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Will |
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Definition of WillWillThis is a legal document detailing how you want your assets to be distributed upon your death. You may also stipulate how you wish to be buried or who you would like to take care of any surviving dependent family members. In my opinion, it is very important to be quite specific about your wishes for the distribution of special assets such as the antique grandfather clock, the classic silver tea set or the antique piano. If you think that your beneficiaries may dispute how your things are to be distributed, consider stipulating that an auction be held in which all beneficiaries may bid on the item which they value and all moneys collected are then shared in the same manner in which you distributed your other liquid assets. Your might want to remember that a will is automatically revoked upon marriage unless the will specifically states that the will is made in contemplation of marriage.
Related Terms:GoodwillExcess of the purchase price over the fair market value of the net assets acquired under purchase GoodwillThe excess of the price paid to buy another company over the book value of GoodwillIntangible assets of a firm established by the excess of the price paid for the going concern over the value of its assets. Living WillThis is a will which specifically expresses the testator's desire not to be kept alive on life support machines, should the occasion arise. Negative goodwillA term used to describe a situation in which a business combination accounts payableShort-term, non-interest-bearing liabilities of a business accounts receivableShort-term, non-interest-bearing debts owed to a ![]() Accumulated depreciationA contra-fixed asset account representing the portion of the cost of a fixed asset that has been previously charged to expense. Each fixed asset account will have its own associated accumulated depreciation account. Allowance for doubtful accountsA contra account related to accounts receivable that represents the amounts that the company expects will not be collected. AmortizationThe write-off of an asset over the period when the asset is used. This term Amortization ScheduleA schedule that shows precisely how a loan will be repaid. The schedule gives the required payment on each specific date and shows how much of it constitutes interest and how much constitutes repayments of principal. Arm's length priceThe price at which a willing buyer and a willing unrelated seller would freely agree to AskThis is the quoted ask, or the lowest price an investor will accept to sell a stock. Practically speaking, this AssurisAssuris 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. Attribution RulesLegislation under which interest, dividends, or capital gains earned on assets you transfer to your spouse will be treated as your own for tax purposes. Interest or dividends relating to property transferred to children under 18 also will be attributed back to you. The exception to this rule is that capital gains relating to property transferred to children under 18 will not be attributed back to you. bad debtsRefers to accounts receivable from credit sales to customers ![]() BAN (Bank anticipation notes)Notes issued by states and municipalities to obtain interim financing for Bankruptcy riskThe risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. BearAn investor who believes a stock or the overall market will decline. A bear market is a prolonged period Benchmark interest rateAlso called the base interest rate, it is the minimum interest rate investors will BeneficiaryThis is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "Creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. Probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario. Beneficiary (Credit Insurance)The person or party designated to receive proceeds entitled by a benefit. Payment of a benefit is triggered by an event. In the case of credit insurance, the beneficiary will always be the creditor. Bid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically big bathA street-smart term that refers to the practice by many businesses Big BathA wholesale write-down of assets and accrual of liabilities in an effort to make the Bill and Hold PracticesProducts that have been sold with an explicit agreement that delivery Bill of ladingA contract between the exporter and a transportation company in which the latter agrees to Bill of materialsAn itemization of the parts and subassemblies required to create a Bond indexingDesigning a portfolio so that its performance will match the performance of some bond index. BorrowTo obtain or receive money on loan with the promise or understanding that it will be repaid. Borrower falloutIn the mortgage pipeline, the risk that prospective borrowers of loans committed to be Break-even payment rateThe prepayment rate of a MBS coupon that will produce the same CFY as that of budget slackan intentional underestimation of revenues BullAn investor who thinks the market will rise. Related: bear. Business riskThe risk that the cash flow of an issuer will be impaired because of adverse economic Buy/Sell AgreementThis is an agreement entered into by the owners of a business to define the conditions under which the interests of each shareholder will be bought and sold. The agreement sets the value of each shareholders interest and stipulates what happens when one of the owners wishes to dispose of his/her interest during his/her lifetime as well as disposal of interest upon death or disability. Life insurance, critical illness coverage and disability insurance are major considerations to help fund this type of agreement. CapInterest-rate option that guarantees that the rate on a floating-rate loan Capital InvestmentsMoney 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. CapitalizeA purchase that has been recorded on the company books as an asset. The cash burn rateA relatively recent term that refers to how fast a business Cash-flow break-even pointThe point below which the firm will need either to obtain additional financing Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life Claim dilutionA reduction in the likelihood one or more of the firm's claimants will be fully repaid, co-borrowerA co-borrower is the secondary borrower on a borrowing account. The primary borrower will receive mailed monthly statements while the co-borrower has the option to choose whether or not he/she will also receive statements. CollarInterest-rate option that guarantees that the rate on a floating-rate Commercial riskThe risk that a foreign debtor will be unable to pay its debts because of business events, Completion bondingInsurance that a construction contract will be successfully completed. Completion riskThe risk that a project will not be brought into operation successfully. confrontation strategyan organizational strategy in which company management decides to confront, rather than avoid, competition; an organizational strategy in which company management still attempts to differentiate company Conversion ratioThe number of shares of common stock that the security holder will receive from CostThe expense incurred to create and sell a product or service. If a product is not Cost of capitalThe blended cost of a company’s currently outstanding debt instruments Counterparty riskThe risk that the other party to an agreement will default. In an options contract, the risk Coverdell Education IRAA form of individual retirement account whose earnings Covered or hedge option strategiesStrategies that involve a position in an option as well as a position in the credit analysisProcedure to determine the likelihood a customer will pay its bills. Credit CrunchA decline in the ability or willingness of banks to lend. Credit RationingRestriction of loans by lenders so that not all borrowers willing to pay the current interest rate are able to obtain loans. Credit RiskFinancial and moral risk that an obligation will not be paid and a loss will result. Creditor Proof ProtectionThe creditor proof status of such things as life insurance, non-registered life insurance investments, life insurance RRSPs and life insurance RRIFs make these attractive products for high net worth individuals, professionals and business owners who may have creditor concerns. Under most circumstances the creditor proof rules of the different provincial insurance acts take priority over the federal bankruptcy rules. Cumulative probability distributionA function that shows the probability that the random variable will Current assetsCash, things that will be converted into cash within a year (such as accounts receivable), and inventory. current assetsCurrent refers to cash and those assets that will be turned current liabilitiesCurrent means that these liabilities require payment in DealerAn entity that stands ready and willing to buy a security for its own account (at its bid price) or sell Debt CapacityAn assessment of ability and willingness to repay a loan from anticipated future cash flow or other sources. Debt displacementThe amount of borrowing that leasing displaces. Firms that do a lot of leasing will be Debt service parity approachAn analysis wherein the alternatives under consideration will provide the firm deferred compensationpay related to current performance Deferred equityA common term for convertible bonds because of their equity component and the degree of operating leveragea factor that indicates how a percentage change in sales, from the existing or current Deliverable instrumentThe asset in a forward contract that will be delivered in the future at an agree-upon price. Delivery optionsThe options available to the seller of an interest rate futures contract, including the quality Delivery policyA company’s stated goal for how soon a customer order will be DemandAn amount desired, in the sense that people are willing and able to pay to obtain this amount. Always associated with a given price. differentiation strategya technique for avoiding competition by distinguishing a product or service from that of competitors through adding sufficient value (including quality and/or features) that customers are willing to pay Disability InsuranceInsurance that pays you an ongoing income if you become disabled and are unable to pursue employment or business activities. There are limits to how much you can receive based on your pre-disability earnings. Rates will vary based on occupational duties and length of time in a particular industry. This kind of coverage has a waiting period before you can begin collecting benefits, usually 30, 60 or 90 days. The benefit paying period also varies from 2 years to age 65. A short waiting period will cost more that a longer waiting period. As well, a long benefit paying period will cost more than a short benefit paying period. Discounted basisSelling something on a discounted basis is selling below what its value will be at maturity, DistributedAfter a Treasury auction, there will be many new issues in dealer's hands. As those issues are Dividend policyAn established guide for the firm to determine the amount of money it will pay as dividends. Documented discount notesCommercial paper backed by normal bank lines plus a letter of credit from a Dollar-weighted rate of returnAlso called the internal rate of return, the interest rate that will make the Economic exposureThe extent to which the value of the firm will change because of an exchange rate change. economic order quantity (EOQ)an estimate of the number Economic riskIn project financing, the risk that the project's output will not be salable at a price that will Effective durationThe duration calculated using the approximate duration formula for a bond with an Efficient diversificationThe organizing principle of modern portfolio theory, which maintains that any riskaverse Efficient Market HypothesisIn general the hypothesis states that all relevant information is fully and Event riskThe risk that the ability of an issuer to make interest and principal payments will change because Ex-dividend dateThe first day of trading when the seller, rather than the buyer, of a stock will be entitled to Expected return-beta relationshipImplication of the CAPM that security risk premiums will be Expiration cycleAn expiration cycle relates to the dates on which options on a particular security expire. A Expiration dateThe last day (in the case of American-style) or the only day (in the case of European-style) Fair market valueThe price that an asset or service will fetch on the open market. Fair ValueThe amount at which an asset could be purchased or sold or a liability incurred or Financial objectivesObjectives of a financial nature that the firm will strive to accomplish during the period Financial riskThe risk that the cash flow of an issuer will not be adequate to meet its financial obligations. financing decisiona judgment made regarding the method Fixed costA cost that does not vary in the short run, irrespective of changes in any Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |