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Financial Terms | |
Intermediary |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: financial, inventory control, tax advisor, stock trading, finance, inventory, payroll, money, |
Definition of IntermediaryIntermediaryAn independent third party that may act as a mediator during negotiations.
Related Terms:financial intermediaryFirm that raises money from many small investors and provides financing to businesses or other Financial IntermediaryAny institution, such as a bank, that takes deposits from savers and loans them to borrowers. Brokered marketA market where an intermediary offers search services to buyers and sellers. Unmatched bookIf the average maturity of a bank's liabilities is less than that of its assets, it is said to be ABM (automated banking machine)A bank machine, sometimes referred to as an automated teller machine (ATM). Accumulated Other Comprehensive IncomeCumulative gains or losses reported in shareholders' Act of state doctrineThis doctrine says that a nation is sovereign within its own borders and its domestic ![]() ActiveA market in which there is much trading. Active portfolio strategyA strategy that uses available information and forecasting techniques to seek a activitya repetitive action performed in fulfillment of business functions activity analysisthe process of detailing the various repetitive actions that are performed in making a product or Activity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing. activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and Activity-based costingA 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. activity based costing (ABC)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 activity centera segment of the production or service activity drivera measure of the demands on activities and, Actual costThe actual expenditure made to acquire an asset, which includes the supplierinvoiced actual cost systema valuation method that uses actual direct ActualsThe physical commodity underlying a futures contract. Cash commodity, physical. ActuaryOne 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. Affirmative covenantA bond covenant that specifies certain actions the Firm must take. Agency bankA 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 labourhours, machine hours or volume of production Amortization factorThe pool factor implied by the scheduled amortization assuming no prepayemts. Annuity factorPresent value of $1 paid for each of t periods. annuity factorPresent value of an annuity of $1 per period. Asset activity ratiosRatios that measure how effectively the Firm is managing its assets. Asset-Backed SecuritiesBond or note secured by assets of compAny. Asset-based financingMethods of financing in which lenders and equity investors look principally to the Asset-Based Financingloans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the Back-to-back financingAn intercompAny loan channeled through a bank. BAN (Bank anticipation notes)Notes issued by states and municipalities to obtain interim financing for Bankmoney in a bank cheque account, the difference between receipts and payments. Bank collection floatThe 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 basisA convention used for quoting bids and offers for treasury bills in terms of annualized Bank draftA draft addressed to a bank. bank draftA 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 Bank lineLine of credit granted by a bank to a customer. Bank overdraftmoney owed to the bank in a cheque account where payments exceed receipts. Bank reconciliationThe process of taking the balances from the bank statement and the general ledger and making adjustments so that they agree. Bank reconciliationA comparison between the cash position recorded on a compAny’s Bank wireA computer message system linking major banks. It is used not for effecting payments, but as a Banker's acceptanceA short-term credit investment created by a non-financial Firm and guaranteed by a Bankers AcceptancesA 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. BankruptcyState of being unable to pay debts. Thus, the ownership of the Firm's assets is transferred from bankruptcyThe reorganization or liquidation of a Firm that cannot pay its debts. Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other Bankruptcy riskThe risk that a Firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Bankruptcy viewThe argument that expected bankruptcy costs preclude Firms from being financed entirely Bill and Hold PracticesProducts that have been sold with an explicit agreement that delivery Blue-chip companyLarge and creditworthy compAny. Book-entry securitiesThe 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 Bridge financingInterim financing of one sort or another used to solidify a position until more permanent Bullet contractA guaranteed investment contract purchased with a single (one-shot) premium. Related: business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance cash flow from operating activities, or cash flow from profitThis equals the cash inflow from sales during the period minus the cash Cash Flow Provided by Operating ActivitiesWith some exceptions, the cash effects of transactions Cash Flow Provided or Used from Financing ActivitiesCash receipts and payments involving Cash Flow Provided or Used from Investing ActivitiesCash receipts and payments involving CASH FLOWS FROM FINANCING ACTIVITIESA 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 ACTIVITIESA 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 contractsFutures contracts, such as stock index futures, that settle for cash, not involving Cash transactionA transaction where exchange is immediate, as contrasted to a forward contract, which Central BankA public agency responsible for regulating and controlling an economy's monetary and financial institutions. It is the sole money-issuing authority. Characteristic lineThe 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 Collection fractionsThe percentage of a given month's sales collected during the month of sale and each Commercial BankA privately owned, profit-seeking Firm that accepts deposits and makes loans. Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Company AcquisitionsAssets acquired to create money. May include plant, machinery and equipment, shares of another compAny etc. company cost of capitalExpected rate of return demanded by investors in a compAny, determined by the average risk of the compAny’s assets and operations. Company-specific riskRelated: Unsystematic risk Companyspecific RiskSee asset-specific risk Completed-Contract MethodA 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 concentration bankingSystem whereby customers make payments to a regional collection center which transfers funds to Conditional sales contractsSimilar to equipment trust certificates except that the lender is either the Confirmationhe written statement that follows Any "trade" in the securities markets. ConFirmation is issued Consolidated Omnibus Budget Reconciliation Act (COBRA)A federal act Consortium banksA merchant banking subsidiary set up by several banks that may or may not be of the Consumer Credit Protection ActA federal act specifying the proportion of ContractA term of reference describing a unit of trading for a financial or commodity future. Also, the actual ContractA formal written statement of the rights and obligations of each party to a transaction. Contract AccountingMethod of accounting for sales or service agreements where completion contract manufactureran external party that has been granted an outsourcing contract to produce a part or component for an entity Contract monthThe month in which futures contracts may be satisfied by making or accepting a delivery. contract vendoran external party that has been granted an Contract Work Hours and Safety Standards ActA federal act requiring federal contractors to pay overtime for hours worked exceeding 40 per week. Conversion factorsRules set by the Chicago Board of Trade for determining the invoice price of each Cost company arrangementArrangement whereby the shareholders of a project receive output free of cost of goods manufactured (CGM)the total cost of the Cost of lease financingA lease's internal rate of return. Cost of manufactureThe cost of goods manufactured for subsequent sale. cost-plus contracta contract in which the customer agrees Counterparty Partyon the other side of a trade or transaction. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |