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Find in Piraeus Asset Management MFMC glossary definitions for Mutual Funds. The definitions of vocabulary arising from the international and domestic academic literature and the institutional framework. 

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The price of the mutual fund shares, that belong to the fund at the end of each day. That price is the gross price of the fund’s share.

Value investing

Value investing is an investment paradigm that derives from the ideas on investment that Ben Graham and David Dodd began teaching at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis. Although value investing has taken many forms since its inception, it generally involves buying securities that appear underpriced by some form of fundamental analysis.



Is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed price called exercise price until the expiry date. Warrants and options are similar in that the two contractual financial instruments allow the holder special rights to buy securities. Both are discretionary and have expiration dates. Warrants are frequently attached to bonds or preferred stock as a sweetener, allowing the issuer to pay lower interest rates or dividends.


Yield Curve

The yield curve represents borrower’s bond yields across different maturities. The curve is thus plotted with yields on the y-axis and the time to maturity on the x-axis. The yield curve is normally positively sloped (long term yields higher than short term yields). In rare cases, the curve can be negatively sloped (inverted curve), which is often considered as a sign of recession. There is a wide range of yield curve movements; however 3 main types of movements explain changes in yield curve: the parallel shift, the twist (change slope) and the butterfly (change in curvature).

Yield to Maturity (YTM)

The yield to maturity (YTM) is the discount rate which returns the market price of a bond without embedded optionality. YTM is thus the internal rate of return of an investment in the bond made at the observed price. Since YTM can be used to price a bond, bond prices are often quoted in terms of YTM.


Zero-Coupon Bond

A zero coupon bond is a bond which capitalizes interests instead of distributing coupon. Such bonds are then issued at discount from their face value. While short term debt securities are often zero coupons, longer maturity bonds can, however, be constructed to a zero coupon from any bond by separating its interest and principal payments to form two distinct instruments (Strip Bonds or STRIPS).