Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: finance, tax advisor, payroll, money, inventory, credit, business, investment,
Definition of Security Value
The monetary value placed on security by a lender in determining the extent to which it can make loans against such security.
Same as PV, but usually includes a subtraction for an initial cash outlay.
the value in today’s dollars of cash flows that occur in different time periods.
The net present value analysis of an asset if financed solely by equity
A security that is collateralized by loans, leases, receivables, or installment contracts
With respect to convertible bonds, the value the security would have if it were not convertible
A company's book value is its total assets minus intangible assets and liabilities, such as debt. A
The ratio of stockholder equity to the average number of common shares. Book value
An amount the insurance company will pay if the policyholder ends a whole life
Also called parity value, the value of a convertible security if it is converted immediately.
A security that can be converted into common stock at the option of the security holder,
A financial security, such as an option, or future, whose value is derived in part from the
security that grants the security holder the right to exchange the security for the
The amount of advantage over a current market transaction provided by an in-the-money
The weighted average of a probability distribution.
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
Extraordinary positive value
A positive net present value.
See: Par value.
Firm's net value of debt
Total firm value minus total firm debt.
A nonnegotiable debt security that can be redeemed at some fixed price or according to
The amount of cash at a specified date in the future that is equivalent in value to a specified
The security to which a warrant is attached.
A convertible security whose optioned common stock is trading in a middle range, causing
Intrinsic value of an option
The amount by which an option is in-the-money. An option which is not in-themoney
Intrinsic value of a firm
The present value of a firm's expected future net cash flows discounted by the
Net amount that could be realized by selling the assets of a firm after paying the debt.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
1) The price at which a security is trading and could presumably be purchased or sold.
Market value ratios
Ratios that relate the market price of the firm's common stock to selected financial
Market value-weighted index
An index of a group of securities computed by calculating a weighted average
Related: par value.
Monthly income preferred security (MIP)
Preferred stock issued by a subsidiary located in a tax haven.
Mortgage pass-through security
Also called a passthrough, a security created when one or more mortgage
Net adjusted present value
The adjusted present value minus the initial cost of an investment.
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share
Net book value
The current book value of an asset or liability; that is, its original book value net of any
Net present value (NPV)
The present value of the expected future cash flows minus the cost.
Net present value of growth opportunities
A model valuing a firm in which net present value of new
Net present value of future investments
The present value of the total sum of NPVs expected to result from
Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs
Net salvage value
The after-tax net cash flow for terminating the project.
Original face value
The principal amount of the mortgage as of its issue date.
Also called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date.
The amount of cash today that is equivalent in value to a payment, or to a stream of payments,
Present value factor
Factor used to calculate an estimate of the present value of an amount to be received in
Present value of growth opportunities (NPV)
Net present value of investments the firm is expected to make
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
An instrument such as a stock or bond for which payments depend only on the financial
The attractiveness measured in terms of risk, liquidity, and return of one instrument relative to
Current cost of replacing the firm's assets.
Usually refers to the value of a lessor's property at the time the lease expires.
Scrap value of plant and equipment.
Piece of paper that proves ownership of stocks, bonds and other investments.
Security characteristic line
A plot of the excess return on a security over the risk-free rate as a function of
Security deposit (initial)
Synonymous with the term margin. A cash amount of funds that must be deposited
Security deposit (maintenance)
Related: Maintenance margin security market line (SML). A description of
Security market line
Line representing the relationship between expected return and market risk.
Security selection decision
Choosing the particular securities to include in a portfolio.
Also called the normal deviate, the distance of one data point from the mean, divided by
Also called investment value, the value of a convertible security without the con-version option.
The value of a bond at maturity, typically its par value, or the value of an asset (or an entire
Time value of an option
The portion of an option's premium that is based on the amount of time remaining
Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar
Options: the security subject to being purchased or sold upon exercise of an option
The welfare a given investor assigns to an investment with a particular return and risk.
Method of indirect taxation whereby a tax is levied at each stage of production on the value
Value-at-Risk model (VAR)
Procedure for estimating the probability of portfolio losses exceeding some
Value additivity principal
Prevails when the value of a whole group of assets exactly equals the sum of the
In the market for Eurodollar deposits and foreign exchange, value date refers to the delivery date
Refers to when value or credit is given for funds transferred between banks.
A manager who seeks to buy stocks that are at a discount to their "fair value" and sell them at
Variable price security
A security, such as stocks or bonds, that sells at a fluctuating, market-determined price.
An asset’s cost basis minus accumulated depreciation.
BOOK VALUE OF COMMON STOCK
The theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals:
CAPITAL IN EXCESS OF PAR VALUE
What a company collected when it sold stock for more than the par value per share.
An arbitrary value that a company may assign to its stock. Par value has no relationship to what the stock is selling for on the open market.
The amount management estimates a piece of equipment will be worth at the end of its useful life, either as a trade-in or if it were sold for scrap.
Cash value added (CVA)
A method of investment appraisal that calculates the ratio of the net present value of an
Economic Value Added (EVA)
Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge
Net present value (NPV)
A discounted cash flow technique used for investment appraisal that calculates the present value of future cash flows and deducts the initial capital investment.
Increasing the value of the business to its shareholders, achieved through a combination of
A variety of approaches that emphasize increasing shareholder value as the primary goal of every business.
No par value stock
Stock issued by the company that does not have an arbitrary value (par value) assigned to it.
An arbitrary value assigned by the company to each share of stock; it is used in the accounting for the sale of stock and in some jurisdictions for calculating taxes.
Stated value stock
Stock issued by the company that does not have a par value, but does have a stated value. For accounting purposes, stated value is functionally equivalent to par value.
book value and book value per share
Generally speaking, these terms
net present value (NPV)
Equals the present value (PV) of a capital investment
present value (PV)
This amount is calculated by discounting the future
The value of an asset as carried on the balance sheet of a
Book Value per Share
The book value of a company divided by the number of shares
The value of the possible outcomes of a variable weighted by the
The nominal value of a security. Also called the par value.
The amount a given payment, or series of payments, will be worth
The net proceeds (after taxes and expenses) of selling the assets
Net Present Value (NPV)
The present value of all future cash inflows minus the present value
Nominal value of a security. Same as face value.
Present Value (PV)
The dollar value at the present time (year zero) of a single cash
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.