Financial Terms | |
Point |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: business, credit, finance, inventory, financial advisor, tax advisor, payroll, inventory control, |
Definition of PointPointThe smallest unit of price change quoted or, one one-hundredth of a percent. Related: minimum price
Related Terms:Basis pointIn the bond market, the smallest measure used for quoting yields is a basis point. Each percentage Basis PointOne one-hundredth of one percent Basis pointOne hundredth of one percentage point, or 0.0001. Basis PointOne one-hundredth of a percentage point, used to express variations in yields. For example, the difference between 5.36 percent and 5.38 percent is 2 basis points. Bond pointsA conventional unit of measure for bond prices set at $10 and equivalent to 1% of the $100 face break-even point (BEP)the level of activity, in units or dollars, at which total revenues equal total costs Breakeven pointThe point at which total costs equal total revenue, i.e. where there is neither a profit nor a loss. breakeven pointThe annual sales volume level at which total contribution Breakeven pointThe sales level at which a company, division, or product line makes a Cash-flow break-even pointThe point below which the firm will need either to obtain additional financing Delivery pointsThose points designated by futures exchanges at which the financial instrument or Free-on-Board (FOB) Shipping PointA shipping arrangement agreed to between buyer and Order penetration pointThe point in the production process when a product is order pointthe level of inventory that triggers the placement Outbound stock pointA designated inventory location on the shop floor between Point and figure chartA price-only chart that takes into account only whole integer changes in price, i.e., a Point and figure chartA financial chart usually used to plot asset price data. point of sale (POS)The terminal at which a customer uses his/her debit card to make a direct payment transaction. See also Interac Direct Payment. Point-of-use deliveryA delivery of stock to a location in or near the shop floor Point-of-use storageThe storage of stock in a location in or near the shop floor Price value of a basis point (PVBP)Also called the dollar value of a basis point, a measure of the change in split-off pointthe point at which the outputs of a joint process are first identifiable or can be separated as individual products Split-off pointThe point in a production process when clearly identifiable joint costs StockpointAn inventory storage area used for short-term inventory staging. Turning PointThe trough or peak of a business cycle. approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a Balance sheetA report that summarizes all assets, liabilities, and equity for a company Barrier optionsContracts with trigger points that, when crossed, automatically generate buying or selling of BeneficiaryThis is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "Creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. Probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario. Beta riskRisk of a firm measured from the standpoint of an investor who holds a highly diversified portfolio. Break-EvenThis is a term used to describe a point at which revenues equal costs. Break-Even AnalysisAn analytical technique for studying the relationships between fixed cost, variable cost, and profits. A breakeven chart graphically depicts the nature of breakeven analysis. The breakeven point represents the volume of sales at which total costs equal total revenues (that is, profits equal zero). Bullet strategyA strategy in which a portfolio is constructed so that the maturities of its securities are highly Contingent immunizationAn arrangement in which the money manager pursues an active bond portfolio contribution marginAn intermediate measure of profit equal to sales revenue Corporate financeOne of the three areas of the discipline of finance. It deals with the operation of the firm Cross-sectional approachA statistical methodology applied to a set of firms at a particular point in time. debit cardA card which enables you to directly access your bank account when paying for purchases. So instead of paying in cash or with a credit card, a debit card allows the specified amount of the purchase to be electronically debited, or withdrawn, from your bank account. See Interac Direct Payment for an explanation of the actual procedures that you follow at the point of sale (POS) terminal to use your debit card. Debt capacityAbility to borrow. The amount a firm can borrow up to the point where the firm value no defective unita unit that has been rejected at a control inspection Difference from S&PA mutual fund's return minus the change in the Standard & Poors 500 Index for the discounted cash flow (DCF)Refers to a capital investment analysis technique discrete lossa reduction in units that occurs at a specific dispersionthe degree of variability or difference; it is measured Equilibrium market price of riskThe slope of the capital market line (CML). Since the CML represents the Exit valueThe value that an asset is expected to have at the time it is sold at a predetermined Expiration cycleAn expiration cycle relates to the dates on which options on a particular security expire. A Federal funds rateThis is the interest rate that banks with excess reserves at a Federal Reserve district bank fixed expenses (costs)Expenses or costs that remain the same in amount, GNMA-IIMortgage-backed securities (MBS) on which registered holders receive an aggregate principal and incremental separate costthe cost that is incurred for each Insured Retirement PlanThis is a recently coined phrase describing the concept of using Universal Life Insurance to tax shelter earnings which can be used to generate tax-free income in retirement. The concept has been described by some as "the most effective tax-neutralization strategy that exists in Canada today." Interac® Direct PaymentInstead of paying with cash or a credit card, Interac Direct Payment allows you to pay for your purchase with a debit card, such as your bank card. The amount of the purchase is electronically debited, or withdrawn, from your bank account (see debit card). internal rate of return (IRR)The precise discount rate that makes the InvestmentThe commitment of funds (capital) in anticipation of an increased InvestmentsAs a discipline, the study of financial securities, such as stocks and bonds, from the investor's joint costthe total of all costs (direct material, direct labor, Leading IndicatorA variable that reaches a turning point (a peak or a trough) before the economy reaches a turning point. least squares regression analysisa statistical technique that investigates the association between dependent and independent variables; it determines the line of "best fit" for a set of observations by minimizing the sum of the squares Linear regressionA statistical technique for fitting a straight line to a set of data points. LiquidatorPerson appointed by unsecured creditors in the United Kingdom to oversee the sale of an Log-linear least-squares methodA statistical technique for fitting a curve to a set of data points. One of the margin of safetythe excess of the budgeted or actual sales Market cycleThe period between the 2 latest highs or lows of the S&P 500, showing net performance of a MezzanineStage of a company's development just prior to going public, in Venture Capital language. Venture capitalists entering at that point have a lower risk of loss than at previous stages and can look forward to early capital appreciation as a result of the Market Value gained by an Initial Public Offering. Minimum price fluctuationSmallest increment of price movement possible in trading a given contract. Also Negative convexityA bond characteristic such that the price appreciation will be less than the price net realizable value at split-off allocationa method of allocating joint cost to joint products that uses, as the proration base, sales value at split-off minus all costs necessary Non-parallel shift in the yield curveA shift in the yield curve in which yields do not change by the same Opportunity costLost revenue that would otherwise have been realized if a different outlieran abnormal or nonrepresentative point within a data set Parallel shift in the yield curveA shift in the yield curve in which the change in the yield on all maturities is PeakThe upper turning point of a business cycle, where expansion turns into a contraction. 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. ReceiverA bankruptcy practitioner appointed by secured creditors in the United Kingdom to oversee the red-line systeman inventory ordering system in which a red RegistrarFinancial institution appointed to record issue and ownership of company securities. Remaining principal balanceThe amount of principal dollars remaining to be paid under the mortgage as of Sales value at split-offA cost allocation methodology that allocates joint costs to joint sales value at split-off allocationa method of assigning joint cost to joint products that uses the relative sales values of the products at the split-off point as the proration basis; use of this method requires that all joint products spoiled unita unit that is rejected at a control inspection Standardized valueAlso called the normal deviate, the distance of one data point from the mean, divided by statistical process control (SPC)the use of control techniques that are based on the theory that a process has natural variations in it over time, but uncommon variations steady-state phasethe point at which the learning curve becomes flat and only minimal improvements in performance are achieved Step costA cost that does not change steadily, but rather at discrete points. For example, Stopping curveA curve showing the refunding rates for different points in time at which the expected value Swap rateThe difference between spot and forward rates expressed in points, e.g., $0.0001 per pound sterling. Technological FeasibilityA point in the development of software when it is determined that Term SheetA list of the major points of the proposed financing being offered by an investor. Threshold for refinancingThe point when the WAC of an MBS is at a level to induce homeowners to TickRefers to the minimum change in price a security can have, either up or down. Related: point. Trade on top ofTrade at a narrow or no spread in basis points relative to some other bond yield, usually Transfer agentndividual or institution appointed by a company to look after the transfer of securities. TroughThe transition point between economic recession and recovery. TroughThe lower turning point of a business cycle, where a contraction turns into an expansion. VarianceA measure of dispersion of a set of data points around their mean value. The mathematical Yield curveThe graphical depiction of the relationship between the yield on bonds of the same credit quality Yield CurveA graphical representation of the level of interest rates for Z scoreStatistical measure that quantifies the distance (measured in standard deviations) a data point is from
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |