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Financial Terms | |
Disintermediation |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: inventory control, financial, accounting, money, credit, inventory, finance, stock trading, Also see related: mortgage, property, homes, home, condo, first time homebuyer, real estate, home financing, financing, |
Definition of DisintermediationDisintermediationWithdrawal of funds from a financial institution in order to invest them directly.
Related Terms:IntermediationInvestment through a financial institution. Related: disintermediation. Financial IntermediationThe process whereby financial intermediaries channel funds from lender/savers to borrower/spenders. 12b-1 fundsMutual funds that do not charge an upfront or back-end commission, but instead take out up to Agency pass-throughsMortgage pass-through securities whose principal and interest payments are 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 Business Expansion InvestmentThe use of capital to create more money through the addition of fixed assets or through income producing vehicles. ![]() Buy limit orderA conditional trading order that indicates a security may be purchased only at the designated 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 Investing ActivitiesCash receipts and payments involving CASH FLOWS FROM INVESTING ACTIVITIESA section on the cashflow statement that shows how much cash came in and went out because of various investing activities like purchasing machinery. Changes in Financial PositionSources of funds internally provided from operations that alter a company's chief financial officer (CFO)Officer who oversees the treasurer and controller and sets overall financial strategy. Comprehensive due diligence investigationThe investigation of a firm's business in conjunction with a Conventional pass-throughsAlso called private-label pass-throughs, any mortgage pass-through security not ![]() Corporate financial managementThe application of financial principals within a corporation to create and Corporate financial planningfinancial planning conducted by a firm that encompasses preparation of both Cost of fundsInterest rate associated with borrowing money. costs of financial distressCosts arising from bankruptcy or distorted business decisions before bankruptcy. Country financial riskThe ability of the national economy to generate enough foreign exchange to meet Cross-border riskRefers to the volatility of returns on international investments caused by events associated Day orderAn order to buy or sell stock that automatically expires if it can't be executed on the day it is entered. Discrete order pickingA picking method requiring the sequential completion of Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a Dividend yield (Funds)Indicated yield represents return on a share of a mutual fund held over the past 12 Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms economic order quantityorder size that minimizes total inventory costs. Economic order quantity (EOQ)The order quantity that minimizes total inventory costs. economic order quantity (EOQ)an estimate of the number 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. Endowment fundsinvestment funds established for the support of institutions such as colleges, private engineering change order (ECO)a business mandate that changes the way in which a product is manufactured or a Equity investmentthrough equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock. Expected return on investmentThe return one can expect to earn on an investment. See: capital asset External Financial StatementsCorporate financial statements that have been reported on by an external independent accountant. 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. Federally related institutionsArms of the federal government that are exempt from SEC registration and Fill or kill orderA trading order that is canceled unless executed within a designated time period. Financial accountingThe production of financial statements, primarily for those interested parties who are external to the business. financial accountinga discipline in which historical, monetary Financial analystsAlso called securities analysts and investment analysts, professionals who analyze Financial assetsClaims on real assets. financial assetsClaims to the income generated by real assets. Also called securities. Financial AssistanceEconomic assistance provided by unrelated third parties, typically government agencies. They may take the form of loans, loan guarantees, subsidies, tax allowances, contributions, or cost-sharing arrangements. financial budgeta plan that aggregates monetary details Financial controlThe management of a firm's costs and expenses in order to control them in relation to Financial CovenantA feature of a debt or credit agreement that is designed to protect the lender or creditor. It is common to characterize covenants as either positive or negative covenants. Financial CovenantsA promise made related to financial conditions or events. Often a promise not to allow certain balance sheet items or ratios to fall below an agreed level. Usually found in loan documents, as a protection mechanism. Financial distressEvents preceding and including bankruptcy, such as violation of loan contracts. Financial distress costsLegal and administrative costs of liquidation or reorganization. Also includes Financial engineeringCombining or dividing existing instruments to create new financial products. Financial futureA contract entered into now that provides for the delivery of a specified asset in exchange financial incentivea monetary reward provided for performance Financial IncentiveAn expression of economic benefit that motivates behavior that might otherwise not take place. Financial intermediariesinstitutions that provide the market function of matching borrowers and lenders or financial intermediaryFirm that raises money from many small investors and provides financing to businesses or other Financial IntermediaryAny institution, such as a bank, that takes deposits from savers and loans them to borrowers. Financial IntermediationThe process whereby financial intermediaries channel funds from lender/savers to borrower/spenders. Financial leaseLong-term, non-cancelable lease. Financial LeaseLease in which the service provided by the lessor to the lessee is limited to financing equipment. All other responsibilities related to the possession of equipment, such as maintenance, insurance, and taxes, are borne by the lessee. A financial lease is usually noncancellable and is fully paid out amortized over its term. Financial leverageUse of debt to increase the expected return on equity. financial leverage is measured by financial leverageThe equity (ownership) capital of a business can serve financial leverageDebt financing amplifies the effects of changes in operating income on the returns to stockholders. Financial leverage clienteleA group of investors who have a preference for investing in firms that adhere to Financial leverage ratiosRelated: capitalization ratios. Financial marketAn organized institutional structure or mechanism for creating and exchanging financial assets. financial marketsMarkets in which financial assets are traded. Financial Numbers GameThe use of creative accounting practices to alter a financial statement Financial objectivesObjectives of a financial nature that the firm will strive to accomplish during the period Financial planA financial blueprint for the financial future of a firm. Financial planningThe process of evaluating the investing and financing options available to a firm. It Financial PositionStatus of a firm's assets, liabilities, and equity accounts as of a certain time, as shown in its financial statement. Financial pressThat portion of the media devoted to reporting financial news. Financial ratioThe result of dividing one financial statement item by another. Ratios help analysts interpret financial reports and statementsfinancial means having to do with Financial reports or statementsThe Profit and Loss account, Balance Sheet and Cash Flow statement of a business. Financial riskThe risk that the cash flow of an issuer will not be adequate to meet its financial obligations. financial riskRisk to shareholders resulting from the use of debt. financial slackReady access to cash or debt financing. Financial Trend AnalysisProcess of analyzing financial statements of a company for any continuing relationship. Financial yearThe accounting period adopted by a business for the production of its financial statements. Flow-through basisAn account for the investment credit to show all income statement benefits of the credit Flow-through methodThe practice of reporting to shareholders using straight-line depreciation and Foreign direct investment (FDI)The acquisition abroad of physical assets such as plant and equipment, with Forward Fed fundsFed funds traded for future delivery. Fraudulent Financial ReportingIntentional misstatements or omissions of amounts or disclosures Fully modified pass-throughsAgency pass-throughs that guarantee the timely payment of both interest and Funds From Operations (FFO)Used by real estate and other investment trusts to define the cash flow from Future investment opportunitiesThe options to identify additional, more valuable investment opportunities Future-Oriented Financial InformationInformation about prospective results of operations, financial position and/or changes in financial position, based on assumptions about future economic conditions and courses of action. Future-oriented financial information is presented as either a forecast or a projection. growth fundsMutual funds that seek long-term capital growth. This type of fund invests primarily in equity securities. 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 income fundsMutual funds that seek regular income. This type of fund invests primarily in government, corporate and other types of bonds, debt securities, and other income producing securities and in certain circumstances can also hold common and preferred shares. index fundsMutual funds that aim to track the performance of a specific stock or bond index. This process is also referred to as indexing and passive management. Institutional investorsOrganizations that invest, including insurance companies, depository institutions, InstitutionalizationThe gradual domination of financial markets by institutional investors, as opposed to Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |