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Autoregressive |
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Definition of AutoregressiveAutoregressiveUsing past data to predict future data.
Related Terms:Extrapolative statistical modelsModels that apply a formula to historical data and project results for a Arbitrage-free option-pricing modelsYield curve option-pricing models. Deterministic modelsLiability-matching models that assume that the liability payments and the asset cash percentage of sales modelsPlanning model in which sales forecasts are the driving variables and most other variables are statistical process control (SPC)the use of control techniques that are based on the theory that a process has natural variations in it over time, but uncommon variations Stochastic modelsLiability-matching models that assume that the liability payments and the asset cash flows Yield curve option-pricing modelsmodels that can incorporate different volatility assumptions along the Accounting periodThe period of time for which financial statements are produced – see also financial year. Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production Annualized holding period returnThe annual rate of return that when compounded t times, would have Annuity PeriodThe time between each payment under an annuity. Arbitrage-free option-pricing modelsYield curve option-pricing models. Asset pricing modelA model for determining the required rate of return on an asset. Asset pricing modelA model, Such as the Capital Asset Pricing model (CAPM), that determines the required Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Average Collection PeriodAverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Binomial modelA method of pricing options or other equity derivatives in Binomial option pricing modelAn option pricing model in which the underlying asset can take on only two Black-Scholes modelThe first complete mathematical model for pricing Black-Scholes option-pricing modelA model for pricing call options based on arbitrage arguments that uses cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Capital asset pricing model (CAPM)An economic theory that describes the relationship between risk and Capital Asset Pricing Model (CAPM)A model for estimating equilibrium rates of return and values of capital asset pricing model (CAPM)Theory of the relationship between risk and return which states that the expected risk Compounding periodThe length of the time period (for example, a quarter in the case of quarterly compounding periodthe time between each interest computation constant-growth dividend discount modelVersion of the dividend discount model in which dividends grow at a constant rate. Constant-growth modelAlso called the Gordon-Shapiro model, an application of the dividend discount Conventional projectA project with a negative initial cash flow (cash outflow), which is expected to be Credit periodThe length of time for which the customer is granted credit. Critical Growth PeriodsTimes in a company's history when growth is essential and without which survival of the business might be in jeopardy. Currency futureA financial future contract for the delivery of a specified foreign currency. databits of knowledge or facts that have not been summarized data mininga form of analysis in which statistical techniques Deferred futuresThe most distant months of a futures contract. A bond that sells at a discount and does not Deterministic modelsLiability-matching models that assume that the liability payments and the asset cash DetrendTo remove the general drift, tendency or bent of a set of statistical data as related to time. Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an dividend discount modelComputation of today’s stock price which states that share value equals the present value of all expected future dividends. Dividend discount model (DDM)A model for valuing the common stock of a company, based on the Dividend growth modelA model wherein dividends are assumed to be at a constant rate in perpetuity. economic components modelAbrams’ model for calculating DLOM based on the interaction of discounts from four economic components. Electronic data interchange (EDI)The exchange of information electronically, directly from one firm's electronic data interchange (EDI)the computer-to-computer transfer of information in virtual real time Using standardized formats developed by the American National Standards Institute Evaluation periodThe time interval over which a money manager's performance is evaluated. Expected future cash flowsprojected future cash flows associated with an asset of decision. Expected future returnThe return that is expected to be earned on an asset in the future. Also called the Extended Amortization PeriodAn amortization period that continues beyond a long-lived asset's economic useful life. Extended Amortization PeriodsAmortizing capitalized expenditures over estimated useful lives that are unduly optimistic. Factor modelA way of decomposing the factors that influence a security's rate of return into common and Financial futureA contract entered into now that provides for the delivery of a specified asset in exchange Financial Trend AnalysisProcess of analyzing financial statements of a company for any continuing relationship. Flat benefit formulaMethod used to determine a participant's benefits in a defined benefit plan by Formula basisA method of selling a new issue of common stock in which the SEC declares the registration Full Credit PeriodThe period of trade credit given by a supplier to its customer. FutureA term used to designate all contracts covering the sale of financial instruments or physical Future investment opportunitiesThe options to identify additional, more valuable investment opportunities Future-Oriented Financial InformationInformation about prospective results of operations, financial position and/or changes in financial position, based on assumptions about future economic conditions and courses of action. future-oriented financial information is presented as either a forecast or a projection. Future valueThe amount of cash at a specified date in the future that is equivalent in value to a specified Future ValueThe amount a given payment, or series of payments, will be worth future valuethe amount to which one or more sums of Future valueThe value that a sum of money (the present value) earning future valueAmount to which an investment will grow after earning interest. Future ValueThe amount to which a payment or series of payments will grow by a given future date when compounded by a given interest rate. FVIF future value interest factor. FuturesA term used to designate all contracts covering the sale of financial instruments or physical Futures commission merchantA firm or person engaged in soliciting or accepting and handling orders for Futures contractAgreement to buy or sell a set number of shares of a specific stock in a designated future futures contractExchange-traded promise to buy or sell an asset in the future at a prespecified price. Futures ContractA contract in which the seller agrees to provide something to a buyer at a specified future date at an agreed price. Futures contract multipleA constant, set by an exchange, which when multiplied by the futures price gives Futures marketA market in which contracts for future delivery of a commodity or a security are bought or sold. Futures optionAn option on a futures contract. Related: options on physicals. Futures priceThe price at which the parties to a futures contract agree to transact on the settlement date. Garmen-Kohlhagen option pricing modelA widely used model for pricing foreign currency options. Gordon modelpresent value of a perpetuity with growth. Grace PeriodA specific period of time after a premium payment is due during which the policy owner may make a payment, and during which, the protection of the policy continues. The grace period usually ends in 30 days. Grace PeriodLength of time during which repayments of loan principal are excused. Usually occurs at the start of the loan period. historical costa cost incurred in the past; the recorded purchase Historical costThe original cost required to perform a service or purchase an asset. Historical exchange rateAn accounting term that refers to the exchange rate in effect when an asset or Holding periodLength of time that an individual holds a security. Holding period returnThe rate of return over a given period. Housing StartA new house on which construction has just begun. Independent projectA project whose acceptance or rejection is independent of the acceptance or rejection of independent projectan investment project that has no specific Independent ProjectsA situation where an increase (or decrease) in the benefits of one Index modelA model of stock returns Using a market index Such as the S&P 500 to represent common or Internet business modela model that involves Linear programmingTechnique for finding the maximum value of some equation subject to stated linear constraints. linear programminga method of mathematical programming used to solve a problem that involves an objective function and multiple limiting factors or constraints long-term variable cost a cost that was traditionally viewed as a fixed cost Linear regressionA statistical technique for fitting a straight line to a set of data points. Log-linear least-squares methodA statistical technique for fitting a curve to a set of data points. One of the log size modelAbrams’ model to calculate discount rates as a function of the logarithm of the value of the firm. London International Financial Futures Exchange (LIFFE)A London exchange where Eurodollar futures London International Financial Futures Exchange (LIFFE)London exchange where Eurodollar futures as well as futures-style options are traded. Make-Work ProjectA project, Such as digging holes and filling them up again, that has no useful purpose other than to make work. Manufactured housing securities (MHSs)Loans on manufactured homes - that is, factory-built or Market modelThis relationship is sometimes called the single-index model. The market model says that the Markowitz modelA model for selecting an optimum investment portfolio, ModelingThe process of creating a depiction of reality, Such as a graph, picture, or mathematical Most distant futures contractWhen several futures contracts are considered, the contract settling last. Multiperiod immunizationA portfolio strategy in which a portfolio is created that will be capable of
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