![]() |
|
Financial Terms | |
Regulation M |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: inventory, financial advisor, inventory control, credit, tax advisor, money, investment, finance, |
Definition of Regulation MRegulation MFed regulation currently requiring member banks to hold reserves against their net borrowings
Related Terms:Regulation DFed regulation currently that required member banks to hold reserves against their net Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accidental Death and DismembermentCoverage that provides a lump-sum payment to you or your survivors if an accident results in the loss of a limb, paralysis or your death. Accidental Dismemberment: (Credit Insurance)Provides additional financial security should an insured person be dismembered or lose the use of a limb as the result of an accident. Accounting IrregularitiesIntentional misstatements or omissions of amounts or disclosures in Accounting periodThe period of time for which financial statements are produced – see also financial year. Accounts Payable Days (A/P Days)The number of days it would take to pay the ending balance ![]() Accounts Receivable Days (A/R Days)The number of days it would take to collect the ending Accounts receivable turnoverThe ratio of net credit sales to average accounts receivable, a measure of how accounts receivable turnover ratioA ratio computed by dividing annual 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 Aggregate DemandTotal quantity of goods and services demanded. Aggregate Demand CurveCombinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium. Aggregate Expenditure CurveAggRegate demand for goods and services drawn as a function of the level of national income. Aggregate planningA budgeting process using summary-level information to ![]() Aggregate Production FunctionAn equation determining aggRegate output as a function of aggRegate inputs such as labor and capital. 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. AggregationProcess in corporate financial planning whereby the smaller investment proposals of each of the Annualized holding period returnThe annual rate of return that when compounded t times, would have Annuity PeriodThe time between each payment under an annuity. applied overheadthe amount of overhead that has been assigned to Work in Process Inventory as a result of productive activity; credits for this amount are to an overhead account approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a Asset CoverageExtent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position. Asset-coverage testA bond indenture restriction that permits additional borrowing on if the ratio of assets to Asset turnoverThe ratio of net sales to total assets. asset turnovera ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets asset turnover ratioA broad-gauge ratio computed by dividing annual AutoregressiveUsing past data to predict future data. Average (across-day) measuresAn estimation of price that uses the average or representative price of a Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Average Collection PeriodAverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Bank overdraftMoney owed to the bank in a cheque account where payments exceed receipts. Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market Bill and Hold PracticesProducts that have been sold with an explicit agreement that delivery Bond-equivalent basisThe method used for computing the bond-equivalent yield. Bond equivalent yieldBond yield calculated on an annual percentage rate method. Differs from annual Bond-equivalent yieldThe annualized yield to maturity computed by doubling the semiannual yield. Bond Equivalent YieldBond yield calculated on an annual percentage rate method Buy-and-hold strategyA passive investment strategy with no active buying and selling of stocks from the capital recoveryRefers to recouping, or Regaining, invested capital over Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized againstfuture-period revenue. CASH AND CASH EQUIVALENTSThe balance in a company’s checking account(s) plus short-term or temporary investments (sometimes called “marketable securities”), which are highly liquid. Cash and equivalentsThe value of assets that can be converted into cash immediately, as reported by a Cash equivalentA short-term security that is sufficiently liquid that it may be considered the financial Cash-equivalent itemsTemporary investments of currently excess cash in short-term, high-quality Cash EquivalentsHighly liquid, fixed-income investments with original maturities of three months or less. Cash EquivalentsInstruments or investments of such high liquidity and safety that they are virtually equal to cash. Cash flow coverage ratioThe number of times that financial obligations (for interest, principal payments, Cash TurnoverThe number of cash cycles completed in one year. Certainty equivalentAn amount that would be accepted in lieu of a chance at a possible higher, but Clearing memberA member firm of a clearing house. Each clearing member must also be a member of the Closing purchaseA transaction in which the purchaser's intention is to reduce or eliminate a short position in Common stock equivalentA convertible security that is traded like an equity issue because the optioned Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Compounding periodThe length of the time period (for example, a quarter in the case of quarterly compounding periodthe time between each interest computation Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that Consortium banksA merchant banking subsidiary set up by several banks that may or may not be of the Controlled foreign corporation (CFC)A foreign corporation whose voting stock is more than 50% owned Cookie Jar ReservesAn overly aggressive accrual of operating expenses and the creation of Corporate taxable equivalentRate of return required on a par bond to produce the same after-tax yield to Coupon equivalent yieldTrue interest cost expressed on the basis of a 365-day year. CoverThe purchase of a contract to offset a previously established short position. Coverage ratiosRatios used to test the adequacy of cash flows generated through earnings for purposes of Coverdell Education IRAA form of individual retirement account whose earnings Covered callA short call option position in which the writer owns the number of shares of the underlying Covered call writing strategyA strategy that involves writing a call option on securities that the investor Covered interest arbitrageA portfolio manager invests dollars in an instrument denominated in a foreign Covered or hedge option strategiesStrategies that involve a position in an option as well as a position in the Covered PutA put option position in which the option writer also is short the corresponding stock or has Credit periodThe length of time for which the customer is granted credit. Critical Growth PeriodsTimes in a company's history when growth is essential and without which survival of the business might be in jeopardy. Cross holdingsOne corporation holds shares in another firm. Crossover rateThe return at which two alternative projects have the same net present value. Day orderAn order to buy or sell stock that automatically expires if it can't be executed on the day it is entered. Day tradingRefers to establishing and liquidating the same position or positions within one day's trading. Days in receivablesAverage collection period. Days' sales in inventory ratioThe average number of days' worth of sales that is held in inventory. Days' sales outstandingAverage collection period. Days StatisticsMeasures the number days' worth of sales in accounts receivable (accounts receivable Debt-service coverage ratioEarnings before interest and income taxes plus one-third rental charges, divided Direct stock-purchase programsThe purchase by investors of securities directly from the issuer. Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an Doctrine of sovereign immunityDoctrine that says a nation may not be tried in the courts of another country Dollar Cost AveragingA 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. dollar days (of inventory)a measurement of the value of inventory for the time that inventory is held Domestic International Sales Corporation (DISC)A U.S. corporation that receives a tax incentive for Domestic marketPart of a nation's internal market representing the mechanisms for issuing and trading Edge corporationsSpecialized banking institutions, authorized and chartered by the Federal Reserve Board Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. EquityholdersThose holding shares of the firm's equity. Equivalent annual annuityThe equivalent amount per year for some number of years that has a present Equivalent annual benefitThe equivalent annual annuity for the net present value of an investment project. Equivalent annual cash flowAnnuity with the same net present value as the company's proposed investment. Equivalent annual costThe equivalent cost per year of owning an asset over its entire life. equivalent annual costThe cost per period with the same present value as the cost of buying and operating a machine. Equivalent bond yieldAnnual yield on a short-term, non-interest bearing security calculated so as to be Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |