Cyber*School

(ISMA) umbrella organization of institutions and traders operating on the euro bond market, with the main task of creating practices for the regulation of the Euro market transactions (eg. the ISMA method).

(ISDA) International economic organizations of operators for OTC trading of swaps and derivatives. The ISDA has developed a standardized contract that is signed by market participants prior to the trading of swaps and derivatives (= ISDA Master Agreement). www.isda.org

a mathematical method to derive a value, which lies between two known values, the most simple method is called linear interpolatione.g. following rates are given:1 mo 3.50 % (31 days)3 mo 3.75 % (92 days)What is the interpolated rate for 1.5 months (46 days)?r = 0.035 + [(0.0375 - 0.035) / (92 - 31)] * (46 - 31) = 3.56148 %more sophisticated methods are logarithmic interpolation and cubic spline

the simultaneous purchase and sale of futures on the same underlying but with different delivery months (therefore also called time-spread)

Purchase and sale of securities or foreign exchange position within one trading day. Thus, the day trader tries to take advantage of the daily fluctuations of the prices and to buy positions and sell it again within a day.

maximum extent of a risk position which a trader is permitted to hold during the day, also called: daylight limit opposite: overnight limit

The intrinsic value of an option is calculated from the difference between the exercise price and the price of the Underlying. Call: spot price of the underlying minus the exercise price. Put: exercise price minus spot price of the underlying. If the result is negative, is the intrinsic value is zero.

yield curve with higher short term rates than long term rates

A security that represents a co-ownership of the assets of an investment fund.

An institution for the administration of investment funds (securities fund or property fund). The shares are called investment fund certificates and are distributed publicly.

Agreement between the investment company and investment savers to the purchase of shares of a company.

A supply of capital belonging to numerous investors that is used to collectively purchase securities while each investor retains ownership and control of his or her own shares. An investment fund provides a broader selection of investment opportunities, greater management expertise and lower investment fees than investors might be able to obtain on their own. Types of investment funds include mutual funds, exchange traded funds, money market funds and hedge funds.

see investment certificate

Period for which to invest.

A client information form used by registered investment advisors and other asset managers that aids in determining the optimal portfolio mix for the client. An investment objective survey may come in the form of a questionnaire, where the investor will be asked things such as:Current liquid and net worth; Risk aversion; Investing time horizon; Income levels; Expense levels; Planned bequeathments and/or charitable contributions; Restrictions on security selection

Principle position to the question of the market efficiency and of the asset and liability management

Chronological order of the investment process from target identification up to performance analysis.

The directive regulates the mutual recognition of the supervision of securities firms. It allows domestic subsidiarys of securities firms which are registered in a member state of the EEA to do business without special approvals.

Investment methodology that will help to achieve the portfolio objectives should be ensured.

another designation for investment company