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Financial Terms | |
information |
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Definition of informationinformationbits of knowledge or fact that have been carefully
Related Terms:Asymmetric informationinformation that is known to some people but not to other people. Expected value of perfect informationThe expected value if the future uncertain outcomes could be known 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. Information asymmetryA situation involving information that is known to some, but not all, participants. Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to Information-content effectThe rise in the stock price following the dividend signal. information content of dividendsDividend increases send good news about cash flow and earnings. Dividend cuts send bad news. ![]() Information costsTransaction costs that include the assessment of the investment merits of a financial asset. Information-motivated tradesTrades in which an investor believes he or she possesses pertinent Information servicesOrganizations that furnish investment and other types of information, such as Informational efficiencyThe speed and accuracy with which prices reflect new information. Informationless tradesTrades that are the result of either a reallocation of wealth or an implementation of an Insider informationRelevant information about a company that has not yet been made public. It is illegal for management information system (MIS)a structure of interrelated elements that collects, organizes, and communicates Medical Information BureauThis organization was established in 1902. The Medical information Bureau (M.I.B.) is a non-profit association of life insurance companies. Its purpose is to detect and deter fraud by providing warnings called, alerts, to member companies. For example, if an insurance applicant advised one insurance company of a heart attack and then applied to another insurance company omitting this history, codes, reported by the first insurance company, indicating a heart attack would alert the second insurance company to the undisclosed history. It is a rarity, however, that the alert is the only notice of a specific medical impairement as most applicants completely disclose their history. 48-hour ruleThe requirement that all pool information, as specified under the PSA Uniform Practices, in a accountingA broad, all-inclusive term that refers to the methods and procedures accounts receivable turnover ratioA ratio computed by dividing annual Active portfolio strategyA strategy that uses available information and forecasting techniques to seek a activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; ActuaryOne who uses statistical information to evaluate the probability of future events and prices insurance products. Aggregate planningA budgeting process using summary-level information to Aggregate Supply CurveCombinations 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. American Depositary Receipts (ADRs)Certificates issued by a U.S. depositary bank, representing foreign Bar codeinformation encoded into a series of bar and spaces of varying widths, bill of materialsa document that contains information about budget manuala detailed set of documents that provides information business intelligence (BI) systema formal process for gathering and analyzing information and producing intelligence to meet decision making needs; requires information about business process reengineering (BPR)the process of combining information technology to create new and more effective Canadian Life and Health Insurance Association (CLHIA)An association of most of the life and health insurance companies in Canada that conducts research and compiles information about the life and health insurance industry in Canada. capital investment analysisRefers to various techniques and procedures Capital market imperfections viewThe view that issuing debt is generally valuable but that the firm's capital recoveryRefers to recouping, or regaining, invested capital over Change in Accounting EstimateA change in accounting that occurs as the result of new information Chicago Mercantile Exchange (CME)A not-for-profit corporation owned by its members. Its primary Chinese wallCommunication barrier between financiers (investment bankers) and traders. This barrier is Common-base-year analysisThe representing of accounting information over multiple years as percentages computer integrated manufacturing (CIM)the integration of two or more flexible manufacturing systems through the use of a host computer and an information networking system Confidentiality AgreementA legal document whereby the one party, usually the prospective investor, pledges to keep strictly confidential, and return on request, any and all information provided by the entrepreneur seeking funding. cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course cost of production reporta process costing document that cost tablea database providing information about the impact Credible signalA signal that provides accurate information; a signal that can be distinguish among senders. Credit analysisThe process of analyzing information on companies and bond issues in order to estimate the credit bureauAn organization that provides financial institutions with credit information concerning existing or potential customers who are looking to obtain credit services. Deductive reasoningThe use of general fact to provide accurate information about a specific situation. Differential disclosureThe practice of reporting conflicting or markedly different information in official DisclosureAdditional information attached to a company’s financial statements, usually Due DiligenceThe process of systematically evaluating information, to identify risks and issues relating to a proposed transaction.(i.e. verify that information is what it is proposed to be). Efficient capital marketA market in which new information is very quickly reflected accurately in share efficient capital marketsFinancial markets in which security prices rapidly reflect all relevant information about asset values. Efficient Market HypothesisIn general the hypothesis states that all relevant information is fully and Efficient Markets HypothesisThe 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. Electronic data interchange (EDI)The exchange of information electronically, directly from one firm's electronic data interchange (EDI)the computer-to-computer transfer of information in virtual real time using standardized formats developed by the American National Standards Institute enterprise resource planning (ERP) systema packaged software program that allows a company to Event studyA statistical study that examines how the release of information affects prices at a particular time. Expense ratioThe percentage of the assets that were spent to run a mutual fund (as of the last annual financial reports and statementsFinancial means having to do with ForecastFuture-oriented financial information prepared using assumptions all of which reflect the entity's planned courses of action for the period covered given management's judgment as to the most probable set of economic conditions. Friction costsCosts, both implied and direct, associated with a transaction. Such costs include time, effort, FrictionsThe "stickiness" in making transactions; the total hassle including time, effort, money, and tax fundamental analystsAnalysts who attempt to find under- or overvalued securities by analyzing fundamental information, such as earnings, asset values, and business prospects. global economyan economy characterized by the international INCOME STATEMENTAn accounting statement that summarizes information about a company in the following format: income statementFinancial statement that summarizes sales revenue Incontestable ClauseThis clause in regular life insurance policy provides for voiding the contract of insurance for up to two years from the date of issue of the coverage if the life insured has failed to disclose important information or if there has been a misrepresentation of a material fact which would have prevented the coverage from being issued in the first place. After the end of two years from issue, a misrepresentation of smoking habits or age can still void or change the policy. Inductive reasoningThe attempt to use information about a specific situation to draw a conclusion. Insider tradingTrading by officers, directors, major stockholders, or others who hold private inside InsidersThese are directors and senior officers of a corporation -- in effect those who have access to inside Inspection ReportThis is a telephone interview of the person applying for life insurance conducted by someone from the underwriting department of the insurance company. Some insurance companies only sporadically contact applicants and some contact every applicant. On average the interview lasts between 15 to 30 minutes. The questions asked relate to personal habits (like smoking and alcohol consumption) and finances, including income and net worth, confirmation of employment, duties and the nature of the applicant's business. In addition, there are questions about driving, sports, aviation and currently held insurance. All information obtained is strictly confidential and is submitted solely to the underwriter for review. intellectual capitalthe intangible assets of skill, knowledge, intraneta mechanism for sharing information and delivering data from corporate databases to the local-area network (LAN) desktops Item master fileA file containing all item-specific information about a component, job order cost sheeta source document that provides virtually LeakageRelease of information to some persons before official public announcement. Living BenefitSome insurance companies include this benefit option at no cost to their policy holders. The insurer considers on a case to case basis, the need for insurance funds before death. If the insured can demonstrate a shortened life of less than two years and with some insurers one year, the insurer will consider releasing up to 50% or a maximum of $100,000 of the life insurance coverage held by the insured. Not all insurers offer this benefit for free. The need has resulted in specific stand alone living benefit/critical illness policies coming into existence. Look under "Different types of Life Insurance" for further information. You might have heard of "Viatical Settlements", the practice of seriously ill people selling the rights to their life insurance policies to third parties. This practice is common in the United States but has not caught on in Canada. Long-termIn accounting information, one year or greater. Management accountingThe production of financial and non-financial information used in planning for the future; making decisions about products, services, prices and what costs to incur; and ensuring that plans are implemented and achieved. management accountinga discipline that includes almost management controlThis is difficult to define in a few words—indeed, an management control system (MCS)an information system that helps managers gather information about actual organizational occurrences, make comparisons against plans, Marketplace price efficiencyThe degree to which the prices of assets reflect the available marketplace materials requirements planning (MRP)a computerbased information system that simulates the ordering and MonitorTo seek information about an agent's behavior; a device that provides such information. Nonsignificant part numberAn identifying number assigned to a part that conveys Notes to the financial statementsA detailed set of notes immediately following the financial statements in open-book managementa philosophy about increasing a firm’s performance by involving all workers and by ensuring Open-outcryThe method of trading used at futures exchanges, typically involving calling out the specific Passive portfolio strategyA strategy that involves minimal expectational input, and instead relies on Payroll RegisterA report on which is summarized the wage and deduction information Perfectly competitive financial marketsMarkets in which no trader has the power to change the price of PolicyA written document that serves as evidence of insurance coverage and contains pertinent information about the benefits, coverage and owner, as well as its associated directives and obligations. postinvestment auditthe process of gathering information Priced outThe market has already incorporated information, such as a low dividend, into the price of a stock. Pricing efficiencyAlso called external efficiency, a market characteristic where prices at all times fully ProjectionFuture-oriented financial information prepared using assumptions that reflect the entity's planned courses of action for the period. ProspectusFormal written document to sell securities that describes the plan for a proposed business prospectusFormal summary that provides information on an issue of securities. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |