Y

• Yield

  The income returned on an investment. The yield is usually expressed as an annual percentage rate based on the investment's cost, current market value, or face value.

• Year to date

  (YTD) refers to the period of time beginning the first day of the current calendar year or fiscal year up to the current date. YTD information is useful for analyzing business trends over time or comparing performance data to competitors or peers in the same industry.

• Yearly rate of return method

  Commonly referred to as the annual percentage rate, is the amount earned on a fund throughout an entire year. The yearly rate of return is calculated by taking the amount of money gained or lost at the end of the year and dividing it by the initial investment at the beginning of the year.

• Yellow knight

  A company that was orchestrating a hostile takeover attempt, but then backs out of it and proposes a merger of equals with the target company instead.

• Yield basis

  A method of quoting the price of a fixed-income security as a yield percentage, rather than as a dollar value.

• Yield curve risk

  The risk of experiencing an adverse shift in market interest rates associated with investing in a fixed income instrument.

• Yield spread

  The difference between yields on differing debt instruments of varying maturities, credit ratings, issuers, or risk levels. A yield spread is calculated by deducting the yield of one instrument from the other.

• Yield-based option

  Allows investors to buy or sell calls and puts on the yield of a security rather than its price.

• Yo-yo

  A slang term for a very volatile market. The name comes from the movements of a yo-yo toy; in a yo-yo market, security prices continually go up and down.