Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: business, investment, stock trading, tax advisor, inventory control, money, credit, payroll,
Definition of big bath
A street-smart term that refers to the practice by many businesses
A wholesale write-down of assets and accrual of liabilities in an effort to make the
The term applied to the liberalization in 1986 of the London Stock Exchange in which trading was
A nickname for the New York Stock Exchange. Also known as The Exchange. More than 2,000
the period after an announcement of a takeover bid in which Stock prices typically rise until a merger or acquisition is made (or until it falls through).
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.
Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full
Schedule of depreciation rates allowed for tax purposes.
The change in the value of a firm's foreign currency denominated accounts due to a
earnings of a firm as reported on its income statement.
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on
The ease and quickness with which assets can be converted to cash.
A bond on which interest accrues, but is not paid to the investor during the time of accrual.
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.
Publicly traded issues that may be collateralized by mortgages and MBSs.
The second-largest Stock Exchange in the United States. It trades
Annual fund operating expenses
For investment companies, the management fee and "other expenses,"
Any possession that has value in an Exchange.
The ratio of total assets to Stockholder equity.
Also called surplus management, the task of managing funds of a financial
Asset activity ratios
Ratios that measure how effectively the firm is managing its assets.
Asset allocation decision
The decision regarding how an institution's funds should be distributed among the
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
Categories of assets, such as Stocks, bonds, real estate and foreign securities.
A bond indenture restriction that permits additional borrowing on if the ratio of assets to
Asset for asset swap
Creditors Exchange the debt of one defaulting borrower for the debt of another
Asset pricing model
A model for determining the required rate of return on an asset.
A firm's investing in assets that are riskier than those that the debtholders expected.
Asset substitution problem
Arises when the Stockholders substitute riskier assets for the firm's existing
An interest rate swap used to alter the cash flow characteristics of an institution's assets so as to
The ratio of net sales to total assets.
Asset pricing model
A model, such as the Capital asset Pricing Model (CAPM), that determines the required
A firm's productive resources.
A common element of a financial plan that describes projected capital spending and the
Auction rate preferred stock (ARPS)
Floating rate preferred Stock, the dividend on which is adjusted every
Automated Clearing House (ACH)
A collection of 32 regional electronic interbank networks used to
Average accounting return
The average project earnings after taxes and depreciation divided by the average
Also referred to as the weighted-average life (WAL). The average number of years that each
A trade, quote, or market that does not originate with the dealer in question, e.g., "the bid is 98-10
1) When bond yields and prices fall, the market is said to back-up.
Balance of payments
A statistical compilation formulated by a sovereign nation of all economic transactions
Balance of trade
Net flow of goods (exports minus imports) between countries.
Also called the statement of financial condition, it is a summary of the assets, liabilities, and
Balance sheet exposure
Balance sheet identity
Total assets = Total liabilities + Total Stockholders' Equity
An investment company that invests in Stocks and bonds. The same as a balanced mutual fund.
Balanced mutual fund
this is a fund that buys common Stock, preferred Stock and bonds. The same as a
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
Bankruptcy cost view
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
In a balance of payments, the basic balance is the net balance of the combination of the current
Basic business strategies
Key strategies a firm intends to pursue in carrying out its business plan.
A method of securities distribution/ underwriting in which the securities firm agrees to sell
Beta equation (Stocks)
The beta of a Stock is determined as follows:
Bill of exchange
General term for a document demanding payment.
Brokerage firms that help to find potential buyers or sellers of large block trades.
Bottom-up equity management style
A management style that de-emphasizes the significance of economic
The large clearing banks that dominate deposit taking and short-term lending in the domestic
Builder buydown loan
A mortgage loan on newly developed property that the builder subsidizes during the
Repetitive cycles of economic expansion and recession.
A business that has terminated with a loss to creditors.
The risk that the cash flow of an issuer will be impaired because of adverse economic
Buy limit order
A conditional trading order that indicates a security may be purchased only at the designated
Mortgages in which monthly payments consist of principal and interest, with portions of these
Purchase of a controlling interest (or percent of shares) of a company's Stock. A leveraged buy-out is
Capital asset pricing model (CAPM)
An economic theory that describes the relationship between risk and
The provision of some futures contracts that requires not delivery of underlying assets but
An amount that would be accepted in lieu of a chance at a possible higher, but
Chicago Mercantile Exchange (CME)
A not-for-profit corporation owned by its members. Its primary
A trade is carried out by the seller delivering securities and the buyer delivering funds in proper form.
Clear a position
To eliminate a long or short position, leaving no ownership or obligation.
Clearing House Automated Payments System (CHAPS)
A computerized clearing system for sterling funds
Clearing House Interbank Payments System (CHIPS)
An international wire transfer system for high-value
A member firm of a clearing house. Each clearing member must also be a member of the
Clearing house / Clearinghouse
An adjunct to a futures Exchange through which transactions executed its floor are settled by a
Coefficient of determination
A measure of the goodness of fit of the relationship between the dependent and
A firm which buys and sells future contracts for customer accounts. Related: futures
Commodities Exchange Center (CEC)
The location of five New York futures Exchanges: Commodity
these are securities that represent equity ownership in a company. Common shares let an
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
Common stock equivalent
A convertible security that is traded like an equity issue because the optioned
Common stock market
The market for trading equities, not including preferred Stock.
Common stock ratios
Ratios that are designed to measure the relative claims of Stockholders to earnings
The collection of money managers of similar investment style used for assessing
An excess balance that is left in a bank to provide indirect compensation for loans
Conflict between bondholders and stockholders
these two groups may have interests in a corporation that
The mean of all financial analysts' forecasts for a company.
A type of bond that has an infinite life but is not issued in the U.S. capital markets.
The combining of two or more firms to form an entirely new entity.
A merchant banking subsidiary set up by several banks that may or may not be of the
Credit granted by a firm to consumers for the purchase of goods or services. Also called
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Contingent pension liability
Under ERISA, the firm is liable to the plan participants for up to 39% of the net
Convertible exchangeable preferred stock
Convertible preferred Stock that may be Exchanged, at the
Convertible preferred stock
Preferred Stock that can be converted into common Stock at the option of the holder.
The periodic interest payment made to the bondholders during the life of the bond.
Coupon equivalent yield
True interest cost expressed on the basis of a 365-day year.
A bond's interest payments.
In bonds, notes or other fixed income securities, the stated percentage rate of interest, usually
The ability of the bankruptcy court to confirm a plan of reorganization over the objections of
refers to the volatility of returns on international investments caused by events associated
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.