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Financial Glossary


X, Y, Z

Year-End Deferral. This term refers to the ability of taxpayers to delay the reporting of business income and the payment of tax by selecting a fiscal year for their business which differs from their taxation year.

Year-Over-Year Change. The actual percentage change from one period to the same period one year later. For example, the CPI inflation rate is usually reported as the 12-month percentage change in prices. Year-over-year changes are often reported when month-to-month or quarter-to-quarter changes have regular seasonal fluctuations (such as retail sales rising just before Christmas) which can mask underlying trends.

Yield. The amount of interest or dividend paid on a loan or an investment, expressed as a percentage. The yield on a stock is calculated by dividing the dividend by the current market price. This is also called "rate of return". Put another way, the percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note.

Yield Curve. A graphic representation of the relationship among yields of similar bonds of differing maturities. Tilting yield curve refers to long-term bond yields declining while short-term yields are rising.

Yield to Maturity. The annual rate of return an investor would receive if a bond were held until maturity.

Zero Coupon Bond. A bond that pays no interest and is initially sold at a discount.