Financial Terms Main Page

This site contains comprehensive definitions for a wide range of terms that cover topics such as financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit...

• Browse terms by the Alphabetical Index:
  1 4 A B C D E F G H I J K L M N O P Q R S T U V W Y Z

• Search terms for definitions using keywords:
  Keyword(s):

Monthly Financial Term Picks:

Asset/liability management

Also called surplus management, the task of managing funds of a financial
institution to accomplish the two goals of a financial institution:
1) to earn an adequate return on funds invested, and
2) to maintain a comfortable surplus of assets beyond liabilities.

British clearers

The large clearing banks that dominate deposit taking and short-term lending in the domestic
sterling market.

Equity contribution agreement

An agreement to contribute equity to a project under certain specified
conditions.

Expiration

The time when the option contract ceases to exist (expires).

Growth rates

Compound annual growth rate for the number of full fiscal years shown. If there is a negative
or zero value for the first or last year, the growth is NM (not meaningful).

Holding period

Length of time that an individual holds a security.

Net period

The period of time between the end of the discount period and the date payment is due.

Operating cycle

The average time intervening between the acquisition of materials or services and the final
cash realization from those acquisitions.

Subject to opinion

An auditor's opinion reflecting acceptance of a company's financial statements subject to
pervasive uncertainty that cannot be adequately measured, such as information relating to the value of
inventories, reserves for losses, or other matters subject to judgment.

Value-at-Risk model (VAR)

Procedure for estimating the probability of portfolio losses exceeding some
specified proportion based on a statistical analysis of historical market price trends, correlations, and volatilities.

Set-up

The time required to make ready a machine or process for production, e.g. changing equipment
settings.

Annuity

A series of payments or deposits of equal size spaced evenly over
a specified period of time

incremental cost

the cost of producing or selling an additional
contemplated quantity of output

forward rate of exchange

Exchange rate for a forward transaction.

Inventory turnover

The number of times per year that an entire inventory or a
subset thereof is used.