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J - When the fifth letter of a NASDAQ stock symbol is a
J, the represented stock is the voting stock of the company.
J-Curve - Thought that a country’s trade deficit will worsen after the
currency depreciates due to the higher prices of foreign imports in the
short run.
Japanese Association of Securities Dealers Automated Quotation System -
See JASDAQ above.
Japanese Option - An option with fixed periodic exercise rights or a
slightly confused reference to an Asian or Average Rate Option.
JASDAQ - Japanese Association of Securities Dealers Automated Quotation
System, Japan’s equivalent of the US’s NASDAQ.
Jellyroll - A transaction in offsetting long and short positions created
from options by covering and reopening the position and with identical
strike prices but different expiration dates.
Jensen Index - An index using the capital asset pricing model in order
to determine whether a money manager achieved results that outpaced the
market index.
Johannesburg Stock Exchange - Abbreviated as JSE, the sole stock
exchange in South Africa. Most of the shares listed are mining and gold
stocks.
Joint Account - A contract in which two or more companies agree to share
risk and jointly finance the purchasing and underwriting of securities.
Joint Clearing Members - A company that clears on two or more exchanges.
Jumbo Loan - A loan for over one billion dollars, or a loan that exceeds
the authorized size limit eligible for securitization by federal
agencies.
Jump - The maximum change in the rate of a floating rate note with a
step-up cap.
Jump Ball - Referring to general equities, a transaction that has no
specified trading house; no trading house has exclusivity, therefore
they are competing for the business.
Jump Process - A price or rate change process that includes occasional
moves larger than random processes would generate.
Jump Z-Bond - An tranche of a CMO that jumps ahead of other tranches in
priority of principal repayment when a trigger condition occurs.
Junior Debt - A subordinate debt where the holder’s claim to the
company’s assets is secondary to that of the senior debtholder’s claims.
Junior/Senior Structure - A two-tranche liability position that improves
the security behind a senior obligation by subordinating collateral that
goes to a junior obligation only after the senior obligation is
satisfied.
Junk Bond - A high risk, high yield bond. These bonds are rated low by
Standard and Poor and Moody’s Investor Services, therefore considered to
be of poor quality. Junk bond are generally purchased for risk-oriented
investors because of their high yields.
Just-In-Time Inventory Systems - Systems that schedule the shipment and
delivery of materials so that they arrive as they are needed. With this
system, the end user does not have to inventory materials, saving that
expense. |
