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Definition of S&P
Abbreviation for Standard & Poor’s stockmarket index.
Money owed to suppliers.
Amounts a company owes to creditors.
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.
Short-term, non-interest-bearing liabilities of a business
Acurrent liability on the balance sheet, representing short-term obligations
Amounts due to vendors for purchases on open account, that is, not evidenced
The number of days it would take to pay the ending balance
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.
The account that records the short-term, noninterest-
Automatic payment of moneys derived from a benefit.
A method developed by BARRA, a consulting firm in
This important ratio equals the net
Percentage of earnings relative to total assets; indication of how
In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage
One one-hundredth of one percent
One hundredth of one percentage point, or 0.0001.
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.
Price expressed in terms of yield to maturity or annual rate of return.
a listing of service departments in an order that begins with the one providing the most service
Amounts owed by the company that have been formalized by a legal document called a bond.
business process reengineering (BPR)
the process of combining information technology to create new and more effective
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.
Holding other things constant.
A method of pricing in which a mark-up is added to the total product/service cost.
Delivery versus payment
A transaction in which the buyer's payment for securities is due at the time of
Difference from S&P
A mutual fund's return minus the change in the Standard & Poors 500 Index for the
diluted earnings per share (EPS)
This measure of earnings per share
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
Dividends per share
Dividends paid for the past 12 months divided by the number of common shares
Earnings per Share
A measure of the earnings generated by a company on a per
Earnings per share (EPS)
EPS, as it is called, is a company's profit divided by its number of outstanding
earnings per share (EPS)
See basic earnings per share and diluted earnings per share.
Earnings per share of common stock
How much profit a company made on each share of common stock this year.
Fully diluted earnings per shares
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 margin, or gross profit
This first-line measure of profit
The amount of earnings due to an employee prior to tax and other deductions.
The profit a company makes before expenses and taxes are taken away.
The difference between the price at which goods or services are sold and the cost of sales.
The result of subtracting cost of goods sold from sales. Synonymous with gross margin.
Revenue less cost of goods sold.
Gross profit margin
Gross profit divided by sales, which is equal to each sales dollar left over after paying
Gross Profit Margin
Gross profit divided by revenue.
A policy designed to lower inflation without reducing aggregate demand. Wage/price controls are an example.
Amounts that have been loaned to the company and that it still owes.
Material requirements planning
A computerized system used to calculate material
Material requirements planning (MRP)
A computer-driven production methodology
Materials price variance
The difference between the actual and budgeted cost to
materials requirements planning (MRP)
a computerbased information system that simulates the ordering and
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 firm’s debt-equity ratio increases.
Amounts owed by the company that have been formalized by a legal document called a note.
P&S (P and S)
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
Payroll taxes payable
The amount of payroll taxes owed to the various governments at the end of a period.
Theory that anticipated policy has no effect on output.
Preauthorized checks (PACs)
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
present value of growth opportunities (PVGO)
Net present value of a firm’s future investments.
price-earnings (P/E) multiple (ratio)
Ratio of stock price to earnings per share.
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.
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
the total units produced during a period
Profit before interest and taxes (PBIT)
Periodic payments to a supplier, contractor or subcontractor for work satisfactorily performed to date.
Project notes (PNs)
Project notes are issued by municipalities to finance federally sponsored programs in
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.
Rho - The rate of change in a derivative’s price relative to the underlying
security’s risk-free interest rate.
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.
Salaries that are owed but have not been paid at the end of a period.
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.
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.
The purchase of material for direct delivery to the production
Tax-Related Incomes Policy (TIP)
Tax incentives for labor and business to induce them to conform to wage/price guidelines.
Theoretical futures price
Also called the fair price, the equilibrium futures price.
The percent of a mutual fund's assets used to defray marketing and distribution expenses. The
(1) The estimated useful life of the fixed asset being depreciated is
The process of satisfying stakeholders in the organization that managers have acted in the best interests of the stakeholders, a result of the stewardship function of managers, which takes place through accounting.
The representation of the double-entry system of accounting such that assets are equal to liabilities plus capital.
Accounts receivable turnover
The ratio of net credit sales to average accounts receivable, a measure of how
accounts receivable turnover ratio
A ratio computed by dividing annual
Well, frankly, accrual is not a good descriptive
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
activity-based costing (ABC)
a process using multiple cost drivers to predict and allocate costs to products and services;
Activity-based costing (ABC)
A cost allocation system that compiles costs and assigns
a segment of the production or service
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 grouping of sales producers according to region. Compare with Branch.
Aggressive Cost Capitalization
Cost capitalization that stretches the flexibility within generally
A measure of selection risk (also known as residual risk) of a mutual fund in relation to the market. A
A schedule that shows precisely how a loan will be repaid. The schedule gives the required payment on each specific date and shows how much of it constitutes interest and how much constitutes repayments of principal.
Individuals providing venture capital.
The fund return, for any 12-month period, including changes in unit value and the reinvestment of distributions, but not taking into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would reduce returns.
This is the person during whose life an annuity is payable.
Result of a transaction that increases earnings per common share (e.g. by decreasing the
A signed statement of facts made by a person applying for life insurance and then used by the insurance company to decide whether or not to issue a policy. The application becomes part of the insurance contract when the policy is issued.
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