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Definition of Purchase
To buy, to be long, to have an ownership position.
Gives the lessee the option to purchase the asset at a price below fair market
A transaction in which the purchaser's intention is to reduce or eliminate a short position in
The purchase by investors of securities directly from the issuer.
For mutual funds, the amount required to open a new account (Minimum Initial
A defined benefit contribution plan in which the participant contributes some part and
A systematic program of repurchasing shares of stock in market
a process by which a single purchase
A transaction in which the purchaser's intention is to create or increase a long position in
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 method of securities distribution in which the securities firm purchases the securities
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.
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
Program by which a corporation buys back its own shares in the open market. It is usually
A firm's repurchase of outstanding shares of its common stock.
Firm buys back stock from its shareholders.
The firm buys back its own stock from a potential bidder, usually at a substantial
Absolute Right of Return
Goods may be returned to the seller by the purchaser without restrictions.
Short-term, non-interest-bearing liabilities of a business
Amounts due to vendors for purchases on open account, that is, not evidenced
A current asset on the balance sheet, representing short-term
accrued expenses payable
The account that records the short-term, noninterest-
Takeover of a firm by purchase of that firm’s common
Acquisition of assets
A merger or consolidation in which an acquirer purchases the selling firm's assets.
Acquisition of stock
A merger or consolidation in which an acquirer purchases the acquiree's stock.
ad hoc discount
a price concession made under competitive pressure (real or imagined) that does not relate to quantity purchased
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
An option contract that can be exercised at any time between the date of purchase and
This term has two quite different meanings. First, it may
Cost of a security adjusted for the amortization of any purchase premium or
A contract which provides an income for a specified period of time, such as a certain number of years or for life. An annuity is like a life insurance policy in reverse. The purchaser gives the life insurance company a lump sum of money and the life insurance company pays the purchaser a regular income, usually monthly.
The purchase of securities on one market for immediate resale on
The receipt of an exercise notice by an options writer that requires the writer to sell (in the case
Assuris is a not for profit organization that protects Canadian policyholders in the event that their life insurance company should become insolvent. Their role is to protect policyholders by minimizing loss of benefits and ensuring a quick transfer of their policies to a solvent company where their benefits will continue to be honoured. Assuris is funded by the life insurance industry and endorsed by government. If you are a Canadian citizen or resident, and you purchased a product from a member life insurance company in Canada, you are protected by Assuris.
Average-Cost Inventory Method
The inventory cost-flow assumption that assigns the average
Back To Back Annuity
This term refers to the simultaneous issue of a life annuity with a non-guaranteed period and a guaranteed life insurance policy [usually whole life or term to 100]. The face value of the life insurance would be the same amount that was used to purchase the annuity. This combination of life annuity providing the highest payout of all types of annuities, along with a guaranteed life insurance policy allowed an uninsurable person to convert his/her RRSP into the best choice of annuity and guarantee that upon his/her death, the full value of the annuity would be paid tax free through the life insurance policy to his family members. However, in the early 1990's, the Federal tax authorities put a stop to the issuing of standard life rates to rated or uninsurable applicants. Insuring a life annuity in this manner is still an excellent way to provide guaranteed tax free funds to family members but the application for the annuity and the application for the life insurance are separate transactions and today, most likely conducted through two different insurance companies so that there is no suspicion of preferential treatment given to the life insurance application.
Packages that involve the exchange of more than two currencies against a base currency at
Book yield is the investment income earned in a year on a portfolio of assets purchased over a number of years and at different interest rates, divided by the book value of those assets.
A guaranteed investment contract purchased with a single (one-shot) premium. Related:
To purchase an asset; taking a long position.
Buy limit order
A conditional trading order that indicates a security may be purchased only at the designated
A financial analyst employed by a non-brokerage firm, typically one of the larger money
purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is
An option contract that gives its holder the right (but not the obligation) to purchase a specified
Bond that may be repurchased by the issuer before maturity at specified call price.
Expenditures purchases of productive long-lived assets, in particular, items of property,
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 series of steps one follows when justifying the decision to purchase
purchase by foreigners of our assets (capital inflows) or our purchase of foreign assets (capital outflows).
The gain recognized on the sale of a capital item (fixed asset), calculated
Money used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses.
A situation in which assets can easily be purchased by foreigners.
The combination of debt, preferred stock, and common stock used
A method of constructing a replicating portfolio in which the manager purchases a
A purchase that has been recorded on the company books as an asset. The
Cash and carry
purchase of a security and simultaneous sale of a future, with the balance being financed
Cash conversion cycle
The length of time between a firm's purchase of inventory and the receipt of cash
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.
An incentive offered to purchasers of a firm's product for payment within a specified time
the receipt or disbursement of cash; when related
Underwriters, actual or potential, often seek out and "circle" investor interest in a new issue before
Clearing house / Clearinghouse
An adjunct to a futures exchange through which transactions executed its floor are settled by a
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.
Credit granted by a firm to consumers for the purchase of goods or services. Also called
Corner A Market
To purchase enough of the available supply of a commodity or stock in order to
A legal entity, organized under state laws, whose investors purchase
An asset’s purchase price, plus costs associated with the purchase, like installation fees, taxes, etc.
Cost of capital
The blended cost of a company’s currently outstanding debt instruments
Cost of sales
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
The purchase of a contract to offset a previously established short position.
Creative Acquisition Accounting
The allocation to expense of a greater portion of the price
purchase of the financial guarantee of a large insurance company to raise funds.
purchases of goods or services from suppliers on credit to whom the debt is not yet paid. Or 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.
Under certain circumstances, taxation rules assume that a transfer of property has occurred, even though there has not been an actual purchase or sale. This could happen upon death or transfer of ownership.
To allocate the purchase cost of an asset over its life.
Lease in which the lessor purchases new equipment from the manufacturer and leases it to the
As the term dividend relates to a corporation's earnings, a dividend is an amount paid per share from a corporation's after tax profits. Depending on the type of share, it may or may not have the right to earn any dividends and corporations may reduce or even suspend dividend payments if they are not doing well. Some dividends are paid in the form of additional shares of the corporation. Dividends paid by Canadian corporations qualify for the dividend tax credit and are taxed at lower rates than other income.
Dividend reinvestment plan (DRP)
Automatic reinvestment of shareholder dividends in more shares of a
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past 12
Dollar Cost Averaging
A way of smoothing out your investment deposits by investing regularly. Instead of making one large deposit a year into your RRSP, you make smaller regular monthly deposits. If you are buying units in a mutual fund or segregated equity fund, you would end up buying more units in the month that values were low and less units in the month that values were higher. By spreading out your purchases, you don't have to worry about buying at the right time.
Similar to the reverse repurchase agreement - a simultaneous agreement to sell a security held in a
A sinking fund provision that may allow repurchase of twice the required number of bonds
A factor that has a direct impact on the incurring of a cost. For example, adding
With the dollar roll transaction the difference between the sale price of a mortgage-backed passthrough,
Employee stock fund
A firm-sponsored program that enables employees to purchase shares of the firm's
Equipment trust certificates
Certificates issued by a trust that was formed to purchase an asset and lease it
The simultaneous purchase of an equity floor and sale of an equity cap.
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