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Financial Terms | |
Prepackaged bankruptcy |
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Definition of Prepackaged bankruptcyPrepackaged bankruptcyA bankruptcy in which a debtor and its creditors pre-negotiate a plan or
Related Terms:BankruptcyState of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from bankruptcyThe reorganization or liquidation of a firm that cannot pay its debts. Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other Bankruptcy riskThe risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Bankruptcy viewThe argument that expected bankruptcy costs preclude firms from being financed entirely Legal bankruptcyA legal proceeding for liquidating or reorganizing a business. 401k PlanA retirement plan set up by an employer, into which employees can ![]() 403b PlanA retirement plan similar to a 401k plan, except that it is designed 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 Accounts payableMoney owed to suppliers. ACCOUNTS PAYABLEAmounts a company owes to creditors. Accounts payableAmounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually Accounts payable involves the receipt of an invoice from the company providing the services or goods. accounts payableShort-term, non-interest-bearing liabilities of a business Accounts payableAcurrent liability on the balance sheet, representing short-term obligations ![]() Accounts PayableAmounts due to vendors for purchases on open account, that is, not evidenced Accounts Payable Days (A/P Days)The number of days it would take to pay the ending balance Accrued expenses payableExpenses that have to be recorded in order for the financial Statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services. accrued expenses payableThe account that records the short-term, noninterest- 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' Acquisition of assetsA merger or consolidation in which an acquirer purchases the selling firm's assets. Act of state doctrineThis doctrine says that a nation is sovereign within its own borders and its domestic 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 Affirmative covenantA bond covenant that specifies certain actions the firm must take. Aggregate planningA budgeting process using summary-level information to Allowance for bad debtsAn offset to the accounts receivable balance, against which 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. AssetsA firm's productive resources. ASSETSAnything of value that a company owns. AssetsThings that the business owns. AssetsItems owned by the company or expenses that have been paid for but have not been used up. Assets requirementsA common element of a financial plan that describes projected capital spending and the Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every Automatic Benefits PaymentAutomatic payment of moneys derived from a benefit. Automatic Waiver of PremiumA benefit that automatically forfeits premium payments. Bad debtsThe amount of accounts receivable that is not expected to be collected. bad debtsRefers to accounts receivable from credit sales to customers Baker PlanA plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor Balance of paymentsA statistical compilation formulated by a sovereign nation of all economic transactions Balance of PaymentsThe difference between the demand for and supply of a country's currency on the foreign exchange market. Balance of Payments AccountsA Statement of a country's transactions with other countries. Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other Bankruptcy riskThe risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Bankruptcy viewThe argument that expected bankruptcy costs preclude firms from being financed entirely Best-interests-of-creditors testThe requirement that a claim holder voting against a plan of reorganization Bonds payableAmounts owed by the company that have been formalized by a legal document called a bond. Break-even lease paymentThe lease payment at which a party to a prospective lease is indifferent between Break-even payment rateThe prepayment rate of a MBS coupon that will produce the same CFY as that of Bull spreadA spread strategy in which an investor buys an out-of-the-money put option, financing it by Cafeteria PlanA flexible benefits plan authorized under the Internal Revenue cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Canada Pension Plan (CPP)A plan that provides retirement and long term disability income benefits to residents of Canadian provinces (excluding Quebec). CASH-FLOW STATEMENTA Statement that shows where a company’s cash came from and where it went for a period of time, such as a year. Cash Flow statementA financial report that shows the movement in cash for a business during an accounting period. Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s Performance presentation Standards Implementation common-size income statementIncome Statement that presents items as a percentage of revenues. CompetitionIntra- or intermarket rivalry between businesses trying to obtain a larger piece of the same Comprehensive due diligence investigationThe investigation of a firm's business in conjunction with a Confirmationhe written Statement that follows any "trade" in the securities markets. Confirmation is issued Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that contingent paycompensation that is dependent on the control premiumthe additional value inherent in the control interest as contrasted to a minority interest, which reflects its power of control Convention statementAn annual Statement filed by a life insurance company in each State where it does 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. Corporate financial planningFinancial planning conducted by a firm that encompasses preparation of both Cost of Preferred StockThe rate of return required by the investors in the preferred stock of cost presentationthe approach to product costing that determines Coupon paymentsA bond's interest payments. Credit spreadRelated:Quality spread CreditorsPurchases of goods or services from suppliers on credit to whom the debt is not yet paid. Or a Cumulative preferred stockpreferred stock whose dividends accrue, should the issuer not make timely Current assetsValue of cash, accounts receivable, inventories, marketable securities and other assets that Current assetsCash, things that will be converted into cash within a year (such as accounts receivable), and inventory. Current assetsAmounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments. current assetsCurrent refers to cash and those assets that will be turned Current AssetsCash and other company assets that can be readily turned into cash within one year. Current Tax Payment Act of 1943A federal Act requiring employers to withhold income taxes from employee pay. Customary payout ratiosA range of payout ratios that is typical based on an analysis of comparable firms. Date of paymentDate dividend checks are mailed. Debtor in possessionA firm that is continuing to operate under Chapter 11 bankruptcy process. Debtor-in-possession financingNew debt obtained by a firm during the Chapter 11 bankruptcy process. DebtorsSales to customers who have bought goods or services on credit but who have not yet paid their debt. 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. Defined benefit planA pension plan in which the sponsor agrees to make specified dollar payments to Defined Benefit PlanA pension plan that pays out a predetermined dollar Defined contribution planA pension plan in which the sponsor is responsible only for making specified Defined Contribution PlanA qualified retirement plan under which the employer Delivery versus paymentA transaction in which the buyer's payment for securities is due at the time of 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. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |