Z-Bond
What is 'Z-Bond' The final tranche in a series of mortgage-backed securities that is the last one to receive payment. Used in some collateralized mortgage obligations (CMO), Z-bonds pay no coupon payments while principal is being paid on earlier bonds. Interest that would have been paid on Z-bonds is used instead to pay down principal more rapidly...
Naked Position
What is 'Naked Position' A securities position that is not hedged from market risk. Both the potential gain and the potential risk are greater when a position is naked instead of covered (a covered position is hedged from market risk). Explaining 'Naked Position' If an investor simply holds 500 shares of Ford, he or she...
Wachovia Hybrid and Preferred Securities (WHPPSM) Indicies
What is 'Wachovia Hybrid and Preferred Securities (WHPPSM) Indicies' Market capitalization weighted indicies designed by Wachovia to measure the performance of the U.S. preferred shares in addition to five other specialized indecies. The Wachovia Hybrid and Preferred Securities (WHPS) Aggregate Index consist of preferred securities representing in excess of $100 billion in total market value. The specialized...
Macro Accounting
What is 'Macro Accounting' Accounting for the total or aggregate economic activities of a nation. Macro accounting forms the basis for the official statistics that summarize a nation's economic development and performance, and looks at the whole economic picture rather than focusing on individuals or single companies. Also known as "national accounting. Explaining...
J. Harold Chandler
What is 'J. Harold Chandler' The current COO of Univers Workplace Benefits and a former president, CEO and chairman of disability insurance provider Unum Provident. In 1993, Chandler became president and CEO of Provident Life and Accident Company of America. Provident was doing poorly, but Chandler helped return the company to profitability through changes such as the...
OEX
What is 'OEX' The ticker symbol used to identify index options traded on the Standard & Poor's 100 index. OEX options are listed with a letter code indicating the month code for puts and calls, and a letter code indicating the strike price. Strike prices greater than five points use three letters to indicate which group of...
W-2 Form
What is the 'W-2 Form' The W-2 form is the form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of the year. The W-2 form reports an employee's annual wages and the amount of taxes withheld from his or her paycheck. Explaining 'W-2 Form' A W-4 is a form that individuals complete for...
K-Ratio
What is 'K-Ratio' A ratio that is used in the performance evaluation of an equity relative to its risk. The ratio examines the consistency of an equity's return over time. The data for the ratio is derived from a value added monthly index (VAMI), which tracks the progress of a $1,000 initial investment in the security being...
T-Account
What is a T-account A T-account is a visual representation of the ledger of a business or individual. It is so named because it looks like the letter T when drawn on a page. The left side of the T-account represents Debits and is typically labeled "left" or "L". The right side represents Credits and is typically labeled "right" or...
Ragnar Frisch
What is 'Ragnar Frisch' A Norwegian economist and joint winner in 1969 of the very first Nobel Prize in Economics, along with Jan Tinbergen, for his research in econometrics. Ragnar Frisch's other areas of research included time series, linear regression analysis, production theory and business cycles. He worked to establish economics as a science, founded the Econometric...