![]() |
|
Financial Terms | |
Bogey |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: investment, inventory control, business, payroll, inventory, tax advisor, stock trading, financial, |
Definition of BogeyBogeyThe return an investment manager is compared to for performance evaluation. BogeyThe level of earnings in an incentive compensation or bonus plan below which no incentive
Related Terms:401k PlanA retirement plan set up by an employer, into which employees can 403b PlanA retirement plan similar to a 401k plan, except that it is designed Abnormal returnsPart of the return that is not due to systematic influences (market wide influences). In Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. 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 ![]() accepted quality level (AQL)the maximum limit for the number of defects or errors in a process Accounting earningsearnings of a firm as reported on its income statement. Accounting rate of return (ARR)A method of investment appraisal that measures accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable Adjusted EarningsNet income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss. After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. Aggregate planningA budgeting process using summary-level information to annual returnThe fund return, for any 12-month period, including changes in unit value and the reinvestment of distributions, but not taking into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would reduce returns. ![]() Annualized holding period returnThe annual rate of return that when compounded t times, would have Arithmetic average (mean) rate of returnArithmetic mean return. Arithmetic mean returnAn average of the subperiod returns, calculated by summing the subperiod returns Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average rate of return (ARR)The ratio of the average cash inflow to the amount invested. Baker PlanA plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in basic earnings per share (EPS)This important ratio equals the net Basic Earnings Power RatioPercentage of earnings relative to total assets; indication of how batch-level costa cost that is caused by a group of things Beggar-thy-neighbor devaluationA devaluation that is designed to cheapen a nation's currency and thereby book rate of returnAccounting income divided by book value. Book ReturnsBook yield is the investment income earned in a year on a portfolio of assets purchased over a number of years and at different interest rates, divided by the book value of those assets. Business Expansion InvestmentThe use of capital to create more money through the addition of fixed assets or through income producing vehicles. Cafeteria PlanA flexible benefits plan authorized under the Internal Revenue cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Canada Pension Plan (CPP)A plan that provides retirement and long term disability income benefits to residents of Canadian provinces (excluding Quebec). capital investment analysisRefers to various techniques and procedures Capital InvestmentsMoney used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses. CARs (cumulative abnormal returns)a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock. Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for investment Management and Research (AIMR)'s performance Presentation Standards Implementation CompensationAll forms of pay given to an employee in exchange for services rendered. compensation committeea company committee comprised mainly of members of the board of directors; is responsible compensation strategya foundation for the compensation plan that addresses the role compensation should play in the organization Confidence levelThe degree of assurance that a specified failure rate is not exceeded. Core EarningsA measure of earnings that includes only the results of the primary operating Corporate financial planningFinancial planning conducted by a firm that encompasses preparation of both Cost Plus Estimated Earnings in Excess of BillingsRevenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts Cumulative abnormal return (CAR)Sum of the differences between the expected return on a stock and the deferred compensationpay related to current performance Defined benefit planA pension plan in which the sponsor agrees to make specified dollar payments to Defined Benefit PlanA pension plan that pays out a predetermined dollar Defined contribution planA pension plan in which the sponsor is responsible only for making specified Defined Contribution PlanA qualified retirement plan under which the employer DevaluationFall in the government-determined fixed exchange rate. Devaluation A decrease in the spot price of the currency
diluted earnings per share (EPS)This measure of earnings per share DisintermediationWithdrawal of funds from a financial institution in order to invest them directly. Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a Dollar returnThe return realized on a portfolio for any evaluation period, including (1) the change in market Dollar-weighted rate of returnAlso called the internal rate of return, the interest rate that will make the earned incomeearned income is generally an individual's salary or wages from employment. It Also includes some taxable benefits. earned income Also includes business income if the individual is self-employed. earned income is used as the basis for calculating RRSP maximum contribution limits. EarningsNet income for the company during the period. EarningsIn general, refers to a company's total sales less cost of sales and operating expenses, including interest and income tax. 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 Earnings ManagementThe active manipulation of earnings toward a predetermined target. Earnings per ShareA measure of the earnings generated by a company on a per Earnings per share (EPS)EPS, as it is called, is a company's profit divided by its number of outstanding earnings per share (EPS)See basic earnings per share and diluted earnings per share. Earnings per share of common stockHow much profit a company made on each share of common stock this year. Earnings retention ratioPlowback rate. Earnings surprisesPositive or negative differences from the consensus forecast of earnings by institutions Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest EBBS - Earnings before the bad stuffAn acronym attributed to a member of the Securities and EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Economic earningsThe real flow of cash that a firm could pay out forever in the absence of any change in Educational Assistance PlanA plan that an employer creates on behalf of its Employee stock ownership plan (ESOP)A company contributes to a trust fund that buys stock on behalf of Employee Stock Ownership Plan (ESOP)a profit-sharing compensation program in which investments are made in Employee Stock Ownership Plan (ESOP)A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer. enterprise resource planning (ERP) systema packaged software program that allows a company to Enterprise resource planning systemA computer system used to manage all company Equity floorAn agreement in which one party agrees to pay the other at specific time periods if a specific Equity investmentThrough equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock. Estate PlanningAn insurance program designed to provide funds for insured's dependents upon death of the insured, and to Also conserve, as much as possible, the personal assets that the insured wants to bequeath to heirs. Evaluation periodThe time interval over which a money manager's performance is evaluated. Ex post returnRelated: Holding period return Exante returnThe expected return of a portfolio based on the expected returns of its component assets and Excess return on the market portfolioThe difference between the return on the market portfolio and the Excess returnsAlso called abnormal returns, returns in excess of those required by some asset pricing model. Expected future returnThe return that is expected to be earned on an asset in the future. Also called the Expected returnThe return expected on a risky asset based on a probability distribution for the possible rates Expected ReturnThe total amount of money (return) an investor anticipates to receive from an investment. Expected return-beta relationshipImplication of the CAPM that security risk premiums will be Expected return on investmentThe return one can expect to earn on an investment. See: capital asset financial incentivea monetary reward provided for performance Financial IncentiveAn expression of economic benefit that motivates behavior that might otherwise not take place. Financial intermediariesInstitutions that provide the market function of matching borrowers and lenders or financial intermediaryFirm that raises money from many small investors and provides financing to businesses or other Financial IntermediaryAny institution, such as a bank, that takes deposits from savers and loans them to borrowers. Financial IntermediationThe process whereby financial intermediaries channel funds from lender/savers to borrower/spenders. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |