Trading Terms Starting With J

  • January effect

    An observable but not necessarily reliable pattern of the stock market rising in early January. This has been attributable to investors with losing stock positions selling them at the end of December to realize capital losses for that tax year, then quickly buying the same securities in January to re-establish their positions.
  • Joint venture

    a business set up by contractual agreement between two or more parties agreeing to share profits and losses of the newly formed venture.
  • Junior debt

    when several parties have debt claims on the same asset or property, those claims which have lower priority than others. Also termed Subordinated debt.
  • Junk bond

    a bond that produces a high rate of return, or high yield. Generally, at the time of purchase such a bond will be assigned a very low grade by a credit agency, reflecting a relatively high chance of default. The issuer must therefore resort to high yields to attract investors. Also termed High yield bond.