A bank that offers to pay different rates of interest on CDs of varying maturities is
said to post a scale. Commercial paper dealers also post scales.
Scale enhancing
Describes a project that is in the same risk class as the whole firm.
Scale in
When a trader or investor gradually takes a position in a security or market over
time.
Scale order
Used in the context of general equities. Order to buy (sell) a security which
specifies the total amount to be bought (sold) and the amount to be bought (sold)
at successively decreasing (increasing) price intervals; often done in order to
average the price.
Scalp
To trade for small gains. It normally involves establishing and liquidating a
position quickly, usually within the same day.
Scattered
Used for listed equity securities. Unconcentrated buy or sell interest.
Scenario analysis
The use of horizon analysis to project bond total returns under different
reinvestment rates and future market yields.
Scheduled cash flows
The mortgage principal and interest payments due to be paid under the terms of
the mortgage not including possible prepayments.
Scorched-earth policy
Often used in risk arbitrage. Technique used by a company that has become the
target of a takeover attempt to make itself unattractive to the acquirer. For
example, it may agree to sell off its crown jewels or schedule all debt to become
due immediately after a merger.
