American Depository Shares (ADSs)
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• The security on which the ADR is based
• Trade in the firm's domestic market
,Index construction questions
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• The choices and issues in index construction and management
-What is the target market the index is intended to measure?
-Which securities from the target market should be included?
-How should the securities be weighted in the index?
-How often should the index be rebalanced?
-When should the selection and weighting of securities be re-examined?
Balance sheet lending
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Lenders directly fund the loans originated on their platforms and therefore
assume the credit risk associated with these loans
Equivalent Taxable Yield
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The pretax yield that a taxable bond needs to possess for its yield to be
equal to that of a taxfree municipal bond.
, Market Value-Weighted Index Advantage and Disadvantage
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•Advantage
-Index security weights represent proportions of total market value.
-Index reflects the returns to straightforward portfolio strategies.
•Disadvantage
-The relative impact of a stock's return on the index increases as its price
rises and decreases as its price falls
Bankers' Acceptances
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• A short-term debt instrument issued by a company that is guaranteed by a
commercial bank
• Purchaser authorizes a bank to pay a seller for goods at later date (time
draft)
• When purchaser's bank "accepts" draft, it becomes contingent liability of
the bank ( and marketable)
Repurchase Agreements (RPs)
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• Short-term sales of securities with an agreement to repurchase the
securities at higher price
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• The security on which the ADR is based
• Trade in the firm's domestic market
,Index construction questions
Give this one a try later!
• The choices and issues in index construction and management
-What is the target market the index is intended to measure?
-Which securities from the target market should be included?
-How should the securities be weighted in the index?
-How often should the index be rebalanced?
-When should the selection and weighting of securities be re-examined?
Balance sheet lending
Give this one a try later!
Lenders directly fund the loans originated on their platforms and therefore
assume the credit risk associated with these loans
Equivalent Taxable Yield
Give this one a try later!
The pretax yield that a taxable bond needs to possess for its yield to be
equal to that of a taxfree municipal bond.
, Market Value-Weighted Index Advantage and Disadvantage
Give this one a try later!
•Advantage
-Index security weights represent proportions of total market value.
-Index reflects the returns to straightforward portfolio strategies.
•Disadvantage
-The relative impact of a stock's return on the index increases as its price
rises and decreases as its price falls
Bankers' Acceptances
Give this one a try later!
• A short-term debt instrument issued by a company that is guaranteed by a
commercial bank
• Purchaser authorizes a bank to pay a seller for goods at later date (time
draft)
• When purchaser's bank "accepts" draft, it becomes contingent liability of
the bank ( and marketable)
Repurchase Agreements (RPs)
Give this one a try later!
• Short-term sales of securities with an agreement to repurchase the
securities at higher price
