Glossary – Financial Markets & Institutions
Glossary – Financial Markets & Institutions
________________________________________
A
advances
A bank's borrowings from the Federal Reserve System. Also known as discount loans.
adverse selection
The problem created by asymmetric information before a transaction occurs: the people who are the most undesirable from the other party's point of view are the ones who are most likely to want to engage in the financial transaction.
agency theory
The analysis of how asymmetric information problems affect economic behavior.
American depository receipts (ADR)
A receipt for foreign stocks held by a trustee. The receipts trade on U.S. stock exchanges instead of the actual stock.
American option
An option that can be exercised at any time up to the expiration date of the contract.
amortized
Paid off in stages over a period of time. Each payment on a loan consists of the accrued interest and an amount that is applied to repay the principal. When all of the payments have......
View the rest of this paper...
Approximate Word Count: 8935
Approximate Pages: 36 (250 words per double-spaced page)
Why should you join Frat Files?
- - It's safe, secure, and private.
- - Instant access to over 100,000 papers. New papers are added hourly.
- - Fast and reliable customer support.
Frat Files
Members
Information
© 2009 FratFiles.com.