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Definition of Bidder
A firm or person that wants to buy a firm or security.
Measure taken by a target firm to avoid acquisition;
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.
The firm buys back its own stock from a potential bidder, usually at a substantial
A statement displayed on market tickers indicating that a bidder will pay cash for same day
curse Problem faced by uninformed bidders. For example, in an initial public offering uninformed
A covenant allowing the bondholder to demand repayment in the event of a hostile merger.
Goods may be returned to the seller by the purchaser without restrictions.
The period of time for which financial statements are produced – see also financial year.
takeover of a firm by purchase of that firm’s common
A merger or consolidation in which an acquirer purchases the selling firm's assets.
A merger or consolidation in which an acquirer purchases the acquiree's stock.
A protection against borrower fallout risk in the mortgage pipeline.
Amounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with capital in excess of par.
Any payment received from investors for stock that exceeds
Difference between issue price and par value of stock. Also called capital surplus.
A bond covenant that specifies certain actions the firm must take.
All or none
Requirement that none of an order be executed unless all of it can be executed at the specified price.
An arrangement whereby a security issue is canceled if the underwriter is unable
Allocation base A measure of activity or volume such as labour
hours, machine hours or volume of production
Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign
Date on which particular news concerning a given company is announced to the public.
Annualized holding period return
The annual rate of return that when compounded t times, would have
The time between each payment under an annuity.
A right of shareholders in a merger to demand the payment of a fair price for their shares, as
Arm's length price
The price at which a willing buyer and a willing unrelated seller would freely agree to
A dealer's price to sell a security; also called the offer price.
A security that is collateralized by loans, leases, receivables, or installment contracts
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.
The number of shares of stock that the company is legally authorized to sell.
A debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period.
Average (across-day) measures
An estimation of price that uses the average or representative price of a
Average Amortization Period
The average useful life of a company's collective amortizable asset base.
Average Collection Period
Average number of days necessary to receive cash for the sale of
Average collection period, or days' receivables
The ratio of accounts receivables to sales, or the total
Costs that are identifiable with and able to be influenced by decisions made at the business
Gives the lessee the option to purchase the asset at a price below fair market
price expressed in terms of yield to maturity or annual rate of return.
Before-tax profit margin
The ratio of net income before taxes to net sales.
spread The difference between the bid and asked prices.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
Builder buydown loan
A mortgage loan on newly developed property that the builder subsidizes during the
To purchase an asset; taking a long position.
A passive investment strategy with no active buying and selling of stocks from the
Another term for a repo.
To cover, offset or close out a short position. Related: evening up, liquidation.
Buy limit order
A conditional trading order that indicates a security may be purchased only at the designated
Buy on close
To buy at the end of the trading session at a price within the closing range.
Buy on margin
A transaction in which an investor borrows to buy additional shares, using the shares
Buy on opening
To buy at the beginning of a trading session at a price within the opening range.
This is an agreement entered into by the owners of a business to define the conditions under which the interests of each shareholder will be bought and sold. The agreement sets the value of each shareholders interest and stipulates what happens when one of the owners wishes to dispose of his/her interest during his/her lifetime as well as disposal of interest upon death or disability. Life insurance, critical illness coverage and disability insurance are major considerations to help fund this type of agreement.
A financial analyst employed by a non-brokerage firm, typically one of the larger money
Mortgages in which monthly payments consist of principal and interest, with portions of these
Buying the index
Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is
Call money rate
Also called the broker loan rate , the interest rate that banks charge brokers to finance
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.
Bond price excluding accrued interest.
Are equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends.
Assets acquired to create money. May include plant, machinery and equipment, shares of another company etc.
A securities offering process in which securities firms submit competing bids to the
Raw materials or subassemblies used to make either finished goods
The length of the time period (for example, a quarter in the case of quarterly
the time between each interest computation
one of two parties to a conditional sale agreement, the other being the conditional seller.
he written statement that follows any "trade" in the securities markets. Confirmation is issued
Consumer Price Index (CPI)
The CPI, as it is called, Measures the prices of consumer goods and services and is a
Consumer Price Index (CPI)
An index calculated by tracking the cost of a typical bundle of consumer goods and services over time. It is commonly used to Measure inflation.
Conversion parity price
Related:Market conversion price
Term life insurance products are offered as non-convertible or convertible to a certain time in the future. The coversion right has a time limit, usually to the policy holder's age 60 or possibly even age 70. This right means that the policy holder has the right to convert their existing policy to another specific different plan of permanent insurance within the specified time period, without providing evidence of insurability. There is a slightly higher cost for a term policy with the conversion priviledge but it is a valuable feature should a policy holder's health change for the worst and continued insurance coverage becomes a necessity.
The contractually specified price per share at which a convertible security can be
A security that can be converted into common stock at the option of the security holder,
The acquisition of one firm by anther firm.
the practice of finding acceptable alternatives
Creative Acquisition Accounting
The allocation to expense of a greater portion of the price
The length of time for which the customer is granted credit.
Critical Growth Periods
Times in a company's history when growth is essential and without which survival of the business might be in jeopardy.
one corporation holds shares in another firm.
A security representing a debt relationship with an enterprise, including a government
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
A financial security, such as an option, or future, whose value is derived in part from the
Devaluation A decrease in the spot price of the currency
Bond price including accrued interest, i.e., the price paid by the bond buyer.
The period during which a customer can deduct the discount from the net amount of the bill
Discounted payback period rule
An investment decision rule in which the cash flows are discounted at an
A shareholders' rights to receive per-share dividends identical to those other shareholders receive.
Dollar price of a bond
Percentage of face value at which a bond is quoted.
Dow Jones industrial average
This is the best known U.S.index of stocks. It contains 30 stocks that trade on
Dow Jones Industrial Average
Index of the investment performance of a portfolio of 30 “blue-chip” stocks.
earnings before interest and income tax (EBIT)
A Measure of profit that
Earnings before interest and taxes (EBIT)
A financial Measure defined as revenues less cost of goods sold
Earnings before interest and taxes (EBIT)
The operating profit before deducting interest and tax.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
The operating profit before deducting interest, tax, depreciation and amortization.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
An earningsbased Measure that, for many, serves as a surrogate for cash flow. Actually consists of working
EBBS - Earnings before the bad stuff
An acronym attributed to a member of the Securities and
EBDDT - Earnings before depreciation and deferred taxes
This Measure is used principally by
economic components model
Abrams’ model for calculating DLOM based on the interaction of discounts from four economic components.
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
An agreement permitting a bank customer to borrow either domestic dollars from the
In the interbank Eurodollar deposit market, an either-way market is one in which the bid
Employee Retirement Income Security Act of 1974 (ERISA)
A federal Act that sets minimum operational and funding standards for employee benefit
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
Refers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount.
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