Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: business, inventory, payroll, financial, accounting, stock trading, credit, tax advisor,
Definition of Membership
or a seat on the exchange A limited number of exchange positions that enable the holder to
The tendency of stocks preferred by the dividend discount model to share certain equity
Assuris is a not for profit organization that protects Canadian policyholders in the event that their life insurance company should become insolvent. Their role is to protect policyholders by minimizing loss of benefits and ensuring a quick transfer of their policies to a solvent company where their benefits will continue to be honoured. Assuris is funded by the life insurance industry and endorsed by government. If you are a Canadian citizen or resident, and you purchased a product from a member life insurance company in Canada, you are protected by Assuris.
Related: pure expectations theory.
A theory that spot prices at some future date will be equal to today's forward rates.
an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute
the present Value of a finite stream of cash flows for every beginning $1 of cash flow.
the additional Value inherent in the control interest as contrasted to a minority interest, which reflects its power of control
a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock.
an amount or percentage deducted from a pro rata share of the Value of 100% of an equity interest in a business, to reflect the absence of some or all of the powers of control.
an amount or percentage deducted from an equity interest to reflect lack of marketability.
Abramsâ€™ model for calculating DLOM based on the interaction of discounts from four economic components.
the rate of return on investment that would be required by a prudent investor to invest in an asset with a specific level risk. also, a rate of return used to convert a monetary sum, payable or receivable in the future, into present Value.
the combined discounts for lack of control and marketability. g the constant growth rate in cash flows or net Income used in the ADF, Gordon model, or present Value factor.
present Value of a perpetuity with growth.
Abramsâ€™ model to calculate discount rates as a function of the logarithm of the Value of the firm.
the period after an announcement of a takeover bid in which stock prices typically rise until a merger or acquisition is made (or until it falls through).
Ordinary least squares (OLS)
regression analysis a statistical technique that minimizes the sum of the squared deviations between a dependent variable and one or more independent variables and provides the user
NPV (net present value of cash flows)
Same as PV, but usually includes a subtraction for an initial cash outlay.
PV (present value of cash flows)
the Value in todayâ€™s dollars of cash flows that occur in different time periods.
QMDM (quantitative marketability discount model)
model for calculating DLOM for minority interests r the discount rate
the period before a formal announcement of a takeover bid in which one or more bidders are either preparing to make an announcement or speculating that someone else will.
earnings of a firm as reported on its Income statement.
Money owed to suppliers.
Money owed by customers.
Accounts receivable turnover
The ratio of net credit sales to average accounts receivable, a measure of how
Accretion (of a discount)
In portfolio accounting, a straight-line accumulation of capital gains on discount
Accumulated Benefit Obligation (ABO)
An approximate measure of the liability of a plan in the event of a
also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid
A protection against borrower fallout risk in the mortgage pipeline.
Adjustable rate preferred stock (ARPS)
Publicly traded issues that may be collateralized by mortgages and MBSs.
Adjusted present value (APV)
The net present Value analysis of an asset if financed solely by equity
After-tax profit margin
The ratio of net Income to net sales.
All equity rate
The discount rate that reflects only the business risks of a project and abstracts from the
All or none
Requirement that none of an order be executed unless all of it can be executed at the specified price.
Total costs, explicit and implicit.
An arrangement whereby a security issue is canceled if the underwriter is unable
American Depositary Receipts (ADRs)
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.
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,"
Annual percentage yield (APY)
The effective, or true, annual rate of return. The APY is the rate actually
The signal-to-noise ratio of an analyst's forecasts. The ratio of alpha to residual standard
Arbitrage-free option-pricing models
yield curve option-pricing models.
Arm's length price
The price at which a willing buyer and a willing unrelated seller would freely agree to
Articles of incorporation
Legal document establishing a corporation and its structure and purpose.
A dealer's price to sell a security; also called the offer price.
The ratio of total assets to stockholder equity.
Asset activity ratios
ratios that measure how effectively the firm is managing its assets.
Asset allocation decision
The decision regarding how an institution's funds should be distributed among the
Asset pricing model
A model for determining the required rate of return on an asset.
Asset pricing model
A model, such as the capital Asset Pricing model (caPM), that determines the required
An option is at-the-money if the strike price of the option is equal to the market price of the
Auction rate preferred stock (ARPS)
Floating rate preferred stock, the dividend on which is adjusted every
number of shares authorized for issuance by a firm's corporate charter.
Average age of accounts receivable
The weighted-average age of all of the firm's outstanding invoices.
Average cost of capital
A firm's required payout to the bondholders and to the stockholders expressed as a
also referred to as the weighted-average life (WAL). The average number of years that each
1) When bond yields and prices fall, the market is said to back-up.
Balance of trade
Net flow of goods (exports minus imports) between countries.
any large principal payment due at maturity for a bond or loan with or without a a sinking
Bank discount basis
A convention used for quoting bids and offers for treasury bills in terms of annualized
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
Bankruptcy cost view
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
Gives the lessee the option to purchase the asset at a price below fair market
Base probability of loss
The probability of not achieving a portfolio expected return.
Basic business strategies
key strategies a firm intends to pursue in carrying out its business plan.
price expressed in terms of yield to maturity or annual rate of return.
Related: Program trades.
Before-tax profit margin
The ratio of net Income before taxes to net sales.
Beta equation (Stocks)
The beta of a stock is determined as follows:
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
Bill of exchange
General term for a document demanding payment.
Binomial option pricing model
An option pricing model in which the underlying asset can take on only two
Black-Scholes option-pricing model
A model for pricing call options based on arbitrage arguments that uses
A large trading order, defined on the New York Stock exchange as an order that consists of
A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen
Large and creditworthy company.
Bond equivalent yield
Bond yield calculated on an annual percentage rate method. Differs from annual
With respect to convertible bonds, the Value the security would have if it were not convertible
The annualized yield to maturity computed by doubling the semiannual yield.
A banker or trader's positions.
cash A firm's cash balance as reported in its financial statements. also called ledger cash.
The cumulative book Income plus any gain or loss on disposition of the assets on termination of the SAT.
The managing underwriter for a new issue. The book runner maintains the book of securities sold.
A company's book Value is its total assets minus intangible assets and liabilities, such as debt. A
Book value per share
The ratio of stockholder equity to the average number of common shares. book Value
The 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
In the mortgage pipeline, the risk that prospective borrowers of loans committed to be
Bottom-up equity management style
A management style that de-emphasizes the significance of economic
Builder buydown loan
A mortgage loan on newly developed property that the builder subsidizes during the
Repetitive cycles of economic expansion and recession.
A business that has terminated with a loss to creditors.
The risk that the cash flow of an issuer will be impaired because of adverse economic
Mortgages in which Monthly payments consist of principal and interest, with portions of these
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is
exchange rate between British pounds sterling and the U.S.$.
List of new issues scheduled to come to market shortly.
The tendency of stocks to perform differently at different times, including such anomalies as
An option that gives the right to buy the underlying futures contract.
Call an option
To exercise a call option.
A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.