|theory of constraints (TOC)|
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Definition of theory of constraints (TOC)
theory of constraints (TOC)
a method of analyzing the bottlenecks
A merger or consolidation in which an acquirer purchases the acquiree's stock.
Publicly traded issues that may be collateralized by mortgages and MBSs.
The analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of
The second-largest stock exchange in the United States. It trades
An alternative model to the capital asset pricing model developed by
Floating rate preferred stock, the dividend on which is adjusted every
The correlation of a variable with itself over successive time intervals.
The beta of a stock is determined as follows:
The 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:
Security prices sometimes move wildly above their true values.
Ownership shares issued by a business corporation. A business
The total amount of plant, equipment, and other physical capital.
These are securities that represent equity ownership in a company. Common shares let an
Shares of ownership sold to the public.
A financial security that represents an ownership claim on the
Ownership shares in a publicly held corporation.
That part of the capital stock of a corporation that carries voting rights and represents
Common stock equivalent
A convertible security that is traded like an equity issue because the optioned
Common stock market
The market for trading equities, not including preferred stock.
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
Common stock ratios
Ratios that are designed to measure the relative claims of stockholders to earnings
Conflict between bondholders and stockholders
These two groups may have interests in a corporation that
Inventories owned by a company, but located on the premises
Convertible exchangeable preferred stock
Convertible preferred stock that may be exchanged, at the
Convertible preferred stock
Preferred stock that can be converted into common stock at the option of the holder.
Cost of Common Stock
The rate of return required by the investors in the common stock of
Cost of Preferred Stock
The rate of return required by the investors in the preferred stock of
Cumulative preferred stock
Preferred stock whose dividends accrue, should the issuer not make timely
The informal and frequently unauthorized retention of excess inventory on the shop floor, which is used as buffer safety stock.
Direct stock-purchase programs
The 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 stock
How much profit a company made on each share of common stock this year.
Employee stock fund
A 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 stock
Acquisition of another company by purchase of its stock in exchange for cash or shares.
expectations theory of exchange rates
theory that expected spot exchange rate equals the forward rate.
Low-cost, high-usage inventory items stored near the shop floor,
Common stock of a company that has an opportunity to invest money and earn more than the
Heavenly Parachute Stock Option
A nonqualified stock option that allows a deceased option holder’s estate up to three years in which to exercise his or her
Incentive Stock Option
An option to purchase company stock that is not taxable
Common stock with a high dividend yield and few profitable investment opportunities.
Privately placed common stock, so-called because the SEC requires a letter from the purchaser
Liquidity theory of the term structure
A biased expectations theory that asserts that the implied forward
Stocks that are traded on an exchange.
Stocks that are traded on an exchange.
Local expectations theory
A form of the pure expectations theory which suggests that the returns on bonds
A 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 theory
A biased expectations theory that asserts that the
Modern portfolio theory
Principles 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 stock
Stock issued by the company that does not have an arbitrary value (par value) assigned to it.
Non-cumulative preferred stock
Preferred stock whose holders must forgo dividend payments when the
Nonqualified Stock Option
A stock option not given any favorable tax treatment
Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected
Outbound stock point
A designated inventory location on the shop floor between
pecking order theory
Firms prefer to issue debt rather than equity if internal finance is insufficient.
Philadelphia Stock Exchange (PHLX)
A securities exchange where American and European foreign
A 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 theory
A biased expectations theory that believes the term structure reflects the
A security that shows ownership in a corporation and gives the holder a claim, prior to the
A type of equity security where holders have a claim on the assets
A type of stock that usually pays a fixed dividend prior to any distributions
Stock that takes priority over common stock in regard to dividends.
Preferred stock agreement
A contract for preferred stock.
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. Preferred stock typically does not carry the right to vote.
Pure expectations theory
A theory that asserts that the forward rates exclusively represent the expected
Quantity Theory of Money
theory 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 theory
Security prices change randomly, with no predictable trends or patterns.
RATE OF RETURN ON STOCKHOLDERS’ EQUITY
The 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’ EQUITY
A ratio that shows which group—creditors or stockholders—has the biggest stake in or the most control of a company:
Real Business Cycle Theory
Belief 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 Stock
A 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 stock
Device to pay cash to firm's shareholders that provides more preferable tax treatment
Reverse stock split
A proportionate decrease in the number of shares, but not the value of shares of stock
a buffer level of inventory kept on hand by a company in the event of fluctuating usage or unusual delays in lead time
Extra inventory kept on hand to guard against requirements
Stated value stock
Stock 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 structure
theory that the firm's capital structure is determined by a trade-off of the
Involving or containing a random variable or variables; involving
Liability-matching models that assume that the liability payments and the asset cash flows
Ownership of a corporation which is represented by shares which represent a piece of the corporation's
Certificates that signify ownership in a corporation. A share of stock represents a claim on a portion of the company’s assets.
Units 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.
Any item held in inventory.
stock appreciation right
a 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
A document that identifies a stockholder’s ownership share in a corporation.
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend
Distribution of additional shares to a firm’s stockholders.
Formal organizations, approved and regulated by the Securities and Exchange Commission
Stock index option
An option in which the underlying is a common stock index.
Also called the equity market, the market for trading equities.
An option in which the underlying is the common stock of a corporation.
a right allowing the holder to purchase shares of common stock during some future time frame and at a specified price
A right to purchase a specific maximum number of shares at a specific
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