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Definition of Proxy vote
vote cast by one person on behalf of another.
Document intended to provide shareholders with information necessary to vote in an informed manner
A battle for the control of a firm in which the dissident group seeks, from the firm's other
Takeover attempt in which outsiders compete with management for shareholders’ votes. Also called proxy fight.
This clause in regular life insurance policy provides for voiding the contract of insurance for up to two years from the date of issue of the coverage if the life insured has failed to disclose important information or if there has been a misrepresentation of a material fact which would have prevented the coverage from being issued in the first place. After the end of two years from issue, a misrepresentation of smoking habits or age can still void or change the policy.
Legal designation that cannot be contested. (See beneficiary)
In October 1996 it was announced in the international news that scientists had finally located the link between cigarette smoking and lung cancer. In the early 1980's, some Canadian Life Insurance Companies had already started recognizing that non-smokers had a better life expectancy than smokers so commenced offering premium discounts for life insurance to new applicants who have been non-smokers for at least 12 months before applying for coverage. Today, most life insurance companies offer these discounts.
The option of terminating an investment earlier than originally planned.
Goods may be returned to the seller by the purchaser without restrictions.
The use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result.
A characterization used by the Securities and Exchange
Cumulative gains or losses reported in shareholders'
The sum of cash, accounts receivable, and short-term marketable
This doctrine says that a nation is sovereign within its own borders and its domestic
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
Cash flow provided by operating
A bond covenant that specifies certain actions the firm must take.
Total quantity of goods and services supplied.
Aggregate Supply Curve
Combinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not.
All or none
Requirement that none of an order be executed unless all of it can be executed at the specified price.
An arrangement whereby a security issue is canceled if the underwriter is unable
Allowance for doubtful accounts
A contra account related to accounts receivable that represents the amounts that the company expects will not be collected.
Allowance for Doubtful Accounts
An estimate of the uncollectible portion of accounts receivable
Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign
A right of shareholders in a merger to demand the payment of a fair price for their shares, as
Also called surplus management, the task of managing funds of a financial
information that is known to some people but not to other people.
An option is at-the-money if the strike price of the option is equal to the market price of the
Number of shares authorized for issuance by a firm's corporate charter.
The number of shares of stock that the company is legally authorized to sell.
1) When bond yields and prices fall, the market is said to back-up.
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
The reorganization or liquidation of a firm that cannot pay its debts.
Bankruptcy cost view
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
a listing of service departments in an order that begins with the one providing the most service
Bottom-up equity management style
A management style that de-emphasizes the significance of economic
The process of ensuring that actual financial results are in line with targets – see variance
Builder buydown loan
A mortgage loan on newly developed property that the builder subsidizes during the
Foreign bond issue made in London.
The foreign market in the United Kingdom.
Mortgages in which monthly payments consist of principal and interest, with portions of these
Call money rate
Also called the broker loan rate , the interest rate that banks charge brokers to finance
Cash Flow Forecast
An estimate of the timing and amount of a company's inflows and outflows of money measured over a specific period of time typically monthly for one to two years then annually for an additional one to three years.
Cash Flow Provided by Operating Activities
With some exceptions, the cash effects of transactions
Cash Flow Provided or Used from Financing Activities
Cash receipts and payments involving
Cash Flow Provided or Used from Investing Activities
Cash receipts and payments involving
A 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 statement
A financial report that shows the movement in cash for a business during an accounting period.
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
Certified Management Accountant (CMA)
a professional designation in the area of management accounting that
The combination of all of the individual opinions about a stock's or security's value.
Are equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends.
common-size income statement
Income statement that presents items as a percentage of revenues.
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
Raw materials or subassemblies used to make either finished goods
Verifying that a delivered product matches authorizing
he written statement that follows any "trade" in the securities markets. Confirmation is issued
Conflict between bondholders and stockholders
These two groups may have interests in a corporation that
The mean of all financial analysts' forecasts for a company.
Constant dollar accounting
A method for restating financial statements by reducing or
See real dollars.
Continuous random variable
A random value that can take any fractional value within specified ranges, as
an external party that has been granted an
50% of the outstanding votes plus one vote.
An account maintained in the general ledger that holds the balance without the detail. The detail is maintained in a subsidiary ledger.
a graphical presentation of the results of a
the additional value inherent in the control interest as contrasted to a minority interest, which reflects its power of control
a cost over which a manager has the ability to authorize incurrence or directly influence magnitude
The profit made by a division after deducting only those expenses that can be controlled by the
the budget variance of the two variance approach to analyzing overhead variances
A service that provides for a single presentation of checks each day (typically in
Controlled foreign corporation (CFC)
A foreign corporation whose voting stock is more than 50% owned
The corporate manager responsible for the firm's accounting activities.
the chief accountant (in a corporation) who is responsible
Officer responsible for budgeting, accounting, and auditing.
the process of exerting managerial influence on
An annual statement filed by a life insurance company in each state where it does
Term life insurance products are offered as non-convertible or convertible to a certain time in the future. The coversion right has a time limit, usually to the policy holder's age 60 or possibly even age 70. This right means that the policy holder has the right to convert their existing policy to another specific different plan of permanent insurance within the specified time period, without providing evidence of insurability. There is a slightly higher cost for a term policy with the conversion priviledge but it is a valuable feature should a policy holder's health change for the worst and continued insurance coverage becomes a necessity.
Corporate financial management
The application of financial principals within a corporation to create and
The process of either reducing costs while maintaining the same level of productivity or maintaining costs while increasing productivity.
cost control system
a logical structure of formal and/or informal
cost management system (CMS)
a set of formal methods
The periodic interest payment made to the bondholders during the life of the bond.
Detachable certificate attached to a bond that shows the amount of
The interest payments paid to the bondholder.
The annual interest payment associated with a bond.
Any bond with a coupon. Contrast with discount bond.
Coupon / Coupons
The periodic interest payment(s) made by the issuer of a bond
The dates when the coupons are paid. Typically a bond pays
Coupon equivalent yield
True interest cost expressed on the basis of a 365-day year.
A bond's interest payments.
In bonds, notes or other fixed income securities, the stated percentage rate of interest, usually
The rate of interest paid on a debt security. Generally stated on an
The nominal interest rate that the issuer promises to pay the
Annual interest payment as a percentage of face value.
The ability of the bankruptcy court to confirm a plan of reorganization over the objections of
A bond selling at or close to par, that is, a bond with a coupon close to the yields currently
Related: Benchmark issues
A variable like GDP is measured in current dollars if each year's value is measured in prices prevailing during that year. In contrast, when measured in real or constant dollars, each year's value is measured in a base year's prices.
A procedure for ensuring that transaction processing is completed
degree of operating leverage (DOL)
Percentage change in profits given a 1 percent change in sales.
Demand Management Policy
Fiscal or monetary policy designed to influence aggregate demand for goods and services.
Facility provided by the Fed enabling member banks to borrow reserves against collateral
The Federal Reserve facility at which reserves are loaned to banks at the discount rate.
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