|Purchase and sale|
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Definition of Purchase and sale
Purchase and sale
A method of securities distribution in which the securities firm purchases the securities
The simultaneous purchase and sale of two options that differ only in their exercise date.
purchase and sale statement. A statement provided by the broker showing change in the customer's net
In a purchase and sale, the yield to maturity at which the underwriter offers to sell the bonds
The simultaneous purchase and sale of the same asset to yield a profit.
The purchase and sale of a foreign currency, commodity, or other item for immediate delivery.
1) The gap between bid and ask prices of a stock or other security.
Acting as the underwriter in a purchase and sale.
A group of investment banks that work together to sell new security offerings to
Simultaneous purchase and sale of two options that differ only in their exercise price. See:
A debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period.
Gives the lessee the option to purchase the asset at a price below fair market
A method of securities distribution/ underwriting in which the securities firm agrees to sell
A transaction in which the purchaser's intention is to reduce or eliminate a short position in
A transaction in which the seller's intention is to reduce or eliminate a long position in a stock,
A type of agreement to sell whereby a seller retains title to goods sold and delivered to a purchaser until full payment has been made.
Conditional Sale Agreement
An agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands.
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Contingent deferred sales charge (CDSC)
The formal name for the load of a back-end load fund.
Cost of sales
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
Days' sales in inventory ratio
The average number of days' worth of sales that is held in inventory.
Days' sales outstanding
Average collection period.
Direct stock-purchase programs
The purchase by investors of securities directly from the issuer.
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that
A method for hedging price risk which involves an agreement between a lender and an investor
Up-front gain recognized from the securitization and sale of a pool
The total sales recorded prior to sales discounts and returns.
The sale of an asset in exchange for a specified series of payments (the installments).
Limitation on merger, consolidation, or sale
A bond covenant that restricts in some way a firm's ability to
Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into
For mutual funds, the amount required to open a new account (Minimum Initial
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Situation in which the terms of an offering are determined by negotiation between the issuer
Total revenue, less the cost of sales returns, allowances, and discounts.
NET SALES (revenue)
The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
NUMBER OF DAYS SALES IN RECEIVABLES
(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that haven’t been collected yet.
Open-market purchase operation
A systematic program of repurchasing shares of stock in market
open purchase ordering
a process by which a single purchase
A transaction in which the purchaser's intention is to create or increase a long position in
A transaction in which the seller's intention is to create or increase a short position in a given
percentage of sales models
Planning model in which sales forecasts are the driving variables and most other variables are
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.
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
To buy, to be long, to have an ownership position.
Method of accounting for a merger in which the acquirer is treated as having purchased
As used in connection with project financing, an agreement to purchase a specific
This legal document records the final understanding of the parties with respect to the proposed transaction.
A contra account that reduces purchases by the amount of the discounts taken for early payment.
Resembles a sinking fund except that money is used only to purchase bonds if they are selling
Accounting for an acquisition using market value for the consolidation of the two entities'
An accounting method used to combine the financial statements of
Price actually paid for a security. Typically the purchase
A contra account that reduces purchases by the amount of items purchased that were subsequently returned.
Purchased In-Process Research and Development
Unfinished research and development that is acquired from another firm.
Items purchased by the company for the purpose of resale.
A journal used to record the transactions that result in a credit to accounts payable.
RATIO OF NET INCOME TO NET SALES
A ratio that shows how much net income (profit) a company made on each dollar of net sales. Here’s the formula:
RATIO OF NET SALES TO NET INCOME
A ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way:
An agreement with a commitment by the seller (dealer) to buy a security back from
Repurchase of stock
Device to pay cash to firm's shareholders that provides more preferable tax treatment
return on sales
This ratio equals net income divided by sales revenue.
Sale and lease-back
sale of an existing asset to a financial institution that then leases it back to the user.
Sale and Leaseback
An agreement in which the owner of a property sells that property to a person or institution and then leases it back again for an agreed period and rental.
Amounts earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue.
A reduction in a price that is allowed by the seller, due to a problem
The fee charged by a mutual fund when purchasing shares, usually payable as a commission to
A reduction in the price of a product or service that is offered by the
A contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales.
A key input to a firm's financial planning process. External sales forecasts are based on
A journal used to record the transactions that result in a credit to sales.
The mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs.
the relative combination of quantities of sales of the various products that make up the total sales of a company
A contra account that offsets revenue. It represents the amount of sales made that were later returned.
Sales Revenue Revenue recognized from the sales of products as opposed to the provision of
A tax levied as a percentage of retail sales.
An arrangement whereby a firm leases its own equipment, such as IBM leasing its own
Lease accounting used by a manufacturer who is also a lessor. Up-front gross
Sales value at split-off
A cost allocation methodology that allocates joint costs to joint
sales value at split-off allocation
a 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
Program by which a corporation buys back its own shares in the open market. It is usually
Selling a security that the seller does not own but is committed to repurchasing eventually. It is
Short sale, short position
The sale of a security or financial instrument not
A firm's repurchase of outstanding shares of its common stock.
Firm buys back stock from its shareholders.
A method for hedging price risk that utilizes debt-market instruments, such as interest rate
Also called a swap assignment, a transaction that ends one counterparty's role in an interest rate
The firm buys back its own stock from a potential bidder, usually at a substantial
Terms of sale
Conditions on which a firm proposes to sell its goods services for cash or credit.
terms of sale
Credit, discount, and payment terms offered on a sale.
Wholesale mortgage banking
The purchasing of loans originated by others, with the servicing rights
Adjusted Cash Flow Provided by Continuing Operations
Cash flow provided by operating
A promise to sell an asset before the seller has lined up purchase of the asset. This
The purchase of securities on one market for immediate resale on
That part of the balance of payments accounts that records demands for and supplies of a currency arising from purchases or sales of assets.
The gain recognized on the sale of a capital item (fixed asset), calculated
Cash and carry
purchase of a security and simultaneous sale of a future, with the balance being financed
The length of time between a purchase of materials and collection of accounts receivable generated by the sale of the products made from the materials.
Clearing house / Clearinghouse
An adjunct to a futures exchange through which transactions executed its floor are settled by a
A 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.
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