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Definition of Back-to-back loan
A loan in which two companies in separate countries borrow each other's currency for a
Bond or note secured by assets of company.
A security that is collateralized by loans, leases, receivables, or installment contracts
The fee paid on the extension date if the buyer wishes to continue the option.
The subsequent subtraction from inventory records of those parts used
Brokerage house clerical operations that support, but do not include, the trading of stocks and
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.
An intercompany loan channeled through a bank.
1) When bond yields and prices fall, the market is said to back-up.
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.
a streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires
A market condition in which futures prices are lower in the distant delivery months than in
A short term loan to cover the immediate cash requirements until permanent financing is received.
Related: Call money rate.
A mortgage loan on newly developed property that the builder subsidizes during the
A bank term loan that calls for no amortization.
Another term for a repo.
a system using transfer prices; see transfer
Commercial Business Loan (Credit Insurance)
An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for business purposes.
Overnight, collateralized loan made to a dealer financing his position by borrowing from a
A loan which must be repaid in full on demand.
Discounted payback period rule
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
Refers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount.
Given the after-tax stream associated with a lease, the maximum amount of conventional
Farm Improvement and Marketing Cooperatives Loans Act
Federal Home Loan Banks
The institutions that regulate and lend to savings and loan associations. The
The retrospective process of measuring performance, comparing it with plan and taking corrective action.
A loan on which the rate paid by the borrower is fixed for the life of the loan.
Fixed Rate Loan
loan for a fixed period of time with a fixed interest rate for the life of the loan.
Freddie Mac (Federal Home Loan Mortgage Corporation)
A Congressionally chartered corporation that
loan made by one unit of a corporation to another unit of the same corporation.
A secured short-term loan to purchase inventory. The three basic forms are a blanket
loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or
Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into
Loan amortization schedule
The schedule for repaying the interest and principal on a loan.
Borrowed funds having a fixed interest rate.
Express stipulations included in loan agreements that are designed to monitor
Group of banks sharing a loan. See: syndicate.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
Amounts that have been loaned to the company and that it still owes.
An option that allows the buyer to choose as the option strike price any price of the
The offsetting of a current year loss against the reported taxable
Securities backed by a pool of mortgage loans.
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
Give the borrower the possibility of drawing a loan in different currencies.
loans usually represented by conventional mortgages on multi-family rental apartments.
Negative Loan Covenants
loan covenants designed to limit a corporate borrower's behavior
Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected
A loan advanced under an operating line of credit.
A process whereby two companies in different countries borrow each other's currency for a
The length of time it takes to recover the initial cost of a project, without regard to the time value of money.
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.
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.
A capital budgeting analysis method that calculates the amount of
The number of years necessary for the net cash flows of an
the time it takes an investor to recoup an
Time until cash flows recover the initial investment of the project.
A lump sum that you borrow from a financial institution for a specified period of time. To repay the loan, you pay interest on the entire lump sum, and make payments on a scheduled basis.
Related: retention rate.
Fraction of earnings retained by the firm.
Positive Loan Covenants
loan covenants expressing minimum and maximum financial measures
Project loan certificate (PLC)
A primary program of Ginnie Mae for securitizing FHA-insured and coinsured
Project loan securities
Securities backed by a variety of FHA-insured loan types - primarily multi-family
Usually FHA-insured and HUD-guaranteed mortgages on multiple-family housing complexes,
Sale and lease-back
Sale of an existing asset to a financial institution that then leases it back to the user.
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.
Savings and Loan association
National- or state-chartered institution that accepts savings deposits and
secured loan or line of credit
A lump sum of funds (loan), or a revolving source of credit with a pre-established limit (line of credit), for which the customer must provide collateral.
loan to finance current assets, The sale of the current assets provides the cash to repay
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
A bank loan, typically with a floating interest rate, for a specified amount that matures in between
A secured loan made to business concerns for a specific period (normally three to ten years). It is repaid with interest, usually with periodical payments.
A loan extended by a bank for a specific purpose. In contrast, lines of credit and revolving
Variable rate loan
loan made at an interest rate that fluctuates based on a base interest rate such as the
This term has two quite different meanings. First, it may
Up-front gain recognized from the securitization and sale of a pool
line of credit
A revolving source of credit with a pre-established limit. You access the funds only as you need them, and any amount that you pay back becomes accessible to you again. Unlike a personal loan, a line of credit permits you to write cheques and make bank machine withdrawals, and requires you to pay interest only on the funds that you actually use.
personal line of credit (PLC)
A revolving source of credit with a pre-established limit. You access the funds only as you need them, and any amount that you pay back becomes accessible to you again. Unlike a personal loan, a PLC permits you to write cheques and make bank machine withdrawals, and requires you to pay interest only on the funds that you actually use.
An agreement with a commitment by the seller (dealer) to buy a security back from
The process of creating a passthrough, such as the mortgage pass-through security, by which
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