Harvey's

Hypertextual Finance Glossary

Copyright © 2023. All Worldwide Rights Reserved. Do not reproduce without explicit permission.

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #
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.
ZA
The two-character ISO 3166 country code for SOUTH AFRICA.
ZAF
The three-character ISO 3166 country code for SOUTH AFRICA.
ZAR
The ISO 4217 currency code for the South Africa Rand.
ZBA
See: Zero balance account
ZM
The two-character ISO 3166 country code for ZAMBIA.
ZMB
The three-character ISO 3166 country code for ZAMBIA.
ZMK
The ISO 4217 currency code for Zambian Kwacha .
ZRN
The ISO 4217 currency code for the Zaire New Zaire.
ZW
The two-character ISO 3166 country code for ZIMBABWE.
ZWD
The ISO 4217 currency code for the Zimbabwe Dollar.
ZWE
The three-character ISO 3166 country code for ZIMBABWE.
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.
Zaibatsu
Large family-owned conglomerates that controlled much of the economy of Japan prior to World War II.
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, 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-Percent Certificate of Indebtedness or Zero-Percent C of I
A Treasury security that does not earn any interest. It is intended to be used as a source of funds for traditional Treasury security purchases.
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.

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Copyright © 2023, Campbell R. Harvey. All Worldwide Rights Reserved. Do not reproduce without explicit permission.

[Version 1 June 2023.]


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