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Definition of Scale in
When a trader or investor gradually takes a position in a security or market over time.
A 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.
See logarithmic scale.
Capital rationing that under certain circumstances can be violated or even viewed
The ability to produce a good or service with fewer resources than competitors. See also comparative advantage.
Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full
Goods may be returned to the seller by the purchaser without restrictions.
A method of costing in which all fixed and variable production costs are charged to products or services using an allocation base.
a cost accumulation and reporting
A methodology under which all manufacturing costs are assigned
Schedule of depreciation rates allowed for tax purposes.
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on
The ratio of net credit sales to average accounts receivable, a measure of how
A ratio computed by dividing annual
The sum of cash, accounts receivable, and short-term marketable
Requirement that none of an order be executed unless all of it can be executed at the specified price.
An arrangement whereby a security issue is canceled if the underwriter is unable
the 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
A security that is collateralized by loans, leases, receivables, or installment contracts
Extent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position.
A bond indenture restriction that permits additional borrowing on if the ratio of assets to
The ratio of net sales to total assets.
a ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets
asset turnover ratio
A broad-gauge ratio computed by dividing annual
An option is at-the-money if the strike price of the option is equal to the market price of the
markets in which the prevailing price is determined through the free interaction of
A 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.
Money owed to the bank in a cheque account where payments exceed receipts.
Any market in which prices are in a declining trend.
A market in which stock or bond prices are generally
A prolonged period of falling stock market prices.
An illegal market.
Related: Premium payback period.
A market where an intermediary offers search services to buyers and sellers.
Any market in which prices are in an upward trend.
A market in which stock or bond prices are generally rising.
A prolonged period of rising stock market prices.
The foreign market in the United Kingdom.
Call money rate
Also 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.
The market for trading long-term debt instruments (those that mature in more than one year).
The market in which investors buy and sell shares of companies, normally associated with a Stock Exchange.
A market that specializes in trading long-term, relatively high risk
The 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 efficiency
Reflects the relative amount of wealth wasted in making transactions. An efficient
Capital market imperfections view
The 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.
markets for long-term financing.
Refers to recouping, or regaining, invested capital over
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash flow time-line
Line depicting the operating activities and cash flows for a firm over a particular period.
Also called spot markets, these are markets that involve the immediate delivery of a security
The number of cash cycles completed in one year.
Changes in Financial Position
sources of funds internally provided from operations that alter a company's
Clear a position
To eliminate a long or short position, leaving no ownership or obligation.
An agreement between two or more countries that permits the free movement of capital
Common stock market
The market for trading equities, not including preferred stock.
The collection of money managers of similar investment style used for assessing
Complete capital market
A market in which there is a distinct marketable security for each and every
Raw materials or subassemblies used to make either finished goods
Voluntary arrangement to restructure a firm's debt, under which payment is reduced.
A 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
The combining of two or more firms to form an entirely new entity.
A summarization of the financial statements of a parent company and
A merchant banking subsidiary set up by several banks that may or may not be of the
A security that can be converted into common stock at the option of the security holder,
Corner A Market
To purchase enough of the available supply of a commodity or stock in order to
Cost of goods sold
The cost of merchandise that a company sold this year. For manufacturing companies, the cost of raw
Cost of goods sold
See cost of sales.
Cost of goods sold
The cost of the items that were sold during the current period.
Cost of goods sold
The accumulated total of all costs used to create a product or service,
Cost of goods sold
The charge to expense of the direct materials, direct labor, and
The purchase of a contract to offset a previously established short position.
Ratios used to test the adequacy of cash flows generated through earnings for purposes of
Coverdell Education IRA
A form of individual retirement account whose earnings
A short call option position in which the writer owns the number of shares of the underlying
Covered call writing strategy
A strategy that involves writing a call option on securities that the investor
Covered interest arbitrage
A portfolio manager invests dollars in an instrument denominated in a foreign
Covered or hedge option strategies
Strategies that involve a position in an option as well as a position in the
A put option position in which the option writer also is short the corresponding stock or has
The return at which two alternative projects have the same net present value.
the time between the placement of an order to
A market where traders specializing in particular commodities buy and sell assets for their
The market for trading debt instruments.
A security representing a debt relationship with an enterprise, including a government
Debt-service coverage ratio
Earnings before interest and income taxes plus one-third rental charges, divided
The use of general fact to provide accurate information about a specific situation.
Under 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.
markets for derivative instruments.
A financial security, such as an option, or future, whose value is derived in part from the
Direct search market
Buyers 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 immunity
Doctrine that says a nation may not be tried in the courts of another country
Part of a nation's internal market representing the mechanisms for issuing and trading
A sinking fund provision that may allow repurchase of twice the required number of bonds
Dow Jones industrial average
This is the best known U.S.index of stocks. It contains 30 stocks that trade on
Dow Jones Industrial Average
Index of the investment performance of a portfolio of 30 “blue-chip” stocks.
economic components model
Abrams’ model for calculating DLOM based on the interaction of discounts from four economic components.
Economies of scale
The decrease in the marginal cost of production as a plant's scale of operations increases.
Efficient capital market
A market in which new information is very quickly reflected accurately in share
efficient capital markets
Financial markets in which security prices rapidly reflect all relevant information about asset values.
Efficient Market Hypothesis
In general the hypothesis states that all relevant information is fully and
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