Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: payroll, money, finance, investment, stock trading, inventory control, inventory, financial advisor,
Also see related: first time homebuyer, home buyer, mortgage, home financing, financing, homebuying, buy home, homes, property,
Definition of Keynesianism
The school of macroeconomic thought based on the ideas of John Maynard Keynes as published in his 1936 book The General Theory of Employment, Interest, and Money. A Keynesian believes the economy is inherently unstable and requires active government intervention to achieve stability.
The school of macroeconomic thought prior to the rise of keynesianism.
The study of the determination of economic aggregates such as total output and the price level.
Economists who, like classical economists, believe that wages and prices are sufficiently flexible to solve the unemployment problem without help from government policy.
the combined discounts for lack of control and marketability. g the constant growth rate in cash flows or net income used in the ADF, Gordon model, or present value factor.
Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full
The accumulated coupon Interest earned but not yet paid to the seller of a bond by the
A market in which there is much trading.
A strategy that uses available information and forecasting techniques to seek a
The analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of
Swap in which the principal or national amount rises (falls) as Interest rates
An alternative model to the capital asset pricing model developed by
Methods of financing in which lenders and equity investors look principally to the
An option is at-the-Money if the strike price of the option is equal to the market price of the
Related: Benchmark Interest rate.
Also called the base Interest rate, it is the minimum Interest rate investors will
The requirement that a claim holder voting against a plan of reorganization
A banker or trader's positions.
cash A firm's cash balance as reported in its financial statements. Also called ledger cash.
The cumulative book income plus any gain or loss on disposition of the assets on termination of the SAT.
The managing underwriter for a new issue. The book runner maintains the book of securities sold.
A company's book value is its total assets minus intangible assets and liabilities, such as debt. A
Book value per share
The ratio of stockholder equity to the average number of common shares. book value
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
Security prices sometimes move wildly above their true values.
Call money rate
Also called the broker loan rate , the Interest rate that banks charge brokers to finance
Interest that is not immediately expensed, but rather is considered as an asset and is then
Cash flow after interest and taxes
Net income plus depreciation.
Interest paid on previously earned Interest as well as on the principal.
Country risk General
Level of political and economic uncertainty in a country affecting the value of loans or
Covered interest arbitrage
A portfolio manager invests dollars in an instrument denominated in a foreign
Earnings before interest and taxes (EBIT)
A financial measure defined as revenues less cost of goods sold
Positive or negative differences from the consensus forecast of earnings by institutions
Effective annual interest rate
An annual measure of the time value of Money that fully reflects the effects of
Equilibrium rate of interest
The Interest rate that clears the market. Also called the market-clearing Interest
Forward interest rate
Interest rate fixed today on a loan to be made at some future date.
General cash offer
A public offering made to investors at large.
General obligation bonds
Municipal securities secured by the issuer's pledge of its full faith, credit, and
A partner who has unlimited liability for the obligations of the partnership.
A partnership in which all partners are General partners.
Generally Accepted Accounting Principals (GAAP)
A technical accounting term that encompasses the
See: government securities.
Government National Mortgage Association (Ginnie Mae)
A wholly owned U.S. government corporation
Government sponsored enterprises
Privately owned, publicly chartered entities, such as the Student Loan
Negotiable U.S. Treasury securities.
Interest earned before taxes are deducted.
Historical exchange rate
An accounting term that refers to the exchange rate in effect when an asset or
Money that moves across country borders in response to Interest rate differences and that moves
The price paid for borrowing Money. It is expressed as a percentage rate over a period of time and
Interest coverage ratio
The ratio of the earnings before Interest and taxes to the annual Interest expense. This
Interest coverage test
A debt limitation that prohibits the issuance of additional long-term debt if the issuer's
Interest equalization tax
Tax on foreign investment by residents of the U.S. which was abolished in 1974.
Contractual debt payments based on the coupon rate of Interest and the principal amount.
Interest on interest
Interest earned on reinvestment of each Interest payment on Money invested.
Interest-only strip (IO)
A security based solely on the Interest payments form a pool of mortgages, Treasury
Interest rate agreement
An agreement whereby one party, for an upfront premium, agrees to compensate the
Interest rate cap
Also called an Interest rate ceiling, an Interest rate agreement in which payments are made
Interest rate ceiling
Related: Interest rate cap.
Interest rate floor
An Interest rate agreement in which payments are made when the reference rate falls
Interest rate on debt
The firm's cost of debt capital.
Interest rate parity theorem
Interest rate differential between two countries is equal to the difference
Interest rate risk
The risk that a security's value changes due to a change in Interest rates. For example, a
Interest rate swap
A binding agreement between counterparties to exchange periodic Interest payments on
A firm's deduction of the Interest payments on its debt from its earnings before it calculates
Interest tax shield
The reduction in income taxes that results from the tax-deductibility of Interest payments.
A put option that has a strike price higher than the underlying futures price, or a call option
Limit order book
A record of unexecuted limit orders that is maintained by the specialist. These orders are
Limited-tax general obligation bond
A General obligation bond that is limited as to revenue sources.
Liquidity theory of the term structure
A biased expectations Theory that asserts that the implied forward
Local expectations theory
A form of the pure expectations Theory which suggests that the returns on bonds
Market segmentation theory or preferred habitat theory
A biased expectations Theory that asserts that the
Market price of a share divided by book value per share.
A bank runs a matched book when the distribution of maturities of its assets and liabilities are equal.
Modern portfolio theory
Principles underlying the analysis and evaluation of rational portfolio choices
Composed of currency and coins outside the banking system plus liabilities to the deposit Money banks.
Money center banks
Banks that raise most of their funds from the domestic and international Money markets, relying less on depositors for funds.
Related: Investment management.
Related: Investment manager.
Money markets are for borrowing and lending Money for three years or less. The securities in
Money market demand account
An account that pays Interest based on short-term Interest rates.
Money market fund
A mutual fund that invests only in short term securities, such as bankers' acceptances,
Money market hedge
The use of borrowing and lending transactions in foreign currencies to lock in the
Money market notes
Publicly traded issues that may be collateralized by mortgages and MBSs.
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Money rate of return
Annual Money return as a percentage of asset value.
M1-A: Currency plus demand deposits
Net book value
The current book value of an asset or liability; that is, its original book value net of any
In a Treasury auction, the amount by which the par value of the securities offered exceeds that of
Nominal interest rate
The Interest rate unadjusted for inflation.
Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected
See: unmatched book.
The total number of derivative contracts traded that not yet been liquidated either by an
A call option is out-of-the-Money if the strike price is greater than the market price
Pooling of interests
An accounting method for reporting acquisitions accomplished through the use of equity.
Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a
Preferred habitat theory
A biased expectations Theory that believes the term structure reflects the
Compares a stock's market value to the value of total assets less total liabilities (book
Pure expectations theory
A Theory that asserts that the forward rates exclusively represent the expected
Rate of interest
The rate, as a proportion of the principal, at which Interest is computed.
Real interest rate
The rate of Interest excluding the effect of inflation; that is, the rate that is earned in terms
See: unmatched book.
This is the total number of shares of a security that investors have borrowed, then sold in the
Interest calculated only on the initial investment. Related:compound Interest.
Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.