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Financial Terms | |
Opportunistic Behavior |
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Definition of Opportunistic BehaviorOpportunistic BehaviorUsing the flexibility inherent in GAAP to alter earnings so as to achieve desired outcomes.
Related Terms:"Soft" Capital RationingCapital rationing that under certain circumstances can be violated or even viewed Absolute AdvantageThe ability to produce a good or service with fewer resources than competitors. See also comparative advantage. Absolute priorityRule in bankruptcy proceedings whereby senior creditors are required to be paid in full Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. Absorption costingA method of costing in which all fixed and variable production costs are charged to products or services Using an allocation base. absorption costinga cost accumulation and reporting Absorption costingA methodology under which all manufacturing costs are assigned ![]() Abusive Earnings ManagementThe use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result. Abusive Earnings ManagementA characterization used by the Securities and Exchange Accounting earningsearnings of a firm as reported on its income statement. Accounting insolvencyTotal liabilities exceed total assets. A firm with a negative net worth is insolvent on acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable Adjusted EarningsNet income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss. Alternative mortgage instrumentsVariations of mortgage instruments such as adjustable-rate and variablerate basic earnings per share (EPS)This important ratio equals the net Basic Earnings Power RatioPercentage of earnings relative to total assets; indication of how ![]() Canadian Life and Health Insurance Association (CLHIA)An association of most of the life and health insurance companies in Canada that conducts research and compiles information about the life and health insurance industry in Canada. Comparison universeThe collection of money managers of similar investment style used for assessing ConsolA type of bond that has an infinite life but is not issued in the U.S. capital markets. Consolidated Omnibus Budget Reconciliation Act (COBRA)A federal Act ConsolidationThe combining of two or more firms to form an entirely new entity. ConsolidationA summarization of the financial statements of a parent company and Consortium banksA merchant banking subsidiary set up by several banks that may or may not be of the Core EarningsA measure of earnings that includes only the results of the primary operating Cost of goods soldThe cost of merchandise that a company sold this year. For manufacturing companies, the cost of raw Cost of goods soldSee cost of sales. Cost of goods soldThe cost of the items that were sold during the current period. ![]() Cost of goods soldThe accumulated total of all costs used to create a product or service, Cost of goods soldThe charge to expense of the direct materials, direct labor, and Cost Plus Estimated Earnings in Excess of BillingsRevenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts Crossover rateThe return at which two alternative projects have the same net present value. Deductive reasoningThe use of general fact to provide accurate information about a specific situation. diluted earnings per share (EPS)This measure of earnings per share Doctrine of sovereign immunityDoctrine that says a nation may not be tried in the courts of another country EarningsNet income for the company during the period. EarningsIn general, refers to a company's total sales less cost of sales and operating expenses, including interest and income tax. earnings before interest and income tax (EBIT)A measure of profit that Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working Earnings ManagementThe active manipulation of earnings toward a predetermined target. Earnings per ShareA measure of the earnings generated by a company on a per Earnings per share (EPS)EPS, as it is called, is a company's profit divided by its number of outstanding earnings per share (EPS)See basic earnings per share and diluted earnings per share. Earnings per share of common stockHow much profit a company made on each share of common stock this year. Earnings retention ratioPlowback rate. Earnings surprisesPositive or negative differences from the consensus forecast of earnings by institutions Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest EBBS - Earnings before the bad stuffAn acronym attributed to a member of the Securities and EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Economic earningsThe real flow of cash that a firm could pay out forever in the absence of any change in Employee stock ownership plan (ESOP)A company contributes to a trust fund that buys stock on behalf of Employee Stock Ownership Plan (ESOP)a profit-sharing compensation program in which investments are made in Employee Stock Ownership Plan (ESOP)A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer. enterprise resource planning (ERP) systema packaged software program that allows a company to Enterprise resource planning systemA computer system used to manage all company feasible solutiona solution to a linear programming problem Flat price (also clean price)The quoted newspaper price of a bond that does not include accrued interest. Fully diluted earnings per sharesearnings per share expressed as if all outstanding convertible securities GAAPSee generally accepted accounting principles. Generally Accepted Accounting Principals (GAAP)A technical accounting term that encompasses the generally accepted accounting principles (GAAP)This important term generally accepted accounting principles (GAAP)Procedures for preparing financial statements. Generally Accepted Accounting Principles (GAAP)A common set of standards and procedures Generally Accepted Accounting Principles (GAAP)GAAP is the term used to describe the underlying rules basis on which financial statements are normally prepared. This is codified in the Handbook of The Canadian Institute of Chartered Accountants. Government National Mortgage Association (Ginnie Mae)A wholly owned U.S. government corporation Government sponsored enterprisesPrivately owned, publicly chartered entities, such as the Student Loan Housing StartA new house on which construction has just begun. Inductive reasoningThe attempt to use information about a specific situation to draw a conclusion. Insolvency riskThe risk that a firm will be unable to satisfy its debts. Also known as bankruptcy risk. InsolventA firm that is unable to pay debts (liabilities are greater than assets). ISO 14000a series of international standards that are designed ISO 9000a comprehensive series of international quality standards Labour-Sponsored Venture FundsVenture capital corporations established by labour unions. They function as other venture capital corporations but are subject to government regulation. LessorAn entity that leases an asset to another entity. LessorAn entity that leases an asset to another entity. LessorThe entity that rents property that it owns to a second party in exchange for a LessorA person who grants a lease; the owner of the asset. Limitation on merger, consolidation, or saleA bond covenant that restricts in some way a firm's ability to Low price-earnings ratio effectThe tendency of portfolios of stocks with a low price-earnings ratio to Manufactured housing securities (MHSs)Loans on manufactured homes - that is, factory-built or Manufacturing resource planningAn integrated, computerized system for planning manufacturing resource planning (MRP II)a fully integrated materials requirement planning system that involves Manufacturing resource planning (MRP II)An expansion of the material requirements planning concept, with additional computer-based capabilities in the areas of National Futures Association (NFA)The futures industry self regulatory organization established in 1982. net income (also called the bottom line, earnings, net earnings, and netoperating earnings) ObsolescenceThe reduction in utility of an inventory item or fixed asset. If it is an Obsolete inventoryParts not used in any current end product. Operating EarningsA term frequently used to describe earnings after the removal of the Operational Earnings ManagementManagement actions taken in the effort to create stable optimal solutionthe solution to a linear programming problem Other sourcesAmount of funds generated during the period from operations by sources other than outsourcingthe use, by one company, of an external OutsourcingThe process of shifting a function previously performed internally outsourcing decisionsee make-or-buy decision Overbought/oversold indicatorAn indicator that attempts to define when prices have moved too far and too Pension sponsorsOrganizations that have established a pension plan. Personal AssetsAssets, the title of which are held personally rather than in the name of some other legal entity. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |