floater

  7. Supply

  8. Supply Chain Management - SCM

  9. Suspicious Activity Report - SAR

  10. Swap Dealer

  11. Swap Transferring Risk With Participating Element - STRIPE

  12. SWOT Analysis

  13. Synergy

  14. Synthetic

  15. Systematic Risk

  16. T Distribution

  17. Tainted Alpha

  18. Target Rate

  19. Tariff War

  20. Tax-Exempt Security

  21. Tech Bubble

  22. Technical Progress Function

  23. Technocracy

  24. Term

  25. Terminal Value - TV

  26. Terotechnology

  27. Theory Of The Firm

  28. Thomas C. Schelling

  29. Throughput

  30. Tier 1 Common Capital Ratio

  31. Tight Monetary Policy

  32. Time Horizon

  33. Time Series

  34. Time Value of Money - TVM

  35. Time-Period Basis

  36. Time-Preference Theory Of Interest

  37. Tit For Tat

  38. Tjalling C. Koopmans

  39. Toehold Purchase

  40. Top-Down Analysis

  41. Total Bond Fund

  42. Total Liabilities

  43. Total Utility

  44. Trade Surplus

  45. Trading Strategy

  46. Traditional Theory Of Capital Structure

  47. Tragedy Of The Commons

  48. Transaction Deposit

  49. Transfer Of Risk

  50. Traveler's Dilemma

  51. Tree Diagram

  52. Trembling Hand Perfect Equilibrium

  53. Treynor Index

  54. Treynor Ratio

  55. Treynor-Black Model

  56. Tri-Star

  57. Trimmed Mean

  58. Trinomial Option Pricing Model

  59. Triple Exponential Average - TRIX

  60. Trygve Haavelmo

  61. Turnkey Solution

  62. Turtle

  63. Tweezer

  64. Tying

  65. Type I Error

  66. Type II Error

  67. Unconditional Probability

  68. Uncovered Interest Arbitrage

  69. Uncovered Interest Rate Parity - UIP

  70. Underinvestment Problem

  71. Undervalued

  72. Unearned Discount

  73. Uneconomic Growth

  74. Unlevered Cost Of Capital

  75. Unlevered Free Cash Flow - UFCF

  76. Unrealized Loss

  77. Unsold Inventory Index

  78. Unsterilized Foreign Exchange Intervention

  79. Unsystematic Risk

  80. Utilitarianism

  81. Valuation Analysis

  82. Value At Risk - VaR

  83. Value Averaging

  84. Value Chain

  85. Value Network Analysis

  86. Variability

  87. Variable Interest Entity - VIE

  88. Variance

  89. Vasicek Interest Rate Model

  90. Vertical Integration

  91. Viral Site

  92. Volatility Skew

  93. Walras' Law

  94. Waterfall Payment

  95. Weak Form Efficiency

  96. Weekend Effect

  97. Weighted Alpha

  98. Weighted Average

  99. Welfare Economics

  100. What-If Calculation

Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  3. 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.
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  5. 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.
  6. 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.
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