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Financial Terms | |
Scale in |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of Scale inScale inWhen a trader or investor gradually takes a position in a security or market over time.
Related Terms:Logarithmic ScaleA scale in which equal proportions are shown as equal distances so that, for example, a doubling from 2 to 4 is represented by one inch, as is a doubling from 4 to 8. Ratio ScaleSee logarithmic scale. "Soft" Capital RationingCapital rationing that under certain circumstances can be violated or even viewed Absolute AdvantageThe ability to produce a good or service with fewer resources than competitors. See also comparative advantage. Absolute priorityRule in bankruptcy proceedings whereby senior creditors are required to be paid in full Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. Absorption costingA method of costing in which all fixed and variable production costs are charged to products or services using an allocation base. ![]() absorption costinga cost accumulation and reporting Absorption costingA methodology under which all manufacturing costs are assigned Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accounting insolvencyTotal liabilities exceed total assets. A firm with a negative net worth is insolvent on 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 acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable All or noneRequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable ![]() 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 Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts 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 At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the Auction marketsmarkets in which the prevailing price is determined through the free interaction of Available-for-Sale SecurityA debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period. Bank overdraftMoney owed to the bank in a cheque account where payments exceed receipts. ![]() Bear marketAny market in which prices are in a declining trend. bear marketA market in which stock or bond prices are generally Bear MarketA prolonged period of falling stock market prices. Black marketAn illegal market. Break-even timeRelated: Premium payback period. Brokered marketA market where an intermediary offers search services to buyers and sellers. Bull marketAny market in which prices are in an upward trend. bull marketA market in which stock or bond prices are generally rising. Bull MarketA prolonged period of rising stock market prices. Bulldog marketThe foreign market in the United Kingdom. Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Canadian Life and Health Insurance Association (CLHIA)An association of most of the life and health insurance companies in Canada that conducts research and compiles information about the life and health insurance industry in Canada. Capital marketThe market for trading long-term debt instruments (those that mature in more than one year). Capital marketThe market in which investors buy and sell shares of companies, normally associated with a Stock Exchange. Capital MarketA market that specializes in trading long-term, relatively high risk Capital MarketThe market in which savings are made available to those needing funds to undertake investment projects. A financial market in which longer-term (maturity greater than one year) bonds and stocks are traded. Capital market efficiencyReflects the relative amount of wealth wasted in making transactions. An efficient Capital market imperfections viewThe view that issuing debt is generally valuable but that the firm's Capital market line (CML)The line defined by every combination of the risk-free asset and the market portfolio. capital marketsmarkets for long-term financing. capital recoveryRefers to recouping, or regaining, invested capital over Cash flow coverage ratioThe number of times that financial obligations (for interest, principal payments, Cash flow time-lineLine depicting the operating activities and cash flows for a firm over a particular period. Cash marketsAlso called spot markets, these are markets that involve the immediate delivery of a security Cash TurnoverThe number of cash cycles completed in one year. Changes in Financial Positionsources of funds internally provided from operations that alter a company's Clear a positionTo eliminate a long or short position, leaving no ownership or obligation. Common marketAn agreement between two or more countries that permits the free movement of capital Common stock marketThe market for trading equities, not including preferred stock. Comparison universeThe collection of money managers of similar investment style used for assessing Complete capital marketA market in which there is a distinct marketable security for each and every ComponentRaw materials or subassemblies used to make either finished goods CompositionVoluntary arrangement to restructure a firm's debt, under which payment is reduced. ConsolA type of bond that has an infinite life but is not issued in the U.S. capital markets. Consolidated Omnibus Budget Reconciliation Act (COBRA)A federal Act ConsolidationThe combining of two or more firms to form an entirely new entity. ConsolidationA summarization of the financial statements of a parent company and Consortium banksA merchant banking subsidiary set up by several banks that may or may not be of the Convertible securityA security that can be converted into common stock at the option of the security holder, Corner A MarketTo purchase enough of the available supply of a commodity or stock in order to Cost of goods soldThe cost of merchandise that a company sold this year. For manufacturing companies, the cost of raw Cost of goods soldSee cost of sales. Cost of goods soldThe cost of the items that were sold during the current period. Cost of goods soldThe accumulated total of all costs used to create a product or service, Cost of goods soldThe charge to expense of the direct materials, direct labor, and 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 Crossover rateThe return at which two alternative projects have the same net present value. cycle timethe time between the placement of an order to Dealer marketA market where traders specializing in particular commodities buy and sell assets for their Debt marketThe market for trading debt instruments. Debt SecurityA security representing a debt relationship with an enterprise, including a government Debt-service coverage ratioEarnings before interest and income taxes plus one-third rental charges, divided Deductive reasoningThe use of general fact to provide accurate information about a specific situation. Deemed DispositionUnder certain circumstances, taxation rules assume that a transfer of property has occurred, even though there has not been an actual purchase or sale. This could happen upon death or transfer of ownership. Derivative marketsmarkets for derivative instruments. Derivative securityA financial security, such as an option, or future, whose value is derived in part from the Direct search marketBuyers and sellers seek each other directly and transact directly. DLOM (discount for lack of marketability)an amount or percentage deducted from an equity interest to reflect lack of marketability. Doctrine of sovereign immunityDoctrine that says a nation may not be tried in the courts of another country Domestic marketPart of a nation's internal market representing the mechanisms for issuing and trading Doubling optionA sinking fund provision that may allow repurchase of twice the required number of bonds Dow Jones industrial averageThis is the best known U.S.index of stocks. It contains 30 stocks that trade on Dow Jones Industrial AverageIndex of the investment performance of a portfolio of 30 “blue-chip” stocks. economic components modelAbrams’ model for calculating DLOM based on the interaction of discounts from four economic components. Economies of scaleThe decrease in the marginal cost of production as a plant's scale of operations increases. Efficient capital marketA market in which new information is very quickly reflected accurately in share efficient capital marketsFinancial markets in which security prices rapidly reflect all relevant information about asset values. Efficient Market HypothesisIn general the hypothesis states that all relevant information is fully and Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |