|Net book value
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Definition of Net book value
Net book value
The current book value of an asset or liability; that is, its original book value net of any
Generally, book income as a proportion of net book value.
Same as PV, but usually includes a subtraction for an initial cash outlay.
the value in todayâ€™s dollars of cash flows that occur in different time periods.
The net present value analysis of an asset if financed solely by equity
With respect to convertible bonds, the value the security would have if it were not convertible
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
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
An amount the insurance company will pay if the policyholder ends a whole life
Also called parity value, the value of a convertible security if it is converted immediately.
European Monetary System (EMS)
An exchange arrangement formed in 1979 that involves the currencies
The amount of advantage over a current market transaction provided by an in-the-money
The weighted average of a probability distribution.
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
Offsetting exposures in one currency with exposures in the same or another currency,
Extraordinary positive value
A positive net present value.
See: Par value.
Firm's net value of debt
Total firm value minus total firm debt.
The amount of cash at a specified date in the future that is equivalent in value to a specified
International Monetary Fund
An organization founded in 1944 to oversee exchange arrangements of
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial
Intrinsic value of an option
The amount by which an option is in-the-money. An option which is not in-themoney
Intrinsic value of a firm
The present value of a firm's expected future net cash flows discounted by the
Limit order book
A record of unexecuted limit orders that is maintained by the specialist. These orders are
net amount that could be realized by selling the assets of a firm after paying the debt.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
1) The price at which a security is trading and could presumably be purchased or sold.
Market value ratios
Ratios that relate the market price of the firm's common stock to selected financial
Market value-weighted index
An index of a group of securities computed by calculating a weighted average
Market price of a share divided by book value per share.
A bank runs a matched book when the distribution of maturities of its assets and liabilities are equal.
Related: par value.
Gold held by governmental authorities as a financial asset.
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Net adjusted present value
The adjusted present value minus the initial cost of an investment.
Net advantage of refunding
The net present value of the savings from a refunding.
Net advantage to leasing
The net present value of entering into a lease financing arrangement rather than
Net advantage to merging
The difference in total post- and pre-merger market value minus the cost of the merger.
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share
The difference between total assets on the one hand and current liabilities and noncapitalized longterm
Net benefit to leverage factor
A linear approximation of a factor, T*, that enables one to operationalize the
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
This is the difference between a day's last trade and the previous day's last trade.
Net errors and omissions
In balance of payments accounting, net errors and omissions record the statistical
Net financing cost
Also called the cost of carry or, simply, carry, the difference between the cost of financing
Sum of disbursement float and collection float.
The company's total earnings, reflecting revenues adjusted for costs of doing business,
Gross, or total, investment minus depreciation.
A lease arrangement under which the lessee is responsible for all property taxes, maintenance
Net operating losses
Losses that a firm can take advantage of to reduce taxes.
Net operating margin
The ratio of net operating income to net sales.
The period of time between the end of the discount period and the date payment is due.
Net present value (NPV)
The present value of the expected future cash flows minus the cost.
Net present value of growth opportunities
A model valuing a firm in which net present value of new
Net present value of future investments
The present value of the total sum of NPVs expected to result from
Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs
Net profit margin
net income divided by sales; the amount of each sales dollar left over after all expenses
Net salvage value
The after-tax net cash flow for terminating the project.
Net working capital
Current assets minus current liabilities. Often simply referred to as working capital.
Common stockholders' equity which consists of common stock, surplus, and retained earnings.
Reducing transfers of funds between subsidiaries or separate companies to a net amount.
To get or bring in as a net; to clear as profit.
See: unmatched book.
Original face value
The principal amount of the mortgage as of its issue date.
Also called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date.
Reducing fund transfers between affiliates to only a netted amount. netting can be done on
The amount of cash today that is equivalent in value to a payment, or to a stream of payments,
Present value factor
Factor used to calculate an estimate of the present value of an amount to be received in
Present value of growth opportunities (NPV)
net present value of investments the firm is expected to make
Compares a stock's market value to the value of total assets less total liabilities (book
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
The attractiveness measured in terms of risk, liquidity, and return of one instrument relative to
Current cost of replacing the firm's assets.
Usually refers to the value of a lessor's property at the time the lease expires.
The minimum available return that will trigger an immunization strategy in a contingent
Scrap value of plant and equipment.
See: unmatched book.
SIMEX (Singapore International Monetary Exchange)
A leading futures and options exchange in Singapore.
Also called the normal deviate, the distance of one data point from the mean, divided by
Set of books kept by firm management for its annual report that follows Financial
Also called investment value, the value of a convertible security without the con-version option.
Set of books kept by a firm's management for the IRS that follows IRS rules. The stockholder's
The value of a bond at maturity, typically its par value, or the value of an asset (or an entire
Time value of an option
The portion of an option's premium that is based on the amount of time remaining
Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar
If the average maturity of a bank's liabilities is less than that of its assets, it is said to be
The welfare a given investor assigns to an investment with a particular return and risk.
Method of indirect taxation whereby a tax is levied at each stage of production on the value
Value-at-Risk model (VAR)
Procedure for estimating the probability of portfolio losses exceeding some
Value additivity principal
Prevails when the value of a whole group of assets exactly equals the sum of the
In the market for Eurodollar deposits and foreign exchange, value date refers to the delivery date
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