![]() |
|
Financial Terms | |
fundamental analysts |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: money, financial, financial advisor, finance, payroll, inventory control, accounting, inventory, Also see related: home financing, home, credit, insurance, mortgage, buy home, homebuying, home buyer, real estate, |
Definition of fundamental analystsfundamental analystsanalysts who attempt to find under- or overvalued securities by analyzing fundamental information, such as earnings, asset values, and business prospects.
Related Terms:Financial analystsAlso called securities analysts and investment analysts, professionals who analyze Fundamental analysisSecurity analysis that seeks to detect misvalued securities by an analysis of the firm's Fundamental betaThe product of a statistical model to predict the fundamental risk of a security using not Fundamental descriptorsIn the model for calculating fundamental beta, ratios in risk indexes other than Investment analystsRelated: financial analysts Securities analystsRelated:financial analysts Technical analystsAlso called chartists or technicians, analysts who use mechanical rules to detect changes ![]() technical analystsInvestors who attempt to identify over- or undervalued stocks by searching for patterns in past prices. Financial Trend AnalysisProcess of analyzing financial statements of a company for any continuing relationship. VERTICAL ANALYSISA financial analysis technique that relates key amounts on the income statement and balance sheet to a 100 percent or base figure for the present and previous year. activity analysisthe process of detailing the various repetitive actions that are performed in making a product or BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in Break-even analysisAn analysis of the level of sales at which a project would make zero profit. break-even analysisanalysis of the level of sales at which the company breaks even. Break-Even AnalysisAn analytical technique for studying the relationships between fixed cost, variable cost, and profits. A breakeven chart graphically depicts the nature of breakeven analysis. The breakeven point represents the volume of sales at which total costs equal total revenues (that is, profits equal zero). capital investment analysisRefers to various techniques and procedures ![]() Changes in Financial PositionSources of funds internally provided from operations that alter a company's chief financial officer (CFO)Officer who oversees the treasurer and controller and sets overall financial strategy. Cluster analysisA statistical technique that identifies clusters of stocks whose returns are highly correlated Common-base-year analysisThe representing of accounting information over multiple years as percentages Comparative credit analysisA method of analysis in which a firm is compared to others that have a desired Corporate financial managementThe application of financial principals within a corporation to create and Corporate financial planningfinancial planning conducted by a firm that encompasses preparation of both correlation analysisan analytical technique that uses statistical Cost-Benefit AnalysisThe calculation and comparison of the costs and benefits of a policy or project. cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course cost driver analysisthe process of investigating, quantifying, ![]() Cost–volume–profit analysis (CVP)A method for understanding the relationship between revenue, cost and sales volume. costs of financial distressCosts arising from bankruptcy or distorted business decisions before bankruptcy. Country financial riskThe ability of the national economy to generate enough foreign exchange to meet Credit analysisThe process of analyzing information on companies and bond issues in order to estimate the credit analysisProcedure to determine the likelihood a customer will pay its bills. Discriminant analysisA statistical process that links the probability of default to a specified set of financial ratios. Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms External Financial StatementsCorporate financial statements that have been reported on by an external independent accountant. Factor analysisA statistical procedure that seeks to explain a certain phenomenon, such as the return on a Failure analysisThe examination of failure incidents to identify components Financial accountingThe production of financial statements, primarily for those interested parties who are external to the business. financial accountinga discipline in which historical, monetary Financial assetsClaims on real assets. financial assetsClaims to the income generated by real assets. Also called securities. Financial AssistanceEconomic assistance provided by unrelated third parties, typically government agencies. They may take the form of loans, loan guarantees, subsidies, tax allowances, contributions, or cost-sharing arrangements. financial budgeta plan that aggregates monetary details Financial controlThe management of a firm's costs and expenses in order to control them in relation to Financial CovenantA feature of a debt or credit agreement that is designed to protect the lender or creditor. It is common to characterize covenants as either positive or negative covenants. Financial CovenantsA promise made related to financial conditions or events. Often a promise not to allow certain balance sheet items or ratios to fall below an agreed level. Usually found in loan documents, as a protection mechanism. Financial distressEvents preceding and including bankruptcy, such as violation of loan contracts. Financial distress costsLegal and administrative costs of liquidation or reorganization. Also includes Financial engineeringCombining or dividing existing instruments to create new financial products. Financial futureA contract entered into now that provides for the delivery of a specified asset in exchange financial incentivea monetary reward provided for performance Financial IncentiveAn expression of economic benefit that motivates behavior that might otherwise not take place. Financial intermediariesInstitutions that provide the market function of matching borrowers and lenders or financial intermediaryFirm that raises money from many small investors and provides financing to businesses or other Financial IntermediaryAny institution, such as a bank, that takes deposits from savers and loans them to borrowers. Financial IntermediationThe process whereby financial intermediaries channel funds from lender/savers to borrower/spenders. Financial leaseLong-term, non-cancelable lease. Financial LeaseLease in which the service provided by the lessor to the lessee is limited to financing equipment. All other responsibilities related to the possession of equipment, such as maintenance, insurance, and taxes, are borne by the lessee. A financial lease is usually noncancellable and is fully paid out amortized over its term. Financial leverageUse of debt to increase the expected return on equity. financial leverage is measured by financial leverageThe equity (ownership) capital of a business can serve financial leverageDebt financing amplifies the effects of changes in operating income on the returns to stockholders. Financial leverage clienteleA group of investors who have a preference for investing in firms that adhere to Financial leverage ratiosRelated: capitalization ratios. Financial marketAn organized institutional structure or mechanism for creating and exchanging financial assets. financial marketsMarkets in which financial assets are traded. Financial Numbers GameThe use of creative accounting practices to alter a financial statement Financial objectivesObjectives of a financial nature that the firm will strive to accomplish during the period Financial planA financial blueprint for the financial future of a firm. Financial planningThe process of evaluating the investing and financing options available to a firm. It Financial PositionStatus of a firm's assets, liabilities, and equity accounts as of a certain time, as shown in its financial statement. Financial pressThat portion of the media devoted to reporting financial news. Financial ratioThe result of dividing one financial statement item by another. Ratios help analysts interpret financial reports and statementsfinancial means having to do with Financial reports or statementsThe Profit and Loss account, Balance Sheet and Cash Flow statement of a business. Financial riskThe risk that the cash flow of an issuer will not be adequate to meet its financial obligations. financial riskRisk to shareholders resulting from the use of debt. financial slackReady access to cash or debt financing. Financial yearThe accounting period adopted by a business for the production of its financial statements. Fraudulent Financial ReportingIntentional misstatements or omissions of amounts or disclosures Future-Oriented Financial InformationInformation about prospective results of operations, financial position and/or changes in financial position, based on assumptions about future economic conditions and courses of action. Future-oriented financial information is presented as either a forecast or a projection. Horizon analysisAn analysis of returns using total return to assess performance over some investment horizon. Horizontal analysisThe process of dividing each expense item of a given year by the same expense item in incremental analysisa process of evaluating changes that least squares regression analysisa statistical technique that investigates the association between dependent and independent variables; it determines the line of "best fit" for a set of observations by minimizing the sum of the squares London International Financial Futures Exchange (LIFFE)A London exchange where Eurodollar futures London International Financial Futures Exchange (LIFFE)London exchange where Eurodollar futures as well as futures-style options are traded. Long-term financial planfinancial plan covering two or more years of future operations. Mean-variance analysisEvaluation of risky prospects based on the expected value and variance of possible outcomes. Multiple-discriminant analysis (MDA)Statistical technique for distinguishing between two groups on the Non-financial servicesInclude such things as freight, insurance, passenger services, and travel. Notes to the financial statementsA detailed set of notes immediately following the financial statements in Pareto analysisa method of ranking the causes of variation Pareto analysisThe 80:20 ratio that states that 20% of the variables included in an Perfectly competitive financial marketsMarkets in which no trader has the power to change the price of Performance attribution analysisThe decomposition of a money manager's performance results to explain Pro forma capital structure analysisA method of analyzing the impact of alternative capital structure Pro forma financial statementsfinancial statements as adjusted to reflect a projected or planned transaction. Published Financialfinancial statements and financial information made public. Ratio analysisA method of analysing financial reports to interpret trends and make comparisons by using ratios – two numbers, with one generally expressed as a percentage of the other. Ratio analysisA method of relating numbers from the various financial statements to one another in order to get meaningful information for comparison. Ratio AnalysisThe process of using financial ratios, calculated from key accounts Regression analysisA statistical technique that can be used to estimate relationships between variables. Regression analysisStatistical analysis techniques that quantify the Restatement of Prior-Year Financial StatementsA recasting of prior-year financial statements to remove the effects of an error or other adjustment and report them on a new basis. Scenario analysisThe use of horizon analysis to project bond total returns under different reinvestment rates scenario analysisProject analysis given a particular combination of assumptions. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |