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Definition of Mentor
A close personal contact, usually in your industry who has a network of contacts in the investment community and can assist a person in achieving their objectives.
Gives the lessee the option to purchase the asset at a price below fair market
The use of capital to create more money through the addition of fixed assets or through income producing vehicles.
To buy at the end of the trading session at a price within the closing range.
Refers to various techniques and procedures
Money used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses.
The period at the end of the trading session. Sometimes used to refer to closing price. Related:
An economy in which imports and exports are very small relative to GDP and so are ignored in macroeconomic analysis. Contrast with open economy.
An investment company that sells shares like any other corporation and usually does not
Mortgage against which no additional debt may be issued.
A transaction in which the purchaser's intention is to reduce or eliminate a short position in
The purchase by investors of securities directly from the issuer.
Automatic reinvestment of shareholder dividends in more shares of a
A plan that an employer creates on behalf of its
Through equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock.
The return one can expect to earn on an investment. See: capital asset
Economic assistance provided by unrelated third parties, typically government agencies. They may take the form of loans, loan guarantees, subsidies, tax allowances, contributions, or cost-sharing arrangements.
objectives of a financial nature that the firm will strive to accomplish during the period
Foreign direct investment (FDI)
The acquisition abroad of physical assets such as plant and equipment, with
Future investment opportunities
The options to identify additional, more valuable investment opportunities
A phase of development in which a company experiences rapid earnings growth as it produces
guaranteed investment certificate (GIC)
A GIC is an investment that gives you a guaranteed rate of return over a fixed period of time, usually between 30 days and 5 years. GICs are available from banks, trust companies, and other financial institutions.
Guaranteed investment contract (GIC)
A pure investment product in which a life company agrees, for a
A financial chart usually used to plot the high, low,
The category describing a company's primary business activity. This category is usually determined
The commitment of funds (capital) in anticipation of an increased
Related: financial analysts
Financial intermediaries who perform a variety of services, including aiding in the sale of
Middleman between a corporation issuing new securities and the public. The middleman buys the securities issue outright and then resells it to customers. Also called an underwriter.
a responsibility center in which the manager
A division or unit of an organization that is responsible for achieving an adequate return on
a judgment about which assets will be
Decisions concerning the asset side of a firm's balance sheet, such as the decision to
Bonds rated Baa or above by Moody’s or BBB or above by Standard & Poor’s.
Investment grade bonds
A bond that is assigned a rating in the top four categories by commercial credit
The revenue from a portfolio of invested assets.
Also called a portfolio manager and money manager, the individual who manages a
Investment product line (IPML)
The line of required returns for investment projects as a function of beta
Expenditures on capital goods including new housing. Financial ''investments" and sales of existing assets are not included.
Investment tax credit
Proportion of new capital investment that can be used to reduce a company's tax bill
Investment Tax Credit
A reduction in taxes offered to firms to induce them to increase investment spending.
A closed-end fund regulated by the investment Company Act of 1940. These funds have a
As a discipline, the study of financial securities, such as stocks and bonds, from the investor's
investments that a regulated entity is permitted to make under the rules and regulations
Management/closely held shares
Percentage of shares held by persons closely related to a company, as
A phase of company development in which earnings continue to grow at the rate of the
For mutual funds, the amount required to open a new account (Minimum Initial
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Mutually exclusive investment decisions
investment decisions in which the acceptance of a project
Gross, or total, investment minus depreciation.
investment spending minus depreciation.
Net present value of future investments
The present value of the total sum of NPVs expected to result from
a flexible organization structure that
Open-market purchase operation
A systematic program of repurchasing shares of stock in market
open purchase ordering
a process by which a single purchase
A transaction in which the purchaser's intention is to create or increase a long position in
Passive investment management
Buying a well-diversified portfolio to represent a broad-based market
Passive investment strategy
See: passive management.
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.
the process of gathering information
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.
To buy, to be long, to have an ownership position.
Method of accounting for a merger in which the acquirer is treated as having purchased
As used in connection with project financing, an agreement to purchase a specific
This legal document records the final understanding of the parties with respect to the proposed transaction.
Purchase and sale
A method of securities distribution in which the securities firm purchases the securities
A contra account that reduces purchases by the amount of the discounts taken for early payment.
Resembles a sinking fund except that money is used only to purchase bonds if they are selling
Accounting for an acquisition using market value for the consolidation of the two entities'
An accounting method used to combine the financial statements of
Price actually paid for a security. Typically the purchase
A contra account that reduces purchases by the amount of items purchased that were subsequently returned.
Purchased In-Process Research and Development
Unfinished research and development that is acquired from another firm.
Items purchased by the company for the purpose of resale.
A journal used to record the transactions that result in a credit to accounts payable.
the quoted price of inventory minus any
Purchasing power parity
The notion that the ratio between domestic and foreign price levels should equal
Purchasing Power Parity
Theory that says that over the long run exchange rate changes offset any difference between foreign and domestic inflation. This result assumes that the real exchange rate remains constant, something that is not true even in the long run.
purchasing power parity (PPP)
Theory that the cost of living in different countries is equal, and exchange rates adjust to offset inflation differentials across countries.
Related: inflation risk
qualified investments (Canada)
Qualified investments is the term used for investments that can be held in an RSP. These investments generally include:
Regular Investment Plan (RIP)
A plan under which you may make regular deposits of the same amount to your Mutual Funds account once a month, once every 2 weeks, or once a week. You can also make regular deposits up to four times a month on any dates you choose.
an assumption made about the rates of return that will be earned by intermediate cash flows from a capital project; NPV and PI assume reinvestment at the discount rate; IRR assumes reinvestment at the IRR
The rate at which an investor assumes interest payments made on a debt security can be
The risk that proceeds received in the future will have to be reinvested at a lower potential
REIT (real estate investment trust)
Real estate investment trust, which is similar to a closed-end mutual
Relative purchasing power parity (RPPP)
Idea that the rate of change in the price level of commodities in
REMIC (real estate mortgage investment conduit)
A pass-through tax entity that can hold mortgages
An agreement with a commitment by the seller (dealer) to buy a security back from
Repurchase of stock
Device to pay cash to firm's shareholders that provides more preferable tax treatment
return on investment
a ratio that relates income generated
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