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Financial Terms | |
Downgrade |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of DowngradeDowngradeA classic negative change in ratings for a stock, and or other rated security.
Related Terms:Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accelerated depreciationAny depreciation method that produces larger deductions for depreciation in the accelerated depreciation(1) The estimated useful life of the fixed asset being depreciated is Accelerated depreciationAny of several methods that recognize an increased amount Accounting changeAn alteration in the accounting methodology or estimates used in Accumulated Other Comprehensive IncomeCumulative gains or losses reported in shareholders' Acquisition of stockA merger or consolidation in which an acquirer purchases the acquiree's stock. ![]() Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. American Stock Exchange (AMEX)The second-largest stock exchange in the United States. It trades Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every Available-for-Sale SecurityA debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period. Beta equation (Stocks)The beta of a stock is determined as follows: Bill of exchangeGeneral term for a document demanding payment. BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals: capital stockOwnership shares issued by a business corporation. A business ![]() Capital StockThe total amount of plant, equipment, and other physical capital. Change in Accounting EstimateA change in accounting that occurs as the result of new information Change in Accounting EstimateA change in the implementation of an existing accounting Change in Accounting PrincipleA change from one generally accepted accounting principle to another generally accepted accounting principle—for example, a change from capitalizing expenditures Change in Reporting EntityA change in the scope of the entities included in a set of, typically, consolidated financial statements. Changes in Financial PositionSources of funds internally provided from operations that alter a company's Chicago Mercantile Exchange (CME)A not-for-profit corporation owned by its members. Its primary Classical MacroeconomicsThe school of macroeconomic thought prior to the rise of Keynesianism. Commodities Exchange Center (CEC)The location of five New York futures exchanges: Commodity Common stockThese are securities that represent equity ownership in a company. Common shares let an Common stockShares of ownership sold to the public. ![]() Common StockA financial security that represents an ownership claim on the common stockOwnership shares in a publicly held corporation. Common StockThat part of the capital stock of a corporation that carries voting rights and represents Common stock equivalentA convertible security that is traded like an equity issue because the optioned Common stock marketThe market for trading equities, not including preferred stock. Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Common stock ratiosRatios that are designed to measure the relative claims of stockholders to earnings computer integrated manufacturing (CIM)the integration of two or more flexible manufacturing systems through the use of a host computer and an information networking system Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that Consigned stocksInventories owned by a company, but located on the premises Convertible exchangeable preferred stockConvertible preferred stock that may be exchanged, at the Convertible preferred stockPreferred stock that can be converted into common stock at the option of the holder. Convertible securityA security that can be converted into common stock at the option of the security holder, Cost of Common StockThe rate of return required by the investors in the common stock of Cost of Preferred StockThe rate of return required by the investors in the preferred stock of Cumulative Effect of a Change in Accounting PrincipleThe change in earnings of previous years Cumulative Effect of Accounting ChangeThe change in earnings of previous years assuming Cumulative preferred stockPreferred stock whose dividends accrue, should the issuer not make timely Debt SecurityA security representing a debt relationship with an enterprise, including a government Departmental stocksThe informal and frequently unauthorized retention of excess inventory on the shop floor, which is used as buffer safety stock. Derivative securityA financial security, such as an option, or future, whose value is derived in part from the Direct stock-purchase programsThe purchase by investors of securities directly from the issuer. Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. Earnings per share of common stockHow much profit a company made on each share of common stock this year. Effective Exchange RateThe weighted average of several exchange rates, where the weights are determined by the extent of our trade done with each country. Electronic data interchange (EDI)The exchange of information electronically, directly from one firm's electronic data interchange (EDI)the computer-to-computer transfer of information in virtual real time using standardized formats developed by the American National Standards Institute Embodied Technical ChangeTechnical change that can be used only when new capital embodying this technical change is produced. Employee Retirement Income Security Act of 1974 (ERISA)A federal Act that sets minimum operational and funding standards for employee benefit Employee stock fundA firm-sponsored program that enables employees to purchase shares of the firm's Employee stock ownership plan (ESOP)A company contributes to a trust fund that buys stock on behalf of Employee Stock Ownership Plan (ESOP)a profit-sharing compensation program in which investments are made in Employee Stock Ownership Plan (ESOP)A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer. Engineering changeA change to a product’s specifications as issued by the engineering engineering change order (ECO)a business mandate that changes the way in which a product is manufactured or a Equation of ExchangeThe quantity theory equation Mv = PQ. Equity SecurityAn ownership interest in an enterprise, including preferred and common stock. ExchangeThe marketplace in which shares, options and futures on stocks, bonds, commodities and indices Exchange controlsGovernmental restrictions on the purchase of foreign currencies by domestic citizens or Exchange of assetsAcquisition of another company by purchase of its assets in exchange for cash or stock. Exchange of stockAcquisition of another company by purchase of its stock in exchange for cash or shares. Exchange offerAn offer by the firm to give one security, such as a bond or preferred stock, in exchange for Exchange rateThe price of one country's currency expressed in another country's currency. exchange rateAmount of one currency needed to purchase one unit of another. Exchange Rate Mechanism (ERM)The methodology by which members of the EMS maintain their Exchange Rate, NominalThe price of one currency in terms of another, in this book defined as number of units of foreign currency per dollar. Exchange Rate, RealThe nominal exchange rate corrected for price level differences. Exchange rate riskAlso called currency risk, the risk of an investment's value changing because of currency Exchange riskThe variability of a firm's value that results from unexpected exchange rate changes or the Exchangeable Securitysecurity that grants the security holder the right to exchange the security for the expectations theory of exchange ratesTheory that expected spot exchange rate equals the forward rate. Fixed-dollar securityA nonnegotiable debt security that can be redeemed at some fixed price or according to Fixed-exchange rateA country's decision to tie the value of its currency to another country's currency, gold Fixed Exchange RateAn exchange rate held constant by a government promise to buy or sell dollars at the fixed rate on the foreign exchange market. Fixed-income securityA security that pays a specified cash flow over a Flexible Exchange RateAn exchange rate whose value is determined by the forces of supply and demand on the foreign exchange market. Floating exchange rateA country's decision to allow its currency value to freely change. The currency is not Floating Exchange RateSee flexible exchange rate. floating-rate securitysecurity paying dividends or interest that vary with short-term interest rates. Floor stocksLow-cost, high-usage inventory items stored near the shop floor, Foreign exchangeCurrency from another country. Foreign ExchangeThe currency of a foreign country. Foreign exchange controlsVarious forms of controls imposed by a government on the purchase/sale of Foreign exchange dealerA firm or individual that buys foreign exchange from one party and then sells it to Foreign Exchange MarketA worldwide market in which one country's currency is bought or sold in exchange for another country's currency. Foreign Exchange ReservesA fund containing the central bank's holdings of foreign currency or claims thereon. Foreign exchange riskThe risk that a long or short position in a foreign currency might have to be closed out Foreign exchange swapAn agreement to exchange stipulated amounts of one currency for another currency Forward Exchange MarketA market in which foreign exchange can be bought or sold for delivery (and payment) at some specified future date but at a price agreed upon now. Forward exchange rateExchange rate fixed today for exchanging currency at some future date. forward rate of exchangeExchange rate for a forward transaction. Gold exchange standardA system of fixing exchange rates adopted in the Bretton Woods agreement. It Growth stockCommon stock of a company that has an opportunity to invest money and earn more than the Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |