Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: tax advisor, payroll, financial, financial advisor, inventory control, money, inventory, business,
Definition of Issue Age
age of an insured as at the policy issue date, using "age nearest" next birthday formula.
The ability to produce a good or service with fewer resources than competitors. See also comparative advantage.
The use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result.
A characterization used by the Securities and Exchange
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
Federal agency securities.
A grouping of sales producers according to region. Compare with Branch.
A form of organization commonly used by foreign banks to enter the U.S. market. An agency
A means of compensating the broker of a program trade solely on the basis of commission
The argument that specifies that the various agency costs create a complex environment in
The incremental costs of having an agent make decisions for a principal.
Mortgage pass-through securities whose principal and interest payments are
Conflicts of interest among stockholders, bondholders, and managers.
Conflicts of interest between the firm’s owners and managers.
The analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of
The decision-maker in a principal-agent relationship.
One who represents Canada Life when providing services to clients
Alternative mortgage instruments
Variations of mortgage instruments such as adjustable-rate and variablerate
Annual percentage rate (APR)
The periodic rate times the number of periods in a year. For example, a 5%
annual percentage rate (APR)
Interest rate that is annualized using simple interest.
Annual percentage yield (APY)
The effective, or true, annual rate of return. The APY is the rate actually
The simultaneous buying and selling of a security at two different prices in two different markets,
The purchase of securities on one market for immediate resale on
Transactions designed to make a sure profit from inconsistent prices.
Arbitrage-free option-pricing models
Yield curve option-pricing models.
Arbitrage Pricing Theory (APT)
An alternative model to the capital asset pricing model developed by
People who search for and exploit arbitrage opportunities.
Arithmetic average (mean) rate of return
Arithmetic mean return.
Extent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position.
A bond indenture restriction that permits additional borrowing on if the ratio of assets to
Also called surplus management, the task of managing funds of a financial
Automated storage/retrieval system
A racking system using automated systems
An arithmetic mean of selected stocks intended to represent the behavior of the market or some
Average accounting return
The average project earnings after taxes and depreciation divided by the average
Average (across-day) measures
An estimation of price that uses the average or representative price of a
Average age of accounts receivable
The weighted-average age of all of the firm's outstanding invoices.
Average Amortization Period
The average useful life of a company's collective amortizable asset base.
Average Collection Period
Average number of days necessary to receive cash for the sale of
Average collection period, or days' receivables
The ratio of accounts receivables to sales, or the total
Average-Cost Inventory Method
The inventory cost-flow assumption that assigns the average
Average cost of capital
A firm's required payout to the bondholders and to the stockholders expressed as a
The beginning inventory for a period, plus the amount at the end of
Also referred to as the weighted-average life (WAL). The average number of years that each
The average time to maturity of securities held by a mutual fund. Changes in interest rates
Average Propensity to Consume
Ratio of consumption to disposable income. See also marginal propensity to consume.
Average Propensity to Save
Ratio of saving to disposable income. See also marginal propensity to save.
Average rate of return (ARR)
The ratio of the average cash inflow to the amount invested.
Average tax rate
Taxes as a fraction of income; total taxes divided by total taxable income.
average tax rate
Total taxes owed divided by total income.
Also called on-the-run or current coupon issues or bellwether issues. In the secondary
Benefit Wage Ratio Method
The proportion of total taxable wages for laid off
Bottom-up equity management style
A management style that de-emphasizes the significance of economic
agency banks established by Canadian banks in the U.S.
A licensed insurance agent who sells insurance for only one company.
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
Certified Management Accountant (CMA)
a professional designation in the area of management accounting that
Cheapest to deliver issue
The acceptable Treasury security with the highest implied repo rate; the rate that a
Mortgage against which no additional debt may be issued.
Collateralized mortgage obligation (CMO)
A security backed by a pool of pass-throughs , structured so that
A loan made on real estate collateral, other than a residential property, in which a mortgage is given to secure payment of principal and interest.
A country has a comparative advantage over another country in the production of good A if to produce a unit of A it forgoes more of the production of good B than would the other country when it produces a unit of good A. Its efficiency in the production of good A relative to its efficiency in the production of good B is greater than is the case for the other country. See also absolute advantage.
The strategies, skills, knowledge, resources or competencies that differentiate a business from its competitors.
A loan based on the credit of the borrower and on the collateral for the mortgage.
Corporate financial management
The application of financial principals within a corporation to create and
cost management system (CMS)
a set of formal methods
Ratios used to test the adequacy of cash flows generated through earnings for purposes of
Covered interest arbitrage
A portfolio manager invests dollars in an instrument denominated in a foreign
Taking advantage of divergences in exchange rates in different money markets by
Related: Benchmark issues
In Treasury securities, the most recently auctioned issue. Trading is more active in current
The amplification of the return earned on equity when an investment or firm is financed
Debt-service coverage ratio
Earnings before interest and income taxes plus one-third rental charges, divided
degree of operating leverage
a factor that indicates how a percentage change in sales, from the existing or current
degree of operating leverage (DOL)
Percentage change in profits given a 1 percent change in sales.
Demand Management Policy
Fiscal or monetary policy designed to influence aggregate demand for goods and services.
An unemployed person who gives up looking for work and so is no longer counted as in the labor force.
Dow Jones industrial average
This is the best known U.S.index of stocks. It contains 30 stocks that trade on
Dow Jones Industrial Average
Index of the investment performance of a portfolio of 30 “blue-chip” stocks.
Eurobonds that pay coupon interest in one currency but pay the principal in a different
The active manipulation of earnings toward a predetermined target.
Wage that maximizes profits.
Emerging Issues Task Force (EITF)
A special committee of the Financial Accounting Standards Board established to reach consensus of how to account for new and unusual financial transactions that have the potential for creating differing financial reporting practices.
Emerging Issues Task Force (EITF)
A separate committee within the Financial Accounting Standards Board composed of 13 members representing CPA firms and preparers of financial statements
Securities sold in the Euromarket. That is, securities initially sold to investors
Federal agency securities
Securities issued by corporations and agencies created by the U.S. government,
Federal credit agencies
agencies of the federal government set up to supply credit to various classes of
Use of debt to increase the expected return on equity. Financial leverage is measured by
The equity (ownership) capital of a business can serve
Debt financing amplifies the effects of changes in operating income on the returns to stockholders.
Financial leverage clientele
A group of investors who have a preference for investing in firms that adhere to
Financial leverage ratios
Related: capitalization ratios.
First To Die Coverage
This means that there are two or more life insured on the same policy but the death benefit is paid out on the first death only. If two or more persons at the same address are purchasing life insurance at the same time, it is wise to compare the cost of this kind of coverage with individual policies having a multiple policy discount.
Fiscal agency agreement
An alternative to a bond trust deed. Unlike the trustee, the fiscal agent acts as an
Fixed-charge coverage ratio
A measure of a firm's ability to meet its fixed-charge obligations: the ratio of
Fixed Charge Coverage Ratio
A measure of how well a company is able to meet its fixed
An inventory storage technique under which permanent
Freddie Mac (Federal Home Loan Mortgage Corporation)
A Congressionally chartered corporation that
Garmen-Kohlhagen option pricing model
A widely used model for pricing foreign currency options.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.