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Financial Terms | |
Proxy |
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Definition of ProxyProxyDocument intended to provide shareholders with information necessary to vote in an informed manner
Related Terms:Proxy contestA battle for the control of a firm in which the dissident group seeks, from the firm's other proxy contestTakeover attempt in which outsiders compete with management for shareholders’ votes. Also called proxy fight. Proxy voteVote cast by one person on behalf of another. Benchmark errorUse of an inappropriate proxy for the true market portfolio. Abandonment optionThe option of terminating an investment earlier than originally planned. Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. 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 Accumulated Other Comprehensive IncomeCumulative gains or losses reported in shareholders' acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable Act of state doctrineThis doctrine says that a nation is sovereign within its own borders and its domestic activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received Adjusted Cash Flow Provided by Continuing OperationsCash flow provided by operating Affirmative covenantA bond covenant that specifies certain actions the firm must take. Aggregate SupplyTotal quantity of goods and services supplied. Aggregate Supply CurveCombinations 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. ![]() Allowance for doubtful accountsA contra account related to accounts receivable that represents the amounts that the company expects will not be collected. Allowance for Doubtful AccountsAn estimate of the uncollectible portion of accounts receivable American sharesSecurities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign Appraisal rightsA right of shareholders in a merger to demand the payment of a fair price for their shares, as Asset/liability managementAlso called surplus management, the task of managing funds of a financial Asymmetric informationinformation that is known to some people but not to other people. Authorized sharesNumber of shares authorized for issuance by a firm's corporate charter. Authorized sharesThe number of shares of stock that the company is legally authorized to sell. Back-up1) When bond yields and prices fall, the market is said to back-up. 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 benefits-provided rankinga listing of service departments in an order that begins with the one providing the most service Bottom-up equity management styleA management style that de-emphasizes the significance of economic Budgetary controlThe process of ensuring that actual financial results are in line with targets – see variance Builder buydown loanA mortgage loan on newly developed property that the builder subsidizes during the Bulldog bondForeign bond issue made in London. Bulldog marketThe foreign market in the United Kingdom. BuydownsMortgages in which monthly payments consist of principal and interest, with portions of these Cash Flow Provided by Operating ActivitiesWith some exceptions, the cash effects of transactions Cash Flow Provided or Used from Financing ActivitiesCash receipts and payments involving Cash Flow Provided or Used from Investing ActivitiesCash receipts and payments involving 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. Cash management billVery 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 Collective wisdomThe combination of all of the individual opinions about a stock's or security's value. Common SharesAre equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends. common-size income statementIncome statement that presents items as a percentage of revenues. Common stock/other equityValue of outstanding common shares at par, plus accumulated retained CompetenceSufficient ability or fitness for ones needs. Possessing the necessary abilities to be qualified to Configuration controlVerifying that a delivered product matches authorizing 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 Constant dollar accountingA method for restating financial statements by reducing or Constant dollarsSee real dollars. Continuous random variableA random value that can take any fractional value within specified ranges, as contract vendoran external party that has been granted an Control50% of the outstanding votes plus one vote. Control accountAn account maintained in the general ledger that holds the balance without the detail. The detail is maintained in a subsidiary ledger. control charta graphical presentation of the results of a control premiumthe additional value inherent in the control interest as contrasted to a minority interest, which reflects its power of control controllable costa cost over which a manager has the ability to authorize incurrence or directly influence magnitude Controllable profitThe profit made by a division after deducting only those expenses that can be controlled by the controllable variancethe budget variance of the two variance approach to analyzing overhead variances Controlled disbursementA 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 ControllerThe corporate manager responsible for the firm's accounting activities. controllerthe chief accountant (in a corporation) who is responsible controllerOfficer responsible for budgeting, accounting, and auditing. controllingthe process of exerting managerial influence on Convention statementAn annual statement filed by a life insurance company in each state where it does Conversion RightTerm 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. Core competencyPrimary area of competence. Narrowly defined fields or tasks at which a company or core competencya higher proficiency relative to competitors Corporate financial managementThe application of financial principals within a corporation to create and Cost controlThe process of either reducing costs while maintaining the same level of productivity or maintaining costs while increasing productivity. cost control systema logical structure of formal and/or informal cost management system (CMS)a set of formal methods CouponThe periodic interest payment made to the bondholders during the life of the bond. CouponDetachable certificate attached to a bond that shows the amount of couponThe interest payments paid to the bondholder. CouponThe annual interest payment associated with a bond. Coupon BondAny bond with a coupon. Contrast with discount bond. Coupon / CouponsThe periodic interest payment(s) made by the issuer of a bond Coupon datesThe dates when the coupons are paid. Typically a bond pays Coupon equivalent yieldTrue interest cost expressed on the basis of a 365-day year. Coupon paymentsA bond's interest payments. Coupon rateIn bonds, notes or other fixed income securities, the stated percentage rate of interest, usually Coupon RateThe rate of interest paid on a debt security. Generally stated on an Coupon rateThe nominal interest rate that the issuer promises to pay the coupon rateAnnual interest payment as a percentage of face value. CramdownThe ability of the bankruptcy court to confirm a plan of reorganization over the objections of Cum rightsWith rights. Current couponA bond selling at or close to par, that is, a bond with a coupon close to the yields currently Current-coupon issuesRelated: Benchmark issues Current DollarsA 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. Cutoff controlA 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 PolicyFiscal or monetary policy designed to influence aggregate demand for goods and services. Discount windowFacility provided by the Fed enabling member banks to borrow reserves against collateral Discount WindowThe Federal Reserve facility at which reserves are loaned to banks at the discount rate. Discrete random variableA random variable that can take only a certain specified set of discrete possible Dividend rightsA shareholders' rights to receive per-share dividends identical to those other shareholders receive. DLOC (discount for lack of control)an amount or percentage deducted from a pro rata share of the value of 100% of an equity interest in a business, to reflect the absence of some or all of the powers of control. Doctrine of sovereign immunitydoctrine that says a nation may not be tried in the courts of another country Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |