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Definition of Haircut
The margin or difference between the actual market value of a security and the value assessed by the
The sum of all the interest options in your policy, including interest.
An amount of money invested plus the interest earned on that money.
The actual expenditure made to acquire an asset, which includes the supplierinvoiced
a valuation method that uses actual direct
The physical commodity underlying a futures contract. Cash commodity, physical.
The net present value analysis of an asset if financed solely by equity
The ratio of net income to net sales.
Yearly record of a publicly held company's financial condition. It includes a description of the
The report required by the Stock Exchange for all listed companies, containing the company’s financial statements.
A report issued to a company’s shareholders, creditors, and regulatory
a method of allocating joint cost to joint products using a
A security that is collateralized by loans, leases, receivables, or installment contracts
markets in which the prevailing price is determined through the free interaction of
A section of an annual report containing the auditor's opinion about the veracity of the
A debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period.
Any market in which prices are in a declining trend.
A market in which stock or bond prices are generally
A prolonged period of falling stock market prices.
Before-tax profit margin
The ratio of net income before taxes to net sales.
The amount of cash payable on a benefit.
An illegal market.
With respect to convertible bonds, the value the security would have if it were not convertible
A company's book value is its total assets minus intangible assets and liabilities, such as debt. A
An asset’s cost basis minus accumulated depreciation.
The value of an asset as carried on the balance sheet of a
An asset’s original cost, less any depreciation that has been subsequently incurred.
Net worth of the firm’s assets or liabilities according
book value and book value per share
Generally speaking, these terms
BOOK VALUE OF COMMON STOCK
The 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 share
The ratio of stockholder equity to the average number of common shares. Book value
Book Value per Share
The book value of a company divided by the number of shares
A market where an intermediary offers search services to buyers and sellers.
Any market in which prices are in an upward trend.
A market in which stock or bond prices are generally rising.
A prolonged period of rising stock market prices.
The foreign market in the United Kingdom.
an activity that is necessary for the operation of the business but for which a customer would not want to pay
Buy on margin
A transaction in which an investor borrows to buy additional shares, using the shares
A financial analyst employed by a non-brokerage firm, typically one of the larger money
CAPITAL IN EXCESS OF PAR VALUE
What a company collected when it sold stock for more than the par value per share.
The market for trading long-term debt instruments (those that mature in more than one year).
The market in which investors buy and sell shares of companies, normally associated with a Stock Exchange.
A market that specializes in trading long-term, relatively high risk
The market in which savings are made available to those needing funds to undertake investment projects. A financial market in which longer-term (maturity greater than one year) bonds and stocks are traded.
Capital market efficiency
Reflects the relative amount of wealth wasted in making transactions. An efficient
Capital market imperfections view
The view that issuing debt is generally valuable but that the firm's
Capital market line (CML)
The line defined by every combination of the risk-free asset and the market portfolio.
markets for long-term financing.
Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized against
Also called spot markets, these are markets that involve the immediate delivery of a security
An amount the insurance company will pay if the policyholder ends a whole life
Cash Surrender Value
This 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 Value
Benefit that entitles a policy owner to an amount of money upon cancellation of a policy.
A transaction where exchange is immediate, as contrasted to a forward contract, which
Cash value added (CVA)
A method of investment appraisal that calculates the ratio of the net present value of an
Change in Reporting Entity
A change in the scope of the entities included in a set of, typically, consolidated financial statements.
An agreement between two or more countries that permits the free movement of capital
Common stock market
The market for trading equities, not including preferred stock.
Complete capital market
A market in which there is a distinct marketable security for each and every
Conflict between bondholders and stockholders
These two groups may have interests in a corporation that
The difference between variable revenue and variable cost.
An intermediate measure of profit equal to sales revenue
the difference between selling price and
The margin that results when variable production costs are subtracted
contribution margin ratio
the proportion of each revenue dollar remaining after variable costs have been covered;
Also called parity value, the value of a convertible security if it is converted immediately.
A security that can be converted into common stock at the option of the security holder,
Corner A Market
To purchase enough of the available supply of a commodity or stock in order to
cost of production report
a process costing document that
A market where traders specializing in particular commodities buy and sell assets for their
The market for trading debt instruments.
A security representing a debt relationship with an enterprise, including a government
markets for derivative instruments.
A financial security, such as an option, or future, whose value is derived in part from the
Difference from S&P
A mutual fund's return minus the change in the Standard & Poors 500 Index for the
Direct search market
Buyers and sellers seek each other directly and transact directly.
DLOM (discount for lack of marketability)
an amount or percentage deducted from an equity interest to reflect lack of marketability.
Dollar safety margin
The dollar equivalent of the safety cushion for a portfolio in a contingent immunization
Part of a nation's internal market representing the mechanisms for issuing and trading
EBITDA divided by total sales or total revenue.
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
Effective margin (EM)
Used with SAT performance measures, the amount equaling the net earned spread, or
Efficient capital market
A market in which new information is very quickly reflected accurately in share
efficient capital markets
Financial markets in which security prices rapidly reflect all relevant information about asset values.
Efficient Market Hypothesis
In general the hypothesis states that all relevant information is fully and
Efficient Markets Hypothesis
The hypothesis that securities are typically in equilibrium--that they are fairly priced in the sense that the price reflects all publicly available information on the security.
In the interbank Eurodollar deposit market, an either-way market is one in which the bid
The financial markets of developing economies.
Employee Retirement Income Security Act of 1974 (ERISA)
A federal Act that sets minimum operational and funding standards for employee benefit
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
An ownership interest in an enterprise, including preferred and common stock.
The money market for borrowing and lending currencies that are held in the form of
Excess return on the market portfolio
The difference between the return on the market portfolio and the
security that grants the security holder the right to exchange the security for the
The amount of advantage over a current market transaction provided by an in-the-money
The value that an asset is expected to have at the time it is sold at a predetermined
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