|management expense ratio (MER)|
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Definition of management expense ratio (MER)
management expense ratio (MER)
The total expenses expressed as an annualized percentage of daily average net assets. mer does not include brokerage fees and commissions, which are also payable by the Fund.
Capital rationing that under certain circumstances can be violated or even viewed
The use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result.
A characterization used by the Securities and Exchange
Clause causing repayment of a debt, if specified events occur or are not met.
Belief that an effort to keep unemployment below its natural rate results in an accelerating inflation.
A ratio computed by dividing annual
expenses 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.
The account that records the short-term, noninterest-
Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid
A ratio that shows how well a company could pay its current debts using only its most liquid or “quick” assets. It’s a more pessimistic—but also realistic—measure of safety than the current ratio, because it ignores sluggish, hard-toliquidate current assets like inventory and notes receivable. Here’s the formula:
See quick ratio
The sum of cash, accounts receivable, and short-term marketable
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
Cash flow provided by operating
Certificates issued by a U.S. depositary bank, representing foreign
An option that may be exercised at any time up to and including the expiration date.
An option that can be exercised any time until its
Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign
American Stock Exchange (AMEX)
The second-largest stock exchange in the United States. It trades
An option contract that can be exercised at any time between the date of purchase and
Annual fund operating expenses
For investment companies, the management fee and "other expenses,"
The signal-to-noise ratio of an analyst's forecasts. The ratio of alpha to residual standard
Articles of incorporation
Legal document establishing a corporation and its structure and purpose.
Asset activity ratios
ratios that measure how effectively the firm is managing its assets.
The ratio of total assets to stockholder equity.
Also called surplus management, the task of managing funds of a financial
asset turnover ratio
A broad-gauge ratio computed by dividing annual
Balance of Merchandise Trade
The difference between exports and imports of goods.
Basic Earnings Power Ratio
Percentage of earnings relative to total assets; indication of how
Benefit Ratio Method
The proportion of unemployment benefits paid to a company’s
Benefit Wage Ratio Method
The proportion of total taxable wages for laid off
Bottom-up equity management style
A management style that de-emphasizes the significance of economic
Canadian Deposit Insurance Corporation
Better known as CDIC, this is an organization which insures qualifying deposits and GICs at savings institutions, mainly banks and trust companys, which belong to the CDIC for amounts up to $60,000 and for terms of up to five years. Many types of deposits are not insured, such as mortgage-backed deposits, annuities of duration of more than five years, and mutual funds.
Placing one or more limits on the amount of new investment undertaken by a firm, either
a condition that exists when there is an
Limit set on the amount of funds available for investment.
Also called financial leverage ratios, these ratios compare debt to total capitalization
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
Cash Flow–to–Income Ratio (CFI)
Adjusted cash flow provided by continuing operations
CASH FLOWS FROM OPERATIONS
A section on the cash-flow Stockholders’ equity statement that shows how much cash came into a company and how much went out during the normal course of business.
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
The proportion of a firm's assets held as cash.
ratio of cash and cash equivalents to liabilities; in the case of a bank, the ratio of cash to total deposit liabilities.
Certified Management Accountant (CMA)
a professional designation in the area of management accounting that
Chicago Mercantile Exchange (CME)
A not-for-profit corporation owned by its members. Its primary
A privately owned, profit-seeking firm that accepts deposits and makes loans.
Commercial Business Loan (Credit Insurance)
An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for business purposes.
Demand for payment.
A loan made on real estate collateral, other than a residential property, in which a mortgage is given to secure payment of principal and interest.
Short-term unsecured promissory notes issued by a corporation. The maturity of
Short-term unsecured notes issued by firms.
The risk that a foreign debtor will be unable to pay its debts because of business events,
Common stock ratios
ratios that are designed to measure the relative claims of stockholders to earnings
A single centralized account into which funds collected at regional locations
System whereby customers make payments to a regional collection center which transfers funds to
Movement of cash from different lockbox locations into a single concentration
A review of all engineering documentation used as the basis
Verifying that a delivered product matches authorizing
A firm engaged in two or more unrelated businesses.
A merger involving two or more firms that are in unrelated businesses.
Credit granted by a firm to consumers for the purchase of goods or services. Also called
Consumer Credit Protection Act
A federal Act specifying the proportion of
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Consumer Price Index (CPI)
An index calculated by tracking the cost of a typical bundle of consumer goods and services over time. It is commonly used to measure inflation.
contribution margin ratio
the proportion of each revenue dollar remaining after variable costs have been covered;
Controlled foreign corporation (CFC)
A foreign corporation whose voting stock is more than 50% owned
The number of shares of common stock that the security holder will receive from
Corporate financial management
The application of financial principals within a corporation to create and
A legal "person" that is separate and distinct from its owners. A corporation is allowed to own
A legal entity, organized under state laws, whose investors purchase
Business owned by stockholders who are not personally
The net present value of an investment divided by the investment's initial cost. Also called
cost management system (CMS)
a set of formal methods
ratios used to test the adequacy of cash flows generated through earnings for purposes of
Restriction of loans by lenders so that not all borrowers willing to pay the current interest rate are able to obtain loans.
Current Income Tax Expense
That portion of the total income tax provision that is based on
Indicator of short-term debt paying ability. Determined by dividing current assets by current
A ratio that shows how many times a company could pay its current debts if it used its current assets to pay them. The formula:
Calculated to assess the short-term solvency, or debt-paying
A measure of the ability of a company to use its current assets to
Current assets divided by current liabilities. This ratio indicates the extent to which the claims of short-term creditors are covered by assets expected to be converted to cash in the near future.
Customary payout ratios
A range of payout ratios that is typical based on an analysis of comparable firms.
Days' sales in inventory ratio
The average number of days' worth of sales that is held in inventory.
Indicator of financial leverage. Compares assets provided by creditors to assets provided
A comparison of debt to equity in a company's capital structure.
Total debt divided by total assets.
The percentage of debt that is used in the total capitalization of a
Debt-service coverage ratio
Earnings before interest and income taxes plus one-third rental charges, divided
A widely used financial statement ratio to assess the
The date on which a firm's directors meet and announce the date and amount of the next
The date on which the board of directors has declared a dividend.
Deferred Income Tax Expense
That portion of the total income tax provision that is the result
Demand Management Policy
Fiscal or monetary policy designed to influence aggregate demand for goods and services.
An expense account that represents the portion of the cost of an asset that is being charged to expense during the current period.
Disclaimer of opinion
An auditor's statement disclaiming any opinion regarding the company's financial
A business segment that has been or is planned to be closed or sold off.
Net income and the gain or loss on disposal of a business segment whose assets and operations are clearly distinguishable from the other assets and operations of an entity.
Dividend payout ratio
Percentage of earnings paid out as dividends.
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