Financial Terms Main Page

This site contains comprehensive definitions for a wide range of terms that cover topics such as financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit...

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Dealer options

Over-the-counter options, such as those offered by government and mortgage-backed
securities dealers.

Nondiversifiability of human capital

The difficulty of diversifying one's human capital (the unique
capabilities and expertise of individuals) and employment effort.

Open interest

The total number of derivative contracts traded that not yet been liquidated either by an
offsetting derivative transaction or by delivery. Related: liquidation

SEC

The Securities and Exchange Commission, the primary federal regulatory agency of the securities
industry.

Single-payment bond

A bond that will make only one payment of principal and interest.

Subordinated debenture bond

An unsecured bond that ranks after secured debt, after debenture bonds, and
often after some general creditors in its claim on assets and earnings. Related: Debenture bond, mortgage
bond, collateral trust bonds.

Transaction exposure

Risk to a firm with known future cash flows in a foreign currency that arises from
possible changes in the exchange rate. Related:translation exposure.

Dividends

Amounts paid to the owners of a company that represent a share of the income of the company.

Shareholders' equity

The total amount of contributed capital and retained earnings; synonymous with stockholders' equity.

multiple regression

a statistical technique that uses two or
more independent variables to predict a dependent variable

Expense

The reduction in value of an asset as it is used for current company operations.

Market Mechanism

The system whereby using prices, the interaction of supply and demand allocates inputs and distributes outputs.

Debenture

A written acknowledgment of debt, usually secured by a lien on assets.

Daily Interest Accumulation

Account in which interest is accrued daily and credited to the account at the end of a specified time.

Underwriter

Person that uses various types of evidence to evaluate the insurability of a client.