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Financial Terms | |
AD |
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Definition of ADADAggregate demand.
Related Terms:Absolute AdvantageThe ability to produce a good or service with fewer resources than competitors. See also comparative advantage. Accidental Death Benefit (ADB)Coverage against accidental death usually payable in addition to base amount of coverage. ad hoc discounta price concession made under competitive pressure (real or imagined) that does not relate to quantity purchased Additional hedgeA protection against borrower fallout risk in the mortgage pipeline. Additional paid-in capitalAmounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with capital in excess of par. Additional paid-in capitalAny payment received from investors for stock that exceeds additional paid-in capitalDifference between issue price and par value of stock. Also called capital surplus. ![]() ADF (annuity discount factor)the present value of a finite stream of cash flows for every beginning $1 of cash flow. Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. Adjusted Cash Flow Provided by Continuing OperationsCash flow provided by operating Adjusted EarningsNet income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss. Adjusted EBITDAConventional earnings before interest, taxes, depreciation, and amortization (EBITDA) revised to exclude the effects of mainly nonrecurring items of revenue or gain and expense or loss. Adjusted Income from ContinuingOperations Reported income from continuing operations Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity Adjusting entriesThe entries needed at the end of an accounting period to properly state certain account balances. administrative departmentan organizational unit that performs management activities benefiting the entire organization; ![]() Administrative pricing rulesIRS rules used to allocate income on export sales to a foreign sales corporation. AdvanceA payment made by a customer to the company, or by the company to a Advance commitmentA promise to sell an asset before the seller has lined up purchase of the asset. This Advance material requestVery early orders for materials before the completion Adverse selectionA situation in which market participation is a negative signal. Allowance for bad debtsAn offset to the accounts receivable balance, against which American Depositary Receipts (ADRs)Certificates issued by a U.S. depositary bank, representing foreign applied overheadthe amount of overhead that has been assigned to Work in Process Inventory as a result of productive activity; credits for this amount are to an overhead account Bad debtAn account receivable that cannot be collected. Bad debtsThe amount of accounts receivable that is not expected to be collected. bad debtsRefers to accounts receivable from credit sales to customers ![]() Balance of Merchandise TradeThe difference between exports and imports of goods. Balance of tradeNet flow of goods (exports minus imports) between countries. Balance of TradeSee balance of merchandise trade. Basket tradesRelated: Program trades. Bill of ladingA contract between the exporter and a transportation company in which the latter agrees to Block tradeA large trading order, defined on the New York Stock Exchange as an order that consists of Brady bondsBonds issued by emerging countries under a debt reduction plan. Bull spreadA spread strategy in which an investor buys an out-of-the-money put option, financing it by business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay Canada Pension Plan (CPP)A plan that provides retirement and long term disability income benefits to residents of Canadian provinces (excluding Quebec). Canada Savings BondsA bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value. Canadian agenciesAgency banks established by Canadian banks in the U.S. Canadian Deposit Insurance CorporationBetter known as CDIC, this is an organization which insures qualifying deposits and GICs at savings institutions, mainly banks and trust companys, which belong to the CDIC for amounts up to $60,000 and for terms of up to five years. Many types of deposits are not insured, such as mortgage-backed deposits, annuities of duration of more than five years, and mutual funds. Canadian Life and Health Insurance Association (CLHIA)An association of most of the life and health insurance companies in Canada that conducts research and compiles information about the life and health insurance industry in Canada. Cash value added (CVA)A method of investment appraisal that calculates the ratio of the net present value of an Comparative AdvantageA country has a comparative advantage over another country in the production of good A if to produce a unit of A it forgoes more of the production of good B than would the other country when it produces a unit of good A. Its efficiency in the production of good A relative to its efficiency in the production of good B is greater than is the case for the other country. See also absolute advantage. Competitive AdvantageThe strategies, skills, knowledge, resources or competencies that differentiate a business from its competitors. computer-aided design (CAD)a system using computer graphics for product designs cost leadership strategya plan to achieve the position in a Counter tradeThe exchange of goods for other goods rather than for cash; barter. Credit spreadRelated:Quality spread Cumulative-Effect AdjustmentThe cumulative, after-tax, prior-year effect of a change in accounting Cumulative Translation Adjustment (CTA) accountAn entry in a translated balance sheet in which gains Day tradingRefers to establishing and liquidating the same position or positions within one day's trading. Dead cat bounceA small upmove in a bear market. Dead Peasants InsuranceAlso known as "Dead Janitors Insurance", this is the practice, where allowed, in several U.S. states, of numerous well known large American Corporations taking out corporate owned life insurance policies on millions of their regular employees, often without the knowledge or consent of those employees. Corporations profiting from the deaths of their employees [and sometimes ex-employees] have attracted adverse publicity because ultimate death benefits are seldom, even partially passed down to surviving families. Direct-Response Advertisingadvertising designed to elicit sales to customers who can be DowngradeA classic negative change in ratings for a stock, and or other rated security. EBBS - Earnings before the bad stuffAn acronym attributed to a member of the Securities and Economic Value Added (EVA)Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge economic value added (EVA)a measure of the extent to which income exceeds the dollar cost of capital; calculated economic value added (EVA)Term used by the consulting firm Stern Stewart for profit remaining after deduction of the cost Effective spreadThe gross underwriting spread adjusted for the impact of the announcement of the common Factory overheadAll the costs incurred during the manufacturing process, minus the Fixed overheadThat portion of total overhead costs which remains constant in size fixed overhead spending variancethe difference between the total actual fixed overhead and budgeted fixed overhead; fixed overhead volume variancesee volume variance Flat trades1) A bond in default trades flat; that is, the price quoted covers both principal and unpaid, Floor traderA member who generally trades only for his own account, for an account controlled by him or Forward tradeA transaction in which the settlement will occur on a specified date in the future at a price Free TradeThe absence of any government restrictions, such as tariffs or quotas, on imports or exports. GENERAL-AND-ADMINISTRATIVE EXPENSESWhat was spent to run the non-sales and non-manufacturing part of a company, such as office salaries and interest paid on loans. grade (of product or service)the addition or removal of product GradualismA policy of decreasing the rate of growth of the money supply gradually over an extended period of time, so that inflation can adjust with smaller unemployment cost. Contrast with cold-turkey policy. Graduated-payment mortgages (GPMs)A type of stepped-payment loan in which the borrower's payments Gross spreadThe fraction of the gross proceeds of an underwritten securities offering that is paid as Head & shouldersIn technical analysis, a chart formation in which a stock price reaches a peak and declines, Homemade dividendSale of some shares of stock to get cash that would be similar to receiving a cash dividend. Homemade leverageIdea that as long as individuals borrow (or lend) on the same terms as the firm, they can Horizontal spreadThe simultaneous purchase and sale of two options that differ only in their exercise date. Information-motivated tradesTrades in which an investor believes he or she possesses pertinent Informationless tradesTrades that are the result of either a reallocation of wealth or an implementation of an Insider tradingTrading by officers, directors, major stockholders, or others who hold private inside Intermarket spread swapsAn exchange of one bond for another based on the manager's projection of a Intramarket sector spreadThe spread between two issues of the same maturity within a market sector. For Inventory adjustmentA transaction used to adjust the book balance of an inventory investment gradeBonds rated Baa or above by Moody’s or BBB or above by Standard & Poor’s. Investment grade bondsA bond that is assigned a rating in the top four categories by commercial credit judgmental method (of risk adjustment)an informal method of adjusting for risk that allows the decision maker Ladder strategyA bond portfolio strategy in which the portfolio is constructed to have approximately equal Last trading dayThe final day under an exchange's rules during which trading may take place in a particular LeadPayment of a financial obligation earlier than is expected or required. Lead managerThe commercial or investment bank with the primary responsibility for organizing syndicated lead timesee cycle time Leading economic indicatorsEconomic series that tend to rise or fall in advance of the rest of the economy. Leading IndicatorA variable that reaches a turning point (a peak or a trough) before the economy reaches a turning point. Load fundA mutual fund with shares sold at a price including a large sales charge -- typically 4% to 8% of Load-to-loadArrangement whereby the customer pays for the last delivery when the next one is received. loadsLoads are sales fees (or commissions) that are charged when you buy a mutual fund. Long straddleA straddle in which a long position is taken in both a put and call option. Make-readySee set-up. maquiladoraa business (typically U.S.-owned on the Mexican Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |