Financial Dictionary

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J-Curve Effect

A type of diagram where the curve falls at the outset and eventually rises to a point higher than the starting point, suggesting the letter J. While a J-curve can apply to data in a variety of fields, such as medicine and political science, the J-curve effect is most notable in both economics and private […]

Jack Welch

The former chairman and CEO of General Electric (GE) from 1981 – 2001. Welch expanded the company and dramatically increased its market value from $14 billion to $410 billion during his tenure. Welch has a reputation as one of the top CEOs of all time, as evidenced by Fortune magazine’s recognition of him in 1999 […]

Jackson Hole Economic Symposium

An annual symposium sponsored by the Federal Reserve Bank of Kansas City since 1978, and held in Jackson Hole, Wyoming, since 1981. The symposium focuses on an important economic issue that faces U.S. and world economies. Participants include prominent central bankers and finance ministers, as well as academic luminaries and leading financial market players from […]

January Effect

The end of last week in December and often December 31, is the time when many investors are selling their stocks in order to claim capital losses, which is done for tax purposes. During the first week in January, the same investors will reinvest their money in the market, which causes security prices to rise. […]

Jensen Index

Used to measure the performance of investing manager, relative to market index. Jensen Index uses capital asset pricing model for the calculations of investing manager performance.

Jobless Claims

The number of people who are filing or have filed to receive unemployment insurance benefits, as reported weekly by the U.S. Department of Labor. There are two categories of jobless claims – initial, which comprises people filing for the first time, and continuing, which consists of unemployed people who have been receiving unemployment benefits for […]

Jobless Recovery

An economic recovery, following a recession, where the economy as a whole improves, but the unemployment rate remains high or continues to increase over a prolonged period of time. This effect may be a result of cautious businesses that add hours to existing employees in order to increase production capacity rather than hiring new workers.

Joint Bond

A bond that is guaranteed by a party other than the issuer. Also called a “joint-and-several bond.”

Joint Stock Company

A company that has some features of a partnership and some features of a corporation. Joint Stock Company issues fully transferable shares, and the shareholders has unlimited liability.

Joint Venture

A cooperation of two or more capitalists, joining together in order to invest in business, sharing the profit, loss, risk and liability. Joint Ventures are usually taxed as partnership.

Julian Robertson

A former hedge fund manager and investor, Julian Robertson founded Tiger Management Corporation, one of the first hedge funds of its kind and one that actually made money during the subprime crisis of 2008. Robertson began his fund with $8 million in 1980 and grew it to $22 billion by 1998. He now stakes other […]

Jumbo Loan

A mortgage with a loan amount exceeding the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO), and therefore, not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac. OFHEO sets the conforming loan limit size on an annual basis. Also referred to as “Jumbo Mortgage”.

Jumpstart Our Business Startups Act – JOBS

An act signed into law on April 5, 2012 that allays the regulations instituted by the Securities And Exchange Commission on small businesses. The Jumpstart Our Business Startups Act, or JOBS Act, loosens restrictions on capital raising for small businesses, such as allowing them to go public with less than $1 billion in annual gross […]

Junior Debt

Stands for unsecured debt, or a debt with rank bellow other loans or securities. This kind of debt is more risky investment than senior or unsubordinated debt.

Junior Equity

Refers to common stock. It is called junior because it is subordinate to preferred stocks.

Jurisdiction Risk

The risk that arises when operating in a foreign jurisdiction. In recent times, jurisdiction risk has focused on banks and financial institutions who are exposed to the risk that some of the countries where they operate may be high-risk areas for money laundering and terrorism financing. Jurisdiction risk can also refer to when laws unexpectedly […]

Just-in-Time (JIT)

A production strategy in which components are delivered to the producer just in time for the installing. By using JIT inventory system holding and storage costs are fully minimized.