|business intelligence (BI) system
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Definition of business intelligence (BI) system
business intelligence (BI) system
a formal process for gathering and analyzing information and producing intelligence to meet decision making needs; requires information about
an amount or percentage deducted from an equity interest to reflect lack of marketability.
model for calculating DLOM for minority interests r the discount rate
Schedule of depreciation rates allowed for tax purposes.
The simultaneous buying and selling of a security at two different prices in two different markets,
An alternative model to the capital asset pricing model developed by
Yield curve option-pricing models.
People who search for and exploit arbitrage opportunities.
Also called surplus management, the task of managing funds of a financial
The tendency of stocks preferred by the dividend discount model to share certain equity
Checks deposited by a company that have not yet been cleared.
An international bank headquartered in Basel, Switzerland, which
The probability of not achieving a portfolio expected return.
Key strategies a firm intends to pursue in carrying out its business plan.
Related: pure expectations theory.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
spread The difference between the bid and asked prices.
A firm or person that wants to buy a firm or security.
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
Bill of exchange
General term for a document demanding payment.
Bill of lading
A contract between the exporter and a transportation company in which the latter agrees to
Binomial option pricing model
An option pricing model in which the underlying asset can take on only two
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
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
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
Also called horizon matching, a variation of multiperiod immunization and cash
A strategy in which a put and with the same strike price and expiration are either both
A securities offering process in which securities firms submit competing bids to the
Contingent pension liability
Under ERISA, the firm is liable to the plan participants for up to 39% of the net
The degree of freedom to exchange a currency without government restrictions or controls.
Covered interest arbitrage
A portfolio manager invests dollars in an instrument denominated in a foreign
Cumulative probability distribution
A function that shows the probability that the random variable will
Taking advantage of divergences in exchange rates in different money markets by
Amount owed for salaries, interest, accounts payable and other debts due within 1 year.
An instrument evidencing the obligation of a seller to deliver securities sold to the buyer.
Dupont system of financial control
Highlights the fact that return on assets (ROA) can be expressed in terms
Earnings before interest and taxes (EBIT)
A financial measure defined as revenues less cost of goods sold
European Monetary System (EMS)
An exchange arrangement formed in 1979 that involves the currencies
Federal Reserve System
The central bank of the U.S., established in 1913, and governed by the Federal
Imputation tax system
Arrangement by which investors who receive a dividend also receive a tax credit for
An investment/trading strategy that exploits divergences between actual and theoretical
billing system in which the invoices are sent off at the time of customer orders are all separate
Just-in-time inventory systems
systems that schedule materials/inventory to arrive exactly as they are
A financial obligation, or the cash outlay that must be made at a specific time to satisfy the
Liability funding strategies
Investment strategies that select assets so that cash flows will equal or exceed
An interest rate swap used to alter the cash flow characteristics of an institution's liabilities so
Limitation of possible loss to what has already been invested.
A security, such as a call option, in which the owner can only lose his initial
Amount owed for leases, bond repayment and other items due after 1 year.
A security, such as a call option, in which the owner can only lose his initial investment.
Market segmentation theory or preferred habitat theory
A biased expectations theory that asserts that the
A negotiable security is said to have good marketability if there is an active secondary market
A technical trading strategy that combines mechanical rules, such as the CRISMA
In a Treasury auction, bidding for a specific amount of securities at the price, whatever it
Nondiversifiability of human capital
The difficulty of diversifying one's human capital (the unique
Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also
Normal probability distribution
A probability distribution for a continuous random variable that is forms a
Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations
Preauthorized electronic debits (PADs)
Debits to its bank account in advance by the payer. The payer's
Preferred habitat theory
A biased expectations theory that believes the term structure reflects the
The relative likelihood of a particular outcome among all possible outcomes.
Probability density function
The probability function for a continuous random variable.
Also called a probability function, a function that describes all the values that the random variable can
A function that assigns a probability to each and every possible outcome.
The present value of the future cash flows divided by the initial investment. Also called
Ratios that focus on the profitability of the firm. Profit margins measure performance
Progressive tax system
A tax system wherein the average tax rate increases for some increases in income but
Q ratio or Tobin's Q ratio
Market value of a firm's assets divided by replacement value of the firm's assets.
A probability used to determine a "sure" expected value (sometimes called a
Speculation on perceived mispriced securities, usually in connection with merger and
Risk controlled arbitrage
A self-funding, self-hedged series of transactions that generally utilize mortgage
The simultaneous purchase and sale of the same asset to yield a profit.
Small business Investment Company.
Split-rate tax system
A tax system that taxes retained earnings at a higher rate than earnings that are
billing method in which the sales for a period such as a month (for which a customer also
Structured arbitrage transaction
A self-funding, self-hedged series of transactions that usually utilize
Probabilities that are determined subjectively (for example, on the basis of
Common to all businesses.
Also called undiversifiable risk or market risk, the minimum level of risk that can be
Systematic risk principle
Only the systematic portion of risk matters in large, well-diversified portfolios.
Tax anticipation bills (TABs)
Special bills that the Treasury occasionally issues that mature on corporate
Market value of assets divided by replacement value of assets. A Tobin's Q ratio greater than 1
Debt obligations of the U.S. Treasury that have maturities of one year or less. Maturities for Tbills
Striking offsetting deals among three markets simultaneously to obtain an arbitrage profit.
Two-tier tax system
A method of taxation in which the income going to shareholders is taxed twice.
A theory that spot prices at some future date will be equal to today's forward rates.
Full liability for the debt and other obligations of a legal entity. The general partners of a
Also called the diversifiable risk or residual risk. The risk that is unique to a company
U.S. Treasury bill
U.S. government debt with a maturity of less than a year.
bills a company must pay within the next twelve months.
What a company owes to its creditors. In other words, debts.
bills that are payable in more than one year, such as a mortgage or bonds.
MACRS (Modified Accelerated Cost Recovery System)
A depreciation method created by the IRS under the Tax Reform Act of 1986. Companies must use it to depreciate all plant and equipment assets installed after December 31, 1986 (for tax purposes).
The process of satisfying stakeholders in the organization that managers have acted in the best interests of the stakeholders, a result of the stewardship function of managers, which takes place through accounting.
A set of accounts that summarize the transactions of a business that have been recorded on source documents.
Bill of materials
A listing of all the materials and quantities that go to make up a completed product.
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