Glossary :   J

J-curve

Theory that says a country's trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short-run.

Japanese Association of Securities Dealers Automated Quotation System
(J.A.S.D.A.Q.)

Japanese equivalent of N.A.S.D.A.Q..

Jensen index

An index that uses the capital asset pricing model to determine whether a money manager outperformed a market index. The "alpha" of an investment or investment manager.

Johannesburg Stock Exchange (J.S.E.)

Established in 1886, the Johannesburg Stock Exchange (J.S.E.) is the only stock exchange in South Africa. Gold and mining stocks form the majority of shares listed.

Joint account

An agreement between two or more firms to share risk and financing responsibility in purchasing or underwriting securities.

Joint clearing members

Firms that clear on more than one exchange.

Jumbo loan

Loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or securitization by the federal agencies.

Jump ball

Used in the context of general equities. (1) Deal in which no trading house has exclusivity (each firm is in direct competition for a piece of business); (2) no preference in picking a particular side (buy/sell) of a stock as profile, indicated during the block call, emphasizing that the salesforce could have the stock either way.

Junk bond

A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower is a junk or high yield bond. Such bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & Poors and Moody's investor services, provide the rating systems for companies' credit.

Junior debt (subordinate debt)

Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. Subordinated debt.

Just-in-time inventory systems

Systems that schedule materials inventory to arrive exactly as they are needed in the production process.

"Just me asking"

Used in the context of general equities. "Not a customer request for information."

Glossary created by Campbell R. Harvey, Professor of Finance, Fuqua School of  Business at Duke University.