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Definition of Speculator
Anyone who buys or sells an asset, such as a foreign currency, in the hope of profiting from a change in its price.
One, who attempts to anticipate price changes and, through buying and selling contracts, aims to
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
A merger or consolidation in which an acquirer purchases the selling firm's assets.
Mortgage pass-through securities whose principal and interest payments are
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 second-largest stock exchange in the United States. It trades
The price at which a willing buyer and a willing unrelated seller would freely agree to
Dollar deposits held in Singapore or other Asian centers.
A dealer's price to sell a security; also called the offer price.
Any possession that has value in an exchange.
The ratio of total assets to stockholder equity.
Also called surplus management, the task of managing funds of a financial
Ratios that measure how effectively the firm is managing its assets.
Asset allocation decision
The decision regarding how an institution's funds should be distributed among the
A security that is collateralized by loans, leases, receivables, or installment contracts
Methods of financing in which lenders and equity investors look principally to the
Categories of assets, such as stocks, bonds, real estate and foreign securities.
A bond indenture restriction that permits additional borrowing on if the ratio of assets to
Asset for asset swap
Creditors exchange the debt of One defaulting borrower for the debt of another
Asset pricing model
A model for determining the required rate of return on an asset.
A firm's investing in assets that are riskier than those that the debtholders expected.
Asset substitution problem
Arises when the stockholders substitute riskier assets for the firm's existing
An interest rate swap used to alter the cash flow characteristics of an institution's assets so as to
The ratio of net sales to total assets.
Asset pricing model
A model, such as the Capital asset Pricing Model (CAPM), that determines the required
A firm's productive resources.
A common element of a financial plan that describes projected capital spending and the
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
Automated Clearing House (ACH)
A collection of 32 regional electronic interbank networks used to
Gives the lessee the option to purchase the asset at a price below fair market
price expressed in terms of yield to maturity or annual rate of return.
Any market in which prices are in a declining trend.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
Bill of exchange
General term for a document demanding payment.
An illegal market.
Brokerage firms that help to find potential buyers or sellers of large block trades.
A currency that is not freely convertible to other currencies due to exchange controls.
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.
Buying the index
Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the
Call money rate
Also called the broker loan rate , the interest rate that banks charge brokers to finance
The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a
The price for which a bond can be repaid before maturity under a call provision.
Capital asset pricing model (CAPM)
An economic theory that describes the relationship between risk and
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.
Also called spot markets, these are markets that involve the immediate delivery of a security
Cash settlement contracts
Futures contracts, such as stock index futures, that settle for cash, not involving
Changes in Financial Position
Sources of funds internally provided from operations that alter a company's
Chicago Mercantile Exchange (CME)
A not-for-profit corporation owned by its members. Its primary
Bond price excluding accrued interest.
Clearing House Automated Payments System (CHAPS)
A computerized clearing system for sterling funds
Clearing House Interbank Payments System (CHIPS)
An international wire transfer system for high-value
Clearing house / Clearinghouse
An adjunct to a futures exchange through which transactions executed its floor are settled by a
A firm which buys and sells future contracts for customer accounts. Related: futures
Commodities Exchange Center (CEC)
The location of five New York futures exchanges: Commodity
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.
Complete capital market
A market in which there is a distinct marketable security for each and every
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Controlled foreign corporation (CFC)
A foreign corporation whose voting stock is more than 50% owned
Also called private-label pass-throughs, any mortgage pass-through security not
Conversion parity price
Related:market conversion price
The contractually specified price per share at which a convertible security can be
Convertible exchangeable preferred stock
Convertible preferred stock that may be exchanged, at the
Corner A Market
To purchase enough of the available supply of a commodity or stock in order to
Corporate processing float
The time that elapses between receipt of payment from a customer and the
Taking advantage of divergences in exchange rates in different mOney markets by
The value of a portfolio of specific amounts of individual currencies, used as the basis for
A financial future contract for the delivery of a specified foreign currency.
An option to buy or sell a foreign currency.
Related: Exchange rate risk
Currency risk sharing
An agreement by the parties to a transaction to share the currency risk associated with
asset allocation in which the investor chooses among investments denominated in
An agreement to swap a series of specified payment obligations denominated in One currency
Value of cash, accounts receivable, inventories, marketable securities and other assets that
A market where traders specializing in particular commodities buy and sell assets for their
The market for trading debt instruments.
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
markets for derivative instruments.
Devaluation A decrease in the spot price of the currency
Direct search market
Buyers and sellers seek each other directly and transact directly.
Bond price including accrued interest, i.e., the price paid by the bond buyer.
Dollar price of a bond
Percentage of face value at which a bond is quoted.
Part of a nation's internal market representing the mechanisms for issuing and trading
Dow Jones industrial average
This is the best known U.S.index of stocks. It contains 30 stocks that trade on
Eurobonds that pay coupon interest in One currency but pay the principal in a different
Dynamic asset allocation
An asset allocation strategy in which the asset mix is mechanistically shifted in
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
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
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