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Definition of Buy-back
Another term for a repo.
Refers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount.
The sale of an interest rate swap by one counterparty to the other, effectively ending the swap.
An embedded option granting a bond issuer the right to buy back all or part of the issue prior
A bond that allows the issuer to buy back the bond at a
Bond or note secured by assets of company.
A security that is collateralized by loans, leases, receivables, or installment contracts
The fee paid on the extension date if the buyer wishes to continue the option.
The subsequent subtraction from inventory records of those parts used
Brokerage house clerical operations that support, but do not include, the trading of stocks and
This term refers to the simultaneous issue of a life annuity with a non-guaranteed period and a guaranteed life insurance policy [usually whole life or term to 100]. The face value of the life insurance would be the same amount that was used to purchase the annuity. This combination of life annuity providing the highest payout of all types of annuities, along with a guaranteed life insurance policy allowed an uninsurable person to convert his/her RRSP into the best choice of annuity and guarantee that upon his/her death, the full value of the annuity would be paid tax free through the life insurance policy to his family members. However, in the early 1990's, the Federal tax authorities put a stop to the issuing of standard life rates to rated or uninsurable applicants. Insuring a life annuity in this manner is still an excellent way to provide guaranteed tax free funds to family members but the application for the annuity and the application for the life insurance are separate transactions and today, most likely conducted through two different insurance companies so that there is no suspicion of preferential treatment given to the life insurance application.
An intercompany loan channeled through a bank.
A loan in which two companies in separate countries borrow each other's currency for a
1) When bond yields and prices fall, the market is said to back-up.
A procedure for making the effective date of a policy earlier than the application date. backdating is often used to make the age of the consumer at policy issue lower than it actually was in order to get a lower premium.
a streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires
A market condition in which futures prices are lower in the distant delivery months than in
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
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
a system using transfer prices; see transfer
One of two parties to a conditional sale agreement, the other being the conditional seller.
Discounted payback period rule
An investment decision rule in which the cash flows are discounted at an
With respect to a project financing, an arrangement under which the sponsors of a project
The retrospective process of measuring performance, comparing it with plan and taking corrective action.
The purchase of items exceeding the quantity levels indicated
The purchase of one business entity by another, largely using borrowed
Leveraged buyout (LBO)
A transaction used for taking a public corporation private financed through the use
leveraged buyout (LBO)
Acquisition of the firm by a private group using substantial borrowed funds.
Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into
An option that allows the buyer to choose as the option strike price any price of the
The offsetting of a current year loss against the reported taxable
a decision that compares the cost of
Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.
management buyout (MBO)
Acquisition of the firm by its own management in a leveraged buyout.
Securities backed by a pool of mortgage loans.
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected
The length of time it takes to recover the initial cost of a project, without regard to the time value of money.
A method of investment appraisal that calculates the number of years taken for the cash flows from an investment to cover the initial capital outlay.
The length of time required for the net revenues of an investment for the net revenues of an investment to return the cost of the investment.
A capital budgeting analysis method that calculates the amount of
The number of years necessary for the net cash flows of an
the time it takes an investor to recoup an
Time until cash flows recover the initial investment of the project.
Related: retention rate.
Fraction of earnings retained by the firm.
Protective put buying strategy
A strategy that involves buying a put option on the underlying security that is
Sale and lease-back
Sale of an existing asset to a financial institution that then leases it back to the user.
Sale and Leaseback
An agreement in which the owner of a property sells that property to a person or institution and then leases it back again for an agreed period and rental.
Stripped mortgage-backed securities (SMBSs)
Securities that redistribute the cash flows from the
Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously
Up-front gain recognized from the securitization and sale of a pool
A buy-back to offset and effectively liquidate a prior sale of securities.
An agreement with a commitment by the seller (dealer) to buy a security back from
If an investor thinks the price of a stock is going down, the investor could borrow the stock from
Program by which a corporation buys back its own shares in the open market. It is usually
This is the total number of shares of a security that investors have borrowed, then sold in the
Firm buys back stock from its shareholders.
The firm buys back its own stock from a potential bidder, usually at a substantial
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