|Short sale, short position
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Definition of Short sale, short position
Short sale, short position
The sale of a security or financial instrument not
A method of securities distribution/ underwriting in which the securities firm agrees to sell
Sources of funds internally provided from operations that alter a company's
To eliminate a long or short position, leaving no ownership or obligation.
A transaction in which the seller's intention is to reduce or eliminate a long position in a stock,
Voluntary arrangement to restructure a firm's debt, under which payment is reduced.
Similar to equipment trust certificates except that the lender is either the
The formal name for the load of a back-end load fund.
The average number of days' worth of sales that is held in inventory.
Average collection period.
A U.S. corporation that receives a tax incentive for
A special type of corporation created by the Tax Reform Act of 1984 that
A method for hedging price risk which involves an agreement between a lender and an investor
The sale of an asset in exchange for a specified series of payments (the installments).
A bond covenant that restricts in some way a firm's ability to
A bond covenant that restricts in some way a firm's ability to enter into
An options position where a person has executed one or more option trades where the net
Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.
Modigliani and Miller Proposition I
A proposition by Modigliani and Miller which states that a firm cannot
Modigliani and Miller Proposition II
A proposition by Modigliani and Miller which states that the cost of
Situation in which the terms of an offering are determined by negotiation between the issuer
A net long or short position whose value will change with a change in prices.
A transaction in which the seller's intention is to create or increase a short position in a given
A market commitment; the number of contracts bought or sold for which no offsetting transaction
Diagram showing the possible payoffs from a derivative investment.
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
Purchase and sale
A method of securities distribution in which the securities firm purchases the securities
Sale and lease-back
sale of an existing asset to a financial institution that then leases it back to the user.
The fee charged by a mutual fund when purchasing shares, usually payable as a commission to
A key input to a firm's financial planning process. External sales forecasts are based on
An arrangement whereby a firm leases its own equipment, such as IBM leasing its own
If an investor thinks the price of a stock is going down, the investor could borrow the stock from
One who has sold a contract to establish a market position and who has not yet closed out this position
Bonds with short current maturities.
See: unmatched book.
The sale of a futures contract(s) to eliminate or lessen the possible decline in value ownership of
This is the total number of shares of a security that investors have borrowed, then sold in the
Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed,
Selling a security that the seller does not own but is committed to repurchasing eventually. It is
Establishing a market position by selling a security one does not own in anticipation of the price
A situation in which a lack of supply tends to force prices upward.
A straddle in which one put and one call are sold.
Costs that fall with increases in the level of investment in current assets.
The risk of falling short of any investment target.
Short-run operating activities
Events and decisions concerning the short-term finance of a firm, such as
Short-term financial plan
A financial plan that covers the coming fiscal year.
Short-term investment services
Services that assist firms in making short-term investments.
Short-term solvency ratios
Ratios used to judge the adequacy of liquid assets for meeting short-term
Short-term tax exempts
short-term securities issued by states, municipalities, local housing agencies, and
A method for hedging price risk that utilizes debt-market instruments, such as interest rate
Also called a swap assignment, a transaction that ends one counterparty's role in an interest rate
Take a position
To buy or sell short; that is, to have some amount that is owned or owed on an asset or
Terms of sale
Conditions on which a firm proposes to sell its goods services for cash or credit.
Wholesale mortgage banking
The purchasing of loans originated by others, with the servicing rights
NET SALES (revenue)
The amount sold after customersâ€™ returns, sales discounts, and other allowances are taken away from
NUMBER OF DAYS SALES IN RECEIVABLES
(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that havenâ€™t been collected yet.
RATIO OF NET INCOME TO NET SALES
A ratio that shows how much net income (profit) a company made on each dollar of net sales. Hereâ€™s the formula:
RATIO OF NET SALES TO NET INCOME
A ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way:
Cost of sales
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
The mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs.
Amounts earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue.
A contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales.
A journal used to record the transactions that result in a credit to sales.
A contra account that offsets revenue. It represents the amount of sales made that were later returned.
return on sales
This ratio equals net income divided by sales revenue.
the relative combination of quantities of sales of the various products that make up the total sales of a company
sales value at split-off allocation
a method of assigning joint cost to joint products that uses the relative sales values of the products at the split-off point as the proration basis; use of this method requires that all joint products
Outright ownership of a security or financial instrument. The
The annualized one-period interest rate.
The total sales recorded prior to sales discounts and returns.
Total revenue, less the cost of sales returns, allowances, and discounts.
A reduction in a price that is allowed by the seller, due to a problem
A reduction in the price of a product or service that is offered by the
Sales value at split-off
A cost allocation methodology that allocates joint costs to joint
Purchase of an investment.
MM dividend-irrelevance proposition
Theory that under ideal conditions, the value of the firm is unaffected by dividend policy.
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 firmâ€™s debt-equity ratio increases.
percentage of sales models
Planning model in which sales forecasts are the driving variables and most other variables are
Costs incurred from shortages in current assets.
The sale of an investment, particularly by someone who does not yet own it.
terms of sale
Credit, discount, and payment terms offered on a sale.
Fallacy of Composition
The incorrect conclusion that something that is true for an individual is necessarily true for the economy as a whole.
Theory that anticipated policy has no effect on output.
A tax levied as a percentage of retail sales.
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.
Up-front gain recognized from the securitization and sale of a pool
Sales Revenue Revenue recognized from the sales of products as opposed to the provision of
Lease accounting used by a manufacturer who is also a lessor. Up-front gross
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.
A type of agreement to sell whereby a seller retains title to goods sold and delivered to a purchaser until full payment has been made.
Conditional Sale Agreement
An agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands.
Status of a firm's assets, liabilities, and equity accounts as of a certain time, as shown in its financial statement.
Sale and Leaseback
An agreement in which the owner of a property sells that property to a person or institution and then leases it back again for an agreed period and rental.
point of sale (POS)
The terminal at which a customer uses his/her debit card to make a direct payment transaction. See also Interac Direct Payment.
One who has bought a contract(s) to establish a market position and who has not yet closed out this
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