• A legal document whereby an individual declares his or her wishes regarding the disposal of personal property after death; may be changed by the individual at any time before death.
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| ||Adverse selection problem: Banks have to be aware of a particular type of borrowers. Some borrowers Will have hidden negative information not available to the bank. As the bank demands a higher interest rate, borrowers with safe projects will drop out. Hence, the fraction of borrowers with risky projects will depend on the interest rate. The higher the interest rate, the higher risk will be the pool of applicants. This is called the adverse selection problem.|
| ||Affiliate risk: If the parent company of a one-bank holding company (OBHC) or one of the affiliate banks of multi-bank holding company (MBHC) fail, there is a risk that Federal Reserve or other private claim holders Will sue the non-failing bank to recover their losses. Hence, failure of an affiliate presents contingent off-balance sheet risk.|
| ||Anticipatory hedging: Refers to the placement of a hedge prior to placement of the actual position. Sometimes, this occurs when a firm knows that it Will receive investment funds later that day or week and prefers to hedge numerous potential risks at the earlier date. Similarly, a commodity producer may prefer to hedge prior to the harvest of a crop, production of an energy product or processing a raw material into a deliverable lot.|
| ||Arbitrage: The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist.Strictly defined, buying something where it is cheap and selling it where it is dear; for example, a bank buys 3-month CD money in the U.S. market and sells 3-month money at a higher rate in the Eurodollar market. In the money market, often refers: (1) to a situation in which a trader buys one security and sells a similar security in the expectation that the spread in yields between the two instruments Will narrow or widen to his profit, (2) to a swap between two similar issues based on an anticipated change in yield spreads, and (3) to situations where a higher return (or lower cost) can be achieved in the money market for one currency by utilizing another currency and swapping it on a fully hedged basis through the foreign-exchange market.Is a form of trading which attempts to profit by discrepancies in price due to location, funding, volatility, communications, response to information, or other differences. Typically, the price differences are small and only the quickest, most cost efficient or funding efficient parties participate. Compare with Risk Arbitrage.|
| ||Ask: Also known as an Ask Price or Offer Price. The price a seller is currently Willing to accept for a particular security. On NASDAQ, this is the price at which a Market Maker is willing to sell a stock. See also: Bid; Quotation.Is the price requested, at the minimum, for an order to be acceptable and executed for the seller.This is the quoted ask, or the lowest price an investor Will accept to sell a stock. Practically speaking, this is the quoted offer at which an investor can buy shares of stock; also called the offer price.|
Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...
If you find it in your heart to care for somebody else, you will have succeeded.- Maya Angelou