Definitions Starting with "J"
J Curve
The J curve represents a hypothetical short-term increase in a country's trade deficit that occurs immediately following a decline in the value of its currency. When a country experiences a sustained decline in the value of its currency relative to its trading partners, its import volume (goods and services purchased from outside countries) temporarily exceeds its export volume (goods and services sold to outside countries). Read more
J-Curve Effect
The J-curve effect refers to a "J" shaped section of a time-series graph in which the curve falls into negative territory and then gradually rises to a higher level than before the decline. The J-curve effect is a phenomenon in which a period of negative or unfavorable returns is followed by a gradual recovery that stabilizes at a higher level than before the decline. Read more
Jackpot
A jackpot is a big winning -- often the largest a competition or event has to offer. Let's say John Doe goes to Las Vegas to get away from his wife for a few days. Read more
Jackson Hole Economic Summit
The annual Jackson Hole Economic Summit focuses on prominent economic issues that face the U. S. Read more
Jackson Hole Economic Symposium
The Jackson Hole Economic Symposium, held in Jackson Hole, Wyoming, is a conference focusing on important economic issues that face the United States and the rest of the world. The Jackson Hole Economic Symposium is also referred to as the Jackson Hole Economic Summit. Read more
JAJO
JAJO stands for January, April, July, and October -- the four months in which companies are likely to declare dividends. A dividend declaration is an announcement of an upcoming dividend payment, usually via press release a few weeks before the dividend is paid. Read more
January Barometer
The January barometer posits that gains in the S&P 500 index for the month of January predict market gains for the entire year. The January barometer is based on the view held by many in the stock market that the performance of the S&P 500 index between the first and 31st of January reliably forecasts the stock market's performance for that year. Read more
January Effect
The January Effect refers to a pattern exhibited by stocks -- particularly small-cap stocks -- in which they've shown a tendency to rise during the last several trading days in December and then continue to rally throughout the first week of January. Several theories have been put forth to explain why the January Effect occurs. Read more
Japan Credit Rating Agency (JCR)
The Japan Credit Rating Agency (JCR) is a credit rating agency in Japan. Similar to Moody's or Standard & Poor's in the United States, JCR rates debt securities and conducts market, industry and economic research. Read more
Jekyll and Hyde
Jekyll and Hyde is a term to describe volatile corporate earnings. Let's say Company XYZ reports a profit in the first quarter of 5 cents per share. Read more
Jensen's Measure
Jensen's measure is a statistical measurement of the portion of a security's or portfolio's return that is not explained by the market or the security's relationship to the market but rather by the skill of the investor or portfolio manager. It is also called alpha. Read more
Jingle Mail
Jingle mail occurs when a property owner sends his/her keys to the mortgage lender because he/she is unable to continue to make payments. Jingle mail -- denoting the jangling sound of keys in an envelope -- is the act of relinquishing one's obligations on a property by literally mailing the keys to the lending bank. Read more
Jitney
A jitney is an illegal scheme in which two brokers trade a stock back and forth in order to increase the trading volume and earn commissions. In some circles, a jitney is also scheme in which a broker performs trades for another broker who does not have access to a certain exchange. Read more
Job Footprint
A job footprint describes the variety and scope of functions for a given role in an organization. For example, a nurse's job footprint may include administering medication, recording vital signs, and updating treatment files. Read more
Job Hunting Expenses
Job hunting expenses are costs that job seekers incur while searching for a new job. Job hunting involves research and networking using various resources and services. Read more
Job Lot
A job lot is a commodities futures contract where the underlying commodity is denominated in smaller amounts than a regular futures contract. Commodity futures contracts are agreements between a buyer and a seller to deliver a specific amount of a commodity (for example, precious metals, oil, corn, etc. Read more
Job Market
The job market is the group of individuals seeking employment within an economy. As with any market, there is a supply and a demand for employment opportunities that directly affects wage and salary levels. Read more
Job Openings and Labor Turnover Survey
The Job Openings and Labor Turnover Survey (JOLTS) is the name of a detailed report on the U. S. Read more
Jobber
Jobber is a slang term for an agent in business, particularly trading. In the broadest sense of the word, a jobber is an individual who makes a living from commissions he/she earns as an agent for transactions between two parties. Read more
Jobless Claims
Jobless Claims Jobless claims is a measure of the number of individuals who filed for state unemployment benefits. It is an important indicator of how many people are unemployed at a point in time. Read more
Jobless Recovery
A jobless recovery refers to a sustained economic upturn accompanied by persistent or increasing unemployment levels. The New York Times first used the term "jobless recovery" in the 1930s to express a span of time during which the economy experiences growth, but the employment level does not. Read more
Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA)
The Jobs and Growth Tax Relief Reconciliation Act of 2003 was a bill passed by the U. S. Read more
Jobs Growth
Jobs growth is a U. S. Read more
Johannesburg Interbank Agreed Rate (JIBAR)
JIBAR is a market indicator and a benchmark for various interest rates in South Africa. JIBAR calculates the average one-month, three-month, six-month, and 12-month rates. Read more
John D. Rockefeller
John D. Rockefeller (1839-1937) was the founder of Standard Oil Company and became one of the world's wealthiest people. Read more
Joint Account
A joint account is any type of bank account held by two or more persons. All members of a joint bank account are responsible for any liabilities in connection with the account. Read more
Joint and Several Liability
Joint and several liability means an obligation to make a payment either together or individually. For example, let's say John and Jane Doe buy a car. Read more
Joint and Survivor Annuity
A joint and survivor annuity is an annuity with two named beneficiaries. The annuity provides both beneficiaries with recurring income for life. Read more
Joint Bond
A joint bond is a bond that is backed by an issuer and one or more additional guarantors. A company that wants to raise capital using bonds may choose to issue joint bonds if it generates low or fluctuating levels of revenue. Read more
Joint Credit
Joint credit is credit extended by a lender to two or more parties. Loans secured from joint credit are the responsibility of all parties. Read more
Joint Endorsement
Joint endorsement is a requirement by many banks that checks be endorsed by all parties of a joint account. If two or more individuals jointly hold a bank account, the bank may require a joint endorsement on checks made payable to any individual holder of the account. Read more
Joint Liability
Joint liability refers to the individual and collective obligation of more than one party on a loan. Joint liability is best illustrated by two married people who apply jointly for a credit card to maximize the amount of money they can borrow. Read more
Joint Life with Last Survivor Annuity
A joint life with last survivor annuity is an annuity that provides spouses with income until both spouses have died. The annuity also gives the holder the option to give a portion of the remaining income to a third-party beneficiary until the surviving spouse's death. Read more
Joint Owned Property
Joint owned property is a real estate asset with two or more owners. Given the general magnitude of its cost, real estate is often owned in the name of at least two individuals. Read more
Joint Probability
Joint probability is a type of measure found by calculating the probability of two events happening together. In other words, it’s the probability of event X happening at the same time as event Y, like an intersection of two events. Read more
Joint Return
A joint return is a tax return filed by two people based on their marital status at the end of the year or at the time of death of either one of the individuals. There are generally two ways for a married couple to file a federal tax return. Read more
Joint Return Test
The joint return test is used by the IRS to determine whether or not a taxpayer may be validly claimed as a dependent by another taxpayer. This test also determines whether or not a married taxpayer may file a joint income tax return with his or her spouse. Read more
Joint Stock Company
A joint stock company is a company whose stockholders have the same privileges and responsibilities as an unlimited partnership. A joint stock company issues shares similar to a public company that trades on a registered exchange. Read more
Joint Supply
Joint supply is the simultaneous output of two or more products from a single process or material. Products that are generated in joint supply cannot be produced independently from one another. Read more
Joint Tenancy
Joint tenancy is an arrangement in which two or more individuals occupy a property. Participating tenants each share equally in the rights and responsibilities related to the property. Read more
Joint Tenants in Common (JTIC)
Joint tenants in common (JTIC) is a type of ownership wherein two or more individuals jointly own a property or portfolio of assets. If one owner dies, his or her portion of the property or portfolio remains in his or her name. Read more
Joint Tenants with Right of Survivorship (JTWROS)
Joint tenants with right of survivorship (JTWROS) is a type of ownership in which all joint owners have equal portions of ownership that are immediately allocated to remaining owners if one owner dies. Also called tenancy by entirety, property owned jointly with the right of survivorship is wholly owned by all living owners. Read more
Joint Venture (JV)
A joint venture (JV) is a project or enterprise in which multiple companies or individuals invest. Participants usually share equally in the project's direction and profits. Read more
Joint-Life Payout
A joint-life payout is a retirement-benefit payout method whereby a retiree receives benefits from the retirement plan until he or she dies, and the retiree's spouse or partner then receives benefits from the same plan until he or she dies too. Let's say John Doe buys an annuity with a joint-life payout. Read more
Jointly and Severally
Jointly and severally is a legal phrase that means two or more persons are fully responsible equally for the liability. Jointly means that both parties have joint liability, giving responsibility for the full amount of the obligation to each party. Read more
Jonestown Defense
A Jonestown defense is a tactic to prevent hostile takeovers. It often results in the death of the target. Read more
Joseph Effect
The Joseph Effect is a statistical measure that indicates whether certain price movements are part of a long-term trend. The Joseph effect is really a description of the Hurst exponent, which is a measure of how much a series of prices are correlated with each other. Read more
Journal
In the finance world, journal is short for journal entry. It is also short for The Wall Street Journal. Read more
Judgment
A judgment is a court order to pay someone else a sum of money or other remedy. Let's say John Doe owns a pit bull he hasn't trained very well. Read more
Judgment Lien
A judgment lien allows a creditor to take possession of a piece of a debtor's property if the debtor does not pay his or her debts. Let's say John Doe owns a pit bull breeding company that borrows $1 million from Bank XYZ. Read more
Judgmental Credit Analysis
Judgmental credit analysis occurs when a banker approves or denies a credit application based on his or her experience with similar projects rather than the applicant's creditworthiness. Let's say Company XYZ needs to borrow $1 million to lease a new factory. Read more
Jumbo CD
A jumbo CD is a certificate of deposit of $100,000, $1 million or more. Let's say Company XYZ is a retirement fund for a firefighters' union. Read more
Jumbo Loan
A jumbo loan, also called a jumbo mortgage, is a mortgage that exceeds the maximum amount that will be guaranteed by a government-sponsored entity like Fannie Mae. Once a loan is made between from a bank to a home buyer, the loan is typically sold into the secondary market. Read more
Jumbo Pool
A jumbo pool is a security backed by mortgages from several issuers. To understand how jumbo pools work, it's important to understand how they're created. Read more
Junior Accountant
A junior accountant is an entry-level accountant. An accountant is a trained, knowledgeable person who performs functions necessary to compile, inspect, interpret, and/or report financial statements and tax returns that comply with governmental and regulatory authority requirements. Read more
Junior Capital Pool (JCP)
A junior capital pool is a Canadian entity that goes public before going into business. Let's say Company XYZ has a new design for widgets. Read more
Junior Debt
In the event of a borrower’s bankruptcy, junior debt is debt that is repaid after the obligations to senior lenders or creditors have been fulfilled. Usually, it also has no collateral. Read more
Junior Equity
Junior equity is an issuance of stock that is subordinate to other stock issued by a company. For example, if Company XYZ issues preferred stock, those shares are senior to Company XYZ's common stock shareholders. Read more
Junior Issue
A junior issue is an issuance of securities that are subordinate to other securities issued by a company. Junior issues can be debt or equity. Read more
Junior Mortgage
A junior mortgage is a loan secured by the equity in a house. Equity equals the value of the house less the balance owed on the homeowner's first (or in some cases, preceding) mortgages. Read more
Junior Security
A junior security is subordinate to other securities issued by a company. For example, if Company XYZ issues preferred stock, the shareholders of that stock are senior to Company XYZ's common stock shareholders. Read more
Junk Bond
A junk bond is a fixed-income security that is rated below investment grade by one or more of the major bond ratings agencies. A junk bond works the same as most other bonds: An investor purchases a bond from a bond issuer with the assumption that the money will be paid back when the bond reaches its maturity date. Read more
Junk Fees
Junk fees appear in mortgage closing documents and usually benefit the loan originator or the lender. Let's say John and Jane Doe buy a house and receive the Truth in Lending Act statement at closing. Read more
Juris Doctor (JD)
A Juris Doctor (JD) is a law degree. The term first came into use in 1969. Read more
Jurisdiction Risk
Jurisdiction risk is the risk of doing business in another country. Let's assume you are considering purchasing a bond issued by a Canadian company or a bond issued by a Nigerian company. Read more
Just Compensation
Just compensation is the fair market value that a federal or local government must pay to a property owner in order to seize that private property for public use. Let's say John Doe lives in a house on one acre next to Highway 47. Read more
Just In Case (JIC)
Just In Case (JIC) is an inventory-management method whereby materials, goods and even labor are on hand so they are there when needed in the production process. The method is generally the opposite of the Just in Time (JIT) inventory method, whereby materials, goods and even labor are scheduled to arrive or be replenished only exactly when needed in the production process. Read more
Just in Time (JIT)
In the manufacturing and logistics world, just in time (JIT) inventory management helps companies reduce storage costs and improve quality. Originated by the Toyota Motor Company in 1938, the just in time concept helps companies reduce waste and align all production processes. Read more
