Y is a ticker-symbol extension that signifies that a stock is an American Depository Receipt. Issued by U.S. banks, American Depository Receipts (ADRs) are certificates that represent shares of a for...

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Also called institutional shares, Y shares are mutual fund shares that are available for sale only to institutions.   For example, let's say that the XYZ Mutual Fund invests in a variety of def...

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Y2K is short for the term "year 2000." In the business world, Y2K (also called the millennium bug) was a problem that plagued computer systems around the world. Prior to the year 2000, most software ...

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Yankee bonds are bonds issued in the U.S. bond market by a foreign entity, and they are denominated in U.S. dollars. Governments, companies, and other entities issue Yankee bonds. For examp...

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A Yankee CD is a certificate of deposit issued by a foreign bank in the United States and denominated in U.S. dollars. For example, let's assume Bank ABC is in Spain and issues CDs in the United Stat...

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Yankee Market is slang for the U.S. stock market. People outside the United States are the most common users of this term. Yankee Market is often used in conjunction with "the bulldog marke...

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In the finance world, yard is slang for one billion. The term comes from the French word milliard, which means one billion. For example, if the United States were to buy 200 new fighter jet...

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In the business world, a year is a 12-month period, four-quarter period, or 13-period stretch of time. It is not always 365 days long, though it is usually very close to that. In business, note that a...

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Year over year, often referred to using the acronym "YoY," refers to the mathematical process of comparing one year of data to the previous year of data. In business, note that a fiscal year does...

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Year to date (YTD) refers to the period extending from the beginning of the year to the present. In business, note that the beginning of the year is not always January 1; many companies have fiscal ye...

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A year's maximum pensionable earnings is what the Canadian government uses to determine the maximum amount a person can get from the Canada Pension Plan. The Canada Pension Plan is similar to the Soc...

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A year-end bonus is extra money given to an employee, typically as a reward for helping the company achieve financial goals. Let's say Company XYZ's goal this year was to earn 5 cents per sha...

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A yellow knight is a company that backs out of an attempt to take over another company. Let's assume Company XYZ wants to acquire Company ABC. Company ABC feels that Company XYZ is a hostile bidder a...

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Similar to the Pink Sheets, the Yellow Sheets are information about the prices of corporate bonds traded on the over-the-counter market (that is, bonds not listed on the mainstream exchanges). The Ye...

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Yield refers to the cash return to the owner of a security or investment.  In general, yield is calculated as follows: Periodic Cash Distributions / Total Cost of Investment = Yield The te...

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Yield advantage is the difference between yields on two different securities issued by the same company. It is the additional amount an investor can expect to earn if he or she chooses one security ov...

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Yield basis refers to the act of quoting bond prices in terms of yield percentages rather than in dollars.Let's assume Company XYZ has $20,000,000 in bonds outstanding that pay 5% interest per yea...

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Yield burning is the illegal practice of excessively marking up municipal and/or Treasury bonds in order to complete a bond offering.Let's assume interest rates have come down and City XYZ wants t...

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The yield curve, also known as the "term structure of interest rates," is a graph that plots the yields of similar-quality bonds against their maturities, ranging from shortest to longest. (N...

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Yield curve risk refers to the probability that the yield curve will shift in a manner that affects the values of securities tied to interest rates -- particularly, bonds.Also known as the term struct...

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A yield elbow is the highest point on the yield curve. Also known as the term structure of interest rates, the yield curve is a graph that plots the yields of similar-quality bonds against ...

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The yield equivalence is the yield a taxable investment would have to offer to equal the tax-free yield on a municipal bond. The formula to calculate yield equivalence for a taxable security is: ...

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Yield maintenance is a kind of prepayment fee that borrowers pay to banks to reimburse them for the loss of interest resulting from the prepayment of a loan. The formula for the yield maintenance...

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Yield on cost (YOC) is an investment's annual dividend divided by the original purchase price of the investment. To calculate yield on cost, divide the annual dividend by the per-share pric...

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Yield pickup is the increase in yield an investor gets by selling one bond and buying another one with a higher yield.Let's assume Jane owns a bond issued by Company XYZ with a 5% yield. Jane sell...

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Yield spread is the difference in yield between two securities or, more commonly, two classes of securities.Let's assume that Bond X is yielding 5% and Bond Y is yielding 7%. The yield spread is 2...

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A yield tilt index fund is a mutual fund that mirrors a specific stock index but gives extra weight to stocks within the index that offer high dividend yields. Let's assume the XYZ mutual fund is a y...

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The yield to average life is the yield on a security based on the security's average maturity rather than the maturity date of the issue. The concept is usually applied to bonds with sinking funds...

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Yield to call is a measure of the yield of a bond if you were to hold it until the call date. To understand yield to call, one must first understand that the price of a bond is equal t...

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Yield to maturity (YTM) measures the annual return an investor would receive if he or she held a particular bond until maturity. To understand YTM, one must first understand that the price ...

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Yield to worst (YTW) is the lowest yield an investor can expect when investing in a callable bond.The concept is best illustrated with an example.Let's assume you own a callable bond issued by Com...

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A yield-based option is a financial instrument that gives the owner the right but not the obligation to purchase a debt security. The value of the yield-based option depends on the difference between ...

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Also known as negative points, yield-spread premiums are rebates lenders pay to mortgage brokers or borrowers. Yield-spread premiums are a percentage of the principal. For example, let's assume th...

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Yo-yo is slang describing volatility in the market. In a mathematical sense, standard deviation is a measure of how much an investment's returns can vary from its average return. That is, i...

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The Young and Wealthy but Normal (YAWN) demographic is a group of people who typically have generated their own wealth but live modest lifestyles. Let's say John and Jane Doe each has a job that pays...

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Yupcap stands for Young Urban Professionals Who Can't Afford Property. Let's say Jane Doe has a master's degree and is an editorial assistant in San Francisco. She makes $30,000 a year an...

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Yuppie is short for young urban professional. Yuppies are usually in their twenties or thirties, just out of college or graduate school, and have high-paying jobs in the city. They tend to ...

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