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Definition of Intermediary
An independent third party that may act as a mediator during negotiations.
Firm that raises money from many small investors and provides financing to businesses or other
Any institution, such as a bank, that takes deposits from savers and loans them to borrowers.
A market where an intermediary offers search services to buyers and sellers.
If the average maturity of a bank's liabilities is less than that of its assets, it is said to be
A bank machine, sometimes referred to as an automated teller machine (ATM).
Cumulative gains or losses reported in shareholders'
This doctrine says that a nation is sovereign within its own borders and its domestic
A market in which there is much trading.
A strategy that uses available information and forecasting techniques to seek a
a repetitive action performed in fulfillment of business functions
the process of detailing the various repetitive actions that are performed in making a product or
A method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing.
planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and
A method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers.
A relatively new method advocated for the
activity-based costing (ABC)
a process using multiple cost drivers to predict and allocate costs to products and services;
Activity-based costing (ABC)
A cost allocation system that compiles costs and assigns
activity-based management (ABM)
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
a segment of the production or service
a measure of the demands on activities and,
The actual expenditure made to acquire an asset, which includes the supplierinvoiced
actual cost system
a valuation method that uses actual direct
The physical commodity underlying a futures contract. Cash commodity, physical.
One who uses statistical information to evaluate the probability of future events and prices insurance products.
ADF (annuity discount factor)
the present value of a finite stream of cash flows for every beginning $1 of cash flow.
A bond covenant that specifies certain actions the Firm must take.
A form of organization commonly used by foreign banks to enter the U.S. market. An agency
Allocation base A measure of activity or volume such as labour
hours, machine hours or volume of production
The pool factor implied by the scheduled amortization assuming no prepayemts.
Present value of $1 paid for each of t periods.
Present value of an annuity of $1 per period.
Asset activity ratios
Ratios that measure how effectively the Firm is managing its assets.
Bond or note secured by assets of compAny.
Methods of financing in which lenders and equity investors look principally to the
loans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender.
An option is at-the-money if the strike price of the option is equal to the market price of the
An intercompAny loan channeled through a bank.
BAN (Bank anticipation notes)
Notes issued by states and municipalities to obtain interim financing for
money in a bank cheque account, the difference between receipts and payments.
Bank collection float
The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank.
Bank discount basis
A convention used for quoting bids and offers for treasury bills in terms of annualized
A draft addressed to a bank.
A guaranteed form of payment which is issued in amounts over $5,000.
Bank for International Settlements (BIS)
An international bank headquartered in Basel, Switzerland, which
Line of credit granted by a bank to a customer.
money owed to the bank in a cheque account where payments exceed receipts.
The process of taking the balances from the bank statement and the general ledger and making adjustments so that they agree.
A comparison between the cash position recorded on a compAny’s
A computer message system linking major banks. It is used not for effecting payments, but as a
A short-term credit investment created by a non-financial Firm and guaranteed by a
A bill of exchange, or draft, drawn by the borrower for payment on a specified date, and accepted by a chartered bank. Upon acceptance, the bill becomes, in effect, a postdated certified cheque.
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.
Bankruptcy cost view
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
Bill and Hold Practices
Products that have been sold with an explicit agreement that delivery
Large and creditworthy compAny.
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
Interim financing of one sort or another used to solidify a position until more permanent
A guaranteed investment contract purchased with a single (one-shot) premium. Related:
an activity that is necessary for the operation of the business but for which a customer would not want to pay
Call money rate
Also called the broker loan rate , the interest rate that banks charge brokers to finance
cash flow from operating activities, or cash flow from profit
This equals the cash inflow from sales during the period minus the cash
Cash Flow Provided by Operating Activities
With some exceptions, the cash effects of transactions
Cash Flow Provided or Used from Financing Activities
Cash receipts and payments involving
Cash Flow Provided or Used from Investing Activities
Cash receipts and payments involving
CASH FLOWS FROM FINANCING ACTIVITIES
A section on the cash-flow statement that shows how much cash a compAny raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations.
CASH FLOWS FROM INVESTING ACTIVITIES
A section on the cashflow statement that shows how much cash came in and went out because of various investing activities like purchasing machinery.
Cash settlement contracts
Futures contracts, such as stock index futures, that settle for cash, not involving
A transaction where exchange is immediate, as contrasted to a forward contract, which
A public agency responsible for regulating and controlling an economy's monetary and financial institutions. It is the sole money-issuing authority.
The market model applied to a single security. The slope of the line is a security's beta.
Clearing House Interbank Payments System (CHIPS)
An international wire transfer system for high-value
The percentage of a given month's sales collected during the month of sale and each
A privately owned, profit-seeking Firm that accepts deposits and makes loans.
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
Assets acquired to create money. May include plant, machinery and equipment, shares of another compAny etc.
company cost of capital
Expected rate of return demanded by investors in a compAny, determined by the average risk of the compAny’s assets and operations.
Related: Unsystematic risk
See asset-specific risk
A contract accounting method that recognizes contract revenue
computer-aided manufacturing (CAM)
the use of computers to control production processes through numerically
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
System whereby customers make payments to a regional collection center which transfers funds to
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
he written statement that follows Any "trade" in the securities markets. ConFirmation is issued
Consolidated Omnibus Budget Reconciliation Act (COBRA)
A federal act
A merchant banking subsidiary set up by several banks that may or may not be of the
Consumer Credit Protection Act
A federal act specifying the proportion of
A term of reference describing a unit of trading for a financial or commodity future. Also, the actual
A formal written statement of the rights and obligations of each party to a transaction.
Method of accounting for sales or service agreements where completion
an external party that has been granted an outsourcing contract to produce a part or component for an entity
The month in which futures contracts may be satisfied by making or accepting a delivery.
an external party that has been granted an
Contract Work Hours and Safety Standards Act
A federal act requiring federal contractors to pay overtime for hours worked exceeding 40 per week.
Rules set by the Chicago Board of Trade for determining the invoice price of each
Cost company arrangement
Arrangement whereby the shareholders of a project receive output free of
cost of goods manufactured (CGM)
the total cost of the
Cost of lease financing
A lease's internal rate of return.
Cost of manufacture
The cost of goods manufactured for subsequent sale.
a contract in which the customer agrees
on the other side of a trade or transaction.
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