Investopedia - term of the day

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Symmetrical distribution
A situation in which the values of variables occur at regular frequencies, and the mean, median and mode occur at the same point. Unlike asymmetrical distribution, symmetrical distribution does not skew. Also called a symmetric or normal distribution, it is commonly shaped like a bellcurve when depicted on a graph. If you drew a line down the middle of the graph, the two sides would mirror each other.

A stock index that tracks the 30 largest companies with the most heavily-traded stocks on the Nordic stock exchanges. VINX 30 is denominated in euros and is an adjustable free-floating index. It tracks stocks that trade on the exchanges in Helsinki, Copenhagen andStockholm.

Mortgage-backed note
A type of promissory note that is associated with a particular mortgage loan. Mortgage-backed notes represent the legal promise to repay a mortgage loan. These notes specify the terms of the loan, including the amount of interest and principal that must be repaid. They also obligate the borrower to make the payments.

Super currency
A supranational currency printedby the International Monetary Fund that would be tied to a basket of reserve currencies. The concept of a global super currency has been periodically discussed between world leaders as well as endorsed by 2001 Nobel Memorial Prize winner Joseph Stiglitz and well known business leader George Soros for years. A super currency could also be tied to a single currency, but the interconnectedness ofworld financial markets and concerns about the volatility that can occur as a result of the system being tied to one currency have made this idea much less popular.

An exchange-traded fund that tracks other ETFs rather than stock, bonds or derivatives. ETFs of ETFs track the performance of other ETFs, which may have direct exposure to the underlying securities they track.

Water ETFAn exchange-traded fund that invest in companies operating in industries such as water treatment and purification, water utilities, water monitoring and broader distribution and retail companies. Water ETFs invest the majority of their assets into publicly traded equities based on an underlying index, which may be created in house or by a third-party market service.

Michael S. Dell
Along-time CEO and chairman of Texas-based computer company Dell. Dell was born in 1965 in Houston. He never completed his undergraduate degree. Adter becoming proficient in computers as a teenager, he started his computer company in 1984 under the name PCs Limited; the company grew rapidly and competed heavily with IBM, becoming a Fortune 500 company in 1992.
His company distinguishes itself from othercomputer manufacturers by allowing customers to order computers with customized specifications directly from the company rather than purchasing premade computers off the shelf in retail stores. It also developed a strategy to limit the company’s inventory so it could rapidly and profitably adapt to changing technology. This business model allows Dell to be highly competitive both in price and incustomer service.

Overnight position
Trading positions not closed by the end of the trading day and held overnight. For securities trading, overnight positions expose the investor to risk because a number of events can negatively impact a position while the trading floor is closed.

Tracking errors
A divergence between the price behavior of a position or a portfolio and the price behavior ofa benchmark. This is often in the context of a hedge or mutual fund that did not work as effectively as intended, creating an unexpected profit or loss instead. They are reported as a standard deviation percentage difference. This measure reports the difference between the return an investor receives and that of the benchmark he or she was attempting to imitate.

Formerly the QQQ, this...