Financial Lexicon: T-Z
T
Thin Market:
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situation whereby there are very few buy orders and very few sell orders in place, thus reducing liquidity.
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may refer to market of an entire class of securities or commodities, or could deal with a particular stock.
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prices are more volatile in such markets, since the few trades that are actually completed could be done at severe swings from one another.
U
U.S. Nonfarm Payrolls:
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measure of the change from the previous month in the number of people employed in American goods, construction and manufacturing companies.
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not included in the measure are jobs in the farming industry, private household employees or non-profit organization employees.
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good indicator of job creation, which affects consumer spending and thus economic growth.
V
Venture Capital:
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important source of funding for start-up companies or existing companies beginning new operations/initiatives.
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higher risk investment (due to risk of failure of unproven venture) but may result in above average to significant future profits (if venture proves groundbreaking).
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generally sourced from investment banks, investment pools, and/or wealthy individual investors.
Volatility:
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tendency for change in price of an asset or security to be extreme and very quick.
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as it rises, so does the risk associated with the investment.
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reasons are various and include such factors as an uncertain outlook or lack of interest.
Y
Yield:
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general: return on money invested.
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bond yield: rate of return on amount of money invested in a bond, taking into consideration purchase price, annual interest payments, and maturity (redemption) value.
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stock (dividend) yield: rate of return of dividend in relation to stock's market price.