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Financial Terms | |
Posttrade benchmarks |
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Definition of Posttrade benchmarksPosttrade benchmarksPrices after the decision to trade.
Related Terms:Customized benchmarksA benchmark that is designed to meet a client's requirements and long-term Pre-trade benchmarksPrices occurring before or at the decision to trade. Accelerated depreciationAny depreciation method that produces larger deductions for depreciation in the accelerated depreciation(1) The estimated useful life of the fixed asset being depreciated is Accelerated depreciationAny of several methods that recognize an increased amount Accumulated depreciationA contra-fixed asset account representing the portion of the cost of a fixed asset that has been previously charged to expense. Each fixed asset account will have its own associated accumulated depreciation account. accumulated depreciationA contra, or offset, account that is coupled ![]() Accumulated depreciationThe sum total of all deprecation expense recognized to date Accumulated Other Comprehensive IncomeCumulative gains or losses reported in shareholders' 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 Annual PremiumYearly amount payable by a client for a policy or component. AppreciationAn increase in the perceived or actual value of an asset. AppreciationIncrease in the value of a currency. Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every Automatic Waiver of PremiumA benefit that automatically forfeits premium payments. ![]() Balance of Merchandise TradeThe difference between exports and imports of goods. Balance of tradeNet flow of goods (exports minus imports) between countries. Balance of TradeSee balance of merchandise trade. Basket tradesRelated: Program trades. Block tradeA large trading order, defined on the New York Stock Exchange as an order that consists of Bull spreadA spread strategy in which an investor buys an out-of-the-money put option, financing it by Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s Performance presentation Standards Implementation Comprehensive due diligence investigationThe investigation of a firm's business in conjunction with a control premiumthe additional value inherent in the control interest as contrasted to a minority interest, which reflects its power of control Conversion premiumThe percentage by which the conversion price in a convertible security exceeds the Convertible exchangeable preferred stockConvertible preferred stock that may be exchanged, at the Convertible preferred stockpreferred stock that can be converted into common stock at the option of the holder. Cost of Preferred StockThe rate of return required by the investors in the preferred stock of cost presentationthe approach to product costing that determines Counter tradeThe exchange of goods for other goods rather than for cash; barter. Credit spreadRelated:Quality spread Cumulative preferred stockpreferred stock whose dividends accrue, should the issuer not make timely Default premiumA differential in promised yield that compensates the investor for the risk inherent in default premiumDifference in promised yields between a default-free bond and a riskier bond. DepreciateTo allocate the purchase cost of an asset over its life. DepreciationA non-cash expense that provides a source of free cash flow. Amount allocated during the DepreciationA technique by which a company recovers the high cost of its plant-and-equipment assets gradually during the number of years they’ll be used in the business. Depreciation can be physical, technological, or both. DepreciationAn expense that spreads the cost of an asset over its useful life. depreciationRefers to the generally accepted accounting principle of allocating DepreciationReduction in value of fixed or tangible assets over some period DepreciationBoth the decline in value of an asset over time, as well as the gradual Depreciationa) Of capital stock: decline in the value of capital due to its wearing out or becoming obsolete. DepreciationThe systematic and rational allocation of the cost of property, plant, and equipment DepreciationAmortization of fixed assets, such as plant and equipment, so as to allocate the cost over their depreciable life. Depreciation AllowancesTax deductions that businesses can claim when they spend money on investment goods. Depreciation expenseAn expense account that represents the portion of the cost of an asset that is being charged to expense during the current period. Depreciation tax shieldThe value of the tax write-off on depreciation of plant and equipment. depreciation tax shieldReduction in taxes attributable to the depreciation allowance. DepressionA prolonged period of very low economic activity with large-scale unemployment. Double-declining-balance depreciationMethod of accelerated depreciation. 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 EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Effective spreadThe gross underwriting spread adjusted for the impact of the announcement of the common FHA prepayment experienceThe percentage of loans in a pool of mortgages outstanding at the origination Financial pressThat portion of the media devoted to reporting financial news. Flat trades1) A bond in default trades flat; that is, the price quoted covers both principal and unpaid, Floating-rate preferredpreferred stock paying dividends that vary with short-term interest rates. Floor traderA member who generally trades only for his own account, for an account controlled by him or Forward premiumA currency trades at a forward premium when its forward price is higher than its spot price. Forward tradeA transaction in which the settlement will occur on a specified date in the future at a price Free TradeThe absence of any government restrictions, such as tariffs or quotas, on imports or exports. Great DepressionThe period of very high unemployment during the early 1930s. Gross spreadThe fraction of the gross proceeds of an underwritten securities offering that is paid as Horizontal spreadThe simultaneous purchase and sale of two options that differ only in their exercise date. Information-motivated tradestrades in which an investor believes he or she possesses pertinent Informationless tradestrades that are the result of either a reallocation of wealth or an implementation of an Intermarket spread swapsAn exchange of one bond for another based on the manager's projection of a Intramarket sector spreadThe spread between two issues of the same maturity within a market sector. For Involuntary liquidation preferenceA premium that must be paid to preferred or preference stockholders if Lag response of prepaymentsThere is typically a lag of about three months between the time the weighted Level PremiumA premium that remains unchanged throughout the life of a policy Level Premium Life InsuranceThis is a type of insurance for which the cost is distributed evenly over the premium payment period. The premium remains the same from year to year and is more than actual cost of protection in the earlier years of the policy and less than the actual cost of protection in the later years. The excess paid in the early years builds up a reserve to cover the higher cost in the later years. Liquidity preference hypothesisThe argument that greater liquidity is valuable, all else equal. Also, the Liquidity premiumForward rate minus expected future short-term interest rate. market risk premiumRisk premium of market portfolio. Difference between market return and return on risk-free Treasury bills. Market segmentation theory or preferred habitat theoryA biased expectations theory that asserts that the maturity premiumExtra average return from investing in longversus short-term Treasury securities. Maturity spreadThe spread between any two maturity sectors of the bond market. Monthly income preferred security (MIP)preferred stock issued by a subsidiary located in a tax haven. Net adjusted present valueThe adjusted present value minus the initial cost of an investment. Net present valueA discounted cash flow methodology that uses a required rate of net present value methoda process that uses the discounted Net present value (NPV)The present value of the expected future cash flows minus the cost. Net present value (NPV)A discounted cash flow technique used for investment appraisal that calculates the present value of future cash flows and deducts the initial capital investment. net present value (NPV)Equals the present value (PV) of a capital investment Net Present Value (NPV)The present value of all future cash inflows minus the present value net present value (NPV)the difference between the present values of all cash inflows and outflows for an investment project net present value (NPV)present value of cash flows minus initial investment. Net Present Value (NPV) MethodA method of ranking investment proposals. NPV is equal to the present value of the future returns, discounted at the marginal cost of capital, minus the present value of the cost of the investment. Net present value of future investmentsThe present value of the total sum of NPVs expected to result from Net present value of growth opportunitiesA model valuing a firm in which net present value of new Net present value ruleAn investment is worth making if it has a positive NPV. Projects with negative NPVs Non-cumulative preferred stockpreferred stock whose holders must forgo dividend payments when the North American Free Trade Agreement (NAFTA)an agreement among Canada, Mexico, and the United States establishing the North American Free trade Zone, with a resulting reduction in trade barriers NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. Option-adjusted spread (OAS)1) The spread over an issuer's spot rate curve, developed as a measure of Option premiumThe option price. Pre-Authorized Cheque (PAC)Withdrawals generated by a company (with client's permission) against a client's bank account on a predetermined schedule for a predetermined amount. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |