EFTA01457969.pdf

inflation describes the increase in an economy's overall price The People's Bank of China (PBoC) is the central bank of China. level. A peg, in the context of currencies, Is the artificial fixing of an investment Diu& (PG) describes bonds judged by rating exchange rate between two currencies. agencies to be of at least medium quality (usually BBB or above). The PowerShare.s Dynamic Leisure and Entertainment Portfolio Leveiage attempts to boost gains when investing through the is an ETF focused on the U.S. leisure, travel and entertainment use of borrowing to purchase assets. sector. Liquidity refers to the ability to sell securities quickly without The price-to-earnings (PIEi ratio or multiple compares a having to significantly reduce the price. company's current share price to its earnings per share. Listed companies are traded on a public exchange; non-listed A primary budget surplus is a surplus of government revenues companies aro traded privately. over expenditure before interest payments on debt. Ludwig von Mises was a follower of the Austrian School of Pirate equity is a direct or indirect investment by a financial Economics, which attributed the booms and crashes on money investor in a substantial part of a company's equity. Usually the creation and money destruction. From 1945 to 1969 he taught as company inveeted in is not listed. a professor at New York University. Public-to.privete refers to the process of buying out a company The Maastricht rules set down five criteria which aspiring to remove it from a public stock-market listing and returning it to Eurozone members must comply with. private ownership. Maturities indicate the length of time to, or date on which, a Quantitative easing iOE) refers to broad-based asset-purchase security will cease to exist and any principal will be repaid. programs conducted by central banks; these assets can be government bonds, but also other assets like asset-backed Mergers and acquisitions (lvi&A) are the two key methods of securities corporate consolidation. A merger is a combination of two companies to form a new company, while an acquisition is the REITs (Real Estate Investment Trusts) are companies, mostly purchase of one company by another in which no new company listed, that own and often operate various types of real estate. is formed. Theyare obliged to pay out a minimum of 90% of earnings Monetary policy focuses on controlling the supply of money with The risk premium of an Investment is determined by the the ulterior motive of price stability, reducing unemployment. expected return of this investment minus a risk-free rate. boosting growth, etc. (depending on the central bank's mandate). The S&P 500 Consumer Discretionary Index tracks the performance of companies included in the S&P 500 Index that MSCI is a company providing indices and other analytical tools are classified as members of the GIGS consumer discretionary for investors. sector. The MSC! AC World Financials Index includes large and mid- The S&P 500 Index tracks the performance of 500 leading U.S. cap firms In the financial sector (principally banks) across 46 stocks and is widely considered representative of the U.S. equity developed- and emerging-market countries. market. The MSC( AC World index includes stocks from 23 developed A secondary buyout is when a private-equity company buys and 23 emerging-market economies. a stake in a company directly from another private-equity company. Net asset value (NAV) is the value of an organization's assets minus the value of its liabilities. A smart grid is an electricity grid that uses information about production and consumption to more efficiently manage distribution. ClOWer I ArevitICUIECISWO AtqUft 2,.115 ittrtgoos 0 is CONFIDENTIAL — PURSUANT TO FED. R. GRIM. P. 8(e) DB-SDNY-0117706 CONFIDENTIAL SDNY_GM_00263890 EFTA01457969