Financial jargons made easy

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Finance is such a field which is full of jargons and, unlike any other field, today, understanding these
jargons in the field of finance has become very important for any individual who wishes to manage his
wealth. Thus if you are from the field of finance you can cater to this need of simplifying these
financial jargons and helping the common man understand it conceptually.
Concept Details & Examples:
What is Jargon
Example List of Financial Jargons
Example of Financial Jargon Made Easy Website
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Jargon is a highly specialized sort of shorthand which is used among followers of a particular
trade or hobby, characterized by the usage of terms which are unfamiliar to most people.
Speakers of jargon may also use common words in unusual ways, reflecting common usage
among their group. Essentially, jargon is a language of technical terms, and it can be
incomprehensible to people who are not familiar with the topic under discussion. Some people
also use the term pejoratively, to describe nonsense language or language which is so
overwrought that it is impossible to understand.
When jargon is used as a pejorative, it is usually meant to criticize someone for appearing to
speak nonsense, or to indicate that someone is having difficulty following a conversation. The
word was actually originally used in this sense, borrowed from an Old French word which means
the twittering of birds. This usage of jargon dates back to the 1300s, and by the 1600s people
were also using the word to refer to complex technical conversations.
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Many industries are heavily characterized by jargon including engineering, physics, and
computer science. Specialists in these fields acquire technical jargon as they train, and they
often discuss issues which people outside their field cannot understand. Their speech may be
littered with references to devices and concepts which are unknown outside the field, thus
making it sound almost like a foreign language. This sort of jargon is not necessarily meant to cut
people out or to make people feel stupid, although it often has this effect.
Hobbyists and enthusiasts also speak in jargon. In this case, the jargon usually refers to
concepts which are of little interest to people who do not follow the sport or hobby activity under
discussion. Sports fans, for example, may be able to spout statistics and facts about their sport,
while a model hobbyist can speak at length about various types of epoxy. To people who are not
engaged in the topic, these types of conversations can get very dull very quickly.
Often, jargon is unavoidable, because it reflects an intense level of interest or training in a
particular subject. In other cases, people may use jargon to make themselves appear more
familiar with something than they actually are, or to seem more impressive. This usage of jargon
is often frowned upon, because some people view it as a deliberate attempt to show off.

7-day SEC yield
A
Accounting identity
Active return
Additional funds needed
Akciov spolenost
Spolenost s ruenm omezenm
All-in rate
Ancillary revenue
Anti-money laundering software
Asset protection
B
Bank State Branch
Bank tax
Benchmark price
Big bath
Book building
Bootstrapping (finance)
Bulge bracket
Buy side
C
Cable (foreign exchange)
CAMELS rating system
CAN SLIM
Capital asset
Capital structure substitution theory
Capitalization rate
Carried interest
Cash concentration
E cont.
Earnings test (US)
EBDIT
Enhanced indexing
Eurodollar
Excess Return
Exchange-traded derivative contract
F
Fence (finance)
Finance lease
Financial Crisis Responsibility Fee
Financial goal
Financial result
Financial sponsor
Fixed bill
Flash crash
Flash trading
Floating interest rate
Flow trading
Foreign exchange risk
Forward exchange rate
Forward interest rate
Forward price
Free riding
G
Gain (accounting)
Global tactical asset allocation
Growth recession
H
O cont.
Operating lease
Operating partner
Operational due diligence (alternative
investments)
Order book (trading)
P
Paradise tax
Pari passu
PBDIT
Pledge fund
Portfolio insurance
Portfolio margin
Power reverse dual-currency note
Private equity
Professional certification in financial services
Profitability index
Prosperity consciousness
Public float
Q
Quality investing
R
Rate of return
Rate of return on a portfolio
Remittance advice
Repo 105
Repurchase agreement
Rest (finance)
Reverse convertible securities
Cash flow hedge
Cash management
Cash value added
Chinese wall
Cliquet
Cloud-based lending
Coffee Wars
Collar (finance)
Commercial and industrial loan
Constant proportion portfolio insurance
Contango
Cost of carry
Cost of living
Cost price
Cov-lite
Covered interest arbitrage
Credit enhancement
Curb trading
Currency transaction tax
Custodial participant
Customer Demand Planning
Cut off period
Central Business Register (Denmark)
D
Deal flow
Deal toy
Debt cash flow
Debtor finance
Default (finance)
Delivery point (futures trading)
Demand forecasting
Demand signal repository
Diagonal spread
Over-the-counter (finance)
Dividend discount model
Dividend recapitalization
Divisible profit
Dogs of the Dow
Doing a Leeds
Hedge (finance)
Hedge fund
High-frequency trading
Homemade Leverage
Human Capital Contract
I
Implied repo rate
Income Share Agreement
Intangibles
Interest rate parity
Intermarket analysis
Intermarket Spread
International Fisher effect
Inverse floating rate note
Irrational exuberance
L
Leaseback
Let Wall Street Pay for the Restoration of Main
Street Bill
Leveraged buyout
Lock box
Lodgement (finance)
Lookback option
M
Magic formula investing
Makingup price
Margin (finance)
Mark to model
Market if touched
Micro venture capital
Mirror trading
Multi-currency pricing
N
Nancy Reagan defense
Right-financing
RNPV
S
Saleability
Scope limitation
Semiconductor consolidation
Shock absorber fee (SAFe)
Short term deposit
Skin in the game (phrase)
Soft commodity
Sovereign credit risk
Spahn tax
Special memorandum account
Special situation
Split share corporation
Spolonos s ruenm obmedzenm
Stochastic
Stochastic modelling (insurance)
Structured collar
Structured finance
Structured note
Subordination (finance)
T
Tactical asset allocation
Tangible investment
Ten bagger
Term (time)
Texas hedge
Tombstone (financial industry)
Total return
Treasury International Capital
Triangular arbitrage
Time-weighted return
U
Uncovered interest arbitrage
Undervalued stock
E
Earnings before interest, taxes and depreciation
New Normal (business)
No doc loan
Nominated adviser (NOMAD)
Nonrecourse debt
Normal backwardation
Novation
O
Oborov podnik
Sttn podnik
Offering circular
On the run (finance)
Open banking
V
Valuation risk
Value investing
Asymmetric fund
Venture capital
Vintage year
Volcker Rule
Vulture capitalist
W
Weighted Capitation Formula
Put-Call Parity
A A A
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Definition of 'Put-Call Parity'

A principle referring to the static price relationship, given a stock's price,
between the prices of European put and call options of the same class (i.e.
same underlying, strike price and expiration date). This relationship is shown
from the fact that combinations of options can create positions that are the
same as holding the stock itself. These option and stock positions must all
have the same return or an arbitrage opportunity would be available to
traders. Any option pricing model that produces put and call prices that don't
satisfy put-call parity should be rejected as unsound because arbitrage
opportunities exist.



Investopedia explains 'Put-Call Parity'

The above illustration demonstrates a simple put-call parity relationship.
Looking at the graph, we see that a long-stock/long-put position (red line)
has the same risk/return profile as a long call (blue line) with the same
expiration and strike price. The only difference between the two lines is the
assumed dividend that is paid during the time to expiration. The owner of the
stock (red line) would receive the additional amount, while the owner of the
call (blue line) would not. However, if we assume no dividend would be paid
to stockholders during the holding period, then both lines would overlap.

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