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Financial Terms | |
Backdating |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: finance, payroll, business, credit, accounting, investment, money, financial advisor, Also see related: insurance, homebuyer, condo, real estate, financing, home insurance, home financing, property, homebuying, |
Definition of BackdatingBackdatingA 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.
Related Terms:Absolute AdvantageThe ability to produce a good or service with fewer resources than competitors. See also comparative advantage. Abusive Earnings ManagementThe use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result. Abusive Earnings ManagementA characterization used by the Securities and Exchange Accomodating PolicyA monetary policy of matching wage and price increases with money supply increases so that the real money supply does not fall and push the economy into recession. Activity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing. activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and 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 ![]() AgenciesFederal agency securities. AgencyA grouping of sales producers according to region. Compare with Branch. Agency bankA form of organization commonly used by foreign banks to enter the U.S. market. An agency Agency basisA means of compensating the broker of a program trade solely on the basis of commission Agency cost viewThe argument that specifies that the various agency costs create a complex environment in Agency costsThe incremental costs of having an agent make decisions for a principal. Agency pass-throughsMortgage pass-through securities whose principal and interest payments are Agency problemConflicts of interest among stockholders, bondholders, and managers. agency problemsConflicts of interest between the firm’s owners and managers. ![]() Agency theoryThe analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of AgentThe decision-maker in a principal-agent relationship. AgentOne who represents Canada Life when providing services to clients Alternative mortgage instrumentsVariations of mortgage instruments such as adjustable-rate and variablerate Announcement datedate on which particular news concerning a given company is announced to the public. 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 Annual PremiumYearly amount payable by a client for a policy or component. ApplicationA signed statement of facts made by a person applying for life insurance and then used by the insurance company to decide whether or not to issue a policy. The application becomes part of the insurance contract when the policy is issued. ArbitrageThe simultaneous buying and selling of a security at two different prices in two different markets, ![]() ArbitrageThe purchase of securities on one market for immediate resale on ArbitrageTransactions designed to make a sure profit from inconsistent prices. Arbitrage-free option-pricing modelsYield curve option-pricing models. Arbitrage Pricing Theory (APT)An alternative model to the capital asset pricing model developed by ArbitrageursPeople who search for and exploit arbitrage opportunities. Arithmetic average (mean) rate of returnArithmetic mean return. Asset CoverageExtent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position. Asset-coverage testA bond indenture restriction that permits additional borrowing on if the ratio of assets to Asset/liability managementAlso called surplus management, the task of managing funds of a financial Automated storage/retrieval systemA racking system using automated systems Automatic Waiver of PremiumA benefit that automatically forfeits premium payments. AverageAn arithmetic mean of selected stocks intended to represent the behavior of the market or some Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average (across-day) measuresAn estimation of price that uses the average or representative price of a Average age of accounts receivableThe weighted-average age of all of the firm's outstanding invoices. 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 Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Average cost of capitalA firm's required payout to the bondholders and to the stockholders expressed as a Average inventoryThe beginning inventory for a period, plus the amount at the end of Average lifeAlso referred to as the weighted-average life (WAL). The average number of years that each Average maturityThe average time to maturity of securities held by a mutual fund. Changes in interest rates Average Propensity to ConsumeRatio of consumption to disposable income. See also marginal propensity to consume. Average Propensity to SaveRatio of saving to disposable income. See also marginal propensity to save. Average rate of return (ARR)The ratio of the average cash inflow to the amount invested. Average tax rateTaxes as a fraction of income; total taxes divided by total taxable income. average tax rateTotal taxes owed divided by total income. Balanced-Budget MultiplierThe multiplier associated with a change in government spending financed by an equal change in taxes. Beggar-My-Neighbor PolicyA policy designed to increase an economy's prosperity at the expense of another country's prosperity. Bellwether issuesRelated:Benchmark issues. Benchmark issuesAlso called on-the-run or current coupon issues or bellwether issues. In the secondary Benefit Wage Ratio MethodThe proportion of total taxable wages for laid off Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit CommitteesA committee formed in response to SEC chairman Arthur Levitt's initiative to improve the financial Bottom-up equity management styleA management style that de-emphasizes the significance of economic BudgetA detailed schedule of financial activity, such as an advertising budget, a sales budget, or a capital budget. BudgetA plan expressed in monetary terms covering a future period of time and based on a defined budgeta financial plan for the future based on a single level BudgetA set of interlinked plans that quantitatively describe a company’s projected Budget cycleThe annual period over which budgets are prepared. Budget deficitThe amount by which government spending exceeds government revenues. Budget DeficitThe excess of government spending over tax receipts. budget manuala detailed set of documents that provides information budget slackan intentional underestimation of revenues budget variancethe difference between total actual overhead Budgetary controlThe process of ensuring that actual financial results are in line with targets – see variance budgeted costa planned expenditure budgetingthe process of formalizing plans and committing Buy limit orderA conditional trading order that indicates a security may be purchased only at the designated Call dateA date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond Canadian agenciesagency banks established by Canadian banks in the U.S. Capital budgetA firm's set of planned capital expenditures. capital budgetmanagement’s plan for investments in longterm capital budgetList of planned investment projects. Capital budgetingThe process of choosing the firm's long-term capital assets. capital budgetingRefers generally to analysis procedures for ranking Capital BudgetingThe process of ranking and selecting investment alternatives and capital budgetinga process of evaluating an entity’s proposed Capital budgetingThe series of steps one follows when justifying the decision to purchase capital budgeting decisionDecision as to which real assets the firm should acquire. Captive AgentA licensed insurance agent who sells insurance for only one company. Cash budgetA forecasted summary of a firm's expected cash inflows and cash outflows as well as its Cash flow coverage ratioThe number of times that financial obligations (for interest, principal payments, Cash Flow Provided or Used from Financing ActivitiesCash receipts and payments involving Cash Flow Provided or Used from Investing ActivitiesCash receipts and payments involving Cash management billVery short maturity bills that the Treasury occasionally sells because its cash Certified Management Accountant (CMA)a professional designation in the area of management accounting that Cheapest to deliver issueThe acceptable Treasury security with the highest implied repo rate; the rate that a Closed-end mortgageMortgage against which no additional debt may be issued. Cold-Turkey PolicyDecreasing inflation by immediately decreasing the money growth rate to a new, low rate. Contrast with gradualism. Collateralized mortgage obligation (CMO)A security backed by a pool of pass-throughs , structured so that Collection policyprocedures followed by a firm in attempting to collect accounts receivables. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |