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Definition of Term
See term to maturity.
This is usually the duration of a loan.
The period of time during which a financial contract – such as a GIC or a loan – is in force.
The time period during which a policy is in force, or the time it takes for a policy to reach maturity.
A measure of the goodness of fit of the relationship between the dependent and
a measure of dispersion that
Conditions under which credit is extended by a lender to a borrower.
Liability-matching models that assume that the liability payments and the asset cash
Withdrawal of funds from a financial institution in order to invest them directly.
A non-underwritten Euronote issued directly to the market. Euro-
Institutions that provide the market function of matching borrowers and lenders or
Firm that raises money from many small investors and provides financing to businesses or other
Any institution, such as a bank, that takes deposits from savers and loans them to borrowers.
The process whereby financial intermediaries channel funds from lender/savers to borrower/spenders.
Optional periods of time which the conditions of a contract will be carried out.
spread The spread between the interest rate offered in two sectors of the bond market for
An exchange of one bond for another based on the manager's projection of a
An independent third party that may act as a mediator during negotiations.
A good used in producing another good.
Typically 1-10 years.
Investment through a financial institution. Related: disintermediation.
Liquidity theory of the term structure
A biased expectations theory that asserts that the implied forward
In accounting information, one year or greater.
Value of property, equipment and other capital assets minus the depreciation. This is an
An obligation having a maturity of more than one year from the date it was issued. Also
A debt for which payments will be required for a period of more than
Long Term Debt
Liability due in a year or more.
Indicator of financial leverage. Shows long-term debt as a proportion of the
Long-term debt ratio
The ratio of long-term debt to total capitalization.
Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
Long-term financial plan
Financial plan covering two or more years of future operations.
Amount owed for leases, bond repayment and other items due after 1 year.
Bills that are payable in more than one year, such as a mortgage or bonds.
Amounts owing after more than one year.
Longer-Term Fixed Assets
Assets having a useful life greater than one year but the duration of the 'long term' will vary with the context in which the term is applied.
A corporate debt instrument that is continuously offered to investors over a period of
Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations
predetermined overhead rate
an estimated constant charge per unit of activity used to assign overhead cost to production or services of the period; it is calculated by dividing total budgeted annual overhead at a selected level of volume or activity by that selected measure of volume or activity; it is also the standard overhead application rate
The length of time given a borrower by a lender to repay a debt and the frequency of principal payments which the borrower has to meet.
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
Often referred to as bullet-maturity bonds or simply bullet bonds, bonds whose principal is
An interest-earning bank deposit that cannot be withdrawn without penalty until a specific time.
Term Fed Funds
Fed Funds sold for a period of time longer than overnight.
Provides a death benefit only, no build-up of cash value.
A product that provides life coverage for a specified duration typically not beyond the age of 75.
Term life insurance
A contract that provides a death benefit but no cash build-up or investment component.
Term Life Insurance
A plan of insurance which covers the insured for only a certain period of time and not necessarily for his or her entire life. The policy pays a death benefit only if the insured dies during the term.
A bank loan, typically with a floating interest rate, for a specified amount that matures in between
A secured loan made to business concerns for a specific period (normally three to ten years). It is repaid with interest, usually with periodical payments.
Excess of the yields to maturity on long-term bonds over those of short-term bonds.
A repurchase agreement with a term of more than one day.
A list of the major points of the proposed financing being offered by an investor.
The relationship between the yields on fixed-interest
Term Structure of Interest Rates
Relationship among interest rates on bonds with different terms to maturity.
Term to maturity
The time remaining on a bond's life, or the date on which the debt will cease to exist and
Term to Maturity
Period of time from the present to the redemption date of a bond.
A closed-end fund that has a fixed termination or maturity date.
Terminal Illness Insurance (Credit Insurance)
Coverage that provides a lump-sum payment should you become terminally ill. The payment is made to your creditors to pay off your debt owing.
The value of a bond at maturity, typically its par value, or the value of an asset (or an entire
Cease all legal obligations under a contract.
Additional pay due to an employee whose employment is
Terms of sale
Conditions on which a firm proposes to sell its goods services for cash or credit.
terms of sale
Credit, discount, and payment terms offered on a sale.
Terms of trade
The weighted average of a nation's export prices relative to its import prices.
Terms of Trade
The quantity of imports that can be obtained for a unit of exports, measured by the ratio of an export price index to an import price index.
Yearly Renewable Term Insurance
Sometimes, simply called YRT, this is a form of term life insurance that may be renewed annually without evidence of insurability to a stated age.
The option of terminating an investment earlier than originally planned.
A test used to determine the status of an employee under a state unemployment
An explanation or report in financial terms about the transactions of an organization.
A broad, all-inclusive term that refers to the methods and procedures
Intentional misstatements or omissions of amounts or disclosures in
Short-term, non-interest-bearing liabilities of a business
Acurrent liability on the balance sheet, representing short-term obligations
Short-term, non-interest-bearing debts owed to a
A current asset on the balance sheet, representing short-term
Well, frankly, accrual is not a good descriptive
accrued expenses payable
The account that records the short-term, noninterest-
Accumulated Benefit Obligation (ABO)
An approximate measure of the liability of a plan in the event of a
A contra, or offset, account that is coupled
acid test ratio (also called the quick ratio)
The sum of cash, accounts receivable, and short-term marketable
actual cost system
a valuation method that uses actual direct
A means of compensating the broker of a program trade solely on the basis of commission
Aggregate Production Function
An equation determining aggregate output as a function of aggregate inputs such as labor and capital.
a logical step-by-step problem-solving technique
The alpha of a fund is determined as follows:
This term has two quite different meanings. First, it may
Reduction in value of an asset over some period for accounting
The write-off of an asset over the period when the asset is used. This term
Periodic payments made to an individual under the terms of the policy.
A right of shareholders in a merger to demand the payment of a fair price for their shares, as
Adjustable rate mortgage. A mortgage that features predetermined adjustments of the loan interest rate
Asset pricing model
A model for determining the required rate of return on an asset.
Asset pricing model
A model, such as the Capital Asset Pricing Model (CAPM), that determines the required
Assuris is a not for profit organization that protects Canadian policyholders in the event that their life insurance company should become insolvent. Their role is to protect policyholders by minimizing loss of benefits and ensuring a quick transfer of their policies to a solvent company where their benefits will continue to be honoured. Assuris is funded by the life insurance industry and endorsed by government. If you are a Canadian citizen or resident, and you purchased a product from a member life insurance company in Canada, you are protected by Assuris.
Markets in which the prevailing price is determined through the free interaction of
An arithmetic mean of selected stocks intended to represent the behavior of the market or some
Back To Back Annuity
This term refers to the simultaneous issue of a life annuity with a non-guaranteed period and a guaranteed life insurance policy [usually whole life or term to 100]. The face value of the life insurance would be the same amount that was used to purchase the annuity. This combination of life annuity providing the highest payout of all types of annuities, along with a guaranteed life insurance policy allowed an uninsurable person to convert his/her RRSP into the best choice of annuity and guarantee that upon his/her death, the full value of the annuity would be paid tax free through the life insurance policy to his family members. However, in the early 1990's, the Federal tax authorities put a stop to the issuing of standard life rates to rated or uninsurable applicants. Insuring a life annuity in this manner is still an excellent way to provide guaranteed tax free funds to family members but the application for the annuity and the application for the life insurance are separate transactions and today, most likely conducted through two different insurance companies so that there is no suspicion of preferential treatment given to the life insurance application.
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