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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. 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 possible with the purchase of the base stock. Rolling turbos also offer the possib ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Derivative
In finance, a derivative is a contract that ''derives'' its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements ( hedging), increasing exposure to price movements for speculation, or getting access to otherwise hard-to-trade assets or markets. Some of the more common derivatives include forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps. Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the Chicago Mercantile Exchange, while most insurance contracts have developed into a separate industry. In the United States, after the financial crisis of 2007–2009, there has been increased pressure to move derivatives to trade on exchanges. Derivatives are one of the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, Hong Kong, Tokyo, Dallas and Salt Lake City, and additional offices in other international financial centers. Goldman Sachs is the second largest investment bank in the world by revenue and is ranked 57th on the Fortune 500 list of the largest United States corporations by total revenue. It is considered a systemically important financial institution by the Financial Stability Board. The company has been criticized for a lack of ethical standards, working with dictatorial regimes, close relationships with the U.S. federal government via a "revolving door" of former employees, and driving up prices of commodities through futures speculation. While the company has appeared on the 100 Best Companies to Work For list compiled by ''Fortune'' ... [...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 pred ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Netherlands Authority For The Financial Markets
The Netherlands Authority for the Financial Markets ( nl, Autoriteit Financiële Markten) 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 was set up on 1 March 2002 as the successor to the Securities Board of the Netherlands ( nl, Stichting Toezicht Effectenverkeer - STE). 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 marke ... [...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). For ... [...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 pred ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
