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Definition of Housing Start
A new house on which construction has just begun.
Loans on manufactured homes - that is, factory-built or
Costs related to such onetime activities as opening a new facility, introducing
the difference between the number of units completed for the period and the units in beginning inventory; it can also be computed as the number of units started during the period minus the units in ending inventory
The interim holding period from the time of the closing of a loan to its subsequent marketing to
The incremental costs of having an agent make decisions for a principal.
Total quantity of goods and services supplied.
Combinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not.
Bond or note secured by assets of company.
costs that are identifiable with and able to be influenced by decisions made at the business
1) When bond yields and prices fall, the market is said to back-up.
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
The reorganization or liquidation of a firm that cannot pay its debts.
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the
Bottom-up equity management style
A management style that de-emphasizes the significance of economic
capitalization of costs
When a cost is recorded originally as an increase
costs that increase with increases in the level of investment in current assets.
costs of maintaining current assets, including opportunity cost of capital.
cost of goods manufactured (CGM)
the total cost of the
Costs Capitalized in Stealth
A particularly egregious form of aggressive cost capitalization
costs of financial distress
costs arising from bankruptcy or distorted business decisions before bankruptcy.
The periodic interest payment made to the bondholders during the life of the bond.
Detachable certificate attached to a bond that shows the amount of
The interest payments paid to the bondholder.
The annual interest payment associated with a bond.
Any bond with a coupon. Contrast with discount bond.
Coupon / Coupons
The periodic interest payment(s) made by the issuer of a bond
The dates when the coupons are paid. Typically a bond pays
Coupon equivalent yield
True interest cost expressed on the basis of a 365-day year.
A bond's interest payments.
In bonds, notes or other fixed income securities, the stated percentage rate of interest, usually
The rate of interest paid on a debt security. Generally stated on an
The nominal interest rate that the issuer promises to pay the
Annual interest payment as a percentage of face value.
A bond selling at or close to par, that is, a bond with a coupon close to the yields currently
Related: Benchmark issues
IOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and
costs that are readily traceable to particular products or services.
Non-interest-bearing money market instruments that are issued at a discount and
Dupont system of financial control
Highlights the fact that return on assets (ROA) can be expressed in terms
equivalent units of production (EUP)
an approximation of the number of whole units of output that could have been
Buying or selling to offset an existing market position.
A situation in which supply exceeds demand.
The difference between the execution price of a security and the price that would have
Instruments exempt from the registration requirements of the securities Act of 1933 or the
Federal agency securities
securities issued by corporations and agencies created by the U.S. government,
Financial distress costs
Legal and administrative costs of liquidation or reorganization. Also includes
costs that do not change with increases or decreases in the volume of goods or services
costs that do not depend on the level of output.
fixed expenses (costs)
Expenses or costs that remain the same in amount,
The amount of securities believed to be available for immediate purchase, that is, in the
Foreign Corrupt Practices Act (FCPA)
a law passed by U.S. Congress in 1977 that makes it illegal for a U.S. company to engage in various “questionable” foreign payments and
costs, both implied and direct, associated with a transaction. Such costs include time, effort,
Full coupon bond
A bond with a coupon equal to the going market rate, thereby, the bond is selling at par.
The price of obtaining capital, either borrowed or equity, with intent to carry on business operations.
The loss in yield that occurs when a block of bonds is swapped for another block of lower-coupon
Negotiable U.S. Treasury securities.
Group Life Insurance
This is a very common form of life insurance which is found in employee benefit plans and bank mortgage insurance. In employee benefit plans the form of this insurance is usually one year renewable term insurance. The cost of this coverage is based on the average age of everyone in the group. Therefore a group of young people would have inexpensive rates and an older group would have more expensive rates.
Group of five (G5/G-5)
The five leading countries (France, Germany, Japan, United Kingdom, and the U.S.) that
Group of seven (G7/G-7)
The G-5 countries plus Canada and Italy.
Group rotation manager
A top-down manager who infers the phases of the business cycle and allocates
High-coupon bond refunding
Refunding of a high-coupon bond with a new, lower coupon bond.
Incremental costs and benefits
costs and benefits that would occur if a particular course of action were
costs that are necessary to produce a product/service but are not readily traceable to particular products or services – see overhead.
Transaction costs that include the assessment of the investment merits of a financial asset.
A legal proceeding for liquidating or reorganizing a business.
Bond with a stream of coupon payments that are the same throughout the life of the bond.
CDs that are issued with the tacit understanding that the buyer will not trade the certificate.
1) Bonds or notes with a long current maturity.
1) Bonds or notes with a long current maturity.
Low-coupon bond refunding
Refunding of a low coupon bond with a new, higher coupon bond.
The amount added to a lower figure to reach a higher figure, expressed as a percentage of the
Market impact costs
Also called price impact costs, the result of a bid/ask spread and a dealer's price concession.
Market timing costs
costs that arise from price movement of the stock during the time of the transaction
the period after an announcement of a takeover bid in which stock prices typically rise until a merger or acquisition is made (or until it falls through).
An increase in the cost of a product to arrive at its selling price.
The costs to firms of changing their prices.
M1-A: Currency plus demand deposits
securities backed by a pool of mortgage loans.
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
The cost of the supplies used in running an office.
The difference in the performance of an actual investment and a desired investment
Overhead generally refers to indirect, in contrast to direct,
A type of insurance policy or annuity in which the owner receives dividends, typically increases the death.
That part of the issued capital of a company that has been paid up by the shareholders.
Pass-through coupon rate
The interest rate paid on a securitized pool of assets, which is less than the rate
A pool of fixed-income securities backed by a package of assets (i.e. mortgages)
The loss of cash resulting from a swap into higher price bonds or the need/willingness of a bank or
The costs that relate to a period of time.
The gain in yield that occurs when a block of bonds is swapped for another block of higher-coupon bonds.
Policy Acquisition Costs
costs incurred by insurance companies in signing new policies, including expenditures on commissions and other selling expenses, promotion expenses, premium
The costs of additional regulation, including higher taxes, borne by large and
A form of start-up cost incurred in preparing for the opening of a new store or facility.
A bankruptcy in which a debtor and its creditors pre-negotiate a plan or
Price impact costs
Related: market impact costs
Project loan securities
securities backed by a variety of FHA-insured loan types - primarily multi-family
Public Securities Administration (PSA)
The trade association for primary dealers in U.S. government
Pure yield pickup swap
Moving to higher yield bonds.
Raw material supply agreement
As used in connection with project financing, an agreement to furnish a
Real Money Supply
Money supply expressed in base-year dollars, calculated by dividing the money supply by a price index.
Parts that have been reconstructed to render them capable
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