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Financial Terms | |
Closed-end fund |
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Definition of Closed-end fundClosed-end fundAn investment company that sells shares like any other corporation and usually does not
Related Terms:Rights offeringIssuance of "rights" to current shareholders allowing them to purchase additional shares, 12b-1 fundsMutual funds that do not charge an upfront or back-end commission, but instead take out up to Aggregate Expenditure CurveAggregate demand for goods and services drawn as a function of the level of national income. Annual fund operating expensesFor investment companies, the management fee and "other expenses," Autonomous ExpenditureElements of spending that do not vary systematically with variables such as GDP that are explained by the theory. See also exogenous expenditure. Balanced fundAn investment company that invests in stocks and bonds. The same as a balanced mutual fund. Balanced mutual fundThis is a fund that buys common stock, preferred stock and bonds. The same as a ![]() Beta equation (Mutual Funds)The beta of a fund is determined as follows: Beta (Mutual Funds)The measure of a fund's or stocks risk in relation to the market. A beta of 0.7 means Blend offThe reintroduction of a faulty product into a process production flow by CalendarList of new issues scheduled to come to market shortly. Calendar effectThe tendency of stocks to perform differently at different times, including such anomalies as Capital expendituresAmount used during a particular period to acquire or improve long-term assets such as capital expendituresRefers to investments by a business in long-term Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized againstfuture-period revenue. Capitalized ExpendituresExpenditures that are accounted for as assets to be amortized ![]() Cash dividendA dividend paid in cash to a company's shareholders. The amount is normally based on cash dividendPayment of cash by the firm to its shareholders. Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life Cash Surrender ValueThis is the amount available to the owner of a life insurance policy upon voluntary termination of the policy before it becomes payable by the death of the life insured. This does not apply to term insurance but only to those policies which have reduced paid up values and cash surrender values. A cash surrender in lieu of death benefit usually has tax implications. Cash Surrender ValueBenefit that entitles a policy owner to an amount of money upon cancellation of a policy. Closed EconomyAn economy in which imports and exports are very small relative to GDP and so are ignored in macroeconomic analysis. Contrast with open economy. Closed-end mortgageMortgage against which no additional debt may be issued. constant-growth dividend discount modelVersion of the dividend discount model in which dividends grow at a constant rate. contract vendoran external party that has been granted an Cost of fundsInterest rate associated with borrowing money. Cum dividendWith dividend. Cumulative dividend featureA requirement that any missed preferred or preference stock dividends be paid DependentAcceptance of a capital budgeting project contingent on the acceptance of another project. dependent variablean unknown variable that is to be predicted DetrendTo remove the general drift, tendency or bent of a set of statistical data as related to time. Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the DividendA dividend is a portion of a company's profit paid to common and preferred shareholders. A stock DividendA payment a company makes to stockholders. Earnings before income tax. The profit a company made DividendThe payment of after-tax profits to shareholders as their share of the profits of the business for an accounting period. DividendA payment made to shareholders that is proportional to the number of shares dividendPeriodic cash distribution from the firm to its shareholders. DividendAs the term dividend relates to a corporation's earnings, a dividend is an amount paid per share from a corporation's after tax profits. Depending on the type of share, it may or may not have the right to earn any dividends and corporations may reduce or even suspend dividend payments if they are not doing well. Some dividends are paid in the form of additional shares of the corporation. Dividends paid by Canadian corporations qualify for the dividend tax credit and are taxed at lower rates than other income. DividendUnlike dividends which are paid to company shareholders, participating insurance policy dividends are not based on the company's overall profits. Rather, they are determined by grouping policies by type and country of issue and looking at how each class contributes to the company's earnings and surplus. Dividend clawbackWith respect to a project financing, an arrangement under which the sponsors of a project Dividend clienteleA group of shareholders who prefer that the firm follow a particular dividend policy. For dividend discount modelComputation of today’s stock price which states that share value equals the present value of all expected future dividends. Dividend discount model (DDM)A model for valuing the common stock of a company, based on the dividend growth methoda method of computing the cost Dividend growth modelA model wherein dividends are assumed to be at a constant rate in perpetuity. Dividend incomeIncome that a company receives in the form of dividends on stock in other companies that it holds. Dividend limitationA bond covenant that restricts in some way the firm's ability to pay cash dividends. Dividend payout ratioPercentage of earnings paid out as dividends. dividend payout ratioComputed by dividing cash dividends for the year dividend payout ratioPercentage of earnings paid out as dividends. Dividend policyAn established guide for the firm to determine the amount of money it will pay as dividends. Dividend PolicyThis policy governs Canada Life's actions regarding distribution of dividends to policyholders. It's goal is to achieve a dividend distribution that is equitable and timely, and which gives full recognition of the need to ensure the ongoing solidity of the company. It also specifies that distribution to individual policyholders must be equitable between dividend classes and policyholder generations, and among policyholders within any class. Dividend rateThe fixed or floating rate paid on preferred stock based on par value. Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a Dividend rightsA shareholders' rights to receive per-share dividends identical to those other shareholders receive. Dividend yield (Funds)Indicated yield represents return on a share of a mutual fund held over the past 12 dividend yield ratioCash dividends paid by a business over the most Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. DividendsAmounts paid to the owners of a company that represent a share of the income of the company. DividendsProfits paid out to shareholders by a corporation. Dividends per shareAmount of cash paid to shareholders expressed as dollars per share. Dividends per shareDividends paid for the past 12 months divided by the number of common shares Economic dependenceExists when the costs and/or revenues of one project depend on those of another. EFT (electronic funds transfer)funds which are electronically credited to your account (e.g. direct deposit), or electronically debited from your account on an ongoing basis (e.g. a pre-authorized monthly bill payment, or a monthly loan or mortgage payment). A wire transfer is a form of EFT. Employee stock fundA firm-sponsored program that enables employees to purchase shares of the firm's End-of-year conventionTreating cash flows as if they occur at the end of a year as opposed to the date Ending inventoryThe dollar value or unit total of goods on hand at the end of an EndogenousDetermined from within the system. Opposite of exogenous. Endogenous variableA value determined within the context of a model. EndowmentLife insurance payable to the policyholder, if living on the maturity date stated in the policy, or to a beneficiary if the insured dies before that date. For example, some Term to age 100 policies offer the option of taking the face amount of the policy as a cash payout at age 100 if the policyholder is still alive and paying all required income taxes on the amount received or leaving the policy to pay out upon death whereupon the payout is tax free. Endowment fundsInvestment funds established for the support of institutions such as colleges, private Ex-dividendThis literally means "without dividend." The buyer of shares when they are quoted ex-dividend Ex-dividend dateThe first day of trading when the seller, rather than the buyer, of a stock will be entitled to ex-dividend dateDate that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend. Exclusionary self-tenderThe firm makes a tender offer for a given amount of its own stock while excluding Exogenous ExpenditureSee autonomous expenditure. ExpenditureA payment or the incurrence of a liability by an entity. Extendable bondBond whose maturity can be extended at the option of the lender or issuer. Extendable notesNote the maturity of which can be extended by mutual agreement of the issuer and Extended Amortization PeriodAn amortization period that continues beyond a long-lived asset's economic useful life. Extended Amortization PeriodsAmortizing capitalized expenditures over estimated useful lives that are unduly optimistic. Extra or special dividendsA dividend that is paid in addition to a firm's "regular" quarterly dividend. Federal fundsNon-interest bearing deposits held in reserve for depository institutions at their district Federal Federal funds marketThe market where banks can borrow or lend reserves, allowing banks temporarily Federal funds rateThis is the interest rate that banks with excess reserves at a Federal Reserve district bank Federal Funds RateThe interest rate at which banks lend deposits at the Federal Reserve to one another overnight. Financial Trend AnalysisProcess of analyzing financial statements of a company for any continuing relationship. fixed overhead spending variancethe difference between the total actual fixed overhead and budgeted fixed overhead; Fixed-price tender offerA one-time offer to purchase a stated number of shares at a stated fixed price, Flexible Spending AccountA form of cafeteria plan allowing employees to pay Forward Fed fundsFed funds traded for future delivery. Front End FeesFees paid when for example a financial instrument such as a loan is arranged. Fund familySet of funds with different investment objectives offered by one management company. In many Fundamental analysisSecurity analysis that seeks to detect misvalued securities by an analysis of the firm's fundamental analystsAnalysts who attempt to find under- or overvalued securities by analyzing fundamental information, such as earnings, asset values, and business prospects. Fundamental betaThe product of a statistical model to predict the fundamental risk of a security using not Fundamental descriptorsIn the model for calculating fundamental beta, ratios in risk indexes other than Funded debtDebt maturing after more than one year. funded debtDebt with more than 1 year remaining to maturity. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |