Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: finance, tax advisor, financial, money, credit, inventory control, financial advisor, business,
Definition of Classical Macroeconomics
The school of macroeconomic thought prior to the rise of Keynesianism.
The study of the determination of economic aggregates such as total output and the price level.
Economists who, like classical economists, believe that wages and prices are sufficiently flexible to solve the unemployment problem without help from government policy.
Also known as the Big Board or The Exhange. More than 2,00 common
The market in which a new issue of securities is first sold to investors.
In a Treasury auction, the amount by which the par value of the securities offered exceeds that of
A new issue of stock after the company's securities have previously been issued. A
Economists who, like Keynes, believe that for good reason wages and prices are sticky and so prolong recessions, suggesting a need for government policy.
Sometimes, simply called YRT, this is a form of term life insurance that may be renewed annually without evidence of insurability to a stated age.
A promise that a life insurance policy will be renewed without penalty or medical examination after the term has expired. The renewal rate can also be guaranteed.
Abrams’ model for calculating DLOM based on the interaction of discounts from four economic components.
Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full
total liabilities exceed total assets. A firm with a negative net worth is insolvent on
Conflicts of interest among stockholders, bondholders, and managers.
The price at which a willing buyer and a willing unrelated seller would freely agree to
A dealer's price to sell a security; also called the offer price.
Asset substitution problem
Arises when the stockholders substitute riskier assets for the firm's existing
Gives the lessee the option to purchase the asset at a price below fair market
price expressed in terms of yield to maturity or annual rate of return.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a
The price for which a bond can be repaid before maturity under a call provision.
Bond price excluding accrued interest.
Coefficient of determination
A measure of the goodness of fit of the relationship between the dependent and
Procedures followed by a firm in attempting to collect accounts receivables.
The degree of assurance that a specified failure rate is not exceeded.
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Conversion parity price
Related:Market conversion price
The contractually specified price per share at which a convertible security can be
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
Devaluation A decrease in the spot price of the currency
Bond price including accrued interest, i.e., the price paid by the bond buyer.
An established guide for the firm to determine the amount of money it will pay as dividends.
Dollar price of a bond
Percentage of face value at which a bond is quoted.
Positive or negative differences from the consensus forecast of earnings by institutions
economic environment in which the firm expects to reside over the life of the
See: in-substance defeasance.
Exists when the costs and/or revenues of one project depend on those of another.
The real flow of cash that a firm could pay out forever in the absence of any change in
The extent to which the value of the firm will change because of an exchange rate change.
Cash flow plus change in present value.
Economic order quantity (EOQ)
The order quantity that minimizes total inventory costs.
Profits in excess of the competitive level.
In project financing, the risk that the project's output will not be salable at a price that will
For any entity, the difference between the market value of all its assets and the market
An agreement between two or more countries that allows the free movement of capital,
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
A statistical study that examines how the release of information affects prices at a particular time.
The price at which the underlying future or options contract may be bought or sold.
Fair market price
Amount at which an asset would change hands between two parties, both having
The equilibrium price for futures contracts. Also called the theoretical futures price, which equals
Fair price provision
The use of government spending and taxing for the specific purpose of stabilizing the economy.
Fixed price basis
An offering of securities at a fixed price.
Fixed-price tender offer
A one-time offer to purchase a stated number of shares at a stated fixed price,
Flat price risk
Taking a position either long or short that does not involve spreading.
Flat price (also clean price)
The quoted newspaper price of a bond that does not include accrued interest.
Also called dirty price, the price of a bond including accrued interest. Related: flat price.
The price at which the parties to a futures contract agree to transact on the settlement date.
See: government securities.
Government National Mortgage Association (Ginnie Mae)
A wholly owned U.S. government corporation
Government sponsored enterprises
Privately owned, publicly chartered entities, such as the Student Loan
Negotiable U.S. Treasury securities.
The highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
Tables that indicate how much each industry requires of the production of each other
The risk that a firm will be unable to satisfy its debts. Also known as bankruptcy risk.
A firm that is unable to pay debts (liabilities are greater than assets).
The price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered.
Law of one price
An economic rule stating that a given security must have the same price regardless of the
Leading economic indicators
economic series that tend to rise or fall in advance of the rest of the economy.
The characteristic of the scheduled principal and interest payments due under a mortgage such that
Bond with a stream of coupon payments that are the same throughout the life of the bond.
Maximum price fluctuation
This is the day's lowest price of a security that has changed hands between a buyer and a seller.
Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price-earnings ratio to
Maximum price fluctuation
Market conversion price
Also called conversion parity price, the price that an investor effectively pays for
Market price of risk
A measure of the extra return, or risk premium, that investors demand to bear risk. The
The amount of money that a willing buyer pays to acquire something from a willing seller,
Marketplace price efficiency
The degree to which the prices of assets reflect the available marketplace
Maximum price fluctuation
The maximum amount the contract price can change, up or down, during one
Minimum price fluctuation
Smallest increment of price movement possible in trading a given contract. Also
Actions taken by the Board of Governors of the Federal Reserve System to influence the
price quotations on futures for a period in which no actual trading took place.
The range of prices at which the first bids and offers were made or first transactions were
Also called the option premium, the price paid by the buyer of the options contract for the right
Perfect market view (of dividend policy)
Analysis of a decision on dividend policy, in a perfect capital
Policy asset allocation
A long-term asset allocation method, in which the investor seeks to assess an
Compares a stock's market value to the value of total assets less total liabilities (book
Price/earnings ratio (PE ratio)
Shows the "multiple" of earnings at which a stock sells. Determined by dividing current
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
The limitation of the price appreciation potential for a callable bond in a declining interest
Price discovery process
The process of determining the prices of the assets in the marketplace through the
The percentage change in the quantity divided by the percentage change in the price.
Price impact costs
Related: market impact costs
Related: Relative strength
Related: Relative strength
The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of
Individuals who respond to rates and prices by acting as though they have no influence on them.
The market has already incorporated information, such as a low dividend, into the price of a stock.
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
price of a share of common stock on the date shown. Highs and lows are based on the highest and
Adjustment mechanism under the classical gold standard whereby
A relationship espoused by some technical analysts that signals continuing rises
The price at which the asset will be sold if a put option is exercised. Also called the strike or
Idea that future replacement decisions must be taken into account in selecting
A price level above which it is supposedly difficult for a security or market to rise.
Return on total assets
The ratio of earnings available to common stockholders to total assets.
Reverse price risk
A type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.