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Definition of Tobin's Q
Market value of assets divided by replacement value of assets. A tobin's Q ratio greater than 1
Market value of a firm's assets divided by replacement value of the firm's assets.
The sum of all the interest options in your policy, including interest.
An amount of money invested plus the interest earned on that money.
A merger or consolidation in which an acquirer purchases the selling firm's assets.
The net present value analysis of an asset if financed solely by equity
A bond covenant that specifies certain actions the firm must take.
a method of allocating joint cost to joint products using a
A firm's productive resources.
Anything of value that a company owns.
Things that the business owns.
Items owned by the company or expenses that have been paid for but have not been used up.
A common element of a financial plan that describes projected capital spending and the
Markets in which the prevailing price is determined through the free interaction of
Gives the lessee the option to purchase the asset at a price below fair Market
Any Market in which prices are in a declining trend.
A Market in which stock or bond prices are generally
A prolonged period of falling stock Market prices.
The amount of cash payable on a benefit.
An illegal Market.
With respect to convertible bonds, the value the security would have if it were not convertible
A company's book value is its total assets minus intangible assets and liabilities, such as debt. A
An asset’s cost basis minus accumulated depreciation.
The value of an asset as carried on the balance sheet of a
An asset’s original cost, less any depreciation that has been subsequently incurred.
Net worth of the firm’s assets or liabilities according
book value and book value per share
Generally speaking, these terms
BOOK VALUE OF COMMON STOCK
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:
Book value per share
The ratio of stockholder equity to the average number of common shares. Book value
Book Value per Share
The book value of a company divided by the number of shares
A Market where an intermediary offers search services to buyers and sellers.
Any Market in which prices are in an upward trend.
A Market in which stock or bond prices are generally rising.
A prolonged period of rising stock Market prices.
The foreign Market in the United Kingdom.
Business Expansion Investment
The use of capital to create more money through the addition of fixed assets or through income producing vehicles.
an activity that is necessary for the operation of the business but for which a customer would not want to pay
CAPITAL IN EXCESS OF PAR VALUE
What a company collected when it sold stock for more than the par value per share.
capital investment analysis
Refers to various techniques and procedures
Money used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses.
The Market for trading long-term debt instruments (those that mature in more than one year).
The Market in which investors buy and sell shares of companies, normally associated with a Stock Exchange.
A Market that specializes in trading long-term, relatively high risk
The Market in which savings are made available to those needing funds to undertake investment projects. A financial Market in which longer-term (maturity greater than one year) bonds and stocks are traded.
Capital market efficiency
Reflects the relative amount of wealth wasted in making transactions. An efficient
Capital market imperfections view
The view that issuing debt is generally valuable but that the firm's
Capital market line (CML)
The line defined by every combination of the risk-free asset and the Market portfolio.
Markets for long-term financing.
Also called spot Markets, these are Markets that involve the immediate delivery of a security
An amount the insurance company will pay if the policyholder ends a whole life
Cash Surrender Value
This is the amount available to the owner of a life insurance policy upon voluntary termination of the policy before it becomes payable by the death of the life insured. This does not apply to term insurance but only to those policies which have reduced paid up values and cash surrender values. A cash surrender in lieu of death benefit usually has tax implications.
Cash Surrender Value
Benefit that entitles a policy owner to an amount of money upon cancellation of a policy.
Cash value added (CVA)
A method of investment appraisal that calculates the ratio of the net present value of an
A transaction in which the purchaser's intention is to reduce or eliminate a short position in
An agreement between two or more countries that permits the free movement of capital
Common stock market
The Market for trading equities, not including preferred stock.
Complete capital market
A Market in which there is a distinct Marketable security for each and every
he written statement that follows any "trade" in the securities Markets. Confirmation is issued
Also called parity value, the value of a convertible security if it is converted immediately.
Corner A Market
To purchase enough of the available supply of a commodity or stock in order to
value of cash, accounts receivable, inventories, Marketable securities and other assets that
Cash, things that will be converted into cash within a year (such as accounts receivable), and inventory.
Amounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments.
Current refers to cash and those assets that will be turned
Cash and other company assets that can be readily turned into cash within one year.
A Market where traders specializing in particular commodities buy and sell assets for their
The Market for trading debt instruments.
Markets for derivative instruments.
Direct search market
Buyers and sellers seek each other directly and transact directly.
Direct stock-purchase programs
The purchase by investors of securities directly from the issuer.
Dividend reinvestment plan (DRP)
Automatic reinvestment of shareholder dividends in more shares of a
DLOM (discount for lack of marketability)
an amount or percentage deducted from an equity interest to reflect lack of Marketability.
Part of a nation's internal Market representing the mechanisms for issuing and trading
Economic Value Added (EVA)
Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge
economic value added (EVA)
a measure of the extent to which income exceeds the dollar cost of capital; calculated
economic value added (EVA)
Term used by the consulting firm Stern Stewart for profit remaining after deduction of the cost
Efficient capital market
A Market in which new information is very quickly reflected accurately in share
efficient capital markets
Financial Markets in which security prices rapidly reflect all relevant information about asset values.
Efficient Market Hypothesis
In general the hypothesis states that all relevant information is fully and
Efficient Markets Hypothesis
The hypothesis that securities are typically in equilibrium--that they are fairly priced in the sense that the price reflects all publicly available information on the security.
In the interbank Eurodollar deposit Market, an either-way Market is one in which the bid
The financial Markets of developing economies.
Equilibrium market price of risk
The slope of the capital Market line (CML). Since the CML represents the
Through equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock.
The money Market for borrowing and lending currencies that are held in the form of
Excess return on the market portfolio
The difference between the return on the Market portfolio and the
Exchange of assets
Acquisition of another company by purchase of its assets in exchange for cash or stock.
The amount of advantage over a current Market transaction provided by an in-the-money
The value that an asset is expected to have at the time it is sold at a predetermined
Expected return on investment
The return one can expect to earn on an investment. See: capital asset
The weighted average of a probability distribution.
The value of the possible outcomes of a variable weighted by the
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
Also referred to as the international Market, the offshore Market, or, more popularly, the
Extraordinary positive value
A positive net present value.
See: Par value.
The nominal value of a security. Also called the par value.
The maturity value of a security. Also known as par value,
Payment at the maturity of the bond. Also called par value or maturity value.
The payoff value of a bond upon maturity. Also called par value. See principal.
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