|Ex post return|
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Definition of Ex post return
Ex post return
Related: Holding period return
Part of the return that is not due to systematic influences (market wide influences). In
Goods may be returned to the seller by the purchaser without restrictions.
The change in the value of a firm's foreign currency denominated accounts due to a
A method of investment appraisal that measures
the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow
expenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services.
The account that records the short-term, noninterest-
Money after-tax rate of return minus the inflation rate.
Aggregate demand for goods and services drawn as a function of the level of national income.
The second-largest stock exchange in the United States. It trades
For investment companies, the management fee and "other expenses,"
The fund return, for any 12-month period, including changes in unit value and the reinvestment of distributions, but not taking into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would reduce returns.
The annual rate of return that when compounded t times, would have
Arithmetic mean return.
An average of the subperiod returns, calculated by summing the subperiod returns
Also known as a trading index (TRIN)= (number of advancing issues)/ (number of declining
Elements of spending that do not vary systematically with variables such as GDP that are explained by the theory. See also exogenous expenditure.
Average accounting return
The average project earnings after taxes and depreciation divided by the average
Average rate of return (ARR)
The ratio of the average cash inflow to the amount invested.
Balance sheet exposure
Biased expectations theories
Related: pure expectations theory.
Bill of exchange
General term for a document demanding payment.
Designing a portfolio so that its performance will match the performance of some bond index.
book rate of return
Accounting income divided by book value.
Book yield is the investment income earned in a year on a portfolio of assets purchased over a number of years and at different interest rates, divided by the book value of those assets.
Business Expansion Investment
The use of capital to create more money through the addition of fixed assets or through income producing vehicles.
Buying the index
Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the
Amount used during a particular period to acquire or improve long-term assets such as
Refers to investments by a business in long-term
CAPITAL IN EXCESS OF PAR VALUE
What a company collected when it sold stock for more than the par value per share.
Capital in excess par
Amounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with additional paid-in capital.
Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized against
expenditures that are accounted for as assets to be amortized
CARs (cumulative abnormal returns)
a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock.
Chicago Mercantile Exchange (CME)
A not-for-profit corporation owned by its members. Its primary
Commodities Exchange Center (CEC)
The location of five New York futures exchanges: Commodity
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Consumer Price Index (CPI)
An index calculated by tracking the cost of a typical bundle of consumer goods and services over time. It is commonly used to measure inflation.
Convertible exchangeable preferred stock
Convertible preferred stock that may be exchanged, at the
Bowed, as in the shape of a curve. Usually referring to the price/required yield relationship for
A measure of the rate of change in duration; measured in time.
Cost Plus Estimated Earnings in Excess of Billings
Revenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts
Cumulative abnormal return (CAR)
Sum of the differences between the expected return on a stock and the
Current Income Tax Expense
That portion of the total income tax provision that is based on
Deferred Income Tax Expense
That portion of the total income tax provision that is the result
An expense account that represents the portion of the cost of an asset that is being charged to expense during the current period.
The return realized on a portfolio for any evaluation period, including (1) the change in market
Dollar-weighted rate of return
Also called the internal rate of return, the interest rate that will make the
The European, Australian, and Far East stock index, computed by Morgan Stanley.
The extent to which the value of the firm will change because of an exchange rate change.
The convexity of a bond calculated with cash flows that change with yields.
Effective Exchange Rate
The weighted average of several exchange rates, where the weights are determined by the extent of our trade done with each country.
Also called indexing plus, an indexing strategy whose objective is to exceed or replicate
Equation of Exchange
The quantity theory equation Mv = PQ.
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
Date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend.
In connection with a rights offering, shares of stock that are trading without the rights attached.
The date on which a share of common stock begins trading ex-rights.
A bond portfolio management strategy that involves finding the lowest cost portfolio
The expected return of a portfolio based on the expected returns of its component assets and
Except for opinion
An auditor's opinion reflecting the fact that the auditor was unable to audit certain areas
Unused production capacity.
A situation in which demand exceeds supply.
Any excess of actual reserves above required reserves.
Reserves of commercial banks in excess of those they are legally required to hold.
Excess return on the market portfolio
The difference between the return on the market portfolio and the
Also called abnormal returns, returns in excess of those required by some asset pricing model.
A situation in which supply exceeds demand.
The marketplace in which shares, options and futures on stocks, bonds, commodities and indices
Governmental restrictions on the purchase of foreign currencies by domestic citizens or
Exchange of assets
Acquisition of another company by purchase of its assets in exchange for cash or stock.
Exchange of stock
Acquisition of another company by purchase of its stock in exchange for cash or shares.
An offer by the firm to give one security, such as a bond or preferred stock, in exchange for
The price of one country's currency expressed in another country's currency.
Amount 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, Nominal
The price of one currency in terms of another, in this book defined as number of units of foreign currency per dollar.
Exchange Rate, Real
The nominal exchange rate corrected for price level differences.
Exchange rate risk
Also called currency risk, the risk of an investment's value changing because of currency
The variability of a firm's value that results from unexpected exchange rate changes or the
Security that grants the security holder the right to exchange the security for the
A specific condition or circumstance listed in the policy that are not covered by the policy
The firm makes a tender offer for a given amount of its own stock while excluding
The process of completing an order to buy or sell securities. Once a trade is executed, it is reported
The difference between the execution price of a security and the price that would have
Instruments exempt from the registration requirements of the Securities Act of 1933 or the
To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of
The price at which the underlying future or options contract may be bought or sold.
The price set for buying an asset (call) or selling an asset (put).
The amount of advantage over a current market transaction provided by an in-the-money
Exercising the option
The act buying or selling the underlying asset via the option contract.
A variety of options available to an investor to recover their invested capital and the return on their investment.
The value that an asset is expected to have at the time it is sold at a predetermined
An adjective indicating that something is determined by forces unrelated to the theory determining the variables under investigation.
See autonomous expenditure.
A variable whose value is determined outside the model in which it is used. Also called
a parent company or third-country national assigned
Expectations hypothesis theories
Theories of the term structure of interest rates which include the pure
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