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Definition of Exclusionary self-tender
The firm makes a tender offer for a given amount of its own stock while excluding
A one-time offer to purchase a stated number of shares at a stated fixed price,
A federal Act requiring self-employed business owners to pay the same total tax rates for Social Security and
Loan to finance current assets, The sale of the current assets provides the cash to repay
Consequence of a contract that induces only one group (e.g. low risk individuals) to participate.
To offer for delivery against futures.
General offer made publicly and directly to a firm's shareholders to buy their stock at a price
Takeover attempt in which outsiders directly offer to buy the stock of the firm’s shareholders.
The premium offered above the current market price in a tender offer.
This doctrine says that a nation is sovereign within its own borders and its domestic
A market in which there is much trading.
A strategy that uses available information and forecasting techniques to seek a
a repetitive action performed in fulfillment of business functions
the process of detailing the various repetitive actions that are performed in making a product or
A method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing.
planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and
A method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers.
activity based costing (ABC)
A relatively new method advocated for the
activity-based costing (ABC)
a process using multiple cost drivers to predict and allocate costs to products and services;
Activity-based costing (ABC)
A cost allocation system that compiles costs and assigns
activity-based management (ABM)
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
a segment of the production or service
a measure of the demands on activities and,
The actual expenditure made to acquire an asset, which includes the supplierinvoiced
actual cost system
a valuation method that uses actual direct
The physical commodity underlying a futures contract. Cash commodity, physical.
One who uses statistical information to evaluate the probability of future events and prices insurance products.
ADF (annuity discount factor)
the present value of a finite stream of cash flows for every beginning $1 of cash flow.
Allocation base A measure of activity or volume such as labour
hours, machine hours or volume of production
The pool factor implied by the scheduled amortization assuming no prepayemts.
Present value of $1 paid for each of t periods.
Present value of an annuity of $1 per period.
Arm's length price
The price at which a willing buyer and a willing unrelated seller would freely agree to
A dealer's price to sell a security; also called the offer price.
Asset activity ratios
Ratios that measure how effectively the firm is managing its assets.
Gives the lessee the option to purchase the asset at a price below fair market
price expressed in terms of yield to maturity or annual rate of return.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
Bill and Hold Practices
Products that have been sold with an explicit agreement that delivery
A guaranteed investment contract purchased with a single (one-shot) premium. Related:
an activity that is necessary for the operation of the business but for which a customer would not want to pay
The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a
The price for which a bond can be repaid before maturity under a call provision.
cash flow from operating activities, or cash flow from profit
This equals the cash inflow from sales during the period minus the cash
Cash Flow Provided by Operating Activities
With some exceptions, the cash effects of transactions
Cash Flow Provided or Used from Financing Activities
Cash receipts and payments involving
Cash Flow Provided or Used from Investing Activities
Cash receipts and payments involving
CASH FLOWS FROM FINANCING ACTIVITIES
A section on the cash-flow statement that shows how much cash a company raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations.
CASH FLOWS FROM INVESTING ACTIVITIES
A section on the cashflow statement that shows how much cash came in and went out because of various investing activities like purchasing machinery.
A public equity issue that is sold to all interested investors.
Cash settlement contracts
Futures contracts, such as stock index futures, that settle for cash, not involving
A transaction where exchange is immediate, as contrasted to a forward contract, which
The market model applied to a single security. The slope of the line is a security's beta.
Bond price excluding accrued interest.
The percentage of a given month's sales collected during the month of sale and each
An offering of securities through competitive bidding.
A contract accounting method that recognizes contract revenue
computer-aided manufacturing (CAM)
the use of computers to control production processes through numerically
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
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Consolidated Omnibus Budget Reconciliation Act (COBRA)
A federal act
Consumer Credit Protection Act
A federal act specifying the proportion of
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.
A term of reference describing a unit of trading for a financial or commodity future. Also, the actual
A formal written statement of the rights and obligations of each party to a transaction.
Method of accounting for sales or service agreements where completion
an external party that has been granted an outsourcing contract to produce a part or component for an entity
The month in which futures contracts may be satisfied by making or accepting a delivery.
an external party that has been granted an
Contract Work Hours and Safety Standards Act
A federal act requiring federal contractors to pay overtime for hours worked exceeding 40 per week.
Rules set by the Chicago Board of Trade for determining the invoice price of each
Conversion parity price
Related:Market conversion price
The contractually specified price per share at which a convertible security can be
cost of goods manufactured (CGM)
the total cost of the
Cost of manufacture
The cost of goods manufactured for subsequent sale.
a contract in which the customer agrees
Creative Accounting Practices
Any and all steps used to play the financial numbers game, including
critical success factors (CSF)
any item (such as quality, customer
Current Tax Payment Act of 1943
A federal act requiring employers to withhold income taxes from employee pay.
Unemployment that increases when the economy enters a recession and decreases when the economy enters a boom.
Davis-Bacon Act of 1931
A federal act providing wage protection to nongovernment
Existing in actual fact although not by official recognition.
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
design for manufacturability (DFM)
a process that is part of the project management of a new product; concerned with finding optimal solutions to minimizing product failures
Devaluation A decrease in the spot price of the currency
Bond price including accrued interest, i.e., the price paid by the bond buyer.
Present value of $1 received at a stated future date.
Present value of a $1 future payment.
Dollar price of a bond
Percentage of face value at which a bond is quoted.
Dual syndicate equity offering
An international equity placement where the offering is split into two
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
Employee Retirement Income Security Act of 1974 (ERISA)
A federal act that sets minimum operational and funding standards for employee benefit
Equal Pay Act of 1963
A federal act requiring that both sexes receive equal pay
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
Escalating Price Option
A nonqualified stock option that uses a sliding scale for
A bond portfolio management strategy that involves finding the lowest cost portfolio
An offer by the firm to give one security, such as a bond or preferred stock, in exchange for
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).
A financial institution that buys a firm's accounts receivables and collects the debt.
An agent who buys and sells goods on behalf of others for a commission.
A statistical procedure that seeks to explain a certain phenomenon, such as the return on a
A way of decomposing the factors that influence a security's rate of return into common and
Factor of Production
A resource used to produce a good or service. The main macroeconomic factors of production are capital and labor.
A well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of
Sale of a firm's accounts receivable to a financial institution known as a factor.
The sale of accounts receivable to a third party, with the third party bearing
The discounting, or sale at a discount, of receivables on a nonrecourse, notification
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