January Effect A recurring trend in the stock market during the month of January (mostly the first half of the month) wherein stock prices tend to go up. Jamming Executing a large sell (buy) order in stages by asking for a market on a small size, hitting the bid (offer), then repeating the process with ...

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January Effect

A recurring trend in the stock market during the month of January (mostly the first half of the month) wherein stock prices tend to go up.

Jamming
Executing a large sell (buy) order in stages by asking for a market on a small size, hitting the bid (offer), then repeating the process with a different market maker, ultimately driving the price considerably lower (higher).

J-curve
Theory that says a country’s trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short-run.

Jelly Roll
A roll that a trader does using synthetic Forward Contracts (q.v.). Each synthetic Forward Contract consists of a long call and a short put, on the same underlying instrument, with the same strike and expiration.

Jensen index
An index that uses the capital asset pricing model to determine whether a money manager outperformed a market index. The “alpha” of an investment or investment manager.

Joint account
An agreement between two or more firms to share risk and financing responsibility in purchasing or underwriting securities.

Joint clearing members
Firms that clear on more than one exchange.

Jumbo loan
Loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or securitization by the federal agencies.

Junk bond
A bond with a speculative credit rating of BB (S&P) or Ba (Moody’s) or lower is a junk or high yield bond. Such bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & Poors and Moody’s investor Services, provide the rating systems for companies’ credit.

Junior debt (subordinate debt)
Debt whose holders have a claim on the firm’s assets only after senior debtholder’s claims have been satisfied. Subordinated debt.

Just-in-time inventory systems
Systems that schedule materials/inventory to arrive exactly as they are needed in the production process.

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Warrant An option that a corporation issues, with its own shares as the underlying asset. The crucial implication is that exercise of the option changes the number of claims against the corporation’s assets. Thus, the pricing equations for Call (Put) Warrants and ordinary Call (Put) Options differ by the dilution (antidilution) effect. Empirically, warrants are ...