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- Zabara
- Mainly applies to international equities. Japanese
securities transactions conducted on the principal of auction,
i.e., (1) price priority in that the selling (buying) order with the lowest (highest) price takes precedence over
other orders, and (2) time priority in that an earlier order takes precedence over other
orders at the same price.
- Z bond
- Also known as an accrual
bond or accretion bond; a bond on which interest accrues interest but is not paid
currently to the investor but rather is accrued, with
accrual added to the principal balance of the Z and becoming payable upon satisfaction of
all prior bond classes.
Zero-balance account (Z.B.A.)
- A checking account in which zero balance is
maintained by transfers of funds from a master account in an amount only large enough to
cover checks presented.
Zero-beta portfolio - A portfolio
constructed to have zero systematic risk, similar to the risk-free asset, that is, having a beta of zero.
Zero-coupon bond - A bond in which no
periodic coupon is paid over the life of the contract. Instead, both the principal and the interest
are paid at the maturity date.
Zero-investment portfolio
- A portfolio of
zero net value established by buying and shorting component securities,
usually in the context of an arbitrage strategy.
Zero-minus tick - Used in the context of general equities. Sale that
takes place at the same price as the previous sale, but at a lower price than the last
different price. Antithesis of zero-plus tick.
Zero-one integer programming
- An analytical method that can be used to determine
the solution to a capital rationing problem.
Zero prepayment assumption
- The assumption of payment of scheduled principal and interest
with no payments.
Zero-plus tick - Used for listed equity securities. Transaction at
the same price as the preceding trade, but higher than the
preceding trade at a different price. Antithesis of zero-minus
tick. See: short sale.
Zero-sum game - A type of game wherein one player can gain only at
the expense of another player.
Zero uptick - Related: tick-test
rules.
Z score - Statistical measure that quantifies the distance
(measured in standard deviations) a data
point is from the mean of a data set. Separately, Z score
is the output from a credit-strength test that gauges the likelihood of bankruptcy.
Glossary created by Campbell R. Harvey, Professor of Finance, Fuqua
School of Business at Duke University. |
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