1. Glossary of Financial Terms
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 bond
Z Also known as an accrual bond or accretion bond; a
bond on which interest accretes interest but is not paid
currently to the i nvestor but rather is accrued, with
accrual added to the principal balance of the Z and
becoming payable upon satisfaction of all prior bond
classes.
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.
Zero coupon bond
Such a debt security pays an investor no interest. It is
sold at a discount to its face price and matures in one
year or longer.
Zero prepayment assumption
The assumption of payment of scheduled principal and
interest with no payments.
Zero uptick
Related: tick-test rules.
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-beta portfolio
A portfolio constructed to represent the risk-free asset,
that is, having a beta of zero.
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-investment portfolio
A portfolio of zero net value established by buying
and shorting component securities, usually in the
context of an arbitrage strategy.
Zero-one integer programming
An analytical method that can be used to determine
the solution to a capital rationing problem.
Zero-sum game
A type of game wherein one player can gain only at

2. the expense of another player.