Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: financial advisor, accounting, inventory control, investment, business, credit, payroll, finance,
Also see related: financing, homebuying, home, property, real estate, condo, first time homebuyer, homebuyer, home buyer,
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.
an amount or percentage deducted from an equity interest to reflect lack of marketability.
Abramsâ€™ model for calculating DLOM based on the interaction of discounts from four economic components.
model for calculating DLOM for minority interests r the discount rate
Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full
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
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
A security that is collateralized by loans, leases, receivables, or installment contracts
A bond indenture restriction that permits additional borrowing on if the ratio of assets to
The ratio of net sales to total assets.
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
Any market in which prices are in a declining trend.
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.
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
The market for trading long-term debt instruments (those that mature in more than one year).
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.
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
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
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.
The combining of two or more firms to form an entirely new entity.
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
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
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.
A market where traders specializing in particular commodities buy and sell assets for their
The market for trading debt instruments.
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.
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.
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
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 Market Hypothesis
In general the hypothesis states that all relevant information is fully and
In the interbank Eurodollar deposit market, an either-way market is one in which the bid
The financial markets of developing economies.
Employee stock ownership plan (ESOP)
A company contributes to a trust fund that buys stock on behalf of
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
The money market for borrowing and lending currencies that are held in the form of
European Monetary System (EMS)
An exchange arrangement formed in 1979 that involves the currencies
Excess return on the market portfolio
The difference between the return on the market portfolio and the
security that grants the security holder the right to exchange the security for the
Also referred to as the international market, the offshore market, or, more popularly, the
Fair market price
Amount at which an asset would change hands between two parties, both having
Federal funds market
The market where banks can borrow or lend reserves, allowing banks temporarily
An organized institutional structure or mechanism for creating and exchanging financial assets.
Fixed asset turnover ratio
The ratio of sales to fixed assets.
Fixed-charge coverage ratio
A measure of a firm's ability to meet its fixed-charge obligations: the ratio of
A nonnegotiable debt security that can be redeemed at some fixed price or according to
The market for trading bonds and preferred stock.
Flat price (also clean price)
The quoted newspaper price of a bond that does not include accrued interest.
A member who generally trades only for his own account, for an account controlled by him or
Foreign banking market
That portion of domestic bank loans supplied to foreigners for use abroad.
Foreign bond market
That portion of the domestic bond market that represents issues floated by foreign
Foreign equity market
That portion of the domestic equity market that represents issues floated by foreign companies.
Part of a nation's internal market, representing the mechanisms for issuing and trading
Foreign market beta
A measure of foreign market risk that is derived from the capital asset pricing model.
Purchase or sale of forward foreign currency in order to offset a known future cash flow.
A market in which participants agree to trade some commodity, security, or foreign
Direct trading in exchange-listed securities between investors without the use of a broker.
A market in which contracts for future delivery of a commodity or a security are bought or sold.
See: Government securities.
Government National Mortgage Association (Ginnie Mae)
A wholly owned U.S. government corporation
Government sponsored enterprises
Privately owned, publicly chartered entities, such as the Student Loan
Negotiable U.S. Treasury securities.
Purchases and sales of eurobonds that occur before the issue price is finally set.
The security to which a warrant is attached.
Money that moves across country borders in response to interest rate differences and that moves
A convertible security whose optioned common stock is trading in a middle range, causing
Index and Option Market (IOM)
A division of the CME established in 1982 for trading stock index
The attempt to use information about a specific situation to draw a conclusion.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.