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Definition of Liquidator
Person appointed by unsecured creditors in the United Kingdom to oversee the sale of an
A merger or consolidation in which an acquirer purchases the selling firm's assets.
A bond covenant that specifies certain actions the firm must take.
A firm's productive resources.
A common element of a financial plan that describes projected capital spending and the
A method of securities distribution/ underwriting in which the securities firm agrees to sell
The requirement that a claim holder voting against a plan of reorganization
A transaction in which the seller's intention is to reduce or eliminate a long position in a stock,
Similar to equipment trust certificates except that the lender is either the
he written statement that follows any "trade" in the securities markets. Confirmation is issued
The formal name for the load of a back-end load fund.
Value of cash, accounts receivable, inventories, marketable securities and other assets that
The average number of days' worth of sales that is held in inventory.
Average collection period.
A U.S. corporation that receives a tax incentive for
Acquisition of another company by purchase of its assets in exchange for cash or stock.
FHA prepayment experience
The percentage of loans in a pool of mortgages outstanding at the origination
Claims on real assets.
Refers to an order to buy or sell that can be executed without confirmation for some fixed period. Also,
Firm commitment underwriting
An undewriting in which an investment banking firm commits to buy the
Firm's net value of debt
Total firm value minus total firm debt.
See:diversifiable risk or unsystematic risk.
Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that
A method for hedging price risk which involves an agreement between a lender and an investor
A firm that is unable to pay debts (liabilities are greater than assets).
The sale of an asset in exchange for a specified series of payments (the installments).
Intrinsic value of a firm
The present value of a firm's expected future net cash flows discounted by the
Lag response of prepayments
There is typically a lag of about three months between the time the weighted
Limitation on merger, consolidation, or sale
A bond covenant that restricts in some way a firm's ability to
Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into
Value of property, equipment and other capital assets minus the depreciation. This is an
Neglected firm effect
The tendency of firms that are neglected by security analysts to outperform firms that
Situation in which the terms of an offering are determined by negotiation between the issuer
The difference between total assets on the one hand and current liabilities and noncapitalized longterm
A tangible asset with unique physical properties, like a parcel of land, a mine, or a
A transaction in which the seller's intention is to create or increase a short position in a given
Other current assets
Value of non-cash assets, including prepaid expenses and accounts receivable, due
Personal tax view (of capital structure)
The argument that the difference in Personal tax rates between
An interest in an asset held by a trustee for the benefit of another Person.
Also called speed, the estimated rate at which mortgagors pay off their loans ahead of
Payments made in excess of scheduled mortgage principal repayments.
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
Publicly traded assets
assets that can be traded in a public market, such as the stock market.
Purchase and sale
A method of securities distribution in which the securities firm purchases the securities
Current assets minus inventories.
Identifiable assets, such as buildings, equipment, patents, and trademarks, as distinguished from a
A tangible asset with physical properties that can be reproduced, such as a building or
assets that remain after sufficient assets are dedicated to meet all senior debtholder's claims in full.
Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months
Return on total assets
The ratio of earnings available to common stockholders to total assets.
Sale and lease-back
sale of an existing asset to a financial institution that then leases it back to the user.
The fee charged by a mutual fund when purchasing shares, usually payable as a commission to
A key input to a firm's financial planning process. External sales forecasts are based on
An arrangement whereby a firm leases its own equipment, such as IBM leasing its own
Selling a security that the seller does not own but is committed to repurchasing eventually. It is
The tendency of small firms (in terms of total market capitalization) to outperform the
A method for hedging price risk that utilizes debt-market instruments, such as interest rate
Also called a swap assignment, a transaction that ends one counterparty's role in an interest rate
A firm that is the object of a takeover by another firm.
Terms of sale
Conditions on which a firm proposes to sell its goods services for cash or credit.
Debt that does not identify specific assets that can be taken over by the debtholder in case of default.
Wholesale mortgage banking
The purchasing of loans originated by others, with the servicing rights
assumption The assumption of payment of scheduled principal and interest with no payments.
Anything of value that a company owns.
Cash, things that will be converted into cash within a year (such as accounts receivable), and inventory.
NET SALES (revenue)
The amount sold after customersâ€™ returns, sales discounts, and other allowances are taken away from
NUMBER OF DAYS SALES IN RECEIVABLES
(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that havenâ€™t been collected yet.
RATE OF RETURN ON TOTAL ASSETS
The percentage return or profit that management made on each dollar of assets. The formula is:
RATIO OF NET INCOME TO NET SALES
A ratio that shows how much net income (profit) a company made on each dollar of net sales. Hereâ€™s the formula:
RATIO OF NET SALES TO NET INCOME
A ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way:
Things that the business owns.
Cost of sales
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
Purchases of goods or services from suppliers on credit to whom the debt is not yet paid. Or a
Amounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments.
Things that the business owns and are part of the business infrastructure â€“ fixed assets may be
Intangible fixed assets
Non-physical assets, e.g. customer goodwill or intellectual property (patents and trademarks).
A payment made in advance of when it is treated as an expense for profit purposes.
The mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs.
Tangible fixed assets
Physical assets that can be seen and touched, e.g. buildings, machinery, vehicles, computers etc.
Items owned by the company or expenses that have been paid for but have not been used up.
The amount of accounts receivable that is not expected to be collected.
assets owned by the company that do not possess physical substance; they usually take the form of rights and privileges such as patents, copyrights, and franchises.
Amounts earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue.
A contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales.
A journal used to record the transactions that result in a credit to sales.
A contra account that offsets revenue. It represents the amount of sales made that were later returned.
Refers to accounts receivable from credit sales to customers
Current refers to cash and those assets that will be turned
An informal term that refers to the variety of long-term operating
return on assets (ROA)
Although there is no single uniform practice for
return on sales
This ratio equals net income divided by sales revenue.
Fixed Assets Turnover Ratio
A measure of the utilization of a company's fixed assets to
Return on Total Assets Ratio
A measure of the percentage return earned on the value of the
Total Debt to Total Assets Ratio
See debt ratio
the relative combination of quantities of sales of the various products that make up the total sales of a company
sales value at split-off allocation
a method of assigning joint cost to joint products that uses the relative sales values of the products at the split-off point as the proration basis; use of this method requires that all joint products
Short sale, short position
The sale of a security or financial instrument not
Allowance for bad debts
An offset to the accounts receivable balance, against which
The total sales recorded prior to sales discounts and returns.
Total revenue, less the cost of sales returns, allowances, and discounts.
A cluster of accounts that are listed after fixed assets on the balance sheet,
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