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Definition of PutPutAn option granting the right to sell the underlying futures contract. Opposite of a call. PutAn option to sell a stipulated amount of stock or securities within a
Related Terms:computer-aided design (CAD)a system using computer graphics for product designs computer-aided manufacturing (CAM)the use of computers to control production processes through numerically computer integrated manufacturing (CIM)the integration of two or more flexible manufacturing systems through the use of a host computer and an information networking system Covered PutA put option position in which the option writer also is short the corresponding stock or has Full-Employment OutputThe level of output produced by the economy when operating at the natural rate of unemployment. Imputation tax systemArrangement by which investors who receive a dividend also receive a tax credit for ![]() ImputeTo assign a value to a good or service in place of a market value that is not available. Imputed RentThe value of consumption services obtained by owning one's house rather than having to pay rent. input-output coefficienta number (prefaced as a multiplier Input-output tablesTables that indicate how much each industry requires of the production of each other National OutputGDP. Output GapThe difference between full employment output and current output. Poison putA covenant allowing the bondholder to demand repayment in the event of a hostile merger. Potential Output or Potential GDPOutput produced when the economy is operating at its natural rate of unemployment. Protective put buying strategyA strategy that involves buying a put option on the underlying security that is ![]() Put an optionTo exercise a put option. Put bondA bond that the holder may choose either to exchange for par value at some date or to extend for a Put-call parity relationshipThe relationship between the price of a put and the price of a call on the same Put optionThis security gives investors the right to sell (or put) fixed number of shares at a fixed price within Put OptionA contract that gives the holder the right to sell an asset for a put optionRight to sell an asset at a specified exercise price on or before the exercise date. Put OptionContract that grants the right to sell at a specified price at some time in the future. Put priceThe price at which the asset will be sold if a put option is exercised. Also called the strike or Put provisionGives the holder of a floating-rate bond the right to redeem his note at par on the coupon Put swaptionA financial tool in which the buyer has the right, or option, to enter into a swap as a floatingrate PutawayThe process of moving received items to storage and recording the related ![]() Puttable bondA bond that allows the holder to redeem the bond at a throughputthe total completed and sold output of a plant during a period Throughput agreementAn agreement to put a specified amount of product per period through a particular Throughput contributionSales revenue less the cost of materials. Transferable put rightAn option issued by the firm to its shareholders to sell the firm one share of its Uncovered putA short put option position in which the writer does not have a corresponding short stock accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow accounts receivable turnover ratioA ratio computed by dividing annual acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable activity drivera measure of the demands on activities and, Aggregate Production FunctionAn equation determining aggregate output as a function of aggregate inputs such as labor and capital. algorithma logical step-by-step problem-solving technique approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a asset turnover ratioA broad-gauge ratio computed by dividing annual AssignmentThe receipt of an exercise notice by an options writer that requires the writer to sell (in the case Average cost of capitalA firm's required payout to the bondholders and to the stockholders expressed as a Average lifeAlso referred to as the weighted-average life (WAL). The average number of years that each Back To Back AnnuityThis 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. BaneIn the words of Warren Buffet, Bill Bane Sr., is, "a great American and one of the last real traders Bank wireA computer message system linking major banks. It is used not for effecting payments, but as a Big BangThe term applied to the liberalization in 1986 of the London Stock Exchange in which trading was Bond-equivalent basisThe method used for computing the bond-equivalent yield. Bond-equivalent yieldThe annualized yield to maturity computed by doubling the semiannual yield. Book-entry securitiesThe Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the breakeven pointThe annual sales volume level at which total contribution Breakeven pointThe sales level at which a company, division, or product line makes a budget variancethe difference between total actual overhead Bull spreadA spread strategy in which an investor buys an out-of-the-money put option, financing it by by-productan incidental output of a joint process; it is salable, Call a. An option to buy a certain quantity of a stock or commodity for a Callable bondA bond that allows the issuer to buy back the bond at a Circular FlowIncome payments to factors of production are spent to buy output. The receipts from these sales are used to pay factors of production, creating a circular flow of income. Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Combination strategyA strategy in which a put and with the same strike price and expiration are either both compounding periodthe time between each interest computation Contributed capitalThe amount put into the business by the owners by purchasing stock and by paying more than the par value for the stock (additional paid-in capital or capital in excess of par). contribution margin ratiothe proportion of each revenue dollar remaining after variable costs have been covered; Cost company arrangementArrangement whereby the shareholders of a project receive output free of Cost objectAnything for which a measurement of cost is required – inputs, processes, outputs or responsibility centres. cost of production reporta process costing document that cost tablea database providing information about the impact Covered or hedge option strategiesStrategies that involve a position in an option as well as a position in the discount rateInterest rate used to compute present values of future cash flows. dividend discount modelComputation of today’s stock price which states that share value equals the present value of all expected future dividends. dividend growth methoda method of computing the cost dividend payout ratioComputed by dividing cash dividends for the year Dynamic hedgingA strategy that involves rebalancing hedge positions as market conditions change; a EAFE indexThe European, Australian, and Far East stock index, computed by Morgan Stanley. Economic riskIn project financing, the risk that the project's output will not be salable at a price that will Effective annual yieldAnnualized interest rate on a security computed using compound interest techniques. Effective Annual YieldAnnualized rate of return on a security computed using compound effectivenessa measure of how well an organization’s goals efficiencya measure of the degree to which tasks were performed Electronic data interchange (EDI)The exchange of information electronically, directly from one firm's electronic data interchange (EDI)the computer-to-computer transfer of information in virtual real time using standardized formats developed by the American National Standards Institute Enterprise resource planning systemA computer system used to manage all company equivalent units of production (EUP)an approximation of the number of whole units of output that could have been ExerciseTo implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of Exercise priceThe price set for buying an asset (call) or selling an asset (put). FIFO method (of process costing)the method of cost assignment that computes an average cost per equivalent fixed assetsAn informal term that refers to the variety of long-term operating fixed costsCosts that do not depend on the level of output. fixed overhead spending variancethe difference between the total actual fixed overhead and budgeted fixed overhead; flexible manufacturing system (FMS)a production system in which a single factory manufactures numerous variations GainThe profit earned on the sale of an asset, computed by subtracting its book value Geometric mean returnAlso called the time weighted rate of return, a measure of the compounded rate of Gross Domestic ProductTotal output of final goods and services produced within a country during a year. Gross National ProductTotal output of final goods and services produced by a country's citizens during a year. HedgingA strategy designed to reduce investment risk using call options, put options, short selling, or futures Hell-or-high-water contractA contract that obligates a purchaser of a project's output to make cash Homogenous expectations assumptionAn assumption of Markowitz portfolio construction that investors IllustrationAn illustration is a computer-generated spreadsheet that takes into account a number of assumptions in order to show how a specific policy might perform for a specific individual. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |