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Financial Terms | |
Lapse subsidized |
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Definition of Lapse subsidizedLapse subsidizedThis refers to the practice of some life insurance companies to offer policies which are lower in price because they have assumed a high probability that the policies will be cashed in by their owners for one reason or another before the death benefit becomes available. It is a bold and risky offer by the insurance company because sometimes the purchasers of these policies simply don't lapse them.
Related Terms:LapseThis refers to the termination of an insurance policy due to the owner of the policy failing to pay the premium within the grace period [Usually within 30 days after the last regular premium was required and not paid]. It is possible to re-instate the coverage with the same premium and benefits intact but the life insured will have to qualify for this coverage all over again and bring up to date all unpaid premiums. LapseTermination when a policy has no cash value after all attempts at conservation have failed. LapsesPolicies which are sold but do not remain in force because the policyholder fails to pay premiums. 45-Degree LineA line representing equilibrium in the goods and services market, on a diagram with aggregate demand on the vertical axis and aggregate supply on the horizontal axis. Abandonment optionThe option of terminating an investment earlier than originally planned. Abnormal returnsPart of the return that is not due to systematic influences (market wide influences). In Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. ![]() Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accelerated depreciationAny depreciation method that produces larger deductions for depreciation in the accelerated depreciation(1) The estimated useful life of the fixed asset being depreciated is Accelerated depreciationAny of several methods that recognize an increased amount 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. Accidental Dismemberment: (Credit Insurance)Provides additional financial security should an insured person be dismembered or lose the use of a limb as the result of an accident. Accomodating PolicyA monetary policy of matching wage and price increases with money supply increases so that the real money supply does not fall and push the economy into recession. Account ValueThe sum of all the interest options in your policy, including interest. ![]() Accounting and Auditing Enforcement Release (AAER)Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws. Accounting exposureThe change in the value of a firm's foreign currency denominated accounts due to a Accounting IrregularitiesIntentional misstatements or omissions of amounts or disclosures in Accounting periodThe period of time for which financial statements are produced – see also financial year. Accounting PoliciesThe principles, bases, conventions, rules and procedures adopted by management in preparing and presenting financial statements. Accounting rate of return (ARR)A method of investment appraisal that measures accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow Accounts payableMoney owed to suppliers. ACCOUNTS PAYABLEAmounts a company owes to creditors. Accounts payableAmounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually Accounts payable involves the receipt of an invoice from the company providing the services or goods. accounts payableShort-term, non-interest-bearing liabilities of a business ![]() Accounts payableAcurrent liability on the balance sheet, representing short-term obligations Accounts PayableAmounts due to vendors for purchases on open account, that is, not evidenced Accounts Payable Days (A/P Days)The number of days it would take to pay the ending balance Accounts receivableMoney owed by customers. ACCOUNTS RECEIVABLEAmounts owed to a company by customers that it sold to on credit. Total accounts receivable are Usually reduced by an allowance for doubtful accounts. Accounts receivableAmounts owed to the company, generally for sales that it has made. accounts receivableShort-term, non-interest-bearing debts owed to a Accounts receivableA current asset on the balance sheet, representing short-term Accounts ReceivableAmounts due from customers for sales on open account, not evidenced Accounts ReceivableMoney owed to a business for merchandise or services sold on open account. Accounts Receivable Days (A/R Days)The number of days it would take to collect the ending Accounts receivable turnoverThe ratio of net credit sales to average accounts receivable, a measure of how accounts receivable turnover ratioA ratio computed by dividing annual accretionan increase in units or volume caused by the addition Accretion (of a discount)In portfolio accounting, a straight-line accumulation of capital gains on discount Accrued expenses payableExpenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses Usually do not involve the receipt of an invoice from the company providing the goods or services. accrued expenses payableThe account that records the short-term, noninterest- Accrued interestThe accumulated coupon interest earned but not yet paid to the seller of a bond by the Accrued InterestThe amount of interest accumulated on a debt security between Accrued InterestThe amount of interest owing but not paid. Accumulated Benefit Obligation (ABO)An approximate measure of the liability of a plan in the event of a Accumulated depreciationA contra-fixed asset account representing the portion of the cost of a fixed asset that has been previously charged to expense. Each fixed asset account will have its own associated accumulated depreciation account. accumulated depreciationA contra, or offset, account that is coupled Accumulated depreciationThe sum total of all deprecation expense recognized to date Accumulated Other Comprehensive IncomeCumulative gains or losses reported in shareholders' Accumulated ValueAn amount of money invested plus the interest earned on that money. acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable AcquireeA firm that is being acquired. AcquirerA firm or individual that is acquiring something. Additional paid-in capitalAmounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with capital in excess of par. Additional paid-in capitalAny payment received from investors for stock that exceeds additional paid-in capitalDifference between issue price and par value of stock. Also called capital surplus. Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. Adjusted Cash Flow Provided by Continuing Operationscash flow provided by operating Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity Advance material requestVery early orders for materials before the completion 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. Aggregate DemandTotal quantity of goods and services demanded. Aggregate Demand CurveCombinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium. Aggregate Expenditure CurveAggregate demand for goods and services drawn as a function of the level of national income. Aggregate planningA budgeting process using summary-level information to Aggregate Production FunctionAn equation determining aggregate output as a function of aggregate inputs such as labor and capital. Aggregate SupplyTotal quantity of goods and services supplied. Aggregate Supply CurveCombinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not. AggregationProcess in corporate financial planning whereby the smaller investment proposals of each of the Aggressive AccountingA forceful and intentional choice and application of accounting principles Aggressive Capitalization PoliciesCapitalizing and reporting as assets significant portions of Aggressive Cost CapitalizationCost capitalization that stretches the flexibility within generally All equity rateThe discount rate that reflects only the business risks of a project and abstracts from the All-in costTotal costs, explicit and implicit. All or nonerequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable allocateassign based on the use of a cost driver, a cost predictor, allocationthe systematic assignment of an amount to a recipient AllocationThe process of storing costs in one account and shifting them to other Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production Allowance for bad debtsAn offset to the accounts receivable balance, against which 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 Allowance methodA method of adjusting accounts receivable to the amount that is expected to be collected based on company experience. American Depositary Receipts (ADRs)Certificates issued by a U.S. depositary bank, representing foreign American sharesSecurities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign Amortization (Credit Insurance)refers to the reduction of debt by regular payments of interest and principal in order to pay off a loan by maturity. Amortizing interest rate swapSwap in which the principal or national amount rises (falls) as interest rates Analytical ReviewThe process of attempting to infer the presence of potential problems Announcement datedate on which particular news concerning a given company is announced to the public. Annual PremiumYearly amount payable by a client for a policy or component. Annual reportYearly record of a publicly held company's financial condition. It includes a description of the Annual ReportThe report required by the Stock Exchange for all listed companies, containing the company’s financial statements. Annual reportA report issued to a company’s shareholders, creditors, and regulatory annual returnThe fund return, for any 12-month period, including changes in unit value and the reinvestment of distributions, but not taking into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would reduce returns. Annualized holding period returnThe annual rate of return that when compounded t times, would have Annuity dueAn annuity with n payments, wherein the first payment is made at time t = 0 and the last Annuity DueAnnuity where the payments are to be made at the beginning of annuity duea series of equal cash flows being received or paid at the beginning of a period Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |