A comprehensive A-to-Z listing of 2,500 financial terms
- Theory that says a country's trade deficit will initially worsen after its currency depreciates because higher prices on foreign
imports will more than offset the reduced volume of imports in the short-run.
- Jensen index
- An index that uses the capital asset pricing model to determine whether a money manager outperformed a market index. The " alpha " of an investment or investment
- Joint account
- An agreement between two or more firms to share risk and financing responsibility in purchasing
or underwriting securities.
- Joint clearing members
- Firms that clear on more than one exchange.
- Jumbo loan
- Loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase
or securitization by the federal agencies.
- Junk bond
- A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower is a junk or high yield bond. Such bonds offer investors higher yields than bonds of financially sound
companies. Two agencies, Standard & Poors and Moody's investor Services, provide the rating
systems for companies' credit.
- Junior debt (subordinate debt)
- Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have
been satisfied. Subordinated debt.
- Just-in-time inventory systems
- Systems that schedule materialsinventory to arrive exactly as they are needed in the