Financial glossary

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Zabara
Applies mainly to international equities. Japanese securities transactions conducted on the principal of auction, i.e. (a) price priority in which the selling (buying) order with the lowest (highest) price takes precedence over other orders and (b) time priority in that an earlier order takes precedence over other orders at the same price. Financial glossary.

Zaibatsu
Large family owned conglomerates that controlled much of the economy of Japan prior to World War II.

Z bond
A bond on which interest accrues but is not currently paid to the investor but rather is added to the principal balance of the Z bond and becoming payable upon satisfaction of all prior bond classes.

Zero balance account
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 base budgeting
Budgeting method that disregards the previous year's budget in setting a new budget, since circumstances may have changed. Each and every expense must be justified in this system.

Zero beta portfolio
A portfolio constructed to have zero systematic risk, similar to the risk free asset, that is, having a beta of zero.

Zero bracket amount
The standard deduction portion of income which is not taxed for tax payers choosing not to itemize deductions.

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. Financial glossary.

Zero coupon convertible security
A zero coupon bond convertible into the common stock of the issuing company after the stock reaches a certain price, using a put option inherent in the security.
Also refers to zero coupon bonds, which are convertible into an interest bearing bond at a certain time before maturity.

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 minus tick
Sale that takes place at the same price as the previous sale, but at a lower price than the last different price.

Zero one integer programming
An analytical method that can be used to determine the solution to a capital rationing problem.

Zero prepayment assumption
The assumption of payment of scheduled principal and interest with no payments.

Zero plus tick
Used for listed equity securities. Transaction at the same price as the preceding trade, but higher than the preceding trade at a different price. Financial glossary.

Zero sum game
A type of game wherein one player can gain only at the expense of another player.

Zombies
Companies that continue operation while they await merger or closure, even though they are insolvent and bankrupt.