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Definition of Reclamation
A claim for the right to return or the right to demand the return of a security that has been
a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock.
Part of the return that is not due to systematic influences (market wide influences). In
Money after-tax rate of return minus the inflation rate.
The annual rate of return that when compounded t times, would have
A right of shareholders in a merger to demand the payment of a fair price for their shares, as
Arithmetic mean return.
An average of the subperiod returns, calculated by summing the subperiod returns
A security that is collateralized by loans, leases, receivables, or installment contracts
The average project earnings after taxes and depreciation divided by the average
The ratio of the average cash inflow to the amount invested.
An international bank headquartered in Basel, Switzerland, which
Gives the lessee the option to purchase the asset at a price below fair market
The provision of some futures contracts that requires not delivery of underlying assets but
Futures contracts, such as stock index futures, that settle for cash, not involving
A reduction in the likelihood one or more of the firm's claimants will be fully repaid,
A party to an explicit or implicit contract.
A transaction in which the purchaser's intention is to reduce or eliminate a short position in
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
A claim that can be made only if one or more specified outcomes occur.
A security that can be converted into common stock at the option of the security holder,
Corporate processing float
The time that elapses between receipt of payment from a customer and the
Cumulative abnormal return (CAR)
Sum of the differences between the expected return on a stock and the
The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract.
The written notice given by the seller of his intention to make delivery against an open, short
The options available to the seller of an interest rate futures contract, including the quality
Those points designated by futures exchanges at which the financial instrument or
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
Delivery versus payment
A transaction in which the buyer's payment for securities is due at the time of
Checking accounts that pay no interest and can be withdrawn upon demand.
Demand line of credit
A bank line of credit that enables a customer to borrow on a daily or on-demand basis.
Demand master notes
Short-term securities that are repayable immediately upon the holder's demand.
An event that affects the demand for goods in services in the economy.
A financial security, such as an option, or future, whose value is derived in part from the
A conception of the way a stock's price changes that assumes that the price takes on all
Direct stock-purchase programs
The purchase by investors of securities directly from the issuer.
Disclaimer of opinion
An auditor's statement disclaiming any opinion regarding the company's financial
A shareholders' rights to receive per-share dividends identical to those other shareholders receive.
The return realized on a portfolio for any evaluation period, including (1) the change in market
Dollar-weighted rate of return
Also called the internal rate of return, the interest rate that will make the
Also called a residual claim, a claim to a share of earnings after debt obligation have been
Ex post return
Related: Holding period return
The expected return of a portfolio based on the expected returns of its component assets and
Excess return on the market portfolio
The difference between the return on the market portfolio and the
Also called abnormal returns, returns in excess of those required by some asset pricing model.
security that grants the security holder the right to exchange the security for the
Expected future return
The return that is expected to be earned on an asset in the future. Also called the
The return expected on a risky asset based on a probability distribution for the possible rates
Expected return on investment
The return one can expect to earn on an investment. See: capital asset
Expected return-beta relationship
Implication of the CAPM that security risk premiums will be
In connection with a rights offering, shares of stock that are trading without the rights attached.
The date on which a share of common stock begins trading ex-rights.
A nonnegotiable debt security that can be redeemed at some fixed price or according to
A transaction in which the settlement will occur on a specified date in the future at a price
Generally Accepted Accounting Principals (GAAP)
A technical accounting term that encompasses the
Geometric mean return
Also called the time weighted rate of return, a measure of the compounded rate of
A delivery in which everything - endorsement, any necessary attached legal papers, etc. - is in
Good delivery and settlement procedures
Refers to PSA Uniform Practices such as cutoff times on delivery
A phase of development in which a company experiences rapid earnings growth as it produces
demands for securities to hedge particular sources of consumption risk, beyond the usual
Holding period return
The rate of return over a given period.
Total return over a given horizon.
The security to which a warrant is attached.
A convertible security whose optioned common stock is trading in a middle range, causing
delivery and settlement of securities within five business days.
Incremental internal rate of return
IRR on the incremental investment from choosing a large project
Internal rate of return
Dollar-weighted rate of return. Discount rate at which net present value (NPV)
In-house processing float
Refers to the time it takes the receiver of a check to process the payment and
The Modigliani and Miller theorem that a firm's capital structure is irrelevant to the firm's
Leveraged required return
The required return on an investment when the investment is financed partially by debt.
The rights of a firm's securityholders in the event the firm liquidates.
Refers to the seller's actually turning over to the buyer the asset agreed upon in a forward contract.
The return on the market portfolio.
claims that can be bought and sold in financial markets, such as those of stockholders and
A phase of company development in which earnings continue to grow at the rate of the
For mutual funds, the amount required to open a new account (Minimum Initial
Money market demand account
An account that pays interest based on short-term interest rates.
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Money rate of return
Annual money return as a percentage of asset value.
Monthly income preferred security (MIP)
Preferred stock issued by a subsidiary located in a tax haven.
Mortgage pass-through security
Also called a passthrough, a security created when one or more mortgage
Multiple rates of return
More than one rate of return from the same project that make the net present value
claims that cannot be easily bought and sold in the financial markets, such as those of
Open-market purchase operation
A systematic program of repurchasing shares of stock in market
A transaction in which the purchaser's intention is to create or increase a long position in
In the balance of payments, other capital is a residual category that groups all the capital
Other current assets
Value of non-cash assets, including prepaid expenses and accounts receivable, due
Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations
Amount of funds generated during the period from operations by sources other than
Actual forward rate expressed in dollars per currency unit, or vice versa.
Overnight delivery risk
A risk brought about because differences in time zones between settlement centers
Portfolio internal rate of return
The rate of return computed by first determining the cash flows for all the
Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a
Common stockholder's right to anything of value distributed by the company.
Price discovery process
The process of determining the prices of the assets in the marketplace through the
An instrument such as a stock or bond for which payments depend only on the financial
rights of individuals and companies to own and utilize property as they see fit and to receive
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
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