Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: inventory, tax advisor, payroll, money, financial advisor, financial, investment, credit,
Definition of Synthetics
Customized hybrid instruments created by blending an underlying price on a cash instrument with
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.
Variations of mortgage instruments such as adjustable-rate and variablerate
The price at which a willing buyer and a willing unrelated seller would freely agree to
A dealer's price to sell a security; also called the offer price.
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.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
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.
The value of assets that can be converted into cash immediately, as reported by a company. Usually
A forecasted summary of a firm's expected cash inflows and cash outflows as well as its
Purchase of a security and simultaneous sale of a future, with the balance being financed
The value of assets that can be converted into cash immediately, as reported by a
The actual physical commodity, as distinguished from a futures contract.
Cash conversion cycle
The length of time between a firm's purchase of inventory and the receipt of cash
A company that pays out all earnings per share to stockholders as dividends. Or, a company or
In general, the time between cash disbursement and cash collection. In net working capital
Cash deficiency agreement
An agreement to invest cash in a project to the extent required to cover any cash
The provision of some futures contracts that requires not delivery of underlying assets but
An incentive offered to purchasers of a firm's product for payment within a specified time
A dividend paid in cash to a company's shareholders. The amount is normally based on
A short-term security that is sufficiently liquid that it may be considered the financial
In investments, it represents earnings before depreciation , amortization and non-cash charges.
Cash flow after interest and taxes
Net income plus depreciation.
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
Cash flow matching
Also called dedicating a portfolio, this is an alternative to multiperiod immunization in
Cash flow per common share
cash flow from operations minus preferred stock dividends, divided by the
Cash flow time-line
Line depicting the operating activities and cash flows for a firm over a particular period.
Cash-flow break-even point
The point below which the firm will need either to obtain additional financing
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
Also called spot markets, these are markets that involve the immediate delivery of a security
A public equity issue that is sold to all interested investors.
The proportion of a firm's assets held as cash.
Cash settlement contracts
Futures contracts, such as stock index futures, that settle for cash, not involving
A transaction where exchange is immediate, as contrasted to a forward contract, which
Temporary investments of currently excess cash in short-term, high-quality
An amount the insurance company will pay if the policyholder ends a whole life
Refers to a situation where a firm runs out of cash and cannot readily sell marketable securities.
Bond price excluding accrued interest.
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Conversion parity price
Related:Market conversion price
The contractually specified price per share at which a convertible security can be
A benchmark that is designed to meet a client's requirements and long-term
An asset requiring fixed dollar payments, such as a government or corporate bond.
The asset in a forward contract that will be delivered in the future at an agree-upon price.
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
Contracts such as options and futures whose price is derived from the price of the
Markets for derivative instruments.
A financial security, such as an option, or future, whose value is derived in part from the
Devaluation A decrease in the spot price of the currency
Bond price including accrued interest, i.e., the price paid by the bond buyer.
Discounted cash flow (DCF)
Future cash flows multiplied by discount factors to obtain present values.
Discretionary cash flow
cash flow that is available after the funding of all positive NPV capital investment
Dollar price of a bond
Percentage of face value at which a bond is quoted.
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
Equivalent annual cash flow
Annuity with the same net present value as the company's proposed investment.
The price at which the underlying future or options contract may be bought or sold.
Expected future cash flows
Projected future cash flows associated with an asset of decision.
Fair market price
Amount at which an asset would change hands between two parties, both having
The equilibrium price for futures contracts. Also called the theoretical futures price, which equals
Fair price provision
Assets that pay a fixed-dollar amount, such as bonds and preferred stock.
Fixed price basis
An offering of securities at a fixed price.
Fixed-price tender offer
A one-time offer to purchase a stated number of shares at a stated fixed price,
Flat price risk
Taking a position either long or short that does not involve spreading.
Flat price (also clean price)
The quoted newspaper price of a bond that does not include accrued interest.
Free cash flows
cash not required for operations or for reinvestment. Often defined as earnings before
Also called dirty price, the price of a bond including accrued interest. Related: flat price.
The price at which the parties to a futures contract agree to transact on the settlement date.
General cash offer
A public offering made to investors at large.
The highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
A package containing two or more different kinds of risk management instruments that are usually
A convertible security whose optioned common stock is trading in a middle range, causing
Incremental cash flows
Difference between the firm's cash flows with and without a project.
Financial securities, such as money market instruments or capital market insturments.
The price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered.
Law of one price
An economic rule stating that a given security must have the same price regardless of the
A firm's cash balance as reported in its financial statements. Also called book cash.
Maximum price fluctuation
A security, such as a call option, in which the owner can only lose his initial
This is the day's lowest price of a security that has changed hands between a buyer and a seller.
Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price-earnings ratio to
Maximum price fluctuation
A security, such as a call option, in which the owner can only lose his initial investment.
Market conversion price
Also called conversion parity price, the price that an investor effectively pays for
Market price of risk
A measure of the extra return, or risk premium, that investors demand to bear risk. The
The amount of money that a willing buyer pays to acquire something from a willing seller,
Marketplace price efficiency
The degree to which the prices of assets reflect the available marketplace
Maximum price fluctuation
The maximum amount the contract price can change, up or down, during one
Minimum price fluctuation
Smallest increment of price movement possible in trading a given contract. Also
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
price quotations on futures for a period in which no actual trading took place.
A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow.
The range of prices at which the first bids and offers were made or first transactions were
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from
Also called the option premium, the price paid by the buyer of the options contract for the right
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.