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Definition of End-of-year convention
Treating cash flows as if they occur at the end of a year as opposed to the date
List of new issues scheduled to come to market shortly.
The tendency of stocks to perform differently at different times, including such anomalies as
Amount used during a particular period to acquire or improve long-term assets such as
A dividend paid in cash to a company's shareholders. The amount is normally based on
An amount the insurance company will pay if the policyholder ends a whole life
An investment company that sells shares like any other corporation and usually does not
Mortgage against which no additional debt may be issued.
The representing of accounting information over multiple years as percentages
An annual statement filed by a life insurance company in each state where it does
A loan based on the credit of the borrower and on the collateral for the mortgage.
Also called private-label pass-throughs, any mortgage pass-through security not
A project with a negative initial cash flow (cash outflow), which is expected to be
A requirement that any missed preferred or preference stock dividends be paid
Treating cash flows as being received on exact dates - date 0, date 1, and so forth - as
Acceptance of a capital budgeting project contingent on the acceptance of another project.
To 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
A dividend is a portion of a company's profit paid to common and preferred shareholders. A stock
With respect to a project financing, an arrangement under which the sponsors of a project
A group of shareholders who prefer that the firm follow a particular dividend policy. For
Dividend discount model (DDM)
A model for valuing the common stock of a company, based on the
Dividend growth model
A model wherein dividends are assumed to be at a constant rate in perpetuity.
A bond covenant that restricts in some way the firm's ability to pay cash dividends.
Dividend payout ratio
Percentage of earnings paid out as dividends.
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
An established guide for the firm to determine the amount of money it will pay as dividends.
The 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
A 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 (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Dividends per share
Dividends paid for the past 12 months divided by the number of common shares
Exists when the costs and/or revenues of one project depend on those of another.
A value determined within the context of a model.
Investment funds established for the support of institutions such as colleges, private
The firm makes a tender offer for a given amount of its own stock while excluding
Bond whose maturity can be extended at the option of the lender or issuer.
Note the maturity of which can be extended by mutual agreement of the issuer and
Extra or special dividends
A dividend that is paid in addition to a firm's "regular" quarterly dividend.
This literally means "without dividend." The buyer of shares when they are quoted ex-dividend
The first day of trading when the seller, rather than the buyer, of a stock will be entitled to
Fixed-price tender offer
A one-time offer to purchase a stated number of shares at a stated fixed price,
Sale of some shares of stock to get cash that would be similar to receiving a cash dividend.
A project whose acceptance or rejection is independent of the acceptance or rejection of
Total amount of dividends that would be paid on a share of stock over the next 12 months
To provide money temporarily on the condition that it or its equivalent will be returned, often with an
Payment by a firm to its owners from capital rather than from earnings.
Also called a mutual fund, an investment company that stands ready to sell new shares to the
Mortgage against which additional debts may be issued. Related: closed-end mortgage.
Path dependent option
An option whose value depends on the sequence of prices of the underlying asset
Perfect market view (of dividend policy)
Analysis of a decision on dividend policy, in a perfect capital
Planned capital expenditure program
Capital expenditure program as outlined in the corporate financial plan.
Residual dividend approach
An approach that suggests that a firm pay dividends if and only if acceptable
Signaling view (on dividend policy)
The argument that dividend changes are important signals to investors
Simple linear trend model
An extrapolative statistical model that asserts that earnings have a base level and
Also referred to as an extra dividend. Dividend that is unlikely to be repeated.
The origination of mortgages by processing applications taken directly from prospective borrowers.
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend
Method of accelerated depreciation.
Tax differential view ( of dividend policy)
The view that shareholders prefer capital gains over dividends,
To offer for delivery against futures.
General offer made publicly and directly to a firm's shareholders to buy their stock at a price
Tender offer premium
The premium offered above the current market price in a tender offer.
Traditional view (of dividend policy)
An argument that "within reason," investors prefer large dividends to
The general direction of the market.
The common recurrent low or negative average return from Friday to Monday in the stock market.
Purchase of shares in which the buyer is entitled to the forthcoming dividend. Related: exdividend.
A payment a company makes to stockholders. Earnings before income tax. The profit a company made
An accelerated depreciation method that makes the sum of the digits in an assetâ€™s expected
The payment of after-tax profits to shareholders as their share of the profits of the business for an accounting period.
The accounting period adopted by a business for the production of its financial statements.
Income that a company receives in the form of dividends on stock in other companies that it holds.
Amounts paid to the owners of a company that represent a share of the income of the company.
Refers to investments by a business in long-term
dividend payout ratio
Computed by dividing cash dividends for the year
dividend yield ratio
Cash dividends paid by a business over the most
A situation where an increase (or decrease) in the benefits of one
an external party that has been granted an
an unknown variable that is to be predicted
dividend growth method
a method of computing the cost
fixed overhead spending variance
the difference between the total actual fixed overhead and budgeted fixed overhead;
an investment project that has no specific
a variable that, when changed, will
overhead spending variance
the difference between total actual overhead and total budgeted overhead at actual
variable overhead spending variance
the difference between total actual variable overhead and the budgeted amount of variable overhead based on actual input activity
a streamlined system of inventory
A payment made to shareholders that is proportional to the number of shares
A payment or the incurrence of a liability by an entity.
A 12 month period over which a company reports on the activities that
Payment of cash by the firm to its shareholders.
constant-growth dividend discount model
Version of the dividend discount model in which dividends grow at a constant rate.
Periodic cash distribution from the firm to its shareholders.
dividend discount model
Computation of todayâ€™s stock price which states that share value equals the present value of all expected future dividends.
dividend payout ratio
Percentage of earnings paid out as dividends.
Date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend.
information content of dividends
Dividend increases send good news about cash flow and earnings. Dividend cuts send bad news.
MM dividend-irrelevance proposition
Theory that under ideal conditions, the value of the firm is unaffected by dividend policy.
Distribution of additional shares to a firmâ€™s stockholders.
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