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Definition of Back-to-back financing
An intercompany loan channeled through a bank.
A security that is collateralized by loans, leases, receivables, or installment contracts
Methods of financing in which lenders and equity investors look principally to the
The fee paid on the extension date if the buyer wishes to continue the option.
Brokerage house clerical operations that support, but do not include, the trading of stocks and
A loan in which two companies in separate countries borrow each other's currency for a
1) When bond yields and prices fall, the market is said to back-up.
A market condition in which futures prices are lower in the distant delivery months than in
Interim financing of one sort or another used to solidify a position until more permanent
Another term for a repo.
A lease's internal rate of return.
New debt obtained by a firm during the Chapter 11 bankruptcy process.
An investment decision rule in which the cash flows are discounted at an
With respect to a project financing, an arrangement under which the sponsors of a project
A federal institution that lends to a wide array of federal credit agencies funds it
Decisions concerning the liabilities and stockholders' equity side of the firm's balance
Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into
An option that allows the buyer to choose as the option strike price any price of the
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
Securities backed by a pool of mortgage loans.
Multi-option financing facility
A syndicated confirmed credit line with attached options.
Net financing cost
Also called the cost of carry or, simply, carry, the difference between the cost of financing
Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected
financing that is not shown as a liability in a company's balance sheet.
The length of time it takes to recover the initial cost of a project, without regard to the time value of money.
Planned financing program
Program of short-term and long-term financing as outlined in the corporate
Related: retention rate.
Production payment financing
A method of nonrecourse asset-based financing in which a specified
Sale and lease-back
Sale of an existing asset to a financial institution that then leases it back to the user.
Stripped mortgage-backed securities (SMBSs)
Securities that redistribute the cash flows from the
The sale of an interest rate swap by one counterparty to the other, effectively ending the swap.
Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously
Threshold for refinancing
The point when the WAC of an MBS is at a level to induce homeowners to
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.
The retrospective process of measuring performance, comparing it with plan and taking corrective action.
A method of investment appraisal that calculates the number of years taken for the cash flows from an investment to cover the initial capital outlay.
One of the three classes of cash flows reported in the
The number of years necessary for the net cash flows of an
a streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires
a system using transfer prices; see transfer
a judgment made regarding the method
the time it takes an investor to recoup an
The offsetting of a current year loss against the reported taxable
A capital budgeting analysis method that calculates the amount of
Decision as to how to raise the money to pay for investments in real assets.
Time until cash flows recover the initial investment of the project.
Fraction of earnings retained by the firm.
Cash Flow Provided or Used from Financing Activities
Cash receipts and payments involving
The subsequent subtraction from inventory records of those parts used
A procedure for making the effective date of a policy earlier than the application date. backdating is often used to make the age of the consumer at policy issue lower than it actually was in order to get a lower premium.
Back To Back Annuity
This term refers to the simultaneous issue of a life annuity with a non-guaranteed period and a guaranteed life insurance policy [usually whole life or term to 100]. The face value of the life insurance would be the same amount that was used to purchase the annuity. This combination of life annuity providing the highest payout of all types of annuities, along with a guaranteed life insurance policy allowed an uninsurable person to convert his/her RRSP into the best choice of annuity and guarantee that upon his/her death, the full value of the annuity would be paid tax free through the life insurance policy to his family members. However, in the early 1990's, the Federal tax authorities put a stop to the issuing of standard life rates to rated or uninsurable applicants. Insuring a life annuity in this manner is still an excellent way to provide guaranteed tax free funds to family members but the application for the annuity and the application for the life insurance are separate transactions and today, most likely conducted through two different insurance companies so that there is no suspicion of preferential treatment given to the life insurance application.
Bond or note secured by assets of company.
Loans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender.
Raising loan capital through the creation of debt by issuing a form of paper evidencing amounts owed and payable on specified dates or on demand.
Refers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount.
A range of financing products (loans. guarantees, letters of credit, insurance etc.) in support of a variety of activities which help Canadian firms expand into new export markets.
This is a generic term that refers to the many different forms of financing a business may use. For example - loans, shares, and bonds are all considered financing instruments.
The length of time required for the net revenues of an investment for the net revenues of an investment to return the cost of the investment.
Debt finance, usually non-recourse, provided by financial institutions for the development and construction of a new project.
Sale and Leaseback
An agreement in which the owner of a property sells that property to a person or institution and then leases it back again for an agreed period and rental.
Generally, refers to the first contribution of capital toward the financing requirements of a start-up business.
Refinancing (Credit Insurance)
Extending the maturity date or increasing the amount of existing debt or both. Also, revising a payment schedule, usually to reduce the monthly payments and often to modify interest charges.
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