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Financial Terms | |
White knight |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of White knightWhite 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 Terms:AcquirerA firm or individual that is acquiring something. Affirmative covenantA bond covenant that specifies certain actions the firm must take. Blue-chip companyLarge and creditworthy company. Borrower falloutIn the mortgage pipeline, the risk that prospective borrowers of loans committed to be BreakoutA rise in a security's price above a resistance level (commonly its previous high price) or drop BuyoutPurchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is ![]() CashoutRefers to a situation where a firm runs out of cash and cannot readily sell marketable securities. Company AcquisitionsAssets acquired to create money. May include plant, machinery and equipment, shares of another company etc. company cost of capitalExpected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations. Company-specific riskRelated: Unsystematic risk Companyspecific RiskSee asset-specific risk Confirmationhe written statement that follows any "trade" in the securities markets. Confirmation is issued Cost company arrangementArrangement whereby the shareholders of a project receive output free of Crowding OutDecreases in aggregate demand which accompany an expansionary fiscal policy, dampening the impact of that policy. Customary payout ratiosA range of payout ratios that is typical based on an analysis of comparable firms. ![]() Days' sales outstandingAverage collection period. Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Dividend payout ratioPercentage of earnings paid out as dividends. dividend payout ratioComputed by dividing cash dividends for the year dividend payout ratioPercentage of earnings paid out as dividends. Down-and-out optionBarrier option that expires if asset price hits a barrier. Fallout riskA type of mortgage pipeline risk that is generally created when the terms of the loan to be Feasible target payout ratiosPayout ratios that are consistent with the availability of excess funds to make FIFO (First In, First Out)An inventory valuation method that presumes that the first units received were the first ones Finance Companycompany engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public. FirmRefers to an order to buy or sell that can be executed without confirmation for some fixed period. Also, Firm commitment underwritingAn undewriting in which an investment banking firm commits to buy the Firm's net value of debtTotal firm value minus total firm debt. Firm-specific riskSee:diversifiable risk or unsystematic risk. First in, first-out costing method (FIFO)A process costing methodology that assigns the earliest First-In-First-Out (FIFO)A method of valuing the cost of goods sold that uses the cost of the oldest item in First-in, first-out (FIFO)A method of accounting for inventory. First-in, first-out (FIFO)An inventory valuation method under which one assumes that the First-In, First-Out (FIFO) Inventory MethodThe inventory cost-flow assumption that Freight outThe transportation cost associated with the delivery of goods from a company Full-Employment OutputThe level of output produced by the economy when operating at the natural rate of unemployment. Full-payout leaseSee: financial lease. Harmless warrantWarrant that allows the user to purchase a bond only by surrendering an existing bond Holding companyA corporation that owns enough voting stock in another firm to control management and Informationless tradesTrades that are the result of either a reallocation of wealth or an implementation of an input-output coefficienta number (prefaced as a multiplier Input-output tablesTables that indicate how much each industry requires of the production of each other Insurance CompanyA firm licensed to sell insurance to the public. Intercompany loanLoan made by one unit of a corporation to another unit of the same corporation. Intercompany transactionTransaction carried out between two units of the same corporation. Intrinsic value of a firmThe present value of a firm's expected future net cash flows discounted by the Investor falloutIn the mortgage pipeline, risk that occurs when the originator commits loan terms to the Last-In-First-Out (LIFO)A method of valuing inventory that uses the cost of the most recent item in Last-in, first-out (LIFO)An inventory costing methodology that bases the recognized cost of Last-in, first-out (LIFO)An inventory valuation method under which one assumes that the Last-In, First-Out (LIFO) Inventory MethodThe inventory cost-flow assumption that assigns the most recent inventory acquisition costs to cost of goods sold. The earliest inventory Last-in, first-out (LILO)A method of accounting for inventory. LesseeAn entity that leases an asset from another entity. LesseeThe entity that contracts to make rental payments to a lessor in exchange for the LesseeA person to whom a lease is granted; the user of the asset. LessorAn entity that leases an asset to another entity. LessorAn entity that leases an asset to another entity. LessorThe entity that rents property that it owns to a second party in exchange for a LessorA person who grants a lease; the owner of the asset. Leveraged buyoutThe purchase of one business entity by another, largely using borrowed Leveraged buyout (LBO)A transaction used for taking a public corporation private financed through the use leveraged buyout (LBO)Acquisition of the firm by a private group using substantial borrowed funds. LIFO (Last-in-first-out)The last-in-first-out inventory valuation methodology. A method of valuing LIFO (Last In, First Out)An inventory valuation method that presumes that the last units received were the first ones limited liability companyan organizational form that is a hybrid of the corporate and partnership organizational Lock-outWith PAC bond CMO classes, the period before the PAC sinking fund becomes effective. With Management buyout (MBO)Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout (MBO)Acquisition of the firm by its own management in a leveraged buyout. National OutputGDP. Neglected firm effectThe tendency of firms that are neglected by security analysts to outperform firms that Netting outTo get or bring in as a net; to clear as profit. Open-outcryThe method of trading used at futures exchanges, typically involving calling out the specific out-of-pocket costa cost that is a current or near-current cash expenditure Out-of-the-money optionA call option is out-of-the-money if the strike price is greater than the market price Outbound stock pointA designated inventory location on the shop floor between outlieran abnormal or nonrepresentative point within a data set Output GapThe difference between full employment output and current output. Outright rateActual forward rate expressed in dollars per currency unit, or vice versa. outsourcingthe use, by one company, of an external OutsourcingThe process of shifting a function previously performed internally outsourcing decisionsee make-or-buy decision Outstanding share capitalIssued share capital less the par value of shares that are held in the company's treasury. Outstanding sharesShares that are currently owned by investors. Outstanding sharesThe number of shares that are in the hands of the public. The difference between issued shares and outstanding shares is the shares held as treasury stock. outstanding sharesShares that have been issued by the company and are held by investors. Parent companyA company that retains control over one or more other companies. Payout ratioGenerally, the proportion of earnings paid out to the common stockholders as cash dividends. payout ratioFraction of earnings paid out as dividends. Potential Output or Potential GDPoutput produced when the economy is operating at its natural rate of unemployment. Priced outThe market has already incorporated information, such as a low dividend, into the price of a stock. Riskless arbitrageThe simultaneous purchase and sale of the same asset to yield a profit. Riskless or risk-free assetAn asset whose future return is known today with certainty. The risk free asset is Riskless rateThe rate earned on a riskless investment, typically the rate earned on the 90-day U.S. Treasury Bill. Riskless rate of returnThe rate earned on a riskless asset. RoutingA list of all the labour or machining processes and times required to convert raw materials into finished goods or to deliver a service. routing documentsee operations flow document service companyan individual or firm engaged in a high or moderate degree of conversion that results in service output Small-firm effectThe tendency of small firms (in terms of total market capitalization) to outperform the Stockless purchasingThe purchase of material for direct delivery to the production StockoutRunning out of inventory. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |