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Definition of Bourse
A term of French origin used to refer to stock markets.
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
markets in which the prevailing price is determined through the free interaction of
Floating rate preferred stock, the dividend on which is adjusted every
The beta of a stock is determined as follows:
Also called spot markets, these are markets that involve the immediate delivery of a security
A measure of the goodness of fit of the relationship between the dependent and
These are securities that represent equity ownership in a company. Common shares let an
Value of outstanding common shares at par, plus accumulated retained
A convertible security that is traded like an equity issue because the optioned
The market for trading equities, not including preferred stock.
Ratios that are designed to measure the relative claims of stockholders to earnings
These two groups may have interests in a corporation that
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.
Cumulative preferred stock
Preferred stock whose dividends accrue, should the issuer not make timely
markets for derivative instruments.
Liability-matching models that assume that the liability payments and the asset cash
Direct stock-purchase programs
The purchase by investors of securities directly from the issuer.
Withdrawal of funds from a financial institution in order to invest them directly.
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
The financial markets of developing economies.
Employee stock fund
A firm-sponsored program that enables employees to purchase shares of the firm's
Employee stock ownership plan (ESOP)
A company contributes to a trust fund that buys stock on behalf of
Euro-medium term note (Euro-MTN)
A non-underwritten Euronote issued directly to the market. Euro-
Exchange of stock
Acquisition of another company by purchase of its stock in exchange for cash or shares.
Institutions that provide the market function of matching borrowers and lenders or
Preferred stock paying dividends that vary with short-term interest rates.
Common stock of a company that has an opportunity to invest money and earn more than the
Common stock with a high dividend yield and few profitable investment opportunities.
spread The spread between the interest rate offered in two sectors of the bond market for
Intermarket spread swaps
An exchange of one bond for another based on the manager's projection of a
Typically 1-10 years.
Investment through a financial institution. Related: disintermediation.
Involuntary liquidation preference
A premium that must be paid to preferred or preference stockholders if
Privately placed common stock, so-called because the SEC requires a letter from the purchaser
Liquidity preference hypothesis
The argument that greater liquidity is valuable, all else equal. Also, the
Liquidity theory of the term structure
A biased expectations theory that asserts that the implied forward
stocks that are traded on an exchange.
In accounting information, one year or greater.
Value of property, equipment and other capital assets minus the depreciation. This is an
An obligation having a maturity of more than one year from the date it was issued. Also
Indicator of financial leverage. Shows long-term debt as a proportion of the
Long-term debt ratio
The ratio of long-term debt to total capitalization.
Long-term financial plan
Financial plan covering two or more years of future operations.
Amount owed for leases, bond repayment and other items due after 1 year.
Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
stocks that are traded on an exchange.
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
Market segmentation theory or preferred habitat theory
A biased expectations theory that asserts that the
A corporate debt instrument that is continuously offered to investors over a period of
Monthly income preferred security (MIP)
Preferred stock issued by a subsidiary located in a tax haven.
markets in which each transaction is separately negotiated between buyer and seller (i.e.
New York Stock Exchange (NYSE)
Also known as the Big Board or The Exhange. More than 2,00 common
Non-cumulative preferred stock
Preferred stock whose holders must forgo dividend payments when the
Original face value
The principal amount of the mortgage as of its issue date.
Original issue discount debt (OID debt)
Debt that is initially offered at a price below par.
The margin needed to cover a specific new position. Related: Margin, security deposit (initial)
Maturity at issue. For example, a five year note has an original maturity of 5 years; one
The making of mortgage loans.
Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations
Perfectly competitive financial markets
markets in which no trader has the power to change the price of
Philadelphia Stock Exchange (PHLX)
A securities exchange where American and European foreign
Preferred equity redemption stock (PERC)
Preferred stock that converts automatically into equity at a
A security that ranks junior to preferred stock but senior to common stock in the right to
Preferred habitat theory
A biased expectations theory that believes the term structure reflects the
Preferred shares give investors a fixed dividend from the company's earnings. And more
A security that shows ownership in a corporation and gives the holder a claim, prior to the
Preferred stock agreement
A contract for preferred stock.
A benchmark 'interest rate (such as LIBOR), used to specify conditions of an interest rate
Repurchase of stock
Device to pay cash to firm's shareholders that provides more preferable tax treatment
Reverse stock split
A proportionate decrease in the number of shares, but not the value of shares of stock
Short-term financial plan
A financial plan that covers the coming fiscal year.
Short-term investment services
Services that assist firms in making short-term investments.
Short-term solvency ratios
Ratios used to judge the adequacy of liquid assets for meeting short-term
Short-term tax exempts
Short-term securities issued by states, municipalities, local housing agencies, and
Related: cash markets
Ownership of a corporation which is represented by shares which represent a piece of the corporation's
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend
Formal organizations, approved and regulated by the Securities and Exchange Commission
A firm's repurchase of outstanding shares of its common stock.
An active portfolio management technique that focuses on advantageous selection of
Balance sheet item that includes the book value of ownership in the corporation. It
Stock index option
An option in which the underlying is a common stock index.
Also called the equity market, the market for trading equities.
An option in which the underlying is the common stock of a corporation.
Stock replacement strategy
A strategy for enhancing a portfolio's return, employed when the futures
Occurs when a firm issues new shares of stock but in turn lowers the current market price of its
This is a lettered symbol assigned to securities and mutual funds that trade on U.S.financial exchanges.
Holder of equity shares in a firm.
Set of books kept by firm management for its annual report that follows Financial
The residual claims that stockholders have against a firm's assets, calculated by
Running out of inventory.
Often referred to as bullet-maturity bonds or simply bullet bonds, bonds whose principal is
Term Fed Funds
Fed Funds sold for a period of time longer than overnight.
Term life insurance
A contract that provides a death benefit but no cash build-up or investment component.
A bank loan, typically with a floating interest rate, for a specified amount that matures in between
Provides a death benefit only, no build-up of cash value.
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