A security that gives the owner the right to purchase the issuing corporation's stock at a certain price within a specified time period.
A wash sale occurs when a security is sold at a loss and that same security or identical stock is purchased within 30 days. The purchase could occur before or after the security is sold, therefore, there is a 61-day window (30 days prior to the sale and 30 days after the sale) that is monitored to identify wash sales. In the event of a wash sale, the loss is disallowed and added to the basis of the newly acquired security.
Weighted Average Coupon (WAC)
The weighted average interest rate of the underlying mortgage loans or pools that serve as collateral for a security, weighted by the size of the principal loan balances.
A short form of "when, as, and if issued." The term indicates a conditional transaction in a security authorized for issuance but not yet actually issued. All "when issued" transactions are on an "if" basis, to be settled if and when the actual security is issued.
A capitalization weighted index of all U.S.-headquartered companies (currently about 6800). The capitalization of the portfolio is the sum of the market capitalizations of all the companies.