Cyber*School

standard deviation is a measure of the dispersal or uncertainty in a random variable. For example, if a financial variable is highly volatile, it has a high standard deviation, indeed, standard deviation is frequently used as a measure of the volatility of a random financial variable.

The most basic approach to credit risk in the new Basel framework. Capital requirements are calculated by multiplying the value of a the exposure of a firm by an appropriate risk weight. The risk weights are calculated by using external credit ratings.

v. normal yield curve

bond with a coupon that increases during maturity in fixed steps

coupon swap at which the fixed interest rate rises during maturity in an agreed magnitude

(SONIA) reference rate for overnight money in GBP.

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. The quote of the share arises from offer and demand on the stock exchange and represents the value of the enterprise.

Stock analysis is a term that refers to the evaluation of a particular trading instrument, an investment sector or the market as a whole. Stock analysts attempt to determine the future activity of an instrument, sector or market. There are two basic types of stock analysis: fundamental analysis and technical analysis. Fundamental analysis concentrates on data from sources including financial records, economic reports, company assets and market share. Technical analysis focuses on the study of past market action to predict future price movement.

(Basket) Any arrangement of stocks which is based, e.g., on basis of a share index.

The share forum is a platform for the promotion of equity financing in Austria and a partner of the Industrial Association. By continuing an active dialogue with and between all groups in the capital market and by means of active public relations and information work the share forum is supporting further developments of the Austrian capital markets. www.aktienforum.org

A statistical measure of changes in a stock market. An index is an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage change is more important than the actual numeric value.

The market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets.

(Stock Exchange Act), the Stock Exchange Act regulates the relationship between exchange members/traders/customers on the one hand and the exchange operating company on the other hand. The Stock Exchange Act contains further provisions concerning the approval of transport items to regulated markets, the duties of issuers and partly the Financial Services Authority.

Also, market capitalization. Expresses the total value of all securities traded and operated on a stock exchange, ie the value of the total market. The market capitalization of each company will be added.

As a stock market crash is referred to a particularly strong decline of an entire group of securities (not just a single share) in only one trading day.

The implementation of commercial practices which incurred in the habitual carrying out of exchange transactions and have finally been formed to business conditions in the securities markets.

An option whose underlying is a stock.

Price of traded shares on the stock exchanges. The price (market price) is determined by the current relationship between supply and demand. Important influencing factors are the economic expectations which are expected for a listed company, but also economic conditions (especially interest), political expectations, speculation and interest purchases.

A corporate action in which a company divides its existing shares into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because the split did not add any real value. The most common split ratios are 2-for-1 or 3-for-1, which means that the stockholder will have two or three shares for every share held earlier.

An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.