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Financial dictionary terms starting with “y”
Y is a ticker-symbol extension that signifies that a stock is an American Depository Receipt. See More.
Y shares are simply shares that can be bought in bulk. Usually, they do not come with additional rights or privileges; they exist to encourage institutions to make large investments in the funds that offer them. Individuals aren't always shut out See More.
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. See More.
A Yankee CD is a certificate of deposit issued by a foreign bank in the United States and denominated in U.S. dollars. See More.
In the finance world, yard is slang for one billion. The term comes from the French word milliard, which means one billion. See More.
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 fiscal year does not always go from January 1 to See More.
Year over year 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 not always go from January 1 to December 31; many companies have fiscal years beginning at other t See More.
Year to date 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 years beginning at other times. See More.
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. See More.
A year-end bonus is extra money given to an employee, typically as a reward for helping the company achieve financial goals. See More.
A yellow knight is a company that backs out of an attempt to take over another company. See More.
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). See More.
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 over another. See More.
Yield basis refers to the act of quoting bond prices in terms of yield percentages rather than in dollars. See More.
Yield burning is the illegal practice of excessively marking up municipal and/or Treasury bonds in order to complete a bond offering. See More.
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. (Note that the chart does not plot coupon rates against a ran See More.
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. See More.
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: Yield equivalence = Taxable Yield x (1 - Tax Rate) T See More.
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. See More.
Yield on cost is an investment's annual dividend divided by the original purchase price of the investment. See More.
Yield pickup is the increase in yield an investor gets by selling one bond and buying another one with a higher yield. See More.
Yield spread is the difference in yield between two securities or, more commonly, two classes of securities. See More.
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. See More.
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, which are often retired early and thus have shor See More.
Yield to call is a measure of the yield of a bond if you were to hold it until the call date. See More.
Yield to maturity (YTM) measures the annual return an investor would receive if he or she held a particular bond until maturity. See More.
Yield to worst (YTW) is the lowest yield an investor can expect when investing in a callable bond. See More.
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 the strike price, expressed as a percentage, and t See More.
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. See More.
YOC stands for yield on cost, which is an investment's annual dividend divided by the original purchase price of the investment. See More.
The Young and Wealthy but Normal (YAWN) demographic is a group of people who typically have generated their own wealth but live modest lifestyles. See More.
YOY is short for year over year, which 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 not always go from January 1 to December 31; many companies have fiscal ye See More.
YTD is short for year to date, which 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 years beginning at other times. See More.