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Financial Terms | |
Intestate |
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Definition of IntestateIntestateThis means dying without a will, in which case the provincial laws of the province in which the death occurred apply to the manner in which assets will be distributed. In other words, if you don't write your own will, the government will do it for you after your death and it may not be as you would have wished.
Related Terms:Abandonment optionThe option of terminating an investment earlier than originally planned. Accidental Death and DismembermentCoverage that provides a lump-sum payment to you or your survivors if an accident results in the loss of a limb, paralysis or your death. Accidental Death Benefit (ADB)Coverage against accidental death usually payable in addition to base amount of coverage. Accumulated Other Comprehensive IncomeCumulative gains or losses reported in shareholders' Acquisition of assetsA merger or consolidation in which an acquirer purchases the selling firm's assets. Act of state doctrineThis doctrine says that a nation is sovereign within its own borders and its domestic After-tax profit marginThe ratio of net income to net sales. ![]() After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. Allowance for doubtful accountsA contra account related to accounts receivable that represents the amounts that the company expects will not be collected. Allowance for Doubtful AccountsAn estimate of the uncollectible portion of accounts receivable AssetsA firm's productive resources. ASSETSAnything of value that a company owns. AssetsThings that the business owns. AssetsItems owned by the company or expenses that have been paid for but have not been used up. Assets requirementsA common element of a financial plan that describes projected capital spending and the Blue-sky lawsState laws covering the issue and trading of securities. ![]() Builder buydown loanA mortgage loan on newly developed property that the builder subsidizes during the Bulldog bondForeign bond issue made in London. Bulldog marketThe foreign market in the United Kingdom. BuydownsMortgages in which monthly payments consist of principal and interest, with portions of these BuyoutPurchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is Cash flow after interest and taxesNet income plus depreciation. Collective wisdomThe combination of all of the individual opinions about a stock's or security's value. Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Constant dollar accountingA method for restating financial statements by reducing or Constant dollarsSee real dollars. Contingent OwnerThis is the person designated to become the new owner of a life insurance policy if the original owner dies before the life insured. ![]() Continuous random variableA random value that can take any fractional value within specified ranges, as contract vendoran external party that has been granted an CramdownThe ability of the bankruptcy court to confirm a plan of reorganization over the objections of Crown jewelA particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. Current assetsValue of cash, accounts receivable, inventories, marketable securities and other assets that Current assetsCash, things that will be converted into cash within a year (such as accounts receivable), and inventory. Current assetsAmounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments. current assetsCurrent refers to cash and those assets that will be turned Current AssetsCash and other company assets that can be readily turned into cash within one year. Current DollarsA variable like GDP is measured in current dollars if each year's value is measured in prices prevailing during that year. In contrast, when measured in real or constant dollars, each year's value is measured in a base year's prices. Customary payout ratiosA range of payout ratios that is typical based on an analysis of comparable firms. Death BenefitAmount paid on death of an insured. degree of operating leverage (DOL)Percentage change in profits given a 1 percent change in sales. Direct write-off methodA method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers. Discount windowFacility provided by the Fed enabling member banks to borrow reserves against collateral Discount WindowThe Federal Reserve facility at which reserves are loaned to banks at the discount rate. Discrete random variableA random variable that can take only a certain specified set of discrete possible Distributedafter a Treasury auction, there will be many new issues in dealer's hands. As those issues are Dividend payout ratioPercentage of earnings paid out as dividends. dividend payout ratioComputed by dividing cash dividends for the year dividend payout ratioPercentage of earnings paid out as dividends. Doctrine of sovereign immunitydoctrine that says a nation may not be tried in the courts of another country Documented discount notesCommercial paper backed by normal bank lines plus a letter of credit from a Dollar bondsMunicipal revenue bonds for which quotes are given in dollar prices. Not to be confused with Dollar Cost AveragingA way of smoothing out your investment deposits by investing regularly. Instead of making one large deposit a year into your RRSP, you make smaller regular monthly deposits. If you are buying units in a mutual fund or segregated equity fund, you would end up buying more units in the month that values were low and less units in the month that values were higher. By spreading out your purchases, you don't have to worry about buying at the right time. dollar days (of inventory)a measurement of the value of inventory for the time that inventory is held Dollar durationThe product of modified duration and the initial price. Dollar price of a bondPercentage of face value at which a bond is quoted. Dollar returnThe return realized on a portfolio for any evaluation period, including (1) the change in market Dollar rollSimilar to the reverse repurchase agreement - a simultaneous agreement to sell a security held in a Dollar safety marginThe dollar equivalent of the safety cushion for a portfolio in a contingent immunization Dollar-weighted rate of returnAlso called the internal rate of return, the interest rate that will make the Domestic International Sales Corporation (DISC)A U.S. corporation that receives a tax incentive for Domestic marketPart of a nation's internal market representing the mechanisms for issuing and trading Don't know (DK, Dked)"don't know the trade." A Street expression used whenever one party lacks Double-declining-balance depreciationMethod of accelerated depreciation. Double-dip leaseA cross-border lease in which the disparate rules of the lessor's and lessee's countries let Double entryThe system of recording business transactions in two accounts. double-entry accountingSee accrual-basis accounting. Double-tax agreementAgreement between two countries that taxes paid abroad can be offset against Doubling optionA sinking fund provision that may allow repurchase of twice the required number of bonds Dow Jones industrial averageThis is the best known U.S.index of stocks. It contains 30 stocks that trade on Dow Jones Industrial AverageIndex of the investment performance of a portfolio of 30 “blue-chip” stocks. Down-and-in optionBarrier option that comes into existence if asset price hits a barrier. Down-and-out optionBarrier option that expires if asset price hits a barrier. DowngradeA classic negative change in ratings for a stock, and or other rated security. downsizingany management action that reduces employment Employee stock ownership plan (ESOP)A company contributes to a trust fund that buys stock on behalf of Employee Stock Ownership Plan (ESOP)a profit-sharing compensation program in which investments are made in Employee Stock Ownership Plan (ESOP)A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer. EndogenousDetermined from within the system. Opposite of exogenous. Endogenous variableA value determined within the context of a model. EndowmentLife insurance payable to the policyholder, if living on the maturity date stated in the policy, or to a beneficiary if the insured dies before that date. For example, some Term to age 100 policies offer the option of taking the face amount of the policy as a cash payout at age 100 if the policyholder is still alive and paying all required income taxes on the amount received or leaving the policy to pay out upon death whereupon the payout is tax free. Endowment fundsInvestment funds established for the support of institutions such as colleges, private EurodollarThis is an American dollar that has been deposited in a European bank or an U.S. bank branch Eurodollar bondsEurobonds denominated in U.S.dollars. eurodollarsdollars held on deposit in a bank outside the United States. EurodollarsDeposits denominated in U.S. dollars but held in banks located outside the United States, such as in Canada or France. Exchange of assetsAcquisition of another company by purchase of its assets in exchange for cash or stock. Feasible target payout ratiosPayout ratios that are consistent with the availability of excess funds to make Financial assetsClaims on real assets. financial assetsClaims to the income generated by real assets. Also called securities. Fixed assetsThings that the business owns and are part of the business infrastructure – fixed assets may be fixed assetsAn informal term that refers to the variety of long-term operating Fixed AssetsLand, buildings, plant, equipment, and other assets acquired for carrying on the business of a company with a life exceeding one year. Normally expressed in financial accounts at cost, less accumulated depreciation. Fixed Assets Turnover RatioA measure of the utilization of a company's fixed assets to Fixed-dollar obligationsConventional bonds for which the coupon rate is set as a fixed percentage of the par value. Fixed-dollar securityA nonnegotiable debt security that can be redeemed at some fixed price or according to Full-payout leaseSee: financial lease. GoodwillExcess of the purchase price over the fair market value of the net assets acquired under purchase GoodwillThe excess of the price paid to buy another company over the book value of GoodwillIntangible assets of a firm established by the excess of the price paid for the going concern over the value of its assets. Gordon modelpresent value of a perpetuity with growth. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |