Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 5 terms
A scheme holding domestic listed equity against an offsetting short position in futures, so the return comes from the gap between the two rather than from the direction of the market.
Money-market behaviour with equity classification for tax, because the test asks what is held and not what the holding is hedged with. The international equity fund is the same divergence running the other way.
Structuring a product so it falls outside the rules that would apply to its regulated equivalent.
Not always sinister and always worth noticing. The question is which protections you gave up in exchange for the convenience.
The gap between the traded price of an instrument whose supply is fixed and the value of what it represents, persisting because no creation-and-redemption mechanism exists to arbitrage it away.
Not the same thing as an exchange-traded fund’s premium, which a participant is paid to remove within hours. With nobody being paid to close it, it can stand for years — and where the instrument redeems on a stated date at a formula value, it ends on that date regardless.
The no-arbitrage link between a call, a put, the share and the strike: C + PV(K) = P + S.
If one side gets cheaper, traders buy it and sell the other until the gap closes. Dividends and costs explain most apparent breaks.
The claim that prices already reflect available information, so no repeatable pattern in past prices can be exploited.
The strongest objection to technical analysis, and it holds in part: simple published systems do decay once everyone can see them. What does not get arbitraged away is the discipline to follow a rule consistently.