Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: inventory control, inventory, money, payroll, finance, investment, credit, accounting,
Definition of S&P
Abbreviation for Standard & Poorâ€™s stockmarket index.
Money owed to suppliers.
A method developed by BARRA, a consulting firm in
In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage
Price expressed in terms of yield to maturity or annual rate of return.
A transaction in which the buyer's payment for securities is due at the time of
A mutual fund's return minus the change in the Standard & Poors 500 Index for the
Amount of cash paid to shareholders expressed as dollars per share.
Dividends paid for the past 12 months divided by the number of common shares
EPS, as it is called, is a company's profit divided by its number of outstanding
Earnings per share expressed as if all outstanding convertible securities
The price at which the parties to a futures contract agree to transact on the settlement date.
Gross profit divided by sales, which is equal to each sales dollar left over after paying
Purchase and sale statement. A statement provided by the broker showing change in the customer's net
escribes the lagged collection pattern of receivables, for instance the probability that a
hecks that are authorized by the payer in advance and are written either by
Preauthorized electronic debits (PADs)
Debits to its bank account in advance by the payer. The payer's
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
Project notes (PNs)
Project notes are issued by municipalities to finance federally sponsored programs in
Set of contracts perspective
View of corporation as a set of contracting relationships, among individuals
Spot futures parity theorem
Describes the theoretically correct relationship between spot and futures prices.
Theoretical futures price
Also called the fair price, the equilibrium futures price.
Amounts a company owes to creditors.
Earnings per share of common stock
How much profit a company made on each share of common stock this year.
The profit a company makes before expenses and taxes are taken away.
A method of pricing in which a mark-up is added to the total product/service cost.
The difference between the price at which goods or services are sold and the cost of sales.
Profit before interest and taxes (PBIT)
Amounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually Accounts payable involves the receipt of an invoice from the company providing the services or goods.
Accrued expenses payable
Expenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services.
Amounts owed by the company that have been formalized by a legal document called a bond.
Capital in excess par
Amounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with additional paid-in capital.
The result of subtracting cost of goods sold from sales. Synonymous with gross margin.
Amounts that have been loaned to the company and that it still owes.
Amounts owed by the company that have been formalized by a legal document called a note.
Payroll taxes payable
The amount of payroll taxes owed to the various governments at the end of a period.
Salaries that are owed but have not been paid at the end of a period.
Short-term, non-interest-bearing liabilities of a business
accrued expenses payable
The account that records the short-term, noninterest-
basic earnings per share (EPS)
This important ratio equals the net
diluted earnings per share (EPS)
This measure of earnings per share
earnings per share (EPS)
See basic earnings per share and diluted earnings per share.
gross margin, or gross profit
This first-line measure of profit
Basic Earnings Power Ratio
Percentage of earnings relative to total assets; indication of how
One one-hundredth of one percent
Earnings per Share
A measure of the earnings generated by a company on a per
a listing of service departments in an order that begins with the one providing the most service
business process reengineering (BPR)
the process of combining information technology to create new and more effective
materials requirements planning (MRP)
a computerbased information system that simulates the ordering and
the total units produced during a period
One hundredth of one percentage point, or 0.0001.
Rho - The rate of change in a derivativeâ€™s price relative to the underlying
securityâ€™s risk-free interest rate.
Acurrent liability on the balance sheet, representing short-term obligations
Material requirements planning (MRP)
A computer-driven production methodology
Materials price variance
The difference between the actual and budgeted cost to
MM's proposition I (debt irrelevance proposition)
The value of a firm is unaffected by its capital structure.
MM's proposition II
The required rate of return on equity increases as the firmâ€™s debt-equity ratio increases.
present value of growth opportunities (PVGO)
Net present value of a firmâ€™s future investments.
price-earnings (P/E) multiple (ratio)
Ratio of stock price to earnings per share.
One one-hundredth of a percentage point, used to express variations in yields. For example, the difference between 5.36 percent and 5.38 percent is 2 basis points.
Holding other things constant.
A policy designed to lower inflation without reducing aggregate demand. Wage/price controls are an example.
Theory that anticipated policy has no effect on output.
Tax-Related Incomes Policy (TIP)
Tax incentives for labor and business to induce them to conform to wage/price guidelines.
The amount of earnings due to an employee prior to tax and other deductions.
Amounts due to vendors for purchases on open account, that is, not evidenced
Accounts Payable Days (A/P Days)
The number of days it would take to pay the ending balance
Revenue less cost of goods sold.
Gross Profit Margin
Gross profit divided by revenue.
Material requirements planning
A computerized system used to calculate material
The purchase of material for direct delivery to the production
Registered Retirement Savings Plan (Canada)
Commonly referred to as an RRSP, this is a tax sheltered and tax deferred savings plan recognized by the Federal and Provincial tax authorities, whereby deposits are fully tax deductable in the year of deposit and fully taxable in the year of receipt. The ability to defer taxes on RRSP earnings allows one to save much faster than is ordinarily possible. The new rules which apply to RRSP's are that the holder of such a plan must convert it into income by the end of the year in which the holder turns age 69. The choices for conversion are to simply cash it in an pay full tax in the year of receipt, convert it to a RRIF and take a varying stream of income, paying tax on the amount received annually until the income is exhausted, or converting it into an annuity with guaranteed payments for a chosen number of years, again paying tax each year on moneys received.
Spousal Registered Retirement Savings Plan
This is an RRSP owned by the spouse of the person contributing to it. The contributor can direct up to 100% of eligible RRSP deposits into a spousal RRSP each and every year. Contributing to a spouses RRSP reduces the amount one can contribute to one's own RRSP, however, if the spouse is a lower income earner, it is an excellent way in which to split income for lower taxation in retirement years.
Price / Earnings (P/E) Ratio
The ratio of price to earnings. Faster growing or less-risky firms typically have higher P/E ratios than either slower-growing or more risky firms.
Periodic payments to a supplier, contractor or subcontractor for work satisfactorily performed to date.
RRSP (Registered Retirement Savings Plan) (Canada)
A savings plan registered with Revenue Canada, which allows you to set aside a portion of your earned income now for use in the future. When you contribute to your RRSP, you are eligible to claim a tax deduction. However, cashing RRSPs at a later date will result in the payment of tax.
Automatic Benefits Payment
Automatic payment of moneys derived from a benefit.
the additional value inherent in the control interest as contrasted to a minority interest, which reflects its power of control
NPV (net present value of cash flows)
Same as PV, but usually includes a subtraction for an initial cash outlay.
Accounts receivable turnover
The ratio of net credit sales to average accounts receivable, a measure of how
A bond on which interest accrues, but is not paid to the investor during the time of accrual.
Accumulated Benefit Obligation (ABO)
An approximate measure of the liability of a plan in the event of a
Adjusted present value (APV)
The net present value analysis of an asset if financed solely by equity
A promise to sell an asset before the seller has lined up purchase of the asset. This
A measure of selection risk (also known as residual risk) of a mutual fund in relation to the market. A
Individuals providing venture capital.
Result of a transaction that increases earnings per common share (e.g. by decreasing the
The simultaneous buying and selling of a security at two different prices in two different markets,
Adjustable rate mortgage. A mortgage that features predetermined adjustments of the loan interest rate
A dealer's price to sell a security; also called the offer price.
A firm's productive resources.
A common element of a financial plan that describes projected capital spending and the
The tendency of stocks preferred by the dividend discount model to share certain equity
A market condition in which futures prices are lower in the distant delivery months than in
The argument that expected bankruptcy costs preclude firms from being financed entirely
Basic business strategies
Key strategies a firm intends to pursue in carrying out its business plan.
Regarding a futures contract, the difference between the cash price and the futures price observed in the
A method of securities distribution/ underwriting in which the securities firm agrees to sell
Bill of lading
A contract between the exporter and a transportation company in which the latter agrees to
Bonds are debt and are issued for a period of more than one year. The U.S. government, local
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.