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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.
An offset to the accounts receivable balance, against which
A firm's productive resources.
Anything of value that a company owns.
Things that the business owns.
Items owned by the company or expenses that have been paid for but have not been used up.
A common element of a financial plan that describes projected capital spending and the
A debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period.
The amount of accounts receivable that is not expected to be collected.
Refers to accounts receivable from credit sales to customers
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,
A type of agreement to sell whereby a seller retains title to goods sold and delivered to a purchaser until full payment has been made.
Conditional Sale Agreement
An agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands.
Conditional sales contracts
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
Contingent deferred sales charge (CDSC)
The formal name for the load of a back-end load fund.
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
Value of cash, accounts receivable, inventories, marketable securities and other assets that
Cash, things that will be converted into cash within a year (such as accounts receivable), and inventory.
Amounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments.
Current refers to cash and those assets that will be turned
Cash and other company assets that can be readily turned into cash within one year.
Days' sales in inventory ratio
The average number of days' worth of sales that is held in inventory.
Days' sales outstanding
Average collection period.
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
Exchange of assets
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.
Claims to the income generated by real assets. Also called securities.
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.
Things that the business owns and are part of the business infrastructure – fixed assets may be
An informal term that refers to the variety of long-term operating
Land, buildings, plant, equipment, and other assets acquired for carrying on the business of a company with a life exceeding one year. Normally expressed in financial accounts at cost, less accumulated depreciation.
Fixed Assets Turnover Ratio
A measure of the utilization of a company's fixed assets to
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
Up-front gain recognized from the securitization and sale of a pool
The total sales recorded prior to sales discounts and returns.
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).
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.
Intangible fixed assets
Non-physical assets, e.g. customer goodwill or intellectual property (patents and trademarks).
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
Longer-Term Fixed Assets
assets 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.
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
Total revenue, less the cost of sales returns, allowances, and discounts.
NET SALES (revenue)
The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
A tangible asset with unique physical properties, like a parcel of land, a mine, or a
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 haven’t been collected yet.
A transaction in which the seller's intention is to create or increase a short position in a given
A cluster of accounts that are listed after fixed assets on the balance sheet,
Other current assets
Value of non-cash assets, including prepaid expenses and accounts receivable, due
percentage of sales models
Planning model in which sales forecasts are the driving variables and most other variables are
assets, the title of which are held Personally rather than in the name of some other legal entity.
A legal document whereby an individual takes responsibility for payment of debt or performance of some obligation if the Person/company primarily liable fails to perform.
Personal Line of credit (Credit Insurance)
A bank's commitment to make loans to a borrower up to a specified maximum during a specific period, usually one year.
personal line of credit (PLC)
A revolving source of credit with a pre-established limit. You access the funds only as you need them, and any amount that you pay back becomes accessible to you again. Unlike a Personal loan, a PLC permits you to write cheques and make bank machine withdrawals, and requires you to pay interest only on the funds that you actually use.
A lump sum that you borrow from a financial institution for a specified period of time. To repay the loan, you pay interest on the entire lump sum, and make payments on a scheduled basis.
Personal Overdraft Facility
A loan facility on a customers account at a financial institution allowing the customer to overdraw up to a certain agreed limit for an agreed period.
Personal Responsibility and Work Opportunity Reconciliation Act
A federal Act requiring the reporting of new hires into a national database.
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.
PIN (personal identification number)
A secret code that you use to access your bank account at a bank machine or at a point of sale (POS) terminal. You may also have a PIN for banking by telephone.
point of sale (POS)
The terminal at which a customer uses his/her debit card to make a direct payment transaction. See also Interac Direct Payment.
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. Preferred stock typically does not carry the right to vote.
A payment made in advance of when it is treated as an expense for profit purposes.
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.
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. Here’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:
Identifiable assets, such as buildings, equipment, patents, and trademarks, as distinguished from a
assets used to produce goods and services.
Realizable Revenue A revenue transaction where assets received in exchange for goods and
services are readily convertible into known amounts of cash or claims to cash.
The length of time given a borrower by a lender to repay a debt and the frequency of principal payments which the borrower has to meet.
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 assets (ROA)
Although there is no single uniform practice for
return on sales
This ratio equals net income divided by sales revenue.
Return on total assets
The ratio of earnings available to common stockholders to total assets.
Return on Total Assets Ratio
A measure of the percentage return earned on the value of the
Sale and lease-back
sale of an existing asset to a financial institution that then leases it back to the user.
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