![]() |
|
Financial Terms | |
Comparison universe |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: inventory, financial, business, stock trading, investment, financial advisor, accounting, money, |
Definition of Comparison universeComparison universeThe collection of money managers of similar investment style used for assessing
Related Terms:Active portfolio strategyA strategy that uses available information and forecasting techniques to seek a American-style optionAn option contract that can be exercised at any time between the date of purchase and At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the Average Collection PeriodAverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Bank collection floatThe time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank. BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in ![]() Bottom-up equity management styleA management style that de-emphasizes the significance of economic Business Expansion InvestmentThe use of capital to create more money through the addition of fixed assets or through income producing vehicles. Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance capital investment analysisRefers to various techniques and procedures Capital Investmentsmoney used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses. Cash Flow Provided or Used from Financing ActivitiesCash receipts and payments involving Cash Flow Provided or Used from Investing ActivitiesCash receipts and payments involving Collection DepartmentAn internal department within a company staffed by specialists in collecting past due accounts or accounts receivable. Collection floatThe negative float that is created between the time when you deposit a check in your account ![]() Collection fractionsThe percentage of a given month's sales collected during the month of sale and each Collection policyProcedures followed by a firm in attempting to collect accounts receivables. collection policyProcedures to collect and monitor receivables. Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for investment Management and Research (AIMR)'s performance Presentation Standards Implementation Complete portfolioThe entire portfolio, including risky and risk-free assets. Dedicating a portfolioRelated: cash flow matching. Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a Efficient portfolioA portfolio that provides the greatest expected return for a given level of risk (i.e. standard Equity investmentThrough equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock. European-style optionAn option contract that can only be exercised on the expiration date. Excess return on the market portfolioThe difference between the return on the market portfolio and the ![]() Expected return on investmentThe return one can expect to earn on an investment. See: capital asset Factor portfolioA well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of Feasible portfolioA portfolio that an investor can construct given the assets available. Feasible set of portfoliosThe collection of all feasible portfolios. Fiat MoneyFiat money is paper currency made legal tender by law or fiat. It is not backed by gold or silver and is not necessarily redeemable in coin. This practice has had widespread use for about the last 70 years. If governments produce too much of it, there is a loss of confidence. Even so, governments print it routinely when they need it. The value of fiat money is dependent upon the performance of the economy of the country which issued it. Canada's currency falls into this category. Foreign direct investment (FDI)The acquisition abroad of physical assets such as plant and equipment, with Future investment opportunitiesThe options to identify additional, more valuable investment opportunities Group rotation managerA top-down manager who infers the phases of the business cycle and allocates Growth managerA money manager who seeks to buy stocks that are typically selling at relatively high P/E guaranteed investment certificate (GIC)A GIC is an investment that gives you a guaranteed rate of return over a fixed period of time, usually between 30 days and 5 years. GICs are available from banks, trust companies, and other financial institutions. Guaranteed investment contract (GIC)A pure investment product in which a life company agrees, for a Hedged portfolioA portfolio consisting of the long position in the stock and the short position in the call High-Powered MoneySee money base. Hot moneymoney that moves across country borders in response to interest rate differences and that moves In-the-moneyA put option that has a strike price higher than the underlying futures price, or a call option Index Portfolio Rebalancing Service (IPRS)Index portfolio Rebalancing Service (IPRS) is a comprehensive investment service that can help increase potential returns while reducing volatility. Several portfolios are available, each with its own strategic balance of Index Funds. IPRS maintains your personal asset allocation by monitoring and rebalancing your portfolio semi-annually. InvestmentThe commitment of funds (capital) in anticipation of an increased Investment analystsRelated: financial analysts Investment bankFinancial intermediaries who perform a variety of services, including aiding in the sale of Investment BankerMiddleman between a corporation issuing new securities and the public. The middleman buys the securities issue outright and then resells it to customers. Also called an underwriter. investment centera responsibility center in which the manager Investment centreA division or unit of an organization that is responsible for achieving an adequate return on investment decisiona judgment about which assets will be Investment decisionsDecisions concerning the asset side of a firm's balance sheet, such as the decision to investment gradeBonds rated Baa or above by Moody’s or BBB or above by Standard & Poor’s. Investment grade bondsA bond that is assigned a rating in the top four categories by commercial credit Investment incomeThe revenue from a portfolio of invested assets. Investment managerAlso called a portfolio manager and money manager, the individual who manages a Investment product line (IPML)The line of required returns for investment projects as a function of beta Investment SpendingExpenditures on capital goods including new housing. Financial ''investments" and sales of existing assets are not included. Investment tax creditProportion of new capital investment that can be used to reduce a company's tax bill Investment Tax CreditA reduction in taxes offered to firms to induce them to increase investment spending. Investment trustA closed-end fund regulated by the investment Company Act of 1940. These funds have a Investment valueRelated:straight value. InvestmentsAs a discipline, the study of financial securities, such as stocks and bonds, from the investor's Lead managerThe commercial or investment bank with the primary responsibility for organizing syndicated Legal investmentsinvestments that a regulated entity is permitted to make under the rules and regulations Leveraged portfolioA portfolio that includes risky assets purchased with funds borrowed. Leveraged portfolioA portfolio that includes risky assets purchased with funds borrowed. management stylethe preference of a manager in how he/she interacts with other stakeholders in the organization; Managerial decisionsDecisions concerning the operation of the firm, such as the choice of firm size, firm Market portfolioA portfolio consisting of all assets available to investors, with each asset held -in market portfolioportfolio of all assets in the economy. In practice a broad stock market index, such as the Standard & Poor's Composite, is used to represent the market. Market PortfolioThe total of all investment opportunities available to the investor. Markowitz efficient portfolioAlso called a mean-variance efficient portfolio, a portfolio that has the highest Markowitz efficient set of portfoliosThe collection of all efficient portfolios, graphically referred to as the Mean-variance efficient portfolioRelated: Markowitz efficient portfolio Minimum-variance portfolioThe portfolio of risky assets with lowest variance. Modern portfolio theoryPrinciples underlying the analysis and evaluation of rational portfolio choices MoneyAny item that serves as a medium of exchange, a store of value, and a unit of account. See medium of exchange. Money baseComposed of currency and coins outside the banking system plus liabilities to the deposit money banks. Money BaseCash plus deposits of the commercial banks with the central bank. Money center banksBanks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds. Money LaunderingThis is the process by which "dirty money" generated by criminal activities is converted through legitimate businesses into assets that cannot be easily traced back to their illegal origins. Money managementRelated: investment management. Money managerRelated: investment manager. Money marketmoney markets are for borrowing and lending money for three years or less. The securities in Money MarketA market that specializes in trading short-term, low-risk, very liquid money marketMarket for short-term financial assets. Money MarketA financial market in which short-term (maturity of less than a year) debt instruments such as bonds are traded. Money MarketFinancial market in which funds are borrowed or lent for short periods. (The money market is distinguished from the capital market, which is the market for long term funds.) Money market demand accountAn account that pays interest based on short-term interest rates. Money market fundA mutual fund that invests only in short term securities, such as bankers' acceptances, money market fundA type of mutual fund that invests primarily in short-term debt securities maturing in one year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates. Money market hedgeThe use of borrowing and lending transactions in foreign currencies to lock in the Money market notesPublicly traded issues that may be collateralized by mortgages and MBSs. Money MultiplierChange in the money supply per change in the money base. money orderA guaranteed form of payment in amounts up to and including $5,000. You might request a money order in order to pay for tuition fees at a university or a college, or for a magazine subscription. Money purchase planA defined benefit contribution plan in which the participant contributes some part and Money Rate of InterestSee interest rate, nominal. Money rate of returnAnnual money return as a percentage of asset value. Money supplyM1-A: Currency plus demand deposits Mutually exclusive investment decisionsinvestment decisions in which the acceptance of a project Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |