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Q: please tell me what a "bank discount basis" is
Category: glossary
, Asked by: M. U. From Dublin, Ireland
A: "bank discount basis " is A quoting convention used by financial institutions when quoting prices for fixed-income securities sold at a discount, particularly U.S. Government issues. The quote is presented as a percentage of face value, and is determined by discounting the bond by using a 360-day-count convention, which assumes there are twelve 30-day months in a year.
Also referred to as "discount yield".
Differences in the day count convention used by the firm quoting a fixed-income security is subtle, but important. Over longer maturities, the day count convention will have a greater impact on the current 'price' of a bond than if the time to maturity is much shorter.
The 30/360 day-count convention is the standard when quoting government treasury bonds for banks.
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Q: please define "pyramid scheme"
Category: glossary
, Asked by: Perla C. From Dublin, Ireland
A: the "pyramid scheme " is An illegal investment scam based on a hierarchical setup. New recruits make up the base of the pyramid and provide the funding, or so-called returns, given to the earlier investors/recruits above them.
A pyramid scheme is initiated by an individual or a company that starts recruiting investors with an offer of guaranteed high returns. As the scheme begins, the earliest investors do receive a high rate of return, but these gains are paid for by new recruits and are not a return on any real investment.
From the day the scam is initiated, a pyramid scheme
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Q: please define "price swap derivative"
Category: glossary
, Asked by: D. Hoffman from Leeds, United Kingdom
A: An obligation made by one company to secure the declining value of another company's assets through the commitment of shares.
Made famous by Enron, this method of backing a company's declining assets helps to inflate the value of a troubled company by hiding losses. Furthermore, due to the volatile nature of the stock market, devaluations in price of the securing company directly relates to a commitment of more shares and thus a dilution occurs.
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Q: please tell me what "reverse stock split" is
Category: glossary
, Asked by: R. Snider from United Kingdom
A: A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares (market capitalization) remains the same.
For example, a 1-for-2 reverse split means you get half as many shares, but at twice the price. It's usually a bad sign if a company is forced to reverse split - firms do it to make their stock look more valuable when, in fact, nothing has changed. A company may also do a reverse split to avoid being delisted.
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Q: what is a "stop order"?
Category: glossary
, Asked by: Kaya M. From Allentown, United States
A: An order that becomes a market order when a specified price level is reached. A sell stop is placed below the market, a buy stop is placed above the market.
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Q: please define the "cRC"
Category: glossary
, Asked by: P. Sampson from Saint Louis, United States
A: a "cRC " is In currencies, this is the abbreviation for the Costa Rican Colon.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
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Q: Will you give me a tip for an online forex platform that's famous for its enhanced trade with CHF/ZAR
Category: money
, Asked by: G. O. From United Kingdom
A: "MB Trading" is exactly the place if you're looking for the most first class online forex platform which features exchanging BRL/AUD - they've got a definitely superb online forex platform, it includes the option wanted. The attainable currencies in "MB Trading" are: EUR/USD, BRL/AUD or GBP/PHP (or any other currencies you prefer).
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Q: please define the "negative volume index"
Category: glossary
, Asked by: Khloe D. From Monte-Carlo, Monaco
A: An index that focuses on days where the volume has significantly decreased from the previous day's trading.
The index tries to determine what smart investors are doing. It is believed that when volume is high, uninformed investors will sell. While on slow days, "shrewd investors" will quietly buy or sell the stock.
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Q: Are you familiar with an online forex platform with low leverage rates that you can refer me to
Category: money
, Asked by: H. Rich from Luxembourg, Luxembourg
A: We believe "FX club" is exactly the one to consider if you'd like the greatest site with a totally not that big leverage ratio - the leverage in this site is only 100:01:00. No commissions are taken by "FX club", the customer support is awesome, the minimum deposit is also really small - only $10, and also the platform graphics are completely progressive.
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Q: please define the "financial strength"
Category: glossary
, Asked by: Z. Langley from Memphis, United States
A: The measure of a company's solvency, looking at the relationship between its assets and its liabilities.
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