Characteristic Line Financial Glossary

What is it? The line of bet fit through a series of historical returns for the firms stock relative to the market returns. The slope of this line, called beta, represents the average movement of the firms stock returns in response to a change in the markets returns.

Finance Term Definition Added By: Kevin

Send To Friends!

If you'd like to send the Characteristic Line definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of Characteristic Line. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Finance Terms:

Financial Term Selfemployed is This will usually cover anyone who is not paid under PAYE. In addition, for mortgage purposes, most lenders will class controlling directors as self employed or directors with more than a 20% shareholding. If this applies then the lender is likely to ask to see company accounts and to write to the companies external accountant for proof of income.

Financial Term Average Maturity is Bond investors can average the maturity dates of a portfolios debt securities to come up with the portfolios average maturity. Generally, the longer the average maturity, the greater the portfolios sensitivity to interest-rate changes, which means more price fluctuation.

Financial Term event risk is The risk of an unexpected, future decrease in credit quality that is a result of events such as a corporate acquisition or material changes in taxes, laws, or regulations.

Financial Term price is The amount paid for a security. The price of a security is usually expressed as a percentage of its par value. For mortgage-related securities, the price is usually expressed as a percentage of the current face value. A price greater than 100 percent is a premium price while a price less than 100 percent is a discount price.

Financial Term Real estate is A term that is generally synonymous with real property. See also property.