 A-According to formula - The structured product is reimbursed according to a formula. |
| A-Adjustable rate income - The income is adapted according to an added collateral, as mortgages and mortgage backed securities. |
| A-ADR-American depositary receipts - American dpositary receipts.
Depositary receipts of depositary banks in the US. |
| A-Agriculture and forestry - Agriculture and forestry underlying assets for a commodity future.
Agricultural examples: soybeans, rice, potatoes, oats, cocoa, coffee, cotton, sugar,..
Livestock and meat examples: lean hogs, pork, live cattle, ... |
| A-Allotment right - When a share issue is oversubscribed, the shares are allocated to the subscribers. This is often done in proportion to the subscriptions. |
| A-American - The exercese of the option is possible from purchase date till expiration date. |
| A-Amortization plan - The issuer refunds the debt following a predefined amortization plan. |
| A-Asset backed debt - Structured financial product representing debts collateralized by assets such as student-loan, credit-card, auto-loan receivables or other personnal assets with exception of real estate. |
| A-Automobile loan - Automobile as collateral for a debt instrument |
| A-Fixed annuity - Fixed amount payd per year. Is commonly paid in respect of an insurance contract.
The annuitites are paid during a number of years or until the death of the beneficiary.
The annuities are earned by payments made in the past or by a one time payment. |
| A-Redeemable exchangeable extendible - The shareholder has the option to sell back his share at issue price (or the price agreed at issuance). The option can be exercised at certain period(s) in time.
The holder of the preferred share has the option to exchange his preferred shares, during a predefined period, against common shares of a different corporation.
The preference treatment is lenghtened in time.
Example: if a fixed dividend is paid to the preferred shares before any other dividend payment,
if the benefits of the year do not allow the payment of such preference dividend,
then the preferred dividends shall be paid from the later benefits, as soon as the profits permit the payment. And this before any oither dividend payment. |
| A-Registered depositary receipt - A receipt issued by a local bank against deposit of shares of a foreign company.
The receipts are registered with the control authorities of the residence of the depositary.
The purpose is easying the trade of these receipts on the local markets. |
| A-Sponsored AMPS - Sponsored by Merrill Lynch Auction Market Preferred Stock
The rate is adjustable and the auction is of the Dutch type: all stock will be traded at the lowest price allowing all offerings to be sold. |
 Assets in fund - The assets in which the fund invests. |
| Attribute1 - Corresponds to the 3rd position of the CFI-code and covers different attributes according to the linked CFI-group of instruments. |
| Attribute1None - There is no specific value for the first attribbute |
| Attribute2 - Corresponds to the 4th position of the CFI-code and covers different attributes according to the linked CFI-group of instruments. |
| Attribute2None - There is no value available but none for the attribute. |
| Attribute3 - Corresponds to the 5th position of the CFI-code and covers different attributes according to the linked CFI-group of instruments. |
| Attribute3None - There is no value for the third attribute available. |
| Attribute4 - Corresponds to the 6th position of the CFI-code and covers different attributes according to the linked CFI-group of instruments. |
| Attribute4None - There is no value for the 4th attribute. |
| B-Amoritzation with call - The issuer refunds the debt following a predefined amortization plan.
The issuer has the option to call the bonds for reïmbursement at specified periods during the term of the loan. |
| B-Bearer - A person can bear the financial instrument. |
| B-Bermuda - Options which can only be exercised during a certain period of their life. (source FEF) |
| B-Bond - A financial instrument proving the receivable of a principal sum and eventually periodic interest payments. |
| B-Future financial underlying basket - A group of securities as underlying asset for future.
Often the same constitution as an index. |
| B-Mortgage backed debt - Also called a Mortgage-Backed Security (MBS).
Is a formal promise to repay a debt with as collateral a pool of mortgages.
The underlying mortgages can be payed back in advance or curtailed.
The monthly payments are variable. |
| B-Option on basket - Underlying asset for options is basket of shares. |
| B-Redeemable extendible - The shareholder has the option to sell back his share at issue price (or the price agreed at issuance). The option can be exercised at certain period(s) in time.
The preference treatment is lenghtened in time.
Example: if a fixed dividend is paid to the preferred shares before any other dividend payment,
if the benefits of the year do not allow the payment of such preference dividend,
then the preferred dividends shall be paid from the later benefits, as soon as the profits permit the payment. And this before any oither dividend payment. |
| B-Shares and bonds |
| B-Structured instrument underlying assset basket - A group of securities as underlying asset for structured instruments.
Often the same constitution as an index. |
| B-Subordinated - In case of liquidation of the company, subordinated loans are paid after the normal loans and before the share capital. |
| B-Treasury bond - Debt instrument with maturities of 10 years and longer. |
| B-Underlying basket - Baskets of equities as underlying assets for category other assets. |
 belongs to asset backed security group |
| belongs to debt instrument group |
| belongs to entitlement group |
| belongs to equity group |
| belongs to futures group |
| belongs to group |
| belongs to group other |
| belongs to mortgage backe security group |
| belongs to municipal debt group |
| belongs to options group |
| belongs to package unit group |
| belongs to treasury debt group |
| C-Call - The right to buy the underlying value. |
| C-Call option - The right to buy the underlying value. |
| C-Cash - The delivery of the sales contract is done in cash, not in kind. |
| C-Cash delivery - The difference between the value of the underlying assets in the contract and the actual value is paid/received. |
| C-CBO CDO CFO CLO - The credit risk is differentiated amongst subsequent tranches.
The senior tranche could get a AAA rating, the mezzanine tranches get a lesser
rating, the stock tranches don' t get one eventually.
CBO: collateralized bond obligations
CDO: collateralized debt obligations
CLO: collateralized loan obligations |
| C-Closed end - The sharecapital of the fund is fixed and closed. The shares can normally be traded on the stock exchange.
The value of the shares is the result of offer/demand ratios.
Synonyms: The fund is called closed-end companies in the US. |
| C-Commercial mortgage backed - Also called Commercial Moirtgage Backed Securities (CBMS).
Promise to pay back an amount with commercial real estate mortages as
collateral rather than residential real estates.
The prepayment risk is lesseer than with MBS-bonds. |
| C-Commodities - The fund's assets consists of real estate. |
| C-Commodities future - A future with commodities as underlying assets |
| C-Contingent right - Right to an indemnity if the average price of a security does not reach a certain level before a pre-defined date.
The right has no value is the average level is reached or superseded. |
| C-Convertible bond - A bond which can be converted into shares of the issuer during a pre-defined period of time. |
| C-Convertible shares - The holder can convert the shares into common shares at certain periods in time. |
| C-Covered warrant - Covered warrants are traded on the same markets as the linked equity which they give the right to buy. Retail investors are more confident in buying and selling them. |
| C-Cumulative fixed rate - The owners of preferred shares get a fixed income per share or per facial value or per issue value before any payment of regular dividends to the regular shareholders.
If in year there are not sufficient revenues to compensate for the fixed income of preferred stock holders, the right is carried forward to any year where the payment becomes possible. |
| C-Form3c7 and 144A - 3C7: part of the US company act of 1940 which enables trade in
securites without registration with the SEC (Securities and exchange
commission) as long as the purchasers in the US are registered as
qualified purchasers or accredited investors.
144A: Securities reserved to large institutional investors and
registered with the SEC (Securities exchange commission). |
| C-Future financial underlying currencies - An amount in currencies as underlying asset for the future. |
| C-Option on currencies - Underlying assets for options are currencies. |
| C-Pre refunding - The issuer is in the process of refunding the loan before maturity date. |
| C-Redeemable exchangeable - The shareholder has the option to sell back his share at issue price (or the price agreed at issuance). The option can be exercised at certain period(s) in time.
The holder of the preferred share has the option to exchange his preferred shares, during a predefined period, against common shares of a different corporation. |
| C-Referential instrument currency - The assets traded are foreign currencies. |
| C-Structured instrument underlying assset currency - An amount in currencies as underlying asset for the structured instrument. |
| C-Underlying currency - Foreign currencies are the underlying assets of |
| Call put - Whether the option is a call or a put. |
| Category - Corresponds to the 1st position of the CFI-code and shows the category of security. |
| Classification code |
| Closed or open end fund - Indicates whether the sharecapital of a mutual fund is open or closed to new investors after the startup of the fund. |
| D-Back end load - A fee is paid at the sale/repurchase of the fund. |
| D-Debenture - A formal promesse to pay. |
| D-Debt instruments - A formal promise to repay a debt and eventually interests. |
| D-Debt linked - The owners of preferred shares get an income per share or per facial value or per issue value before any payment of regular dividends to the regular shareholders. The income is linked to a category of debt. Exemple Treasury bill rates at 3 months. |
| D-Derivatives - The fund's assets consists of derivatives. |
| D-Dividend - Fiscal nature dividend as income for structured products. |
| D-Future financial underlying debt - Commercial or government paper [e.g., bonds] as underlying assets.
Example German state debts and US T-bills. |
| D-IDR-International depositary receipt - Depositary receipts from non-US banks of equities.
Allows trade on the local markets of those receipts. |
| D-Option on debt and interest - Underlying assets for options are debt financial instruments. |
| D-Step down - The interest rate is decreased by steps during the term of the loan. |
| D-Structured instrument underlying asset debt and interest - Commercial or government paper [e.g., bonds] as underlying assets for structured instruments..
Example German state debts and US T-bills. |
| D-Underlying debt and interest - Debt securities as underlying assets |
| Delivery - The delivery term of the option. |
| Distribution - The distribution of benefits of funds. |
E-3c7 and regulation s - 3C7: part of the US company act of 1940 which enables trade in
securites without registration with the SEC (Securities and exchange
commission) as long as the purchasers in the US are registered as
qualified purchasers or accredited investors.
Regulation S:
Securities Act of 1933
Congress enacted the Securities Act of 1933 (the “1933 Act,”
the "Truth in Securities Act" or the "Federal Securities
Act") 48 Stat. 74 (May 27, 1933), codified at et seq., in
the aftermath of the stock
market crash of 1929 and during the ensuing Great
Depression. Legislated pursuant to the interstate
commerce clause of the Constitution, it requires that any
offer or sale of securities using the means and
instrumentalities of interstate commerce be registered
pursuant to the 1933 Act, unless an exemption from
registration exists under the law. It was the first major
federal legislation to regulate the offer and sale of
securities. Prior to that time, regulation of securities was
chiefly governed by state laws (commonly referred to as blue
sky laws). When Congress enacted the 1933 Act, it left
in place the patchwork of existing state securities laws to
supplement federal laws in part because there were questions
as to the constitutionality of federal legislation.
|
www.babylon.com/redirects/redir.cgi?type=wikipedia&full_url=http://en.wikipedia.org/wiki/Securities
Act of 1933""
href="http://www.babylon.com/redirects/redir.cgi?type=wikipedia&full_url=http://en.wikipedia.org/wiki/Securities
Act of 1933">See more at
Wikipedia.org...
|
|
| E-Commercial paper - Short-term promissory notes with a reimbusement time of less than 270 days |
| E-Enhanced vote - Enhanced rights for the share: more than 1 vote for each share. |
| E-Equity - The formal representation of ownership interest of a company or similar
entity.
Depending on the company act and the legislation of the country of
incorporation this ownership shall give right to:
- participation in the benefits
- voting rights
- part of the assets, normally valued in currency, in case of
liquidation of the company |
| E-Equity linked - The owners of preferred shares get an income per share or per facial value or per issue value before any payment of regular dividends to the regular shareholders. The income is linked to a basket of shares. |
| E-Escrow receipts - An escrow receipt is the prove of receipt of assets by an escrow agent.
The escrow agent keeps in trust the assets until a contingency or obligations are met. |
| E-European - The exercise of the option is only possible a few days before expiration date. |
| E-Exchangeable - The holder of the preferred share has the option to exchange his preferred shares, during a predefined period, against common shares of a different corporation. |
| E-Extraction resources - Extraction resources as underlying assets for a commodity future.
Examples of energy extraction resources: Crude oil, natural gas, propane, uranium.
Examples of precious metals: gold, silver, platinum, palladium.
Examples of rare metals: Cadmium Cobalt Chromium Germanium Magnesium Manganese Molybdenum Rhodium Selenium Silicon Titanium Tungsten Vanadium Wolframite |
| E-Preference shares - These shareholders are entitled to one or more of:
- a fixed dividend to be paid before any other dividend
- a preferred treatment when liquidating the company
- increased voting rights
The ranking of priority is:
1 Preferred shares or senior preferred stock
2. Preference shares or junior preferred stock
3. Commmon shares |
| E-Refunding - The issuer is in the process of refunding the loan. |
| E-Senior - Asset backed, mortgage backed or other securities are often issued in tranches.
The subscrbers to the first issues of tranches of the debt are senior holders and have priority on the junior holders. |
| F-Financial future - A future with financial instruments as underlying assets. |
| F-Fixed - The structured product is reimbursed at maturity date. |
| F-Fixed income - The fund's assets consists of fixed revenue assets. |
| F-Fixed maturity - The loan is only refundable at maturity date as a one time payment. |
| F-Fixed rate - The interest rate is fixed during the term of the loan. |
| F-Fixed rate income - The owners of preferred shares get a fixed income per share or per facial value or per issue value before any payment of regular dividends to the regular shareholders. |
| F-Form 144A - Securities reserved to large institutional investors and registered with the SEC (Securities exchange commission). |
| F-Forward - A sales contract concluded today to be executed at a later date.
The price and assets are fixed at contract date.
Contrary to futures contracts forwards are not negotiatable since they are concluded between fixed parties. |
| F-Forward term - The sales and purchase occur at a specified time in the future. |
| F-Fully paid - The shares are fully paid. |
| F-Future - A future is a salescontract concluded or purchased now, to be executed in the future.
The execution elements to be fullfilled at expiration date are:
- delivery of the underlying (or compensation for the price difference contract date/delivery date)
- payment of the price |
| F-Future financial underlying futures - Other futures contracts as underlying assets. |
| F-Municipal revenue bond - The principal and interest are guaranteed by the revenues that are generated by the project financed by the bond. |
| F-Mutual funds - Investment companies forming pools to invest cash in assets according to the fund's investment charter. |
| F-Option on futures - Underlying assets for options are futures. |
| Form - The forms for financial instruments other than funds. |
| Fund common underlying asset - The underlying assets for the category Other. |
| Further grouping - Shows further grouping in Attribute 1.
The attribute is used here as a sub-group of the group-code enclosed in the second position of the CFI-code. |
| Future commodity underlying asset - Shows the assets which are underlying to a commodity future. |
| Future delivery - How the underlying assets of futures should be delivered. |
| Future financial underlying asset - Shows the assets which are underlying to a financial future. |
| Future standardized - Whether the future is standardized or not. |
| G-Fixed maturity with call - The loan is refundable at maturity date as a one time payment.
The issuer has on top of that the right to call upon the bonds for global reïmbursement at predefined periods before maturity date. |
| G-Floating - The interest rate is periodically adjustable to market conditions. Synonym with variable rate. |
| G-GDR-Global depositary receipts - These depositary receipts are issued by a depositary bank to issue or trade paper on 2 markets simultaneously. |
| G-Growth fund - The dividends are accrued or reinvested, is thus comprised in the trading price and not paid out |
| G-Guaranteed - The interest and principal payments are secured by a third person/entity. |
| G-Municipal general obligation bond - The principal and interest payments to the bond holders are guaranteed by the municipality. |
| Group - Corresponds to the 2nd position of the CFI-code and shows the group within the category to which the security belongs. |
| Group asset backed debt - Structured financial product representing debts collateralized by assets
such as student-loan, credit-card, auto-loan receivables or other
personnal assets with exception of real estate. |
| Group debt instrument - A formal promise to repay a debt and eventually interests. |
| Group entitlement_Right - The right, during a limited period, to a payment or attribution which
can be optionnal or mandatory and subject to conditions or
unconditionnal. |
| Group entitlement_Right other - Other rights than those under normal going concern conditions of the company. |
| Group entitlement_Right regular - Rights entitled to existing shareholders to:
- subscribe to new shares
- to be granted for free new shares as a dividend or as a bonus
- to be granted an indemnification
- to participate in the benefits of the company |
| Group equity - The formal representation of ownership interest of a company or similar entity.
Depending on the company act and the legislation of the country of
incorporation this ownership shall give right to:
- participation in the benefits
- voting rights
- part of the assets, normally valued in currency, in case of
liquidation of the company |
| Group future - The right to execute a sale of financial products, commodities or services at a defined price on a defined date |
| Group future commodity - A future with commodities as underlying assets |
| Group future financial - A future with financial instruments as underlying assets. |
| Group mortgage backed security - Also called a Mortgage-Backed Security (MBS).
Is a formal promise to repay a debt with as collateral a pool of mortgages.
The underlying mortgages can be payed back in advance or curtailed.
The monthly payments are variable. |
| Group municipal debt - A formal promise to repay a debt issued by a US state or local government
agency. The bond is often exempt from federal and state income tax |
| Group of common share-LPUnits - Normal ownership rights of a company or a limited partnership. |
| Group of depositary receipts - Receipt issued by a depositary bank against receipt of shares. |
| Group of funds - Group of mutual and similar funds. |
| Group of preferred shares - Shares which entitle to a preferred treatment of the holders against common shareholders in het field of:
- attribution of dividends
- rights in case the company is put into liquidation
- voting rights |
| Group option - The right to buy or sell a stock, an index valued in currency or other asset, at a specified price within a predefined period. |
| Group option other - Options with irregular underlying assets. |
| Group option regular - Options with regular underlying assets. |
| Group other assets - Other assets then those in the scope of the sibling groups |
| Group other hybrid_Structured - Products having characteristics of 2 or more basic financial instruments. Example being a debt instrument during a period and converting to an equity. Alternatively or simultaneously the structure can be higly sofisticated with exceptions on the characteristics. |
| Group other referential instrument - Financial instrument whose value is derived from another financial instruments. |
| Group other_Miscelenaous - Other financial instruments. |
| Group package unit - Combination package of different financial instruments. |
| Group treasury debt - A formal promise, issued by the Treaury department, to pay back a stipulated amount, after a longer period of time (10 years or more). |
| Guarantee - The type of guarantee linked to debt and similar instruments. |
| H-Exchangeable - The reïmbursement is optionally done by exchanging the bonds with stock from a third company.
The difference with the convertible bond is that the company is a third one, not the issuer, and the option is with the issuer. |
H-Home equity loan -
A home equity loan (sometimes abbreviated HEL)
is a type of loan in
which the borrower uses the equity in
their home as collateral.
These loans are sometimes useful to help finance major home
repairs, medical bills or college education. A home equity
loan creates a lien against
the borrower's house, and reduces actual home equity.
|
| H-Inflation indexed - The interest rate is periodically indexed according to the inflation rate. |
H-NYRegistry share - New York registry share.
What Unilever says:
Can you explain the difference between Unilever NV ordinary
shares (or depositary receipts thereof) in the Netherlands & the
New York registry shares?
Practically there is no difference. A New York registry share is
a share of Unilever NV's New York registry, representing equity
ownership in Unilever NV, allowing for a part of the capital of
Unilever NV to be outstanding in the US and part in the home
market. New York registry shares are issued by a US transfer
agent and registrar (Citibank, N.A.) on behalf of Unilever NV
and created against the cancellation of the local share by the
local registrar. One New York registry share is the equivalent
of one Unilever NV ordinary share (or depositary receipt
thereof). The dividends on the New York registry shares are paid
in USD.
|
H-Other hybrid or structured -
Wikipedia English - The Free Encyclopedia
Structured products are synthetic investment instruments specially
created to meet specific needs that cannot be met from the standardized
financial instruments available in the markets. Structured products can
be used: as an alternative to a direct investment; as part of the asset
allocation process to reduce risk exposure of a portfolio; or to utilize
the current market trend.
|
| has assets in fund |
| has attribute 1 |
| has attribute 2 |
| has attribute 3 |
| has attribute 4 |
 has category code |
| has closed or open end |
| has commodity futures underlying asset |
| has delivery |
| has entitlement type |
| has financial futures underlying asset |
| has fund distribution |
| has fund form code |
| has further grouping |
| has guarantee |
| has income |
| has no attribute 1 |
| has no attribute 2 |
| has no attribute 3 |
| has no attribute 4 |
| has option delivery |
| has option underlying asset |
| has other assets |
| has ownership |
| has payment status |
| has preferred type |
| has redemption method |
| has regular underlying assets |
| has repayment method |
| has sponsoring |
| has standadized code |
| has standardized code |
| has structured instrument underlying assets |
| has structured products income distribution |
| has term |
| has type of interest |
| has type of scheme |
| has voting rights |
I-Accredited investor -
Accredited investor is a term defined by various
securities laws that delineates investors permitted to
invest in certain types of higher risk investments, limited
partnerships, hedge
funds and angel
investor networks. The term generally includes wealthy
individuals and organizations such as a corporation,
endowment or retirement plans.
|
| I-Income funds - A maximum of the received income in the fund is paid out. |
| I-Increasing rate - The interest rate is periodically increased during the term of the loan. |
| I-Index linked - The owners of preferred shares get an income per share or per facial value or per issue value before any payment of regular dividends to the regular shareholders. The income is linked to an index. Example CAC-40. |
| I-Industrial products - Industrial products as underlying assets for commodity futures.
Examples of industrial metals: aluminium, copper, lead, zinc, tin, aluminium, nickel, recycled steel.
Other examples: ethanol, rubber, palm oil, wool, polypropylene, polyethylene. |
| I-Installment receipts - With the issuance of new shares only part of the issue price has to be paid upon closure of the issuance period.
The balance is paid in installments over a few years.
The shares obtain full benefit of the dividends and voting rights. |
| I-Insurance policies - Insurance policies, mostly life insurances. |
| I-Interest - Fiscal nature interest as income for structured products. |
| I-Option on indices - Underlying asset for options is index. |
| I-Referential instrument indices - The assets traded are amounts coupled to stock indices. |
| I-Structured instrument underlying asset index - Stock index as underlying asset for structured instruments. |
| I-Underlying index - Indices as Underlying assets |
| Income - What is the right of preferred shares on the income of the company. |
| is call or put |
| ISO 10962 - Classification of Financial Instruments - ISO 10962 extended by the US codes is used.
Financial instruments are restricted to securities in the context of the ISO-norm
The code contains 6 positions:
1st position is the category code of the financial instrument
2nd position is the groiup code
3rd position is the first attribute
4th position is the second attribute
5th position is the third attribute
6th position is the fourth attribute |
| J-Junior - Asset backed, mortgage backed or other securities are often issued in tranches.
The subscrbers to the last issues of tranches of the debt are junior holders and have lower priority on the senior holders. |
| J-Municipal TAN - Tax Anticipating Notes.
TANs are issued by states and municipalities in order to finance current operations in anticipation of future tax receipts.
These notes are municipal securities that are one-year, interest-bearing debt obligations. |
| J-Trust preferred securities - A hybrid debt and equity instrument.
A company establishes a trust.
The trust issues preferred shares.
The company borrows from that trust. |
K-Bankers acceptance -
A bankers' acceptance, or BA, is a time draft drawn
on and accepted by a bank.
Before acceptance, the draft is not an obligation of the
bank; it is merely an order by the drawer to the bank to pay
a specified sum of money on a specified date to a named
person or to the bearer of the draft. Upon acceptance, which
occurs when an authorized bank accepts and signs it, the
draft becomes a primary and unconditional liability of the
bank. If the bank is well known and enjoys a good
reputation, the accepted draft may be readily sold in an
active market.
A bankers acceptance is also a money
market instrument – a short-term discount instrument
that usually arises in the course of international
trade.
|
| K-Exchange traded funds - Mutual funds traded on the exchange markets. |
| K-Fixed maturity with put - The loan is refundable at maturity date as a one time payment.
The holder of the debt instrument can call the issuer of the bond to repurchase, mostly at par, at specified times. |
| L-Common shares class - Common shares can be divided into classes according to the rights of their holders.
Shares of class A or B for instance could give rise to different rights. |
| L-Exchangeable extendible - The holder of the preferred share has the option to exchange his preferred shares, during a predefined period, against common shares of a different corporation.
The preference treatment is lenghtened in time.
Example: if a fixed dividend is paid to the preferred shares before any other dividend payment,
if the benefits of the year do not allow the payment of such preference dividend,
then the preferred dividends shall be paid from the later benefits, as soon as the profits permit the payment. And this before any oither dividend payment. |
| L-Fixed maturity with put call - The loan is refundable at maturity date as a one time payment.
The holder of the debt instrument can call the issuer of the bond to repurchase, mostly at par, at specified times.
The issuer has on top of that the right to call upon the bonds for global reïmbursement at predefined periods before maturity date. |
| L-Floating rate income - The quarterly dividend varies according to a published formula.
The validity of the dividend is determined for a vaying defined period. |
| L-Front end load - A fee is paid at the purchase/subscription of the fund. |
| L-Municipal - A formal promise to repay a debt issued by a US state or local government agency.
The bond is often exempt from federal and state income tax. |
L-Syndicated loan -
A syndicated loan (or "syndicated bank facility") is
a large loan in
which a group of banks work together to provide funds for a
borrower. There is usually one lead bank (the "Arranger" or
"Agent") that takes a percentage of the loan and syndicates the
rest to other banks. A syndicated loan is the
opposite of a bilateral loan, which only involves one borrower and
one lender (often
a bank or financial
institution.) A syndicated loan is a much larger and
more complicated version of a participation loan. There are
typically more than 2 banks involved in a syndication.
|
| L-Treasury bill - Short-term obligation (till 90 days) issued with a discount in stead of bearing interest. |
| M-Debt others |
| M-Future financial underlying other |
M-Manufactured housing -
Manufactured housing (also known as prefab housing)
is a type of housing
unit that is largely assembled in factories and
then transported to sites of use.
|
| M-Miscelenaous other assets |
| M-Mixed fund - Part of the income is paid out. |
| M-Mixed general - The fund's assets are formed by a general mixture of assets. |
| M-Money market funds - Funds investing in money market instruments. |
| M-Option on other underlying assets - Underlying assets for options are other non specified. |
| M-Other assets - Miscellaneous financial instruments with miscellaneous assets as collateral. |
| M-Other miscellenaous - Other financial instrument |
| M-Other option - Other than regular options. |
| M-Other right - Other than regular rights |
| M-Others |
| M-Structured instruments underlying asset other - Other underlying assets for structured instruments. |
| M-Underlying miscellaneous - Miscellenaous assets are the underlying values. |
| N-Bearer and registered - A person can bear the financial instrument.
The security is registered with the local securities control authority. |
| N-Common units - Different classes of securities traded as a unit: eg x shares and y warrants. |
| N-Fully paid no par - The shares are fully paid but not at par value. |
| N-Future financial underlying interest - Government and private interest rates, mostly short term as underlying assets. |
| N-Naked warrant - Naked warrants are issued without accompanying bond and traded separatelly on the market.
Mainly institutionnal investors are trading them. |
| N-Non redeemable exchangeable extendible - The preferred shares are not benefitting of the advantages:
The shareholder has the option to sell back his share at issue price (or the price agreed at issuance). The option can be exercised at certain period(s) in time.
The holder of the preferred share has the option to exchange his preferred shares, during a predefined period, against common shares of a different corporation.
The preference treatment is lenghtened in time.
Example: if a fixed dividend is paid to the preferred shares before any other dividend payment,
if the benefits of the year do not allow the payment of such preference dividend,
then the preferred dividends shall be paid from the later benefits, as soon as the profits permit the payment. And this before any oither dividend payment. |
| N-Non standardized - Non standardized option. |
| N-Non voting rights - No voting rights for the shares. |
| N-Non-Standardizedf future - Non standardized specifications for the underlying assets. |
| N-None - No fiscal nature as income for structured products. |
| N-Normal rate income - The owners of preferred shares get an income per share or per facial value or per issue value before any payment of regular dividends to the regular shareholders. The income is linked to the interest rate at 1 year. Example with saving funds rate as reference. |
| N-Note - A written debt instrument with an amount and evenrtually interest to be paid generally on terms between 1 and 10 years. |
| N-Principal payment - There are no interest payments.
The bonds are issued below par
At maturity date the facial value is refunded. The difference issue value and reïmbursement value is the revenue of the bond. |
| N-Treasury note - Debt instrument with maturities ranking from 1 to 10 years. |
| N-Warrants and bonds |
| O-Collateral mortgage obligation - The CMO is a separate entity of the mortgage debt financial institution.
The CMO is holder of a pool of morgage debts.
The CMO issues debt certificates, bonds, on his turn with the mortgages as collateral.
The bonds are called classes or tranches.
The distribution of the collaterals over the bonds is called the structure.
The whole of the setup is called the deal. |
| O-EDR-European depositary receipt |
| O-Future financial underlying options - Option contracts as undelrying assets. |
| O-Nil paid - There are no payments on the shares |
| O-No load - There is no fee at purchase or sale of the fund.
Probably because the deal is done straight with the issuer of the shares. |
| O-Open end - The sharecapital is open and unfixed.
These parts are normally not traded on the exchanges, they can be purchased directly from the from the company.You have to negatiate them with the emittor. The price will be near the intrinsic value + step in costs (or less step out costs).
Synonyms with mutual funds (US), SICAVs (continental Europe), unit trusts (or OEIC's Open Ended Investment Companies) in the UK. |
| O-Option - The right to buy or sell a stock, an index valued in currency or other
asset, at a specified price within a predefined period. |
| O-Option on options - Underlying assets for options are other options. |
| Option standardized - Whether the options are standardized or not. |
| Option underlying asset - The type of underlying assets of options. |
| Other asset - Shows other underlying assets for special securities. |
| Ownership - What kind of ownership on the security is allowed. |
| P-Future financial underlying spreads - An option spread is the underlying asset for futures contracts. |
| P-Mortgage pass thru CTF - A security backed by a pool of residential mortgage debts.
The payments of principal and interests is passed to the holders of the financial instruments.
Formerly Ginnie Mae and Freddie Mac agencies notably issued these certificates. |
| P-Participating income - The owners of preferred shares share the benefits above a treshold with the owners of regular shares. |
| P-Partly paid - The shares are partly paid. |
| P-Payment in kind - The interest is paid by other means than currencies. |
| P-Perpetual - There is no maturity date. |
| P-Physical - The delivery has to be done in kind, thus physically. |
| P-Physical delivery - The physical delivery must take place at the end of the contract.
The only way to avoid this is to repurchase or sell the contract. |
| P-Precious metal receipt - Gold, silver or platina receipts |
| P-Preferred shares - These shareholders are entitled to one or more of:
- a fixed dividend to be paid before any other dividend
- a preferred treatment when liquidating the company
- increased voting rights
The ranking of priority is:
1 Preferred shares or senior preferred stock
2. Preference shares or junior preferred stock
3. Commmon shares |
| P-Private 144A - Private tradable securities reserved to institutional investors. |
| P-Purchase right - The right to purchase shares at a predefined price during a predefined period. |
| P-Put - The right to sell the underlying value. |
| P-Put option - The right to sell the underlying value. |
| P-Shares and preferred |
| P-Sponsored 144A - Trade applying rule 144A of the US securities act of 1933 only between institutional investors.
These are registered with the SEC. The trade is not restrictioned with provisions applicable normally when the public is treading. |
| P-Structured product repayment perpetual - There is no maturity date for the structured product. |
| Payment status - What is the payment status of the shares by the shareholders. |
| Preferred type - The preference type for preferred shares. |
| Q-Cumulative participating income - The owners of preferred shares share the benefits above a treshold with the owners of regular shares.
If in any year there are not sufficient revenues to compensate for the fixed income of preferred stock holders, the right is carried forward to any year where the payment becomes possible. |
| Q-Perpetual with call - There is no maturity date.
The issuer has on top of that the right to call upon the bonds for global reïmbursement at predefined periods before maturity date. |
| Q-Real estate investment trust - An investment trust owns and manages a pool of commercial properties and
mortgages and other real estate asssets; shares can be bought and sold in
the stock market
|
| R-Common shares series - Shares with common characteristics from voting and dividend point of view. |
| R-Entitlement or right - The right, during a limited period, to a payment or attribution which
can be optionnal or mandatory and subject to conditions or
unconditionnal. |
| R-Interest ratings linked - The interest is linked to the quality rating of the issuer. |
| R-Other referential instrument - Financial instrument whose value is derived from another financial
instrument. |
| R-Ratings linked - The owners of preferred shares get an income per share or per facial value or per issue value before any payment of regular dividends to the regular shareholders. The income is linked to the interest rate paid by companies with similar credit ratings. |
| R-Real estate - The fund's assets consists of real estate. |
| R-Real estate deeds - A deed concerning real estate property.
A deed is a property right or the right to acquire the property. |
| R-Recreational vehicles - Camper, caravan or RV. |
| R-Redeemable - The shareholder has the option to sell back his share at issue price (or the price agreed at issuance). The option can be exercised at certain period(s) in time. |
| R-Referential instrument interest rates - The assets traded are rights to borrow at a specified interest rate. |
| R-Registered - The security is registered with the local securities control authority. |
| R-REPOs - Repurchase agreement.
A sale at the agreement date hold the obligation for the seller to repurchase the security at a specified later date against a specified price. |
| R-Restricted - The transfer of ownership is subject to restrictions.
These restrictions are issued by the SEC (Securities and exchange commisssion) in different regulations. |
| R-Restricted vote - Restriction on the subjects of a vote for the shares |
| R-Shares and rights |
| Redemption - How the debts will be reimbursed. |
| Repayment at maturity - The repayment of hybrid or structured products. |
| Right type - The type of right. |
S-Certificate of deposit -
Certificate of Deposit
A negotiable instrument issued by a bank and payable to the
bearer. CDs pay a stated amount of interest and mature on a
stated date, but may be bought and sold daily in a secondary
market.
|
| S-Common shares - Other than preferred shares. |
| S-Future financial underlying stock equities - Equities are the underlying assets for future contracts. |
| S-Municipal strip - The municipal bond got the coupons stripped off.
These coupons are traded separately. |
| S-Option on stock equities - Underlying assets for options are stock equities. |
S-Regulation s -
Securities Act of 1933
Congress enacted the Securities Act of 1933 (the “1933 Act,”
the "Truth in Securities Act" or the "Federal Securities
Act") 48 Stat. 74 (May 27, 1933), codified at et seq., in
the aftermath of the stock
market crash of 1929 and during the ensuing Great
Depression. Legislated pursuant to the interstate
commerce clause of the Constitution, it requires that any
offer or sale of securities using the means and
instrumentalities of interstate commerce be registered
pursuant to the 1933 Act, unless an exemption from
registration exists under the law. It was the first major
federal legislation to regulate the offer and sale of
securities. Prior to that time, regulation of securities was
chiefly governed by state laws (commonly referred to as blue
sky laws). When Congress enacted the 1933 Act, it left
in place the patchwork of existing state securities laws to
supplement federal laws in part because there were questions
as to the constitutionality of federal legislation.
|
| S-Secured - The borrower pledges assets as collateral for the loan.
If the borrower defaults in reïmbursement or interest payment the collateral will be transformed into loquidities and used to pay the debts. |
| S-Securities - The fund's assets consists of equity securities. |
| S-Services - Services as underlying asset for commodity futures.
Example delivery of electricity. |
| S-SMBS Strips - Stripped mortgage backed securities are issued by institutions which redistribute the cash generated by their pool of mortgage backed securities into a principal part and an interest part separately. |
| S-Sponsored - A foreign company from US point of view chooses a depositary bank in the USA and deposits shares in custody with that bank.
The custody bank issues ADR's (American depositary receipts).
Those receipts are registered with the SEC (Securities and exchange commission) and traded.
The rights of a holder of sponsored ADR's is similar to normal shareholders, including voting rights. |
| S-Spot term - The sales and purchase occurs immediately at the conclusion of the contract. |
| S-Standardized - Standardized option. |
| S-Standardized future - Standard specifications for the underlying assets are used.
Example 25000 kilos of Bintje potatoes, 5 cm minimum in diameter, Bintje gender. |
| S-Structured instruments underlying asset stock equit - Shares as underlying assets for structures products. |
| S-Student loan - Loan to overcome the period of studies. |
| S-Sub voting - Less than 1 vote for each share. |
| S-Subscription right - The right to subscribe to new shares at a predefined price during a predefined period. |
| S-Treasury strips - Separate Trading of Registered Interest and Principal of Securities.
The stripped coupons. |
| S-Underlying stock equity - Stock Equities as underlying assets. |
| Sponsoring - Indicates the possible sponsoring for depositary receipts
A sponsor is some-one who patronizes a third party.
When one patronizes a third party, he takes reponsibility in one or another way for the third party. |
| Structured or hybrid instrument underlying asset - Possible underlying assets for hybrid or strutured products. |
| Structured products income distribution - The fiscal nature of income of hybrid or structured instruments. |
| T-Capital shares - Securities sharing the appreciation or depreciation of the investment portfolio.
This in investment vehicles which do not pay out revenues. |
| T-Extendible - The preference treatment is lenghtened in time.
Example: if a fixed dividend is paid to the preferred shares before any other dividend payment,
if the benefits of the year do not allow the payment of such preference dividend,
then the preferred dividends shall be paid from the later benefits, as soon as the profits permit the payment. And this before any oither dividend payment. |
| T-Fixed to float - The interest rate is fixed during a certain period, adjustable during a next period of the loan term. |
| T-Future financial underlying commodities - Commodities as underlying value for future contracts. |
| T-Government treasury - Secured by the governement treasury.
A government treasury is the office issuing Treasury bills, notes and bonds for account of a government. |
T-Medium term note -
A Medium Term Note (MTN) is a debt note that usually
matures (is paid back) in 5-10 years, but the term may be as
short as one year. They're normally issued on a floating
basis such as Euribor +/- basis points. When they are issued
in euro they are "Euro Medium Term Notes".
|
| T-Option on commodities - Underlying assets on options are commodities. |
| T-Referential instrument commodity - The assets traded are commodities. |
| T-Remic - Real estate mortgage investment conduits issues mortgage backed certificates or bonds.
The collaterals are residential or commercial mortgages.
The benefits are lying is the TaxRreform Act on a fiscal plan. |
| T-Shares and bonds and warrants |
| T-Structured instrument underlying asset commodity - Agricutural, industrial extraction products as underlying assets of structured products. |
| T-Traditional warrant - Warrant issued together with a bond. The issuer of the bond joins the right to acquire shares in his company during a certain predefined period. |
| T-Treasury debt - A formal promise, issued by the Treaury department, to pay back a stipulated amount, after a longer period of time (10 years or more). |
| T-Underlying commodity - Commodities as underlying assets. |
| Term - The term in relation to referential financial instruments. |
| Type of interest - The calculation method of the interest on debt- and similar instruments. |
| Type of scheme - Distinguishes the exercice date or period, the maturity date and other characteristics of an option. |
| U-Auction rate - Dividends are determined at auctions by the issuer for specific time intervals. |
| U-Municipal RAN - Revenue anticipating note.
RANs are issued by states and municipalities in order to finance current operations in anticipation of future revenues. These notes are municipal securities that are one-year, interest-bearing debt obligations. |
| U-Package unit - Combination of several financial instruments. |
| U-Step up - The interest rate is increased by steps during the term of the loan. |
| U-Undefined term - The term of execution of the sale and purchase is not specified. |
| U-Unit investment trusts - A regulated investment company consisting of professional managers who issue redeemable securities representing a portfolio of many different securities; "you can invest in a unit investment trust for as little as 1000. A trust that is registered with the Securities and Exchange Commission (SEC) that purchases and packages a fixed portfolio of bonds. The units representing a fractional, undivided interest in the trust are then sold to investors, and the investor receives periodic interest and, upon maturity of the individual bonds, the redemption value. Unit Investment Trusts are not actively managed, as is a mutual fund.
Source: Campbell R. Harvey's Hypertextual Finance Glossary
Money invested in a portfolio whose composition is fixed for the life of the fund."Shares" in a unit trust are called "redeemable trust certificates, and they are sold at "net asset value" Copyright Campbell
R. Harvey. All Rights Reserved.
Unit Investment Trust (UIT) is a US investment company offering a fixed (unmanaged) portfolio having a definite life. UITs are assembled by a sponsor and sold through brokers to investors.
A UIT portfolio may contain one of several different types of securities. The two main types are stock (equity) trusts and Bond fixed income trusts.
Unlike a mutual fund, a UIT is created for a specific length of time and is a fixed portfolio, meaning that the UITs securities will not be sold or new ones bought, except in certain limited situations (for instance, when a company is filing for bankruptcy or the sale is required due to mergers and acquisitions
This article uses material from Wikipedia and is licensed under the GNU
Free Documentation License |
| U-Unrestricted - There are no restrictions in the transfer of ownership. |
| U-Unsponsored - A US bank acquires shares independently from the foreign company.
Against these shares ADR's (American depositary receipts) are issued by the US bank.
These ADR's are registered with the SEC (Securities and exchange commission) and traded.
The right to vote lies with the depositary bank. |
| V-Convertible preference shares - Preference shares which can be converted into common stock
These shareholders are entitled to one or more of:
- a fixed dividend to be paid before any other dividend
- a preferred treatment when liquidating the company
- increased voting rights
The ranking of priority is:
1 Preferred shares or senior preferred stock
2. Preference shares or junior preferred stock
3. Commmon shares |
| V-Credit card receivable - Loan backed by a credit card receivable. |
| V-Fully paid par value - The shares are fully paid at par value. |
| V-Government agency - Secured by a government or a government agency.
The USA and agencies as Ginnie Mae, Fannie Mae and Freddie Mac are examples. |
V-Private -
Private equity is a broad term which commonly refers
to any type of non-public Ownership
Equity securities that are not listed on
a public exchange. Since they are not listed on a public
exchange, any investor wishing to sell private equity
securities must find a buyer in the absence of a public
marketplace. There are many transfer restrictions on private
securities.
|
| V-Variable - The interest rate varies during the term of the loan according to the specifications of the prospectus |
| V-Voting rights - Normal right to vote: 1 share = 1 vote. |
| Voting right - Shows the extend of the rights to vote for shareholders. |
| W-Bond with warrant - Bond with the warrant still attached, meaning that the time to allow to subscribe to the shares is not yet reached. |
| W-Convertible preferred shares - Preferred shares which can be converted into common stock
These shareholders are entitled to one or more of:
- a fixed dividend to be paid before any other dividend
- a preferred treatment when liquidating the company
- increased voting rights
The ranking of priority is:
1 Preferred shares or senior preferred stock
2. Preference shares or junior preferred stock
3. Commmon shares |
| W-Future financial underlying swaps - Swaps as underlying value for future contracts. |
| W-Option on swaps - Underlying assets on options are SWAPS. |
| W-Shares and warrants |
| W-Warrant - A warrant is the right to acquire shares or other underlying values of an emittor.
There are index and basket warrants, currency warrants, equity warrants which can be calls or puts. |
| W-Whole loan - Whole loans are normally larger in size than accepted following the standards. Several whole loans can be grouped as collateral for a Collateral Mortgage Obligation.
The CMO is a separate entity of the mortgage debt financial institution. The CMO is holder of a pool of morgage debts. The CMO issues debt certificates, bonds, on his turn with the mortgages as collateral. The bonds are called classes or tranches. The distribution of the collaterals over the bonds is called the structure. The whole of the setup is called the deal. |
| X-No attribute 1 - Attribute 1 is not relevant for the group |
| X-No attribute 2 - Attribute 2 is not relevant for the group. |
| X-No attribute 3 - Attribute 3 is not relevant for the group. |
| X-No attribute 4 - Attribute 4 is not relevant for the group. |
| X-Zero then fixed DEFD - At issue of the loan, the interest covering part of the loan term is prepaid by means of an issue premium, from a certain moment on, fixed interest will be paid on the facial value of the bond. |
| Y-Depositary preferred shares - Depositary receipts of preferred stock. |
| Y-Money market instrument - Treasury bills, market paper,..; |
| Y-Municipal BAN - Bond anticipating note.
Short term debt instruments issued until long term instruments are issuable.
The long term debt covers the repayments in principal and interest of the BAN's. |
| Z-Bearer depositary receipt - A receipt issued by a local bank against deposit of shares of a foreign company.
A person can bear the financial instrument. |
| Z-Municipal VRDO - Variable Rate Demand Obligation. (also called VRDN's N stands for Notes).
The interest rate is reset on basis of an index of short-term municipal debt rates. |
| Z-Variable annuities - Insurance program that allows to direct investment in a choice of mutual funds. Meanwhile, one gets tax deferment of earnings and a death benefit guarantee, and one is able to obtain periodic checks for life. |
| Z-Zero discount - At issue of the loan, the interest of the loan is prepaid by means of an issue premium. |