Dow Jones Industrial Average

Similar financial terms

Downgrade Trigger
A clause in a contract that states that the contract will be terminated with a cash settlement if the credit rating of one side falls below a certain level.

Dow theory
A theory contending that a primary market trend - one that will last for a year or more - will follow the movements in at least two of the three Dow Jones Averages (industrial, transportation and utilities). The theory is based on the belief that trends follow movements set by the indexes.

Write-down
Decreasing the book value of an asset if its book value is overstated compared to current market values.

Window contract
A guaranteed investment contract purchased with deposits over some future designated time period (the "window"), usually between 3 and 12 months. All deposits made are guaranteed the same credit rating.

Top-down equity management style
A management style that begins with an assessment of the overall economic environment and makes a general asset allocation decision regarding various sectors of the financial markets and various industries. The bottom-up manager, in contrast, selects the specific securities within the favored sectors.

Paydown
In a Treasury refunding, the amount by which the par value of the securities maturing exceeds that of those sold.

Cramdown
When investors get heavily diluted by a susbsequent round of investment especially when the investment is a down round. Also known as a Washout.

Dow
The Dow (of the Dow Jones) Industrial Index is a stock index named after its founders. It is the "price" of a collection of 30 blue chip industrials on the New York Stock Exchange calculated throughout the trading day. It provides a measure of how the "blue chip" stock market is performing. (see also "Index")

Builder buydown loan
A mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder uses cash to buy down the mortgage rate to a lower level than the prevailing market loan rate for some period of time. The typical buydown is 3% of the interest-rate amount for the first year, 2% for the second year, and 1% for the third year (also referred to as a 3-2-1 buydown).

Buydowns
Mortgages in which monthly payments consist of principal and interest, with portions of these payments during the early period of the loan being provided by a third party to reduce the borrower's monthly payments.

Drawdown
The state in which the borrower obtains some of the project financing, usually progressively according to construction expenditures plus IDC.

Keep up with the Jones
Strive, especially beyond one's income to socialize and spend like others in the same neighborhood.

Weighted average life
For amortizing securities, investors do not talk in terms of a bond’s maturity since its principal is made over time. This is because the stated maturity of such securities only identifies when the final principal payment will be made.

Average
The sum of n numbers divided by n.

Nikkei 225 Stock Average
The Nikkei 225 Stock Average (NIKKEI 225) is based on a portfolio of 225 of the largest stocks trading on the Tokyo Stock Exchange. Stocks are weighted according to their prices.

Moving average
The moving averages is one of the oldest and most popular of technical analysis tools. A simple moving average is calculated by adding together the closing price of a financial instrument over a certain number of days and then dividing the sum by the number of days involved. So, for example, the seven day average for a share price would be calculated by taking seven days worth of data, adding them together and dividing by seven.

To calculate the movingaverage:

1. Take the f ...

Weighted average portfolio yield
The weighted average of the yield of all the bonds in a portfolio.

Weighted average remaining maturity
The average remaining term of the mortgages underlying a MBS.

Weighted average maturity
The Weighted average maturity (WAM) of a MBS is the weighted average of the remaining terms to maturity of the mortgages underlying the collateral pool at the date of issue, using as the weighting factor the balance of each of the mortgages as of the issue date.

Weighted average coupon
The weighted average of the gross interest rate of the mortgages underlying the pool as of the pool issue date, with the balance of each mortgage used as the weighting factor.

Weighted average cost of capital
The weighted average cost of capital (WACC) is the expected return on a portfolio of all the firm's securities when debt, equity and tax shields are taken into account. Used as a hurdle rate for capital investment.

Simple moving average
The mean, calculated at any time over a past period of fixed length.

Batting average
Percentage of the time you are successful (from baseball).

"The U.S.' largest pension funds have accumulated major-league batting averages in selecting top-performing domestic equity and fixed-income money managers during the last 5 years."
Pensions & Investments , May 2, 1994, p.1.