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Definition of Antifraud Provisions
Specific sections and rules of the 1933 Act and 1934 Act that are
A clause in a shareholders agreement preventing a company from issuing additional shares, without allowing the current shareholders the opportunity to participate in the offering to avoid dilution of their percentage ownership.
Annual report required by the SEC each year. Provides a comprehensive overview of a company's state
The requirement that all pool information, as specified under the PSA Uniform PrActices, in a
clause causing repayment of a debt, if specified events occur or are not met.
This doctrine says that a nation is sovereign within its own borders and its domestic
A market in which there is much trading.
A strategy that uses available information and forecasting techniques to seek a
a repetitive Action performed in fulfillment of business functions
the process of detailing the various repetitive Actions that are performed in making a product or
A method of budgeting that develops budgets based on expected Activities and cost drivers – see also Activity-based costing.
planning approach applying Activity drivers to estimate the levels and costs of Activities necessary to provide the budgeted quantity and
A method of costing that uses cost pools to accumulate the cost of significant business Activities and then assigns the costs from the cost pools to products or services based on cost drivers.
A relatively new method advocated for the
a process using multiple cost drivers to predict and allocate costs to products and services;
A cost allocation system that compiles costs and assigns
activity-based management (ABM)
a discipline that focuses on the Activities incurred during the production/performance process as the way to improve the value received
a segment of the production or service
a measure of the demands on Activities and,
The Actual expenditure made to acquire an asset, which includes the supplierinvoiced
actual cost system
a valuation method that uses Actual direct
The physical commodity underlying a futures contrAct. Cash commodity, physical.
One who uses statistical information to evaluate the probability of future events and prices insurance products.
A protection against borrower fallout risk in the mortgage pipeline.
Additional paid-in capital
Amounts 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 capital
Any payment received from investors for stock that exceeds
additional paid-in capital
Difference 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.
Administrative pricing rules
IRS Rules used to allocate income on export sales to a foreign sales corporation.
Allocation base A measure of activity or volume such as labour
hours, machine hours or volume of production
SECurities certificates issued in the U.S. by a transfer agent Acting on behalf of the foreign
The pool fActor implied by the scheduled amortization assuming no prepayemts.
Annual percentage rate (APR)
The periodic rate times the number of periods in a year. For example, a 5%
annual percentage rate (APR)
Interest rate that is annualized using simple interest.
Annual percentage yield (APY)
The effective, or true, annual rate of return. The APY is the rate Actually
Present value of $1 paid for each of t periods.
Present value of an annuity of $1 per period.
Asset activity ratios
Ratios that measure how effectively the firm is managing its assets.
Bond or note SECured by assets of company.
A SECurity that is collateralized by loans, leases, receivables, or installment contrActs
The amount of total risk that can be eliminated by diversification by
Legislation under which interest, dividends, or capital gains earned on assets you transfer to your spouse will be treated as your own for tax purposes. Interest or dividends relating to property transferred to children under 18 also will be attributed back to you. The exception to this Rule is that capital gains relating to property transferred to children under 18 will not be attributed back to you.
Number of shares authorized for issuance by a firm's corporate charter.
The number of shares of stock that the company is legally authorized to sell.
A debt or equity SECurity not classified as a held-to-maturity SECurity or a trading SECurity. Can be classified as a current or noncurrent investment depending on the intended holding period.
Costs that are identifiable with and able to be influenced by decisions made at the business
Basic IRR rule
Accept the project if IRR is greater than the discount rate; reject the project is lower than the
Bill and Hold Practices
Products that have been sold with an explicit agreement that delivery
Large and creditworthy company.
A contrAct for privately placed debt.
The Treasury and federal agencies are moving to a book-entry system in which SECurities are not represented by engraved pieces of paper but are maintained in computerized records at the
Bretton Woods Agreement
An agreement signed by the original United Nations members in 1944 that
A guaranteed investment contrAct purchased with a single (one-shot) premium. Related:
an Activity that is necessary for the operation of the business but for which a customer would not want to pay
This is an agreement entered into by the owners of a business to define the conditions under which the interests of each shareholder will be bought and sold. The agreement sets the value of each shareholders interest and stipulates what happens when one of the owners wishes to dispose of his/her interest during his/her lifetime as well as disposal of interest upon death or disability. Life insurance, critical illness coverage and disability insurance are major considerations to help fund this type of agreement.
Cash deficiency agreement
An agreement to invest cash in a project to the extent required to cover any cash
cash flow from operating activities, or cash flow from profit
This equals the cash inflow from sales during the period minus the cash
Cash Flow Provided by Operating Activities
With some exceptions, the cash effects of transActions
Cash Flow Provided or Used from Financing Activities
Cash receipts and payments involving
Cash Flow Provided or Used from Investing Activities
Cash receipts and payments involving
CASH FLOWS FROM FINANCING ACTIVITIES
A SECtion on the cash-flow statement that shows how much cash a company raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations.
CASH FLOWS FROM INVESTING ACTIVITIES
A SECtion on the cashflow statement that shows how much cash came in and went out because of various investing Activities like purchasing machinery.
Cash settlement contracts
Futures contrActs, such as stock index futures, that settle for cash, not involving
A transAction where exchange is immediate, as contrasted to a forward contrAct, which
Changes in Financial Position
Sources of funds internally provided from operations that alter a company's
The market model applied to a single SECurity. The slope of the line is a SECurity's beta.
chief financial officer (CFO)
Officer who oversees the treasurer and controller and sets overall financial strategy.
A reduction in the likelihood one or more of the firm's claimants will be fully repaid,
The percentage of a given month's sales collected during the month of sale and each
Are equity instruments that take no SECurity against assets, have no fixed terms of repayment and pay no fixed dividends.
Assets acquired to create money. May include plant, machinery and equipment, shares of another company etc.
company cost of capital
Expected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations.
Related: Unsystematic risk
See asset-Specific risk
An offering of SECurities through competitive bidding.
A contrAct accounting method that recognizes contrAct revenue
computer-aided manufacturing (CAM)
the use of computers to control production processes through numerically
computer integrated manufacturing (CIM)
the integration of two or more flexible manufActuring systems through the use of a host computer and an information networking system
An understanding between a company and the host government that specifies the
see simultaneous engineering
Conditional Sale Agreement
An agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands.
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
A legal document whereby the one party, usually the prospective investor, pledges to keep strictly confidential, and return on request, any and all information provided by the entrepreneur seeking funding.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
A federal Act
Consumer Credit Protection Act
A federal Act specifying the proportion of
A term of reference describing a unit of trading for a financial or commodity future. Also, the Actual
A formal written statement of the rights and obligations of each party to a transAction.
Method of accounting for sales or service agreements where completion
an external party that has been granted an outsourcing contrAct to produce a part or component for an entity
The month in which futures contrActs may be satisfied by making or accepting a delivery.
an external party that has been granted an
Contract Work Hours and Safety Standards Act
A federal Act requiring federal contrActors to pay overtime for hours worked exceeding 40 per week.
Rules set by the Chicago Board of Trade for determining the invoice price of each
A SECurity that can be converted into common stock at the option of the SECurity holder,
Corporate financial management
The application of financial principals within a corporation to create and
Corporate financial planning
financial planning conducted by a firm that encompasses preparation of both
the prActice of finding acceptable alternatives
Cost company arrangement
Arrangement whereby the shareholders of a project receive output free of
cost of goods manufactured (CGM)
the total cost of the
Cost of manufacture
The cost of goods manufActured for subsequent sale.
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