The Palgrave Macmillan Dictionary of Finance, Investment and Banking

This dictionary covers the terminology of the international financial marketplace. It provides concise and rigorous definitions of over 5,000 terms used in the accounting, banking, corporate finance, and investment management and insurance disciplines. It

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The Palgrave Macmillan Dictionary of Finance, Investment and Banking Erik Banks

© Erik Banks 2010 Softcover reprint of the hardcover 1st edition 2010 978-0-230-23829-9 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2010 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries

ISBN 978-1-349-58938-8 ISBN 978-0-230-25121-2 (eBook) DOI 10.1057/9780230251212 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress.

Contents Acknowledgments

vii

The author

viii

Introduction Summary of colloquialisms, Foreign language terms, and acronyms

xi

Numeric

1

A

3

B

39

C

74

D

138

E

172

F

200

G

234

H

251

I

259

J

288

K

291

L

294

M

316

N

343

O

361

P

375

Q

416

R

419

S

455

T

503 v

ix

vi Contents

U

526

V

534

W

543

X

550

Y

551

Z

554

Appendix

556

References

564

Acknowledgments I would like to extend my thanks and appreciation to Lisa von Fircks at Palgrave Macmillan for support in moving forward with a new version of this project. Thanks are also due to the editing, production, and marketing teams at Palgrave for their work in producing the book. My deepest thanks, as always, go to Milena. EB Maine, 2009

vii

The Author Erik Banks is responsible for risk management of the Corporate and Investment Banking division at the European universal bank UniCredit. Over the past 23 years he has held senior risk positions at Citibank, Merrill Lynch, and in the hedge fund sector in New York, Tokyo, Hong Kong, London, and Munich. He is the author of more than 20 books on risk