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theory of constraints (TOC) |
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Definition of theory of constraints (TOC)theory of constraints (TOC)a method of analyzing the bottlenecks
Related Terms:Acquisition of stockA merger or consolidation in which an acquirer purchases the acquiree's stock. Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. Agency theoryThe analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of American Stock Exchange (AMEX)The second-largest stock exchange in the United States. It trades Arbitrage Pricing Theory (APT)An alternative model to the capital asset pricing model developed by Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every AutocorrelationThe correlation of a variable with itself over successive time intervals. ![]() Beta equation (Stocks)The beta of a stock is determined as follows: BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals: Bubble theorySecurity prices sometimes move wildly above their true values. capital stockOwnership shares issued by a business corporation. A business Capital StockThe total amount of plant, equipment, and other physical capital. Common stockThese are securities that represent equity ownership in a company. Common shares let an Common stockShares of ownership sold to the public. Common StockA financial security that represents an ownership claim on the common stockOwnership shares in a publicly held corporation. Common StockThat part of the capital stock of a corporation that carries voting rights and represents Common stock equivalentA convertible security that is traded like an equity issue because the optioned Common stock marketThe market for trading equities, not including preferred stock. Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Common stock ratiosRatios that are designed to measure the relative claims of stockholders to earnings Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that Consigned stocksInventories owned by a company, but located on the premises Convertible exchangeable preferred stockConvertible preferred stock that may be exchanged, at the Convertible preferred stockPreferred stock that can be converted into common stock at the option of the holder. Cost of Common StockThe rate of return required by the investors in the common stock of Cost of Preferred StockThe rate of return required by the investors in the preferred stock of Cumulative preferred stockPreferred stock whose dividends accrue, should the issuer not make timely Departmental stocksThe informal and frequently unauthorized retention of excess inventory on the shop floor, which is used as buffer safety stock. Direct stock-purchase programsThe purchase by investors of securities directly from the issuer. Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. Earnings per share of common stockHow much profit a company made on each share of common stock this year. Employee stock fundA firm-sponsored program that enables employees to purchase shares of the firm's Employee stock ownership plan (ESOP)A company contributes to a trust fund that buys stock on behalf of Employee Stock Ownership Plan (ESOP)a profit-sharing compensation program in which investments are made in Employee Stock Ownership Plan (ESOP)A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer. Exchange of stockAcquisition of another company by purchase of its stock in exchange for cash or shares. expectations theory of exchange ratestheory that expected spot exchange rate equals the forward rate. Floor stocksLow-cost, high-usage inventory items stored near the shop floor, Growth stockCommon stock of a company that has an opportunity to invest money and earn more than the Heavenly Parachute Stock OptionA nonqualified stock option that allows a deceased option holder’s estate up to three years in which to exercise his or her Incentive Stock OptionAn option to purchase company stock that is not taxable Income stockCommon stock with a high dividend yield and few profitable investment opportunities. Letter stockPrivately placed common stock, so-called because the SEC requires a letter from the purchaser Liquidity theory of the term structureA biased expectations theory that asserts that the implied forward Listed stocksStocks that are traded on an exchange. Listed stocksStocks that are traded on an exchange. Local expectations theoryA form of the pure expectations theory which suggests that the returns on bonds Make-to-stockA production scheduling system under which products are completed Margin account (Stocks)A leverageable account in which stocks can be purchased for a combination of Market segmentation theory or preferred habitat theoryA biased expectations theory that asserts that the Modern portfolio theoryPrinciples underlying the analysis and evaluation of rational portfolio choices New York Stock Exchange (NYSE)Also known as the Big Board or The Exhange. More than 2,00 common No par value stockStock issued by the company that does not have an arbitrary value (par value) assigned to it. Non-cumulative preferred stockPreferred stock whose holders must forgo dividend payments when the Nonqualified Stock OptionA stock option not given any favorable tax treatment Normal backwardation theoryHolds that the futures price will be bid down to a level below the expected Outbound stock pointA designated inventory location on the shop floor between pecking order theoryFirms prefer to issue debt rather than equity if internal finance is insufficient. Philadelphia Stock Exchange (PHLX)A securities exchange where American and European foreign Preference stockA security that ranks junior to preferred stock but senior to common stock in the right to Preferred equity redemption stock (PERC)Preferred stock that converts automatically into equity at a Preferred habitat theoryA biased expectations theory that believes the term structure reflects the Preferred stockA security that shows ownership in a corporation and gives the holder a claim, prior to the Preferred StockA type of equity security where holders have a claim on the assets Preferred stockA type of stock that usually pays a fixed dividend prior to any distributions preferred stockStock that takes priority over common stock in regard to dividends. Preferred stock agreementA contract for preferred stock. Preferred Stock Stock that has a claim on assets and dividends of a corporation that are priorto that of common stock. Preferred stock typically does not carry the right to vote. Pure expectations theoryA theory that asserts that the forward rates exclusively represent the expected Quantity Theory of Moneytheory that velocity is constant, and so a change in money supply will change nominal income by the same percentage. Formalized by the equation Mv = PQ. random walk theorySecurity prices change randomly, with no predictable trends or patterns. RATE OF RETURN ON STOCKHOLDERS’ EQUITYThe percentage return or profit that management made on each dollar stockholders invested in a company. Here’s how you figure it: RATIO OF DEBT TO STOCKHOLDERS’ EQUITYA ratio that shows which group—creditors or stockholders—has the biggest stake in or the most control of a company: Real Business Cycle TheoryBelief that business cycles arise from real shocks to the economy, such as technology advances and natural resource discoveries, and have little to do with monetary policy. Redeemable Preferred StockA preferred stock issue that must be redeemed by the issuing enterprise or is redeemable at the option of the investor. Considered a debt security for accountingpurposes. Repurchase of stockDevice to pay cash to firm's shareholders that provides more preferable tax treatment Reverse stock splitA proportionate decrease in the number of shares, but not the value of shares of stock safety stocka buffer level of inventory kept on hand by a company in the event of fluctuating usage or unusual delays in lead time Safety stockExtra inventory kept on hand to guard against requirements Stated value stockStock issued by the company that does not have a par value, but does have a stated value. For accounting purposes, stated value is functionally equivalent to par value. Static theory of capital structuretheory that the firm's capital structure is determined by a trade-off of the StochasticInvolving or containing a random variable or variables; involving Stochastic modelsLiability-matching models that assume that the liability payments and the asset cash flows StockOwnership of a corporation which is represented by shares which represent a piece of the corporation's STOCKCertificates that signify ownership in a corporation. A share of stock represents a claim on a portion of the company’s assets. StockSee inventory. StockUnits of ownership, also called shares, in a public corporation. Owners of such units, called shareholders, share in the earnings of the company through dividends. The price of a stock is determined by supply and demand in the stock market. StockAny item held in inventory. stock appreciation righta right to receive cash, stock, or a combination of cash and stock based on the difference between a specified dollar amount per share of stock and the quoted market price per share at some future date Stock certificateA document that identifies a stockholder’s ownership share in a corporation. Stock dividendPayment of a corporate dividend in the form of stock rather than cash. The stock dividend stock dividendDistribution of additional shares to a firm’s stockholders. Stock exchangesFormal organizations, approved and regulated by the Securities and Exchange Commission Stock index optionAn option in which the underlying is a common stock index. Stock marketAlso called the equity market, the market for trading equities. Stock optionAn option in which the underlying is the common stock of a corporation. stock optiona right allowing the holder to purchase shares of common stock during some future time frame and at a specified price Stock optionA right to purchase a specific maximum number of shares at a specific Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |