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Definition of Cashout
Refers to a situation where a firm runs out of cash and cannot readily sell marketable securities.
Same as PV, but usually includes a subtraction for an initial cash outlay.
the value in today’s dollars of cash flows that occur in different time periods.
A bond covenant that specifies certain actions the firm must take.
The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the
In the mortgage pipeline, the risk that prospective borrowers of loans committed to be
A rise in a security's price above a resistance level (commonly its previous high price) or drop
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is
The value of assets that can be converted into cash immediately, as reported by a company. Usually
A forecasted summary of a firm's expected cash inflows and cash outflows as well as its
Purchase of a security and simultaneous sale of a future, with the balance being financed
The value of assets that can be converted into cash immediately, as reported by a
The actual physical commodity, as distinguished from a futures contract.
The length of time between a firm's purchase of inventory and the receipt of cash
A company that pays out all earnings per share to stockholders as dividends. Or, a company or
In general, the time between cash disbursement and cash collection. In net working capital
Cash deficiency agreement
An agreement to invest cash in a project to the extent required to cover any cash
The provision of some futures contracts that requires not delivery of underlying assets but
An incentive offered to purchasers of a firm's product for payment within a specified time
A dividend paid in cash to a company's shareholders. The amount is normally based on
A short-term security that is sufficiently liquid that it may be considered the financial
In investments, it represents earnings before depreciation , amortization and non-cash charges.
Cash flow after interest and taxes
Net income plus depreciation.
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
Cash flow matching
Also called dedicating a portfolio, this is an alternative to multiperiod immunization in
Cash flow per common share
cash flow from operations minus preferred stock dividends, divided by the
Cash flow time-line
Line depicting the operating activities and cash flows for a firm over a particular period.
Cash-flow break-even point
The point below which the firm will need either to obtain additional financing
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
Also called spot markets, these are markets that involve the immediate delivery of a security
A public equity issue that is sold to all interested investors.
The proportion of a firm's assets held as cash.
Cash settlement contracts
Futures contracts, such as stock index futures, that settle for cash, not involving
A transaction where exchange is immediate, as contrasted to a forward contract, which
Temporary investments of currently excess cash in short-term, high-quality
An amount the insurance company will pay if the policyholder ends a whole life
he written statement that follows any "trade" in the securities markets. Confirmation is issued
Customary payout ratios
A range of payout ratios that is typical based on an analysis of comparable firms.
Days' sales outstanding
Average collection period.
IOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and
Non-interest-bearing money market instruments that are issued at a discount and
Discounted cash flow (DCF)
Future cash flows multiplied by discount factors to obtain present values.
Discretionary cash flow
cash flow that is available after the funding of all positive NPV capital investment
Dividend payout ratio
Percentage of earnings paid out as dividends.
Barrier option that expires if asset price hits a barrier.
Equivalent annual cash flow
Annuity with the same net present value as the company's proposed investment.
Instruments exempt from the registration requirements of the securities Act of 1933 or the
Expected future cash flows
Projected future cash flows associated with an asset of decision.
A type of mortgage pipeline risk that is generally created when the terms of the loan to be
Feasible target payout ratios
Payout ratios that are consistent with the availability of excess funds to make
Federal agency securities
securities issued by corporations and agencies created by the U.S. government,
Refers to an order to buy or sell that can be executed without confirmation for some fixed period. Also,
Firm commitment underwriting
An undewriting in which an investment banking firm commits to buy the
Firm's net value of debt
Total firm value minus total firm debt.
See:diversifiable risk or unsystematic risk.
A method of valuing the cost of goods sold that uses the cost of the oldest item in
Free cash flows
cash not required for operations or for reinvestment. Often defined as earnings before
See: financial lease.
General cash offer
A public offering made to investors at large.
Negotiable U.S. Treasury securities.
Incremental cash flows
Difference between the firm's cash flows with and without a project.
Tables that indicate how much each industry requires of the production of each other
Intrinsic value of a firm
The present value of a firm's expected future net cash flows discounted by the
In the mortgage pipeline, risk that occurs when the originator commits loan terms to the
A method of valuing inventory that uses the cost of the most recent item in
A firm's cash balance as reported in its financial statements. Also called book cash.
Leveraged buyout (LBO)
A transaction used for taking a public corporation private financed through the use
The last-in-first-out inventory valuation methodology. A method of valuing
With PAC bond CMO classes, the period before the PAC sinking fund becomes effective. With
Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.
Manufactured housing securities (MHSs)
Loans on manufactured homes - that is, factory-built or
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
securities backed by a pool of mortgage loans.
Neglected firm effect
The tendency of firms that are neglected by security analysts to outperform firms that
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
To get or bring in as a net; to clear as profit.
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow.
The method of trading used at futures exchanges, typically involving calling out the specific
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from
Also called the option writer , the party who grants a right to trade a security at a given price in
A call option is out-of-the-money if the strike price is greater than the market price
Actual forward rate expressed in dollars per currency unit, or vice versa.
Outstanding share capital
Issued share capital less the par value of shares that are held in the company's treasury.
Shares that are currently owned by investors.
A pool of fixed-income securities backed by a package of assets (i.e. mortgages)
Generally, the proportion of earnings paid out to the common stockholders as cash dividends.
The market has already incorporated information, such as a low dividend, into the price of a stock.
Project loan securities
securities backed by a variety of FHA-insured loan types - primarily multi-family
Public Securities Administration (PSA)
The trade association for primary dealers in U.S. government
Real cash flow
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash
Scheduled cash flows
The mortgage principal and interest payments due to be paid under the terms of the
Securities & Exchange Commission
The SEC is a federal agency that regulates the U.S.financial markets.
Related: short hedge.
Sell limit order
Conditional trading order that indicates that a, security may be sold at the designated price or
All banks involved in selling or marketing a new issue of stock or bonds
If an investor thinks the price of a stock is going down, the investor could borrow the stock from
Also called a Wall Street analyst, a financial analyst who works for a brokerage firm and
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