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Definition of face valueface valuePayment at the maturity of the bond. Also called par value or maturity value. Face valueSee: Par value. Face valueThe maturity value of a security. Also known as par value, Face ValueThe nominal value of a security. Also called the par value. Face ValueThe nominal value which appears on the face of a document recording an entitlement, generally an amount of money that has to be repaid on the maturity of a debt instrument. Face ValueThe payoff value of a bond upon maturity. Also called par value. See principal.
Related Terms:Original face valueThe principal amount of the mortgage as of its issue date. Back To Back AnnuityThis term refers to the simultaneous issue of a life annuity with a non-guaranteed period and a guaranteed life insurance policy [usually whole life or term to 100]. The face value of the life insurance would be the same amount that was used to purchase the annuity. This combination of life annuity providing the highest payout of all types of annuities, along with a guaranteed life insurance policy allowed an uninsurable person to convert his/her RRSP into the best choice of annuity and guarantee that upon his/her death, the full value of the annuity would be paid tax free through the life insurance policy to his family members. However, in the early 1990's, the Federal tax authorities put a stop to the issuing of standard life rates to rated or uninsurable applicants. Insuring a life annuity in this manner is still an excellent way to provide guaranteed tax free funds to family members but the application for the annuity and the application for the life insurance are separate transactions and today, most likely conducted through two different insurance companies so that there is no suspicion of preferential treatment given to the life insurance application. Banker's acceptanceA short-term credit investment created by a non-financial firm and guaranteed by a BondA financial asset taking the form of a promise by a borrower to repay a specified amount (the bond's face value) on a maturity date and to make fixed periodic interest payments. bondA debt security issued by a government or company. You receive regular interest payments at specified rates while you hold the bond and you receive the face value when it matures. Short-term bonds mature in less than five years; medium-term bonds mature in six to ten years; and long-term bonds mature in eleven years or greater. Canada Savings BondsA bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value. Coupon / CouponsThe periodic interest payment(s) made by the issuer of a bond coupon rateAnnual interest payment as a percentage of face value. Discount BondA bond with no coupons, priced below its face value; the return on this bond comes from the difference between its face value and its current price. Discount securitiesNon-interest-bearing money market instruments that are issued at a discount and Dollar price of a bondPercentage of face value at which a bond is quoted. Insured Retirement PlanThis is a recently coined phrase describing the concept of using Universal Life Insurance to tax shelter earnings which can be used to generate tax-free income in retirement. The concept has been described by some as "the most effective tax-neutralization strategy that exists in Canada today." MaturityTime at which a bond can be redeemed for its face value. Maturity dateThe date when the issuer returns the final face value of a bond Par valueAlso called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date. Par ValueNominal value of a security. Same as face value. Par valueThe maturity or face value of a security or other financial Par ValueSee face value. PrincipalThe original amount loaned, which is repaid plus interest. See face value. Principal AmountGenerally, refers to the face value of a debt. Principal only (PO)A mortgage-backed security in which the holder receives only principal cash flows on Tax anticipation bills (TABs)Special bills that the Treasury occasionally issues that mature on corporate Treasury billShort-term U.S. government security issued at a discount from Treasury bondLong-term debt obligation of the U.S. government that makes Zero-coupon BondA security that makes no interest payments; it is sold at a discount Zero-coupon bond, or ZeroA bond that, instead of carrying a coupon, is sold Account ValueThe sum of all the interest options in your policy, including interest. Accumulated ValueAn amount of money invested plus the interest earned on that money. Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a Benefit ValueThe amount of cash payable on a benefit. Bond valueWith respect to convertible bonds, the value the security would have if it were not convertible Book valueA company's book value is its total assets minus intangible assets and liabilities, such as debt. A BOOK VALUEAn asset’s cost basis minus accumulated depreciation. Book ValueThe value of an asset as carried on the balance sheet of a Book valueAn asset’s original cost, less any depreciation that has been subsequently incurred. book valueNet worth of the firm’s assets or liabilities according book value and book value per shareGenerally speaking, these terms 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: Book value per shareThe ratio of stockholder equity to the average number of common shares. Book value Book Value per ShareThe book value of a company divided by the number of shares business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay CAPITAL IN EXCESS OF PAR VALUEWhat a company collected when it sold stock for more than the par value per share. Carrying valueBook value. Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life Cash Surrender ValueThis is the amount available to the owner of a life insurance policy upon voluntary termination of the policy before it becomes payable by the death of the life insured. This does not apply to term insurance but only to those policies which have reduced paid up values and cash surrender values. A cash surrender in lieu of death benefit usually has tax implications. Cash Surrender ValueBenefit that entitles a policy owner to an amount of money upon cancellation of a policy. Cash value added (CVA)A method of investment appraisal that calculates the ratio of the net present value of an Conversion valueAlso called parity value, the value of a convertible security if it is converted immediately. Economic Value Added (EVA)Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge economic value added (EVA)a measure of the extent to which income exceeds the dollar cost of capital; calculated economic value added (EVA)Term used by the consulting firm Stern Stewart for profit remaining after deduction of the cost Exercise valueThe amount of advantage over a current market transaction provided by an in-the-money Exit valueThe value that an asset is expected to have at the time it is sold at a predetermined Expected valueThe weighted average of a probability distribution. Expected ValueThe value of the possible outcomes of a variable weighted by the Expected value of perfect informationThe expected value if the future uncertain outcomes could be known Extraordinary positive valueA positive net present value. Fair market valueThe price that an asset or service will fetch on the open market. Fair Market ValueThe highest price available, expressed in terms of cash, in an open and unrestricted market between informed, prudent parties acting at arm's length and under no compulsion to transact. Fair ValueThe amount at which an asset could be purchased or sold or a liability incurred or Firm's net value of debtTotal firm value minus total firm debt. Future valueThe amount of cash at a specified date in the future that is equivalent in value to a specified Future ValueThe amount a given payment, or series of payments, will be worth future valuethe amount to which one or more sums of Future valueThe value that a sum of money (the present value) earning future valueAmount to which an investment will grow after earning interest. Future ValueThe amount to which a payment or series of payments will grow by a given future date when compounded by a given interest rate. FVIF future value interest factor. Intrinsic value of a firmThe present value of a firm's expected future net cash flows discounted by the Intrinsic value of an optionThe amount by which an option is in-the-money. An option which is not in-themoney Investment valueRelated:straight value. Liquidation valueNet amount that could be realized by selling the assets of a firm after paying the debt. Liquidation ValueThe net proceeds (after taxes and expenses) of selling the assets liquidation valueNet proceeds that would be realized by selling the firm’s assets and paying off its creditors. Loan valueThe amount a policyholder may borrow against a whole life insurance policy at the interest rate Market value1) The price at which a security is trading and could presumably be purchased or sold. Market valueThe price at which a product or service could be sold on the open market. Market ValueA quoted market price per unit times the number of units being valued. Synonymous market value addedMarket value of equity minus book value. market-value balance sheetFinancial statement that uses the market value of all assets and liabilities. Market value ratiosRatios that relate the market price of the firm's common stock to selected financial Market value-weighted indexAn index of a group of securities computed by calculating a weighted average Maturity valueRelated: par value. Net adjusted present valueThe adjusted present value minus the initial cost of an investment. net asset valueThe value of all the holdings of a mutual fund, less the fund's liabilities. Net asset value (NAV)The value of a fund's investments. For a mutual fund, the net asset value per share Net book valueThe current book value of an asset or liability; that is, its original book value net of any Net present valueA discounted cash flow methodology that uses a required rate of net present value methoda process that uses the discounted Net present value (NPV)The present value of the expected future cash flows minus the cost. Net present value (NPV)A discounted cash flow technique used for investment appraisal that calculates the present value of future cash flows and deducts the initial capital investment. net present value (NPV)Equals the present value (PV) of a capital investment Net Present Value (NPV)The present value of all future cash inflows minus the present value net present value (NPV)the difference between the present values of all cash inflows and outflows for an investment project
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