Z |
| Fifth letter of a Nasdaq
stock symbol indicating that listing is a fifth class of preferred stock, a stub, a certificate representing a limited partnership interest, foreign preferred when issued, or a second class of warrants. |
ZBA |
| See:
Zero balance account |
Zabara |
| Applies
mainly to international equities. Japanese securities transactions conducted on the principal of auction, i.e., (1) price priority in which 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 |
| A
bond on which interest
accrues but is not currently paid to the investor
but rather is added to the principal balance of the Z bond and becoming payable upon satisfaction of all prior bond classes. |
Zero-balance account (ZBA) |
| 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-base budgeting (ZBB) |
| Budgeting
method that disregards the previous year's budget in setting a new budget, since circumstances may have changed. Each and every expense must be justified in this system. |
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-bracket
amount |
| The standard deduction portion of income which is not taxed for taxpayers choosing not to itemize deductions. |
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-coupon convertible security |
| A
zero-coupon bond convertible into the common stock of the issuing company after the stock reaches a certain price, using a put option inherent in the security. Also
refers to zero-coupon bonds,
which are convertible into an interest bearing bond
at a certain time before maturity. |
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 |
| 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 |
Zombies |
| Companies
that continue operation while they await merger
or closure, even though they are insolvent
and bankrupt. |
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. |