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Definition of Assuris
assuris is a not for profit organization that protects Canadian policyholders in the event that their life insurance company should become insolvent. Their role is to protect policyholders by minimizing loss of benefits and ensuring a quick transfer of their policies to a solvent company where their benefits will continue to be honoured. assuris is funded by the life insurance industry and endorsed by government. If you are a Canadian citizen or resident, and you purchased a product from a member life insurance company in Canada, you are protected by assuris.
the additional Value inherent in the control interest as contrasted to a minority interest, which reflects its power of control
a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock.
Abramsâ€™ model for calculating DLOM based on the interaction of discounts from four economic components.
the period after an announcement of a takeover bid in which stock prices typically rise until a merger or acquisition is made (or until it falls through).
regression analysis a statistical technique that minimizes the sum of the squared deviations between a dependent variable and one or more independent variables and provides the user
Same as PV, but usually includes a subtraction for an initial cash outlay.
the Value in todayâ€™s dollars of cash flows that occur in different time periods.
the period before a formal announcement of a takeover bid in which one or more bidders are either preparing to make an announcement or speculating that someone else will.
Money owed to suppliers.
Money owed by customers.
The ratio of net credit sales to average accounts receivable, a measure of how
An approximate measure of the liability of a plan in the event of a
A protection against borrower fallout risk in the mortgage pipeline.
The net present Value analysis of an asset if financed solely by equity
The ratio of net Income to net sales.
All equity rate
The discount rate that reflects only the business risks of a project and abstracts from the
All or none
Requirement that none of an order be executed unless all of it can be executed at the specified price.
Total costs, explicit and implicit.
An arrangement whereby a security issue is canceled if the underwriter is unable
American Depositary Receipts (ADRs)
Certificates issued by a U.S. Depositary bank, representing foreign
An option that may be exercised at any time up to and including the expiration date.
Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign
American Stock Exchange (AMEX)
The second-largest stock exchange in the United States. It trades
An option contract that can be exercised at any time between the date of purchase and
Annual fund operating expenses
For investment companies, the management fee and "other Expenses,"
Asset allocation decision
The decision regarding how an institution's funds should be distributed among the
An option is at-the-money if the strike price of the option is equal to the market price of the
Number of shares authorized for issuance by a firm's corporate charter.
Average age of accounts receivable
The weighted-average age of all of the firm's outstanding invoices.
Average cost of capital
A firm's required payout to the bondholders and to the stockholders expressed as a
also referred to as the weighted-average life (WAL). The average number of years that each
1) When bond yields and prices fall, the market is said to back-up.
any large principal payment due at maturity for a bond or loan with or without a a sinking
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
Bankruptcy cost view
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
Base probability of loss
The probability of not achieving a portfolio expected return.
Basic business strategies
key strategies a firm intends to pursue in carrying out its business plan.
Before-tax profit margin
The ratio of net Income before taxes to net sales.
Large and creditworthy company.
With respect to convertible bonds, the Value the security would have if it were not convertible
The cumulative book Income plus any gain or loss on disposition of the assets on termination of the SAT.
A company's book Value is its total assets minus intangible assets and liabilities, such as debt. A
Book value per share
The ratio of stockholder equity to the average number of common shares. Book Value
In the mortgage pipeline, the risk that prospective borrowers of loans committed to be
Bottom-up equity management style
A management style that de-emphasizes the significance of economic
Repetitive cycles of economic expansion and recession.
A business that has terminated with a loss to creditors.
The risk that the cash flow of an issuer will be impaired because of adverse economic
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is
Exchange rate between British pounds sterling and the U.S.$.
List of new issues scheduled to come to market shortly.
The tendency of stocks to perform differently at different times, including such anomalies as
An option that gives the right to buy the underlying futures contract.
Call an option
To exercise a call option.
A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond
Call money rate
also called the broker loan rate , the interest rate that banks charge brokers to finance
An option contract that gives its holder the right (but not the obligation) to purchase a specified
The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a
The price for which a bond can be repaid before maturity under a call provision.
A feature of some callable bonds that establishes an initial period when the bonds may not be
An embedded option granting a bond issuer the right to buy back all or part of the issue prior
The combination of cash flow uncertainty and reinvestment risk introduced by a call provision.
A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The
A financial security such as a bond with a call option attached to it, i.e., the issuer has the right to
Agency banks established by canadian banks in the U.S.
An upper limit on the interest rate on a floating-rate note.
Money invested in a firm.
Net result of public and private international investment and lending activities.
decision allocation of invested funds between risk-free assets versus the risky portfolio.
Capital asset pricing model (CAPM)
An economic theory that describes the relationship between risk and
A firm's set of planned capital expenditures.
The process of choosing the firm's long-term capital assets.
Amount used during a particular period to acquire or improve long-term assets such as
The transfer of capital abroad in response to fears of political risk.
When a stock is sold for a profit, it's the difference between the net sales price of securities and
Capital gains yield
The price change portion of a stock's return.
A lease obligation that has to be capitalized on the balance sheet.
The difference between the net cost of a security and the net sale price, if that security is sold at a loss.
The market for trading long-term debt instruments (those that mature in more than one year).
Capital market efficiency
Reflects the relative amount of wealth wasted in making transactions. An efficient
Capital market imperfections view
The view that issuing debt is generally valuable but that the firm's
Capital market line (CML)
The line defined by every combination of the risk-free asset and the market portfolio.
Placing one or more limits on the amount of new investment undertaken by a firm, either
The makeup of the liabilities and stockholders' equity side of the balance sheet, especially
Amounts of directly contributed equity capital in excess of the par Value.
The debt and/or equity mix that fund a firm's assets.
A method of constructing a replicating portfolio in which the manager purchases a
also called financial leverage ratios, these ratios compare debt to total capitalization
A table showing the capitalization of a firm, which typically includes the amount of
Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures
Interest that is not immediately Expensed, but rather is considered as an asset and is then
A loose quantity term sometimes used to describe a the amount of a commodity underlying one
Certificates of Amortized Revolving Debt. Pass-through securities backed by credit card receivables.
Related:net financing cost.
Costs that increase with increases in the level of investment in current assets.
Certificates of Automobile Receivables. Pass-through securities backed by automobile receivables.
The Value of assets that can be converted into cash immediately, as reported by a company. Usually
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