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Financial Terms | |
LEAPS |
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Definition of LEAPSLEAPSLong-term equity anticipation securities. Long-term options.
Related Terms:All equity rateThe discount rate that reflects only the business risks of a project and abstracts from the AnticipationArrangements whereby customers who pay before the final date may be entitled to deduct a Asset-Backed SecuritiesBond or note secured by assets of company. Asset/equity ratioThe ratio of total assets to stockholder equity. BAN (Bank anticipation notes)Notes issued by states and municipalities to obtain interim financing for Barrier optionsContracts with trigger points that, when crossed, automatically generate buying or selling of Basket optionsPackages that involve the exchange of more than two currencies against a base currency at ![]() 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 Bottom-up equity management styleA management style that de-emphasizes the significance of economic cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Coefficient of determinationA measure of the goodness of fit of the relationship between the dependent and coefficient of determinationa measure of dispersion that Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Contra-equity accountAn account that reduces an equity account. An example is Treasury stock. Cost of EquitySame as the cost of common stock. Sometimes viewed as the Credit TermsConditions under which credit is extended by a lender to a borrower. ![]() Dealer optionsOver-the-counter options, such as those offered by government and mortgage-backed Debt/equity ratioIndicator of financial leverage. Compares assets provided by creditors to assets provided Debt/Equity RatioA comparison of debt to equity in a company's capital structure. Debt securitiesIOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and debt-to-equity ratioA widely used financial statement ratio to assess the Deferred equityA common term for convertible bonds because of their equity component and the Delivery optionsThe options available to the seller of an interest rate futures contract, including the quality Deterministic modelsLiability-matching models that assume that the liability payments and the asset cash Discount securitiesNon-interest-bearing money market instruments that are issued at a discount and DisintermediationWithdrawal of funds from a financial institution in order to invest them directly. Dual syndicate equity offeringAn international equity placement where the offering is split into two ![]() EquityRepresents ownership interest in a firm. Also the residual dollar value of a futures trading account, EquityFunds raised from shareholders. EquityAmounts contributed to the company by the owners (contributed capital) plus the residual earnings of the business (retained earnings). equityRefers to one of the two basic sources of capital for a business, the EquityThe difference between the total of all recorded assets and liabilities on the balance EquityOwnership. Common stock represents equity in a corporation. EquityThe net worth of a business, consisting of capital stock, capital (or paid-in) surplus (or retained earnings), and, occasionally, certain net worth reserves. Common equity is that part of the total net worth beLonging to the common shareholders. Total equity includes preferred shareholders. The terms common stock, net worth, and common equity are frequently used interchangeably. equityThe net worth of a company. This represents the ownership interest of the shareholders (common and preferred) of a company. For this reason, shares or stocks are often known as equities. Equity-based insuranceLife insurance or annuity product in which the cash value and benefit level fluctuate according to the performance of an equity portfolio. Equity Buy-BackRefers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount. Equity capAn agreement in which one party, for an upfront premium, agrees to compensate the other at Equity claimAlso called a residual claim, a claim to a share of earnings after debt obligation have been Equity collarThe simultaneous purchase of an equity floor and sale of an equity cap. Equity contribution agreementAn agreement to contribute equity to a project under certain specified Equity floorAn agreement in which one party agrees to pay the other at specific time periods if a specific Equity investmentThrough equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock. Equity kickerUsed to refer to warrants because they are usually issued attached to privately placed bonds. Equity-linked policiesRelated: Variable life Equity marketRelated:Stock market Equity MethodAccounting method for an equity security in cases where the investor has sufficient Equity multiplierTotal assets divided by total common stockholders' equity; the amount of total assets per Equity optionssecurities that give the holder the right to buy or sell a specified number of shares of stock, at Equity SecurityAn ownership interest in an enterprise, including preferred and common stock. Equity swapA swap in which the cash flows that are exchanged are based on the total return on some stock EquityholdersThose holding shares of the firm's equity. Euro-medium term note (Euro-MTN)A non-underwritten Euronote issued directly to the market. Euro- Euroequity issuessecurities sold in the Euromarket. That is, securities initially sold to investors Exempt securitiesInstruments exempt from the registration requirements of the securities Act of 1933 or the Exit OptionsA variety of options available to an investor to recover their invested capital and the return on their investment. Federal agency securitiessecurities issued by corporations and agencies created by the U.S. government, Financial intermediariesInstitutions that provide the market function of matching borrowers and lenders or 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. Financial IntermediationThe process whereby financial intermediaries channel funds from lender/savers to borrower/spenders. Flexible TermOptional periods of time which the conditions of a contract will be carried out. Foreign equity marketThat portion of the domestic equity market that represents issues floated by foreign companies. GEMs (growing-equity mortgages)Mortgages in which annual increases in monthly payments are used to Government securitiesNegotiable U.S. Treasury securities. Intermarket sectorspread The spread between the interest rate offered in two sectors of the bond market for Intermarket spread swapsAn exchange of one bond for another based on the manager's projection of a IntermediaryAn independent third party that may act as a mediator during negotiations. Intermediate GoodA good used in producing another good. Intermediate-termTypically 1-10 years. IntermediationInvestment through a financial institution. Related: disintermediation. Investor's equityThe balance of a margin account. Related: buying on margin, initial margin requirement. Leveraged equityStock in a firm that relies on financial leverage. Holders of leveraged equity face the Liquidity theory of the term structureA biased expectations theory that asserts that the implied forward LongOne who has bought a contract(s) to establish a market position and who has not yet closed out this Long bondsBonds with a Long current maturity. The "Long bond" is the 30-year U.S. government bond. Long bondsBonds with a Long current maturity. The "Long bond" is the 30-year U.S. government bond. Long coupons1) Bonds or notes with a Long current maturity. Long coupons1) Bonds or notes with a Long current maturity. Long hedgeThe purchase of a futures contract(s) in anticipation of actual purchases in the cash market. Used Long positionAn options position where a person has executed one or more option trades where the net Long positionOutright ownership of a security or financial instrument. The long positionPurchase of an investment. Long rateThe yield on a zero-coupon Treasury bond. Long runA period of time in which all costs are variable; greater than one year. Long runA period of time in which all costs are variable; greater than one year. Long straddleA straddle in which a Long position is taken in both a put and call option. Long-termIn accounting information, one year or greater. Long-term assetsValue of property, equipment and other capital assets minus the depreciation. This is an Long-term debtAn obligation having a maturity of more than one year from the date it was issued. Also Long-term debtA debt for which payments will be required for a period of more than Long Term DebtLiability due in a year or more. Long-term debt/capitalizationIndicator of financial leverage. Shows Long-term debt as a proportion of the Long-term debt ratioThe ratio of Long-term debt to total capitalization. Long-term debt to equity ratioA capitalization ratio comparing Long-term debt to shareholders' equity. Long-term financial planFinancial plan covering two or more years of future operations. Long-term liabilitiesAmount owed for leases, bond repayment and other items due after 1 year. LONG-TERM LIABILITIESBills that are payable in more than one year, such as a mortgage or bonds. Long-term liabilitiesAmounts owing after more than one year. Longer-Term Fixed AssetsAssets having a useful life greater than one year but the duration of the 'Long term' will vary with the context in which the term is applied. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |