|
Turbo (finance)
A turbo is a leveraged financial derivative first introduced by Goldman Sachs in 2004. They are tradable by institutional and private investors and have characteristics similar to contracts for difference and covered warrants. Turbo's are popular in Germany and the Netherlands. Société Générale SA and BNP Paribas are within the top issuers in Europe. Characteristics The most important characteristic of a turbo is the strict connection of its value to the price of the underlying asset, which is generally a stock or an index. The value of the underlying stock is multiplied by the leverage value to give the value of the turbo. Unlike other financial derivatives, the leverage of a turbo is kept constant on a daily basis. However the issuer can change the leverage by a predetermined fixed procedure. The rationale of a rolling turbo arises from a combination of a predictable course process of the base value stock and the promise of a proportionally higher profit than would be possi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Derivative
In finance, a derivative is a contract between a buyer and a seller. The derivative can take various forms, depending on the transaction, but every derivative has the following four elements: # an item (the "underlier") that can or must be bought or sold, # a future act which must occur (such as a sale or purchase of the underlier), # a price at which the future transaction must take place, and # a future date by which the act (such as a purchase or sale) must take place. A derivative's value depends on the performance of the underlier, which can be a commodity (for example, corn or oil), a financial instrument (e.g. a stock or a bond), a price index, a currency, or an interest rate. Derivatives can be used to insure against price movements ( hedging), increase exposure to price movements for speculation, or get access to otherwise hard-to-trade assets or markets. Most derivatives are price guarantees. But some are based on an event or performance of an act rather than a pri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Goldman Sachs
The Goldman Sachs Group, Inc. ( ) is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered in Lower Manhattan in New York City, with regional headquarters in many international financial centers. Goldman Sachs is the second-largest investment bank in the world by revenue and is ranked 55th on the ''Fortune'' 500 list of the largest United States corporations by total revenue. In the Forbes Global 2000 of 2024, Goldman Sachs ranked 23rd. It is considered a systemically important financial institution by the Financial Stability Board. Goldman Sachs offers services in investment banking (advisory for mergers and acquisitions and restructuring), securities underwriting, prime brokerage, asset management, and wealth management. It is a market maker for many types of financial products and provides clearing and custodian bank services. It operates private-equity funds and hedge funds. It structures complex and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contracts For Difference
In finance, a contract for difference (CFD) is a financial agreement between two parties, commonly referred to as the "buyer" and the "seller." The contract stipulates that the buyer will pay the seller the difference between the current value of an asset and its value at the time the contract was initiated. If the asset's price increases from the opening to the closing of the contract, the seller compensates the buyer for the increase, which constitutes the buyer's profit. Conversely, if the asset's price decreases, the buyer compensates the seller, resulting in a profit for the seller. History Invention Developed in Britain in 1974 as a way to leverage gold, modern CFDs have been trading widely since the early 1990s. CFDs were originally developed as a type of equity swap that was traded on margin. The invention of the CFD is widely credited to Brian Keelan and Jon Wood, both of UBS Warburg, during their Trafalgar House deal in the early 1990s. Asset management and syntheti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Covered Warrant
In finance a covered warrant (sometimes called naked warrant) is a type of warrant that has been issued without an accompanying bond or equity. Like a normal warrant, it allows the holder to buy or sell a specific amount of equities, currency, or other financial instruments from the issuer at a specified price at a predetermined date. Unlike normal warrants, they are usually issued by financial institutions instead of share-issuing companies and are listed as fully tradable securities on a number of stock exchanges. They can also have a variety of underlying instruments, not just equities, and may allow the holder to buy or sell the underlying asset. These attributes make it possible to use covered warrants as a tool to speculate on financial markets. Structure and features A covered warrant gives the holder the right, but not the obligation, to buy ("call" warrant) or to sell (" put" warrant) an underlying asset at a specified price (the "strike" or "exercise" price) by a pr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Netherlands Authority For The Financial Markets
The Netherlands Authority for the Financial Markets () is the financial services regulatory authority for the Netherlands. Its role is comparable to the role of the SEC in the United States. History The Netherlands Authority for the Financial Markets (AFM) was set up on 1 March 2002 as the successor to the Securities Board of the Netherlands ( or STE, itself established in 1989). As part of the legislation that created the AFM, its responsibilities were greatly expanded to cover all financial products, including savings, investments, loans, insurance and accounting. The AFM falls under the political responsibility of the Minister of Finance but is an autonomous administrative authority, which means that the AFM operates autonomously based on the powers given by the Minister of Finance. Responsibilities and operations The Netherlands Authority for the Financial Markets is the body responsible for regulating behaviour on the financial markets in the Netherlands. This includes ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contract For Difference
In finance, a contract for difference (CFD) is a financial agreement between two parties, commonly referred to as the "buyer" and the "seller." The contract stipulates that the buyer will pay the seller the difference between the current value of an asset and its value at the time the contract was initiated. If the asset's price increases from the opening to the closing of the contract, the seller compensates the buyer for the increase, which constitutes the buyer's profit. Conversely, if the asset's price decreases, the buyer compensates the seller, resulting in a profit for the seller. History Invention Developed in Britain in 1974 as a way to leverage gold, modern CFDs have been trading widely since the early 1990s. CFDs were originally developed as a type of equity swap that was traded on margin. The invention of the CFD is widely credited to Brian Keelan and Jon Wood, both of UBS Warburg, during their Trafalgar House deal in the early 1990s. Asset management and syntheti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Turbo Warrant
A turbo warrant (or callable bull/bear contract) is a kind of stock option. Specifically, it is a barrier option of the down and out type. It is similar to a vanilla contract, but with two additional features: It has a low vega, meaning that the option price is much less affected by the implied volatility of the stock market, and it is highly geared due to the possibility of knockout. This type of product is actively traded among investors in Europe and Hong Kong, and has been described as being able to cater to individual investors' behavioral biases (like lottery preferences). The strike price of the option is generally the same as the barrier: if the stock hits the barrier, the option expires and becomes worthless. Variations on turbos include: forms where the strike and barrier are not identical; forms where the barrier is only active at, for example, the close of business but the strike is continuously monitored (smart turbos); and forms with no fixed maturity (minis). F ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Covered Warrant
In finance a covered warrant (sometimes called naked warrant) is a type of warrant that has been issued without an accompanying bond or equity. Like a normal warrant, it allows the holder to buy or sell a specific amount of equities, currency, or other financial instruments from the issuer at a specified price at a predetermined date. Unlike normal warrants, they are usually issued by financial institutions instead of share-issuing companies and are listed as fully tradable securities on a number of stock exchanges. They can also have a variety of underlying instruments, not just equities, and may allow the holder to buy or sell the underlying asset. These attributes make it possible to use covered warrants as a tool to speculate on financial markets. Structure and features A covered warrant gives the holder the right, but not the obligation, to buy ("call" warrant) or to sell (" put" warrant) an underlying asset at a specified price (the "strike" or "exercise" price) by a pr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
