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Financial Terms | |
Target |
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Definition of TargetTargetA specific level of some economic variable that a policy attempts to maintain.
Related Terms:Feasible target payout ratiosPayout ratios that are consistent with the availability of excess funds to make Target Benefit PlanA defined benefit plan under which the employer makes Target cash balanceOptimal amount of cash for a firm to hold, considering the trade-off between the Target costingA method of costing that is concerned with managing whole-of-life costs of a product/service during the product design phase – the difference between target price (to achieve market share) and the target profit margin. target costinga method of determining what the cost of a Target firmA firm that is the object of a takeover by another firm. Target payout ratioA firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a ![]() Target rate of return pricingA method of pricing that estimates the desired return on investment to be achieved from the Target zone arrangementA monetary system under which countries pledge to maintain their exchange rates Targeted repurchaseThe firm buys back its own stock from a potential bidder, usually at a substantial "Soft" Capital RationingCapital rationing that under certain circumstances can be violated or even viewed Budgetary controlThe process of ensuring that actual financial results are in line with targets – see variance CARs (cumulative abnormal returns)a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock. Comparative credit analysisA method of analysis in which a firm is compared to others that have a desired Current costUnder target costing concepts, this is the cost that would be applied to a Earning PowerA company's ability to generate a sustainable, and likely growing, stream of Earnings ManagementThe active manipulation of earnings toward a predetermined target. Exclusionary self-tenderThe firm makes a tender offer for a given amount of its own stock while excluding FeedforwardThe process of determining prospectively whether strategies are likely to achieve the target financial incentivea monetary reward provided for performance Golden parachuteCompensation paid to top-level management by a target firm if a takeover occurs. GreenmailSituation in which a large block of stock is held by an unfriendly company, forcing the target KaizenA method of costing that involves making continual, incremental improvements to the Leverage rebalancingMaking transactions to adjust (rebalance) a firm's leverage ratio back to its target. Linter's observationsJohn Lintner's work (1956) suggested that dividend policy is related to a target level of mergerCombination of two firms into one, with the acquirer assuming assets and liabilities of the target firm. mission statementa written expression of organizational purpose that describes how the organization uniquely meets its targeted customers’ needs with its products or services Operational Earnings ManagementManagement actions taken in the effort to create stable poison pillMeasure taken by a target firm to avoid acquisition; Profit centreA division or unit of an organization that is responsible for achieving profit targets. Rate anticipation swapsAn exchange of bonds in a portfolio for new bonds that will achieve the target Shortfall riskThe risk of falling short of any investment target. Variance analysisA method of budgetary control that compares actual performance against plan, investigates the causes of the variance and takes corrective action to ensure that targets are achieved. Watch listA list of securities selected for special surveillance by a brokerage, exchange or regulatory White knightA friendly potential acquirer of a firm sought out by a target firm that is threatened by a less white knightFriendly potential acquirer sought by a target company threatened by an unwelcome suitor. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |