Investments & Financial Planning

What is a Credit Rating ?

Asked Friday, December 01, 2000 by an anonymous user

CPA Answer:

A credit rating is a published ranking based on detailed financial analysis by a credit bureau. It includes a person or entity's financial history as it relates to its ability to meet debt obligations. The highest or best rating is usually AAA, and the lowest or worst rating is a D. Banks use this information to decide whether to approve a loan or not. A published ranking, based on detailed financial analysis by a credit bureau, of one's financial history, specifically as it relates to one's ability to meet debt obligations. The highest rating is usually AAA, and the lowest is D. Lenders use this information to decide whether to approve a loan
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Investments & Financial Planning

What is a American Depositary Share ( ADS ) ?

Asked Friday, December 01, 2000 by an anonymous user

CPA Answer:

A American Depositary Share (ADS) is a share issued under an American Depositary Receipt agreement which is actually traded.
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Investments & Financial Planning

What is the American Stock Exchange ( AMEX ) ?

Asked Friday, December 01, 2000 by an anonymous user

CPA Answer:

The American Stock Exchange known as the AMEX is the second largest stock exchange in the U.S. The largest is the New York Stock Exchange NYSE. Stocks and bonds traded on the American Stock Exchange tend to be those of smaller companies than on the NYSE. Some index options and interest rate options trading also occurs on the American Stock Exchange.
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Investments & Financial Planning

What is a Basis point ?

Asked Friday, December 01, 2000 by an anonymous user

CPA Answer:

A basis point is One hundredth of a percent 0.01%. It is used to measure changes in or differences between yields or interest rates.
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Investments & Financial Planning

What exchanges are located in Chicago ?

Asked Friday, December 01, 2000 by an anonymous user

CPA Answer:

The Chicago Board of Trade is an exchange where grain, gold, and treasury Bond futures and options are traded. Also the Chicago Board Options Exchange is an exchange where stock options, equity LEAPS, index options, and interest rate options are traded. Also the Chicago Mercantile Exchange is an exchange where financial futures, foreign currency futures, commodity futures, and futures options are traded.
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Investments & Financial Planning

What is the Jensen index ?

Asked Friday, December 01, 2000 by an anonymous user

CPA Answer:

The Jensen index is an index that uses the capital asset pricing model to determine whether a professional money manager outperformed a market index.
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Investments & Financial Planning

What is Leveraged Recapitalization ?

Asked Friday, December 01, 2000 by an anonymous user

CPA Answer:

Leveraged Recapitalization is a strategy used by the target of a hostile company takeover in which the company makes itself less desirable by borrowing a large amount of money and distributing it to its shareholders.
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Investments & Financial Planning

What is the London InterBank Offer Rate ( LIBOR ) ?

Asked Friday, December 01, 2000 by an anonymous user

CPA Answer:

The London InterBank Offer Rate is the interest rate that the largest international banks charge each other for loans usually in Eurodollars.
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Investments & Financial Planning

What is the Nikkei Index ?

Asked Friday, December 01, 2000 by an anonymous user

CPA Answer:

The Nikkei Index is an Index of 225 leading stocks traded on the Tokyo Stock Exchange.
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