Financial Terms | |
Grace Period |
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Definition of Grace PeriodGrace PeriodA specific period of time after a premium payment is due during which the policy owner may make a payment, and during which, the protection of the policy continues. The grace period usually ends in 30 days. Grace PeriodLength of time during which repayments of loan principal are excused. Usually occurs at the start of the loan period.
Related Terms:Mortgage-pipeline riskThe risk associated with taking applications from prospective mortgage borrowers LapseThis refers to the termination of an insurance policy due to the owner of the policy failing to pay the premium within the grace period [Usually within 30 days after the last regular premium was required and not paid]. It is possible to re-instate the coverage with the same premium and benefits intact but the life insured will have to qualify for this coverage all over again and bring up to date all unpaid premiums. PPF (periodic perpetuity factor)a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity. Annualized holding period returnThe annual rate of return that when compounded t times, would have Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Compounding periodThe length of the time period (for example, a quarter in the case of quarterly Credit periodThe length of time for which the customer is granted credit. Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an Evaluation periodThe time interval over which a money manager's performance is evaluated. Holding periodLength of time that an individual holds a security. Holding period returnThe rate of return over a given period. Multiperiod immunizationA portfolio strategy in which a portfolio is created that will be capable of Net periodThe period of time between the end of the discount period and the date payment is due. Neutral periodIn the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not Subperiod returnThe return of a portfolio over a shorter period of time than the evaluation period. T-period holding-period returnThe percentage return over the T-year period an investment lasts. Waiting periodTime during which the SEC studies a firm's registration statement. During this time the firm Workout periodRealignment period of a temporary misaligned yield relationship that sometimes occurs in Accounting periodThe period of time for which financial statements are produced – see also financial year. Period costsThe costs that relate to a period of time. Periodic inventory systemAn inventory system in which the balance in the Inventory account is adjusted for the units sold only at the end of the period. Average Collection PeriodAverage number of days necessary to receive cash for the sale of Payback PeriodThe number of years necessary for the net cash flows of an compounding periodthe time between each interest computation payback periodthe time it takes an investor to recoup an period costcost other than one associated with making or acquiring inventory periodic compensationa pay plan based on the time spent on the task rather than the work accomplished Odd first or last periodFixed-income securities may be purchased on dates Reporting periodThe time period for which transactions are compiled into a set of financial statements. payback periodTime until cash flows recover the initial investment of the project. Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Extended Amortization PeriodAn amortization period that continues beyond a long-lived asset's economic useful life. Extended Amortization PeriodsAmortizing capitalized expenditures over estimated useful lives that are unduly optimistic. Periodic inventoryA physical inventory count taken on a repetitive basis. Critical Growth PeriodsTimes in a company's history when growth is essential and without which survival of the business might be in jeopardy. Full Credit PeriodThe period of trade credit given by a supplier to its customer. Annuity PeriodThe time between each payment under an annuity. Waiting Period (Credit Insurance)A specific time that must pass following the onset of a covered disability before any benefits will be paid under a creditor disability policy. (Also known as an elimination period). Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |