Zero Coupon Bond
Bond issued at a discount which accrues interest that is paid in full at maturity.

Zero Coupon CD
A certificate of deposit that pays interest only upon maturity.

Zero-Minus Tick
A stock trade at a price equal to the preceding trade but lower than the last different price.

Zero-Plus Tick
Term given to a sale made at the same price as the trade that preceded it providing that the previous trade was above the price of the sale it proceeded.

Zero-Sum Game
A situation in which one party's gain is always equal to the other party's loss. The gains and losses in this situation always sum to zero, hence the term. A bet is a zero-sum game where, if the punter makes a profit, the bookmaker makes an equivalent loss (ignoring tax) and vice versa. This is the same for derivatives and options where the punter is the investor and the bookmaker is the writer, either another punter or an institution. It is, however, quite different in physical markets, where actual stocks, bonds or tangible assets are traded. If an investor buys a share and its value rises, this is not matched by a corresponding loss but made up by an increase in the intrinsic value of the holding and the worth of the yield or dividend, which represents profits earned by a trading companywealth is actually created in these circumstances. There is no net wealth creation in a zero-sum game.

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