Financial definitions for business owners C

• Definition Contract Futures Commodity Compare of a commodity at a specified price on a particular date in the future, allowing a producer to guarantee the price of a product or raw definition
• Definition Gain Capital Why capital gain is the difference between the net sales price of the securities and their net cost, or original basis. If a stock is sold explain
• Definition Covenants How better preferred stock agreement that require the bond or preferred stock issuer to take certain specified actions (affirmative covenants) or to what is
• Definition Chief Executive Officer (CEO) When A title held often by the Chairperson of the Board, or the president. The person principally responsible for the activities of a company meaning
• Definition Risk Specific Company Determines Related: Unsystematic risk abbreviation
• Definition Voting Cumulative Comparing to corporation in which shareholder's total number of votes is equal to the number of shares held times the number of candidates how to
• Definition Costs Carrying Depends on Costs that increase with increases in the level of investment in current assets help
• Definition Corporations Clearing Which exchanges and are used to complete securities transactions by taking care of validation, delivery, and settlement crossword
• Definition Price Convertible Difference The contractually specified price per share at which a convertible security can be converted into shares of common stock examples
• Definition Immunization Contingent When manager pursues an active bond portfolio strategy until an adverse investment experience drives the then-available potential return down to encyclopedia
• Definition Company Pros and cons A proprietorship, partnership, corporation, or other form of enterprise that engages in business information about
• Definition Caveat emptor, caveat subscriptor Similarities Latin expressions for buyer beware and seller beware, which warn of overly risky, inadequately protected markets tutorial
• Definition Earnings Cash How much A firm's cash revenues less cash expenses, which excludes the costs of depreciation error
• Definition Ceiling How many The highest price, interest rate, or other numerical factor allowable in a financial transaction answer
• Definition Bond Backed Commodity Compare A bond with interest payments tied to the price of an underlying commodity means what
• Definition Determination Of Coefficient Why relationship between the dependent and independent variables in a regression analysis; for instance, the percentage of variation in the description
• Definition Close How better The close is the period at the end of the trading session. Sometimes used to refer to closing price. Related: Opening definition
• Definition Stock Contramarket When stock that tends to go against the trend of the market as a whole, such as a commodities-related stock or one in an industry out of favor explain
• Definition Rate Growth Compound Determines The rate of growth of a figure, compounded over some period of time what is
• Definition Margin Contribution Comparing to The difference between variable revenue and variable cost meaning
• Definition Holdings Cross Depends on shares in another firm. One needs to allow for cross-holdings when aggregating capitalizations of firms. Ignoring cross-holdings leads to abbreviation
• Definition Option Call Which holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or how to
• Definition Cashout Difference Occurs when a firm runs out of cash and cannot readily sell marketable securities help
• Definition Yield Convenience When The extra advantage that firms derive from holding the commodity rather than a future position crossword
• Definition Convertibility Pros and cons The ability to exchange a currency without government restrictions or controls examples
• Definition Rates Cross Similarities currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency. Foreign exchange rate encyclopedia
• Definition Car How much describe the amount of a commodity underlying one commodity contract; e.g., a car of bellies. Derived from the fact that quantities of the information about
• Definition Cash flow per common share How many Cash flow from operations minus preferred stock dividends, divided by the number of common shares outstanding tutorial
• Definition Closed-end management company Compare set number of shares of the mutual fund that it manages, and does not create new shares if demand increases. Antithesis of an open-end error
• Definition Rate Capitalization Why The rate of interest used to calculate the present value of a number of future payments answer
• Definition Cheapest to deliver issue How better the highest implied repo rate; the rate that a seller of a futures contract can earn by buying an issue and then delivering it at the means what
• Definition Rate Money Call When interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rateplus a description
• Definition Call Determines An option that gives the holder the right to buy the underlying futures contract definition
• Definition Loan Call Comparing to A loan repayable on demand. Sometimes used as a synonym for broker loan or broker overnight loan explain
• Definition Project Conventional Depends on flow (cash outflow), which is expected to be followed by one or more future positive cash flows (cash inflows what is
• Definition Account Current Which Net flow of goods, services, and unilateral transactions (gifts) between countries meaning
• Definition Forecast Consensus Difference The mean of all financial analysts' forecasts for a company abbreviation
• Definition Loss Casualty When A financial loss caused by damage, destruction, or loss of property as a result of an unexpected or unusual event how to
• Definition Committee Financing Corporate Pros and cons underwriters' SEC-required documents to ensure that proposed markups are fair and in the public interest help
• Definition Default Cross Similarities A provision under which default on one debt obligation triggers default on another debt obligation crossword
• Definition Caput How much An exotic option. It represents a call option on a put option. That is, you examples
• Definition Claimant How many A party to an explicit or implicit contract encyclopedia
• Definition Credit Compare Money loaned information about
• Definition Future Currency Why A financial future contract for the delivery of a specified foreign currency tutorial
• Definition Structure Capital How better stockholders' equity side of the balance sheet, especially the ratio of debt to equity and the mixture of short and long maturities error
• Definition Loan Commercial When A short-term loan, typically 90 days, used by a company to finance seasonal working capital needs answer
• Definition Risk Call Determines The combination of cash flow uncertainty and reinvestment risk introduced by a call provision means what
• Definition Certificate of deposit (CD) Comparing to certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. A CD has a maturity date and a specified description
• Definition Ratio Conversion Depends on securities. Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or definition
• Definition Letter Confidence Which is highly confident that the financing for its client/acquirer's takeover can and will be obtained. Often used in risk arbitrage explain
• Definition Stock Preferred Convertible Difference Preferred stock that can be converted into common stock at the option of the holder. See also: participating convertible preferred stock what is
• Definition Collateralized mortgage obligation (CMO) When through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. The principal meaning
• Definition Prices Picking Customer Pros and cons Customer is firm on price and has set the price at which to transact abbreviation
• Definition Goods Capital Similarities Goods used by firms to produce other goods, e.g., office buildings, machinery, equipment how to
• Definition Enhancement Credit How much Purchase of the financial guarantee of a large insurance company to raise funds help
• Definition Chief Financial Officer (CFO) How many The officer of a firm is responsible for handling the financial affairs of a company crossword
• Definition Float Processing Corporate Compare of payment from a customer and the deposit of the customer's check in the firm's bank account; the time required to process examples
• Definition Common stock/other equity Why Value of outstanding common shares at par, plus accumulated retained earnings. Also called shareholders' equity encyclopedia
• Definition Requirements Capital How better Financing required for the operation of a business, composed of long-term and working capital plus fixed assets information about
• Definition Risk Credit When securities or a borrower may default on its obligations, or that the payment may not be made on a negotiable instrument. Related: Default tutorial
• Definition Distribution Gains Capital Determines mutual fund out of profits from selling stocks or bonds, that is subject to capital gains taxes for the shareholders error
• Definition Circulation In Currency Comparing to Paper money, coins, and demand deposits that constitute all the money circulating in the economy answer
• Definition Breakers Circuit Depends on stop trading temporarily when the market has fallen by a certain percentage in a specified period. They are intended to prevent a market means what
• Definition Continuous net settlement (CNS) Which settlement using a clearing house, which matches transactions to securities available, resulting in one net receive or deliver position at description
• Definition Bonding Completion Difference Insurance that a construction contract will be completed successfully definition
• Definition Convertible adjustable preferred stock (Caps) When and is pegged to Treasury security rates. They can be exchanged at par value for common stock or cash after the next period's explain
• Definition Shares Capital Pros and cons purpose investment company, which entitle the holder to the appreciation or depreciation in the value of a portfolio, as well as the gains what is
• Definition Capitalized Similarities depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year meaning
• Definition Fee Commitment How much return for its legal commitment to lend funds that have not yet been advanced. Often used in risk arbitrage. Payment to institutional abbreviation
• Definition Wall Chinese How many financiers at a firm (investment bankers) and traders. This barrier is erected to prevent the sharing of inside information that bankers how to
• Definition Comprehensive due diligence investigation Compare business in conjunction with a securities offering to determine whether the firm's business and financial situation and its prospects help
• Definition Risk Border Cross Why international investments caused by events associated with a particular country as opposed to events associated solely with a particular crossword
• Definition Plan Contractual How better mutual fund shares are purchased through periodic investments, usually featuring some sort of additional incentive for the fixed period examples
• Definition Chair of the board When Highest-ranking member of a Board of Directors, who presides over its meetings and who is often the most powerful officer of a corporation encyclopedia
• Definition Value Surrender Cash Determines The amount an insurance company will pay if the policyholder tende4s or cashes in a whole life insurance policy information about
• Definition Cost-of-carry market Comparing to contracts trade in a cost-of-carry market where the underlying commodity can be stored, insured, and converted into the future easily and tutorial
• Definition Opinion Clean Depends on An auditor's opinion reflecting an unqualified acceptance of a company's financial statements error
• Definition Cost of goods sold Which The total cost of buying raw materials, and paying for all the factors that go into producing finished goods answer
• Definition Union Credit Difference A not-for-profit institution that is operated as a cooperative and offers financial services such as low-interest loans, to its members means what
• Definition Fund Closed When A mutual fund that is no longer issuing shares, mainly because it has grown too large description
• Definition Canadian Dealing Network (CDN) Pros and cons Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange definition
• Definition Month Contract Similarities The month in which futures contracts may be satisfied by making or accepting a delivery explain
• Definition Method Yield Constant How much Allocation of annual interest on a zero-coupon security for income tax use what is
• Definition Cash flow time line How many Line depicting the operating activities and cash flows for a firm over a particular period meaning
• Definition Conversion Compare the exchange of a convertible security such as a bond into stock.In the context of mutual funds, refers to the free exchange of mutual abbreviation
• Definition Commodity Futures Trading Commission (CFTC) Why An agency created by the U.S. Congress in 1974 to regulate exchange trading in futures how to
• Definition Policy Collection How better Procedures a firm follows in attempting to collect accounts receivables help
• Definition Competence When Sufficient ability or fitness for one's needs. The necessary abilities to be qualified to achieve a certain goal or complete a project crossword
• Definition Expenditures Capital Determines Amount used during a particular period to acquire or improve long-term assets such as property, plant, or equipment examples
• Definition Council of Economic Advisers Comparing to President of the United States to provide economic counsel and help prepare the president's budget presentation to Congress encyclopedia
• Definition Credit Consumer Depends on Credit a firm grants to consumers for the purchase of goods or services. Also called retail credit information about
• Definition Provision Call Which An embedded option granting a bond issuer the right to buy back all or part of an issue prior to maturity tutorial
• Definition Bond Coupon Difference A bond featuring coupons that must be presented to the issuer in order to receive interest payments error
• Definition Chicago Board Options Exchange (CBOE) When early 1970s for the public trading of standardized option contracts. Primary place stock options, foreign currency options, and index answer
• Definition Price Closing Pros and cons Price of the last transaction of a particular stock completed during a day's trading session on an exchange means what
• Definition Market The Cornering Similarities Purchasing a security or commodity in such volume as to achieve control over its price. An illegal practice description
• Definition Cftc How much See: Commodity Futures Trading Commission definition
• Definition Position A Close How many eliminate an investment from one's portfolio, by either selling a long position or covering a short position explain
• Definition Chartists Compare patterns of stocks, bonds, and commodities to find trends in patterns of trading used to advise clients. Related: Technical analysts what is
• Definition Clearing House Electronic Subregister System (CHESS) Why CHESS is the automatic transfer and settlement system for the majority of Australian Stock Exchange (ASX) listed securities meaning
• Definition Market Stock Common How better The market for trading equities, not including preferred stock abbreviation
• Definition Committee on Uniform Securities Identification Procedures (CUSIP) When numbers and codes for all securities. These CUSIP numbers and symbols are used when recording all buy or sell orders how to
• Definition Market The Chasing Determines than expected because prices are rapidly climbing, or selling a security at a lower level when prices are quickly falling help
• Definition Corporation Closed Comparing to A corporation whose shares are owned by just a few people, having no public market crossword
• Definition Ratio Benefit Cost Depends on The net present value of an investment divided by the investment's initial cost. Also called the profitability index examples
• Definition Intensive Capital Which require large investments in capital assets to produce their goods, such as the automobile industry. These firms require large profit encyclopedia
• Definition Code Common Difference jointly by CEDEL and Euroclear. As of January 1991 common codes replaced the earlier separate CEDEL and Euroclear codes information about
• Definition Skirts Your Clean When make all your obligated calls ; check with all prior obligations in a security. Often preceded by subject to tutorial
• Definition Items Equivalent Cash Pros and cons Examples include Treasury bills and Banker's Acceptances error
• Definition Analysis Credit Comparative Similarities Comparing a firm to others that have a desired target debt rating in order to deduce an appropriate financial ratio target answer
• Definition Rationing Capital How much investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget or parts of means what
• Definition Dollars Constant How many Dollars of a base year used as a general measure of purchasing power description
• Definition Method Rate Current Compare The translation of all foreign currency balance sheet and income statement items at the current exchange rate definition
• Definition Method Noncurrent Current Why subsidiary's current assets and liabilities into home currency at the current exchange rate while noncurrent assets and liabilities explain
• Definition Range Closing How better low prices, or bids and offers, recorded during the period designated as the official close. Related: Settlement price what is
• Definition Certified Public Accountant (CPA) When An accountant who has met certain standards, including experience, age, and licensing, and passed exams in a particular state meaning
• Definition Bonds Companion Determines Obligation (CMO) whose principal is paid off first when the underlying mortgages are prepaid due to falling interest rates. When interest abbreviation
• Definition Action Class Comparing to group of lawyers for a group of petitioners with an identical grievance, often with an award proportionate to the number of shareholders how to
• Definition Caps Depends on See: Convertible adjustable preferred stock help
• Definition Items Counterpart Which items are analogous to unrequited transfers in the current account. They arise through the double-entry system in balance of payments crossword
• Definition Creditor Difference Lender of money examples
• Definition Xxx Get Can When have a buyer who will pay $xxx for the stock . Uusually a standard markdown (1/8) from $xxx is applied to this price in bidding the seller encyclopedia
• Definition Market Capital Complete Pros and cons A market in which there is a distinctive marketable security for each and every possible outcome information about
• Definition Feature Conversion Similarities a particular investment to another form of investment, such as switching between mutual funds or converting preferred stock or bonds to tutorial
• Definition Contracts Sales Conditional How much except that the lender is either the equipment manufacturer or a bank or finance company to which the manufacturer has sold the error
• Definition Exchange Stock Copenhagen How many The only securities exchange in Denmark. It features electronic trading of stocks, bonds, futures, and options answer
• Definition Approach Sectional Cross Compare A statistical methodology applied to a set of firms at a particular time means what
• Definition Collateralized Bond Obligation (CBO) Why collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk bond involved. CBOs backed description
• Definition Consortium How better A group of companies that cooperate and share resources in order to achieve a common objective definition
• Definition Dogs And Cats When Speculative stocks with short histories of sales, earnings, and dividend payments explain
• Definition Currency Determines Money what is
• Definition Capital Comparing to Money invested in a firm meaning
• Definition Cramdown Depends on The ability of the bankruptcy court to confirm a plan of reorganization over the objections of some classes of creditors abbreviation
• Definition Offer Tender Creeping Which to circumvent certain provisions of the Williams Act gradually acquires shares of a target company in the open market how to
• Definition Risk Financial Country Difference national economy to generate enough foreign exchange to meet payments of interest and principal on its foreign debt help
• Definition Cover When The purchase of a contract to offset a previously established short position crossword
• Definition Account Concentration Pros and cons A single centralized account into which funds collected at regional locations (lockboxes) are transferred examples
• Definition Premium Conversion Similarities price of a convertible security exceeds the prevailing common stock price at the time the convertible security is issued encyclopedia
• Definition Corporate income fund (CIF) How much fixed portfolio of high-grade securities and other investments, usually with monthly distribution of income information about
• Definition Paper Commodity How many A loan or advance secured by commodities tutorial
• Definition Option Currency Compare An option to buy or sell a foreign currency error
• Definition Balance Compensating Why An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided answer
• Definition Price Clean How better Bond price excluding accrued interest means what
• Definition Factors Conversion When for determining the invoice price of each acceptable deliverable Treasury issue against the Treasury Bond futures contract description
• Definition Out Me Confirm Determines to the floor and check with the specialist or floor broker that my previously active order has been cancelled and was not executed . One definition
• Definition Bonds Cushion Comparing to a moderate premium because they are callable at a price below that at which a comparable noncallable bond would sell. Cushion bonds offer explain
• Definition Conglomerate Depends on A firm engaged in two or more unrelated businesses what is
• Definition Canadian Exchange Group (CEG) Which Toronto Stock Exchange, the Montreal Exchange, the Vancouver Stock Exchange, the Alberta Stock Exchange, and the Winnipeg Stock Exchange meaning
• Definition Fund Stock Common Difference A mutual fund investing only in common stock abbreviation
• Definition Coefficient Correlation When the dependence of two random variables, defined as the covariance divided by the standard deviations of two variables how to
• Definition Coffee, Sugar ; Cocoa Exchange (CS;CE) Pros and cons The New York-based commodity exchange trading futures and options. The CS;CE shares the trading floor at the Commodities Exchange Center help
• Definition Cooperative Similarities Examples are agriculture cooperatives that assist farmers in selling their products more efficiently and apartment buildings owned by the crossword
• Definition Option An Call How much To exercise a call option examples
• Definition Cmo How many See: Collateralized mortgage obligation encyclopedia
• Definition Compete Cannot Compare cannot accommodate customers at that price level (i.e., compete with other market makers), often because there is no natural opposite side information about
• Definition Value Carrying Why Book value tutorial
• Definition Asset Capital How better A long-term asset, such as land or a building, not purchased or sold in the normal course of business error
• Definition Market Choice When Applies mainly to international equities. Locked market in London terminology answer
• Definition Put Covered Determines option writer also is short the corresponding stock or has deposited, in a cash account, cash or cash equivalents equal to the exercise of means what
• Definition Risk Currency Comparing to Related: Exchange rate risk description
• Definition Funds Of Cost Depends on Interest rate associated with borrowing money definition
• Definition Basket Currency Which amounts of individual currencies, used as the basis for setting the market value of another currency. It is also referred to as a currency explain
• Definition Clearing House Interbank Payments System (CHIPS) Difference An international wire transfer system for high-value payments operated by a group of major banks what is
• Definition Ratios Capitalization When these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity meaning
• Definition Rights Cum Pros and cons With rights abbreviation
• Definition Investing Coattail Similarities A risky trading practice of making trades similar to those of other successful investors, usually institutional investors how to
• Definition Price Call How much The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a specified call date help
• Definition Out Closed How many Position that is liquidated when the client does not meet a margin call or cover a short sale crossword
• Definition Statement Size Common Compare expressed as a percentage of a base figure, useful for purposes of analyzing trends and changing relationship among financial statement examples
• Definition Tax Gains Capital Why of capital assets. A long-term capital gain, which is achieved once an asset is held for at least 12 months, is taxed at a maximum rate of encyclopedia
• Definition Market Close How better narrow spread between bid and offer prices, due to a high volume of trading and many competing market makers information about
• Definition Price Conversion When securities. Dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock, as specified when tutorial
• Definition Customers' net debit balance Determines The total amount of credit given by NYSE member firms to finance customers purchasing securities error
• Definition Liability Pension Contingent Comparing to Under ERISA, a firm is liable to its pension plan participants for up to 39% of the net worth of the firm answer
• Definition Statement Financial Consolidated Depends on A financial statement that shows all the assets, liabilities, and operating accounts of a parent company and its subsidiaries means what
• Definition Capital asset pricing model (CAPM) Which relationship between risk and expected return, and serves as a model for the pricing of risky securities. The CAPM asserts that the only description
• Definition Budgeting Capital Difference The process of choosing the firm's long-term capital assets definition
• Definition In Come When In the context of general equities, a fall in price explain
• Definition Indexs Commodity Pros and cons performance of physical commodities, often by the price of futures contracts for the commodities that are listed on commodity exchanges what is
• Definition Period Off Cooling Similarities of a preliminary prospectus with the Securities and Exchange Commission and the actual public offering of the securities meaning
• Definition Coupon How much The periodic interest payment made to the bondholders during the life of the bond abbreviation
• Definition Index Price Consumer How many prices of consumer goods and services and is a measure of the pace of U.S. inflation. The U.S. Department of Labor publishes the CPI every how to
• Definition Loan Construction Compare A short-term loan to finance building costs help
• Definition Certified Financial Planner (CFP) Why accredited by the Certified Financial Planner Board of Standards, showing that the person is able to manage a client's banking, estate crossword
• Definition Commercial Mortgage Backed Securities How better secured with commercial rather than residential property. Commercial property includes multi-family, retail, office, etc., They are not examples
• Definition Cancel When the floor, or (2) the trader/salesperson's scope. In Autex, the indication still remains on record as having once been placed unless encyclopedia
• Definition Throughs Pass Conventional Determines any mortgage pass-through security not guaranteed by government agencies. Compare agency pass-throughs information about
• Definition Check Comparing to A bill of exchange representing a draft on a bank from deposited funds that pays a certain sum of money to a certain person or party tutorial
• Definition Effect Coinsurance Depends on Refers to the fact that the merger of two firms lessens the probability of default on either firm's debt error
• Definition Undertaking Completion Which project so that it meets certain specified performance criteria on or before a certain specified date, or (2) to repay project debt if the answer
• Definition Controller Difference The corporate manager responsible for the firm's accounting activities means what
• Definition Agreement Concession When An understanding between a company and the host government that specifies the rules under which the company can operate locally description
• Definition Planning Financial Corporate Pros and cons Financial planning conducted by a firm that encompasses preparation of both long-and short-term financial plans definition
• Definition Holdings Share Cross Similarities Often used in risk arbitrage. Corporations' or governments' equity share ownership in another corporation's shares explain
• Definition Statement Convention How much insurance company in each state where it does business in compliance with that state's regulations. The statement and supporting what is
• Definition Budget Capital How many A firm's planned capital expenditures meaning
• Definition Complete Compare In the context of general equities, to fill an order abbreviation
• Definition Spread Calendar Why strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same how to
• Definition Title Clear How better any claims on the property or disputed interests, and therefore available for sale. This is usually checked through a title search by a help
• Definition Offering Competitive When An offering of securities through competitive bidding crossword
• Definition Flow Cash Determines earnings before depreciation, amortization, and non-cash charges. Sometimes called cash earnings. Cash flow from operations (called funds examples
• Definition Variable Random Continuous Comparing to A random value that can take any fractional value within specified ranges, as contrasted with a discrete variable encyclopedia
• Definition Cash Depends on converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government information about
• Definition Arbitrage Interest Covered Which dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the tutorial
• Definition Bidding Competitive Difference A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell error
• Definition Trade Crossed When buy and sell orders without recording the trade on the exchange, thus not allowing other traders to take advantage of a more favorable answer
• Definition Equivalent Stock Common Pros and cons A convertible security that is traded like an equity issue because the optioned common stock is trading at a high price means what
• Definition Universe Comparison Similarities A group of money managers of similar investment style used to assess relative performance of a portfolio manager description
• Definition Rate Crediting How much The interest rate offered on an investment type insurance policy definition
• Definition Cash flow break-even point How many The point below which the firm will need either to obtain additional financing or to liquidate some of its assets to meet its fixed costs explain
• Definition Crash Compare Dramatic loss in market value. The last great crash was in 1929. Some refer to October 1987 as a crash but the market return was positive what is
• Definition Merger Conglomerate Why A merger involving two or more firms that are in unrelated businesses meaning
• Definition Discount Cash How better An incentive offered to purchasers of a firm's product for payment within a specified time period, such as ten days abbreviation
• Definition Ahead Competition When whereby another O.T.C. market maker has transacted with investment bank at the stated market level before the bid/offer has been made how to
• Definition Collection Determines The presentation of a negotiable instrument for payment, or the conversion of any accounts receivable into cash help
• Definition Ratios Payout Customary Comparing to A range of payout ratios that is typical according to an analysis of comparable firms crossword
• Definition Option Compound Depends on Option on an option examples
• Definition Comanager Which manager in a syndicated Eurocredit or international bond issue. Comanagers may assist the lead manager bank in the pricing and issue of the encyclopedia
• Definition Contracts Settlement Cash Difference Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying information about
• Definition Bonds Trust Collateral When holding company) grants investors a lien on stocks, notes, bonds, or other financial asset as security. Compare mortgage bond tutorial
• Definition Eurobond Convertible Pros and cons A eurobond that can be converted into another asset, often through exercise of attached warrants error
• Definition Portfolio Complete Similarities The entire portfolio, including risky and risk-free assets answer
• Definition Up Clean How much purchase/sale of all the remaining supply of stock, or the last piece of a block, in a trade-leaving a net zero position means what
• Definition Computerized market timing system How many A computer system that compiles large amounts of trading data in search of patterns and trends to make buy and sell recommendations description
• Definition View Tax Corporate Compare The argument that double (corporate and individual) taxation of equity returns makes debt a cheaper financing method definition
• Definition Risk Completion Why The risk that a project will not be brought into operation successfully explain
• Definition Certificates of Amortized Revolving Debt (CARD) How better Pass-through securities backed by credit card receivables what is
• Definition Repurchase Corporate When own stock in the marketplace. Reasons for repurchase include putting idle cash to use, raising EPS, creating support for a stock price meaning
• Definition Capital Builder Account (CBA) Determines allows investors to access the loan value of his or her eligible securities to buy or sell securities. Excess cash in a CBA can be invested abbreviation
• Definition Changes in financial position Comparing to operations that alter a company's cash flow position: depreciation, deferred taxes, other sources, and capital expenditures how to
• Definition Trust Remainder Charitable Depends on to a designated person or persons until the grantor's death, when the income is passed on to a designated charity. A charitable lead help
• Definition Dividend Cash Which 039;s shareholders. The amount is normally based on profitability and is taxable as income. A cash distribution may include capital gains crossword
• Definition Procedure Of Code Difference The guide of the National Association of Securities Dealers used to adjudicate complaints filed against NASD members examples
• Definition Account Capital When Net result of public and private international investment and lending activities encyclopedia
• Definition Books The Cook Pros and cons To deliberately falsify the financial statements of a company. This is an illegal practice information about
• Definition House Commission Similarities A firm that buys and sells futures contracts for customer accounts. Related: futures commission merchant, omnibus account tutorial
• Definition Carry Of Cost How much investor has an investment position. Examples include interest on long positions in margin account, dividend lost on short margin positions error
• Definition Contract How many of trading for a financial or commodity future. Also, the actual bilateral agreement between the buyer and seller of a transaction as answer
• Definition Commodities Controlled Compare Commodities regulated by the Commodities Exchange Act of 1936 in order to prevent fraud and manipulation in commodities futures markets means what
• Definition Scoring Credit Why several financial characteristics to form a single score to represent a customer's creditworthiness description
• Definition Indexes International Capital How better Market indexes maintained by Morgan Stanleythat track major stock markets worldwide definition
• Definition Bill Management Cash When Very short-maturity bills that the Treasury occasionally sells because its cash balances are down and it needs money for a few days explain
• Definition Model Growth Constant Determines an application of the dividend discount model that assumes (1) a fixed growth rate for future dividends, and (2) a single discount rate what is
• Definition Protection Call Comparing to A feature of some callable bonds that establishes an initial period when the bonds may not be called meaning
• Definition C Depends on Fifth letter of a Nasdaq stock descriptor specifying that issue is exempt from Nasdaq listing requirements for a temporary period abbreviation
• Definition Cumulative abnormal return (CAR) Which expected return on a stock (systematic risk multiplied by the realized market return) and the actual return often used to evaluate the how to
• Definition Value Parity Conversion Difference securities. Common stock price at which a convertible bond can become exchangeable for common shares of equal value; value of a convertible help
• Definition Loan Consolidation When A loan that is used to combine and finance payments on other loans crossword
• Definition Deal Down Cram Pros and cons forced to accept undesirable terms, such as junk bonds instead of cash or equity, due to the absence of any better alternatives examples
• Definition Insurance Casualty Similarities Insurance protecting a firm or homeowner against loss of property, damage, and other liabilities encyclopedia
• Definition Cap How much An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM information about
• Definition Order Contingency How many order to buy one security, if the trader can sell another, usually given that certain price limits or conditions reach a certain level tutorial
• Definition Cartel Compare act together as a single producer to obtain market control and to influence prices in their favor by limiting production of a product. The error
• Definition Circle Why often seek out and circle investor interest in a new issue before final pricing. The customer circled has basically made a commitment to answer
• Definition Analysis Cluster How better clusters of stocks whose returns are highly correlated within each cluster and relatively uncorrelated across clusters. Cluster analysis means what
• Definition Selection Country When management that measures the contribution to performance attributable to investing in the better-performing stock markets of the world description
• Definition Crest Determines settlement system for U.K. and Irish shares and other corporate securities. CrestCo has provided settlement systems for government bonds definition
• Definition Statements Financial Certified Comparing to Financial statements that include an accountant's opinion explain
• Definition Statements Comparative Depends on Financial statements for different periods, that allo the comparson of figures to illustrate trends in a company's performance what is
• Definition Services Concentration Which Movement of cash from different lockbox locations into a single concentration account from which disbursements and investments are made meaning
• Definition Position A Clear Difference To eliminate a long or short position, leaving no ownership or obligation abbreviation
• Definition Clear When seller delivering securities and the buyer delivering funds in the proper form. A trade that does not clear is said to fail. Comparison of how to
• Definition Comptroller of the Currency Pros and cons president, who keeps control over all national banks, and receives reports from the banks at least quarterly, to be published in help
• Definition Common-base-year analysis Similarities The representing of accounting information over multiple years as percentages of amounts in an initial year crossword
• Definition Equity Of Cost How much The required rate of return for an investment of 100% equity examples
• Definition Controlled foreign corporation (CFC) How many A foreign corporation whose voting stock is more than 50% owned by U.S. stockholders, each of whom owns at least 10% of the voting power encyclopedia
• Definition Held Closely Compare A corporation whose voting stock is owned by only a few shareholders information about
• Definition Option Covered Why Option position that is offset by an equal and opposite position in the underlying security. Antithesis of naked option tutorial
• Definition Delivery Cash How better that requires not delivery of underlying assets but settlement according to the cash value of the asset error
• Definition Fund End Closed When shareslike any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter answer
• Definition Yield Equivalent Coupon Determines True interest cost expressed on the basis of a 365-day year means what
• Definition Risk Counterparty Comparing to agreement will default. In an options contract, the risk to the option buyer that the option writer will not buy or sell the underlying as description
• Definition Peg Crawling Depends on exchange rate. It involves establishing a par value around which the rate can vary up to a given percent. The par value is revised definition
• Definition Loss Capital Which The difference between the net cost of a security and the net sales price, if the security is sold at a loss explain
• Definition Bond Combination Difference A bond backed by the government unit issuing it as well as by revenue from the project that is to be financed by the bond what is
• Definition Investment Capital When See: Capital expenditure meaning
• Definition Capital Core Pros and cons The capital required of a thrift institution, which must be at least 2% of assets to meet the rules of the Federal Home Loan Bank abbreviation
• Definition Receipt Constructive Similarities The date a taxpayer receives dividends or other income, for use in the determination of taxes how to
• Definition Pass Coupon How much dealers to determine the inventory and maturities of their Treasury securities. The desk then decides whether to buy or sell certain issues help
• Definition Class How many options of the same type-put or call-with the same underlying security. See: Series. In general, refers to a category of assets such as crossword
• Definition Funds House Clearing Compare Funds from the Federal Reserve System, requiring three days to clear, that are passed to and from banks examples
• Definition Come out of the trade Why trader's position in a security that results from executing a trade (or the expectations thereof). Antithesis of going into the trade encyclopedia
• Definition Commodity Cash How better The actual physical commodity, as distinguished from a futures contract information about
• Definition Rate Production Current When The highest interest rate permissible on current Government National Mortgage Association, mortgage-backed securities tutorial
• Definition Cable Determines Exchange rate between British pound sterling and the U.S. dollar error
• Definition Ratios Coverage Comparing to cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the answer
• Definition Letter Comfort Depends on securities underwriting agreements to assure that information in the registration statement and prospectus is correctly prepared to the means what
• Definition Certificate Which and used as proof of the fact, such as stock certificates, that evidence ownership of stock in a corporation description
• Definition Stock Preferred Cumulative Difference Preferred stock whose dividends accrue, should the issuer not make timely dividend payments. Related: Non-cumulative preferred stock definition
• Definition Creditor's committee When A group representing firms that have claims on a company facing bankruptcy or extreme financial difficulty explain
• Definition Market Common Pros and cons An agreement between two or more countries that permits the free movement of capital and labor as well as goods and services what is
• Definition Comparison Similarities Short for comparison ticket, a memorandum between two brokers that confirms the details of a transaction to be carried out meaning
• Definition Agreement Deficiency Cash How much An agreement to invest cash in a project to the extent required to cover any cash deficiency the project may experience abbreviation
• Definition Compounding Continuous How many value of money forward in time on a continuous, or instantaneous, basis. Interest is earned constantly, and at each instant, the interest how to
• Definition Offer Cash Compare either hostile or friendly, to acquire a target company through the payment of cash for the stock of the target. Compare to exchange offer help
• Definition Covered or hedge option strategies Why an option as well as a position in the underlying stock, designed so that one position will help offset any unfavorable price movement in crossword
• Definition Price Parity Conversion How better Related: Market conversion price examples
• Definition Options Call Conditional When event a hign yield bond is called, the issuing corporation will replace the bond with a noncallable bond of the same life and terms as the encyclopedia
• Definition Call Catastrophe Determines bond because a catastrophe has destroyed the project that provided the revenue source backing the bond information about
• Definition Quote Closing Comparing to The last bid and offer prices of a particular stock at the close of a day's trading session on an exchange tutorial
• Definition Issue Current Depends on In Treasury securities, the most recently auctioned issue. Trading is more active in current issues than in off-the-run issues error
• Definition Capital market imperfections view Which valuable, but that the firm's optimal choice of capital structure involves various other views of capital structure (net answer
• Definition Interest Compound Difference Interest paid on previously earned interest as well as on the principal means what
• Definition Accounting Cost When A branch of accounting that provides information to help the management of a firm evaluate production costs and efficiency description
• Definition Stock Common Pros and cons ownership in a company. Common shares let an investor vote on such matters as the election of directors. They also give the holder a share definition
• Definition Dilution Claim Similarities A decrease in the likelihood that one or more of a firm's claimants will be fully repaid, including time value of money considerations explain
• Definition Ratios Stock Common How much relative claims of stockholders to earnings (cash flow per share), and equity (book value per share) of a firm what is
• Definition Control How many 50% of the outstanding votes plus one vote meaning
• Definition Equivalent Certainty Compare An amount that would be accepted today (risk free) in lieu of a chance to receive a possibly higher, but uncertain, amount abbreviation
• Definition Commodities Exchange Center (CEC) Why exchanges: Commodity Exchange, Inc. (COMEX); the New York Mercantile Exchange (NYMEX); New York Cotton Exchange, Coffee, Sugar ;&; Cocoa how to
• Definition Lease Capital How better A lease obligation that has to be capitalized on the balance sheet help
• Definition Commodity When A commodity is food, metal, or another fixed physical substance that investors buy or sell, usually via futures contracts crossword
• Definition Signal Credible Determines A signal that provides accurate information; a signal that can distinguish among senders examples
• Definition Broker Commission Comparing to who acts as agent for a particular brokerage house and buys and sells stocks for the brokerage house on a commission basis encyclopedia
• Definition Ratio Collection Depends on receivable to its average daily sales, which gives the average number of days it takes the company to convert receivables into cash information about
• Definition Method Capitalization Which portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their tutorial
• Definition Beta Country Difference rate of return and the rate of return of the world economy divided by the variance of the world economy error
• Definition Capital Of Cost When The required return for a capital budgeting project answer
• Definition Assets Current Pros and cons Value of cash, accounts receivable, inventories, marketable securities and other assets that could be converted to cash in less than 1 year means what
• Definition Chicago Stock Exchange (CHX) Similarities A major exchange trading only stocks, with 90% of trades taking place on an automated execution system, called MAX description
• Definition Strategy Combination How much A strategy in which a put and call with the same strike price and expiration are either both bought or both sold. Related: Straddle definition
• Definition Float Collection How many The period between the time is deposited a check in an account and the time funds are made available explain
• Definition COLT (Continuous on-line trading system) Compare Computerized OTC traders assistance system that provides for trade entry and position monitoring, among other functions what is
• Definition Competence Core Why Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty meaning
• Definition Capacity How better Credit grantors' measurement of a person's ability to repay loans abbreviation
• Definition Benchmarks Customized When A benchmark that is designed to meet a client's requirements and long-term objectives how to
• Definition Wisdom Collective Determines The combination of all the individual opinions about a stock's or security's value help
• Definition Index 40 Cac Comparing to composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse crossword
• Definition Compounding Depends on value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period examples
• Definition Equivalent Taxable Corporate Which to produce the same after-tax yield to maturity that the quoted premium or discount bond would generate encyclopedia
• Definition Certificates of Automobile Receivables (CAR) Difference Pass-through securities backed by automobile loan receivables information about
• Definition Table Capitalization When firm, which typically includes the amount of capital obtained from each source - long-term debt and common equity - and the respective tutorial
• Definition Commingling Pros and cons involves mixing customer-owned securities with brokerage firm-owned securities. This process is referred to as rehypothecation, which is error
• Definition Effect Calendar Similarities perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week answer
• Definition Acquisition Corporate How much The acquisition of one firm by another firm means what
• Definition Management Cash How many cash in a business in order to put the cash to work more quickly and to keep the cash in applications that produce income, such as the use description
• Definition Correspondent Compare services (acts as an intermediary) in a market for another organization that does not have access to that market definition
• Definition Draft Commercial Why Demand for payment explain
• Definition Convertible Plus Cash How better Convertible bond that requires cash payment upon conversion what is
• Definition Calling Cold When Calling potential new customers in the hope of selling stocks, bonds or other financial products and receiving commissions meaning
• Definition Option Conventional Determines An option contract arranged off the trading floor and not traded regularly abbreviation
• Definition Bond Convertible Comparing to corporation that can be exchanged for a set number of common shares of the issuing corporation at a prestated conversion price how to
• Definition Bonds Corporate Depends on Debt obligations issued by corporations help
• Definition Bonds Chastity Which Bonds redeemable at par value in the case of a takeover crossword
• Definition Confirmation Difference trade in the securities markets. Confirmation is issued immediately after a trade is executed. It spells out settlement date, terms examples
• Definition Mortgage End Closed When Mortgage against which no additional debt may be issued encyclopedia
• Definition Mortgage Conventional Pros and cons A loan based on the credit of the borrower and on the collateral for the mortgage information about
• Definition Swap Currency Similarities specified payment obligations denominated in one currency for a series of specified payment obligations denominated in a different currency tutorial
• Definition Matching Combination How much variation of multiperiod immunization and cash flow-matching in which a portfolio is created that is always duration-matched and also cash error
• Definition Basis Cost How many The original price of an asset, used to determine capital gains answer
• Definition Consol Compare Popular in Great Britain. The formula for valuing these bonds is simple. The consol payment divided by yield to maturity is the price of means what
• Definition Convergence Why contract toward the price of the underlying cash commodity. At the start, the contract price is higher because of time value. But as the description
• Definition Cumulative Auction Market Preferred Stocks (CAMPS) How better Stands for Cumulative Auction Market Preferred Stocks, Oppenheimer & Company's Dutch Auction preferred stock product definition
• Definition Contagion When returns. For example, under usual conditions we might observe a certain level of correlation of market returns. A period of contagion would explain
• Definition Fees Custodial Determines Fees charged by an institution that holds securities in safekeeping for an investor what is
• Definition Stock Classified Comparing to one class of common stock, usually called Class A and Class B. The specific features of each class, which are set out in the charter and meaning
• Definition Watch Credit Depends on A warning by a bond rating firm indicating that a company's credit rating may change after the current review is concluded abbreviation
• Definition Initiated Coverage Which analysts begin following a particular security. This usually happens when there is enough trading in to warrant attention by the investment how to
• Definition Chicago Board of Trade (CBOT) Difference The largest futures exchange in the U.S., and was a pioneer in the development of financial futures and options help
• Definition Call Covered When the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk crossword
• Definition Concession Pros and cons The per-share or per-bond compensation of a selling group for participating in a corporate underwriting examples
• Definition Rate Crossover Similarities The return at which two alternative projects have the same net present value encyclopedia
• Definition Member Clearing How much clearing member must also be a member of the exchange. Not all members of the exchange, however, are members of the clearing organization information about
• Definition Equity Carrot How many with the added benefit of an opportunity to purchase more equity if the company reaches certain financial goals tutorial
• Definition Contrarian Compare buy assets that have performed poorly and sell assets that have performed well. There are two possible reasons this strategy might work error
• Definition Records Cost Why The records maintained by an investor of the prices at which securities transactions are made, so that capital gains can be computed answer
• Definition Contract Plus Cost How better A contract in which the selling price is based on the total cost of production plus a fixed percentage or fixed amount means what
• Definition Hedge Chinese When securities. Trading hedge in which one is short the convertible and long the underlying common, in the hope that the convertible's description
• Definition Equivalents And Cash Determines converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government definition
• Definition Fund Clone Comparing to A new fund set up in a fund family to emulate another successful fund explain
• Definition Analysis Credit Depends on bond issues in order to estimate the ability of the issuer to live up to its future contractual obligations. Related: Default risk what is
• Definition Cost of limited partner capital Which The discount rate that equates the after-tax inflows with outflows for capital raised from limited partners meaning
• Definition Collateral Difference Asset than can be repossessed if a borrower defaults abbreviation
• Definition Clearing House Automated Payments System (CHAPS) When sterling funds that began operations in 1984. It includes 14 member banks, nearly 450 participating banks, and is one of the clearing how to
• Definition Indicator Confidence Pros and cons the economy and the securities market. A low or deteriorating level of confidence is considered by many technical analysts as a bearish help
• Definition Concave Similarities Property that a curve is below a straight line connecting two end points. If the curve falls above the straight line, it is called convesity crossword
• Definition Budget Cash How much A forecasted summary of a firm's expected cash inflows and cash outflows as well as its expected cash and loan balances examples
• Definition Efficiency Market Capital How many The degree to which the precent asset price accurately reflects current information in the market place. See: Efficient market hypothesis encyclopedia
• Definition Paper Commercial Compare issued by a corporation. The maturity of commercial paper is typically less than 270 days; the most common maturity range is 30 to 50 days information about
• Definition Spread Credit Why Difference in the value of two options, when the value of the one sold exceeds the value of the one bought. One sells a credit spread tutorial
• Definition Turnover Capital How better average stockholder equity (net worth). The ratio indicates how much a company could grow its current capital investment level. Low capital error
• Definition Swap Circus When A fixed-rate currency swap against floating U.S. dollar LIBOR payments answer
• Definition Cedel Determines A centralized clearing system for Eurobonds means what
• Definition Theory Conduit Comparing to companies are merely conduits for capital gains, dividends, and interest, which are in fact passed through to shareholders, the investment description
• Definition Cycle Cash Depends on disbursement and cash collection. In net working capital management, it can be thought of as the operating cycle less the accounts payable definition
• Definition Loans Conforming Which qualifications of Freddie Mac or Fannie Mae, which are bought from lenders and issued as pass-through securities explain
• Definition Clearinghouse Difference through which transactions executed on its floor are settled by a process of matching purchases and sales. A clearing organization is also what is
• Definition Bond Mortgage Consolidated When A bond that covers several units of property, sometimes refinancing mortgages on the properties meaning
• Definition Period Compounding Pros and cons The length of the time period that elapses before interest compounds (a quarter in the case of quarterly compounding abbreviation
• Definition Distribution Probability Cumulative Similarities that the random variable will attain a value less than or equal to each value that the random variable can take on how to
• Definition Cross How much same broker acts as agent for both sides of the trade; a legal practice only if the broker first offers the securities publicly at a price help
• Definition Conflict between bondholders and stockholders How many interests in a corporation that conflict. Sources of conflict include dividends, distortion of investment, and underinvestment. Protective crossword
• Definition Payments Coupon Compare A bond's interest payments examples
• Definition Date Call Why A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond for a specified call price encyclopedia
• Definition Cashbook How better An accounting book that is composed of cash receipts plus disbursements. This balance is posted to the cash account in the ledger information about
• Definition Cash flow after interest and taxes When Net income plus depreciation tutorial
• Definition Cumulative Translation Adjustment (CTA) account Determines in which gains and/or losses from translation have been accumulated over a period of years. The C.T.A. account is required under the FASB error
• Definition Liabilities Current Comparing to Amount owed for salaries, interest, accounts payable and other debts due within 1 year answer
• Definition Interest Capitalized Depends on Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time means what
• Definition Bureau Credit Which An agency that researches the credit history of consumers so that creditors can make decisions about granting of loans description
• Definition Theory Cushion Difference The theory that a stock with many short positions taken in it will rise, because these positions must be covered by the stock definition
• Definition Level Confidence When In risk analysis, the degree of assurance that a specified failure rate is not exceeded explain
• Definition Effect Clientele Pros and cons investments to be followed by groups of investors who have a simular preferences that the firm follow a particular financing policy, such what is
• Definition Callable Similarities securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at meaning
• Definition Property Commercial How much Real estate that produces some sort of income-producing property abbreviation
• Definition Period Credit How many The length of time for which a firm's customer is granted credit how to
• Definition Convex Compare Curved, as in the shape of the outsid of a circle. Usually referring to the price/required yield relationship for option-free bonds help
• Definition Certificate of Accrual on Treasury Securities (CATS) Why issue that is sold at a deep discount from the face value and pays no coupon interest during its lifetime, but returns the full face value crossword
• Definition Transaction Closing How better sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening examples
• Definition Union Customs When An agreement by two or more countries to erect a common external tariff and to abolish restrictions on trade among members encyclopedia
• Definition Condor Determines strategy consisting of both puts and calls at different strike prices to capitalize on a narrow range of volatility. The payoff diagram information about
• Definition Cash flow from operations Comparing to directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated tutorial
• Definition Shares Common Depends on two types of shares, common and preferred. The common shares usually entitle the shareholders to vote at shareholders meetings. The common error
• Definition Check Certified Which A bank guaranteed check for which funds are immediately withdrawn, and for which the bank is legally liable answer
• Definition Complete Cannot Difference inability to finish an order on a principal or agency basis, given prevailing price instructions and/or market conditions means what
• Definition Market Capital When The market for trading long-term debt instruments (those that mature in more than one year description
• Definition Disbursement Controlled Pros and cons A service that provides for a single presentation of checks each day (typically in the early part of the day definition
• Definition Cash on delivery (COD) Similarities In the context of securities, this refers to the practice of institutional investors paying the full purchase price for securities in cash explain
• Definition Risk Economic Country How much Developments in a national economy that can affect the outcome of an international financial transaction what is
• Definition Insurance Credit How many Insurance against abnormal losses due to unpaid accounts receivable meaning
• Definition Cost of lease financing Compare A lease's internal rate of return abbreviation
• Definition Flight Capital Why The transfer of capital abroad in response to fears of political risk how to
• Definition Out Crowding How better Heavy federal borrowing that drives interest rates up and prevents businesses and consumers from borrowing when they would like to help
• Definition Dividend Cum When buyer is eligible to receive a declared dividend. Stocks are usually cum dividend for trades made on or before the fifth trading day crossword
• Definition Security Cabinet Determines A stock or bond listed on a major exchange with low daily traded volume examples
• Definition Markets Cash Comparing to Also called spot markets, these are markets that involve the immediate delivery of a security or instrument. Related: Derivative markets encyclopedia
• Definition Agencies Canadian Depends on Agency banks established by Canadian Banks in the U.S information about
• Definition Formation Capital Which Expansion of capital or capital goods through savings, which leads to economic growth tutorial
• Definition Department Compliance Difference exchanges to ensure that all companies, traders, and brokerage firms comply with Securities and Exchange Commission and exchange rules and error
• Definition Customer's loan consent When that allows a broker to borrow margined securities up to the level of the customer's debit balance to help cover other customers' answer
• Definition Carry Cash Pros and cons Combination of a long position in a stock/index/commodity and short position in the underlying futures, which entails a cost of carry on means what
• Definition Crowd Cabinet Similarities NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System description
• Definition Yield Gains Capital How much The price change portion of a stock's return definition
• Definition Decision Allocation Capital How many Allocation of invested funds between risk-free assets and the risky portfolio explain
• Definition Interest Consumer Compare Interest paid on consumer loans; e.g., interest on credit cards and retail purchases what is
• Definition Fractions Collection Why The percentage of a given month's sales collected during the month of sale and each month following the month of sale meaning
• Definition Feature Dividend Cumulative How better A requirement that any missed preferred or preference stock dividends be paid in full before any common dividend payment is made abbreviation
• Definition Line Characteristic When security; a regression of security returns on the benchmark return. The slope of the regression line is a security's beta how to
• Definition capitalization.Capitalization rateThe rate of interest used to calculate the present value of a number of future payments.Capitalization ratiosAlso called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the context of the stability of industry and company earnings and cash flow.Capitalization tableA table showing the capitalization of a firm, which typically includes the amount of capital obtained from each source - long-term debt and common equity - and the respective capitalization ratios.Capitalized Determines depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year help
• Definition Frequency Compounding Comparing to The number of compounding periods in a year. For example, quarterly compounding has a compounding frequency of 4 crossword
• Definition Plan Dollar Constant Depends on investing a fixed amount of money at set intervals. The investor buys more shares when the price is low and fewer shares when the price is examples
• Definition Yield Current Which For bonds or notes, the coupon rate divided by the market price of the bond encyclopedia
• Definition Chicago Mercantile Exchange (CME) Difference its members. Its primary functions are to provide a location for trading futures and options, to collect and disseminate market information information about
• Definition Commission When trade, based on number of shares, bonds, options, and/or their dollar value. In 1975, deregulation led to the establishment of discount tutorial
• Definition Doctor Company Pros and cons An executive, usually appointed from outside, brought in to turn a company around and make it profitable error
• Definition Comeout Similarities In the context of general equities, the opening. Antithesis of the close answer
• Definition Management Financial Corporate How much within a corporation to create and maintain value through decision-making and proper resource management means what
• Definition Indicators Coincident How many Economic indicators that give an indication of the status of the economy description
• Definition Clean Compare block trade that matches buy or sell orders/interests, sparing the block trader any inventory risk (no net position and hence none definition
• Definition Ratio Cash Why The proportion of a firm's assets held as cash explain
• Definition Company Finance Captive How better A company, usually a subsidiary that is wholly owned, whose main function is financing consumer purchases from the parent company what is
• Definition Consolidation When The combining of two or more firms to form an entirely new entity meaning
• Definition Sale Closing Determines A transaction in which the seller's intention is to reduce or eliminate a long position in a stock, or a given series of options abbreviation
• Definition Writer Covered Comparing to An investor who writes options only on stock that he or she owns, so that option positions may be collected how to
• Definition Broker Contra Depends on The broker on the buy side of a sell order or the sell side of a buy order help
• Definition Calendar Which List of new issues scheduled to come to market shortly crossword
• Definition Cage Difference A section of a brokerage firm used for receiving and disbursing funds examples
• Definition Selection Currency When Asset allocation in which the investor chooses among investments denominated in different currencies encyclopedia
• Definition Security Convertible Pros and cons common stock at the option of the securityholder; includes convertible bonds and convertible preferred stock information about
• Definition Arrangement Company Cost Similarities a project receive output free of charge but agree to pay all operating and financing charges of the project tutorial
• Definition Composition How much Voluntary arrangement to restructure a firm's debt, under which payment is reduced error
• Definition Stock Control How many The shares owned by the controlling shareholders of a corporation answer
• Definition Income Current Compare Money that is routinely received from investments in the form of dividends, interest, and other income sources means what
• Definition Capitalization Why The debt and/or equity mix that funds a firm's assets description
• Definition Comex How better Exchange (NYMEX). Formerly known as the Commodity Exchange, COMEX is the leading U.S. market for metals futures and options trading definition
• Definition Corporation When distinct from its owners. A corporation is allowed to own assets, incur liabilities, and sell securities, among other things explain
• Definition Value Conversion Determines The value of a convertible security if it is converted immediately. Also called parity value what is
• Definition Covariance Comparing to which random variables move together. A positive covariance implies that one variable is above (below) its mean value when the other meaning
• Definition Collar Depends on An upper and lower limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM abbreviation
• Definition Reit Cmo Which Investment Trust investing in the residual cash flows of Collateralized Mortgage Obligation (CMOs). CMO cash_flows are derived from the how to
• Definition Hedge Currency Difference equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro help
• Definition Market The Checking When Searching for bid and offer prices from market makers to find the best deal crossword
• Definition Matching Flow Cash Pros and cons this is an alternative to multiperiod immunization that calls for the manager to match the maturity of each element in the liability stream examples
• Definition Cash flow coverage ratio Similarities obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest encyclopedia
• Definition Goods Consumer How much Goods not used in production but, bought for personal or household use such as food, clothing, and entertainment information about
• Definition Maturity Current How many Current time to maturity on an outstanding debt instrument tutorial
• Definition Charter Corporate Compare A legal document creating a corporation error
• Definition Inflation Push Cost Why usually from increased raw material or labor costs that push up the costs of production. Related: Demand-pull inflation answer
• Definition Contingent deferred sales charge (CDSC) How better The formal name for the load of a back-end load fund means what
• Definition Swaption Call When right to enter into a swap as a fixed-rate payer. The writer therefore becomes the fixed-rate receiver/floating-rate payer description
• Definition Transaction Cash Determines immediate in the form of cash, unlike a forward contract (which calls for future delivery of an asset at an agreed-upon price definition
• Definition Balance Credit Comparing to The surplus in a cash account with a broker after purchases have been paid for, plus the extra cash from the sale of securities explain
• Definition Issues Coupon Current Depends on Related: Benchmark issues what is
• Definition Statement Financial Combined Which assets, liabilities, net worth, and operating figures of two or more affiliated companies. A combined statement is distinguished from a meaning
• Definition Point Cutoff Difference The lowest rate of return acceptable on investments abbreviation
• Definition Call Conditional When securities. Circumstances under which a company can effect an earlier call, usually stated as percentage of a stock's trading price how to
• Definition Cashier's check Pros and cons A check drawn directly on a customer's account, making the bank the primary obligor, and assuring firms that the amount will be paid help
• Definition Competition Similarities Intra- or intermarket rivalry between or among businesses trying to obtain a larger piece of the same market share crossword
• Definition Analysis Size Common How much The representing of balance sheet items as percentages of assets and of income statement items as percentages of sales examples
• Definition Counterparties How many The parties to an interest rate swap encyclopedia
• Definition Company Held Closely Compare controling shareholders. In contrast, a widely-held firm has many shareholders. It is difficult or impossible to wage a proxy battle for information about
• Definition Rate Coupon Why In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid twice a year tutorial
• Definition Trade Counter How better The exchange of goods for other goods rather than for cash; barter error
• Definition Me Cost When price I must pay to obtain the securities you wish to buy is [$] . Usually, a standard markup (1/8) is then applied for resale to this answer
• Definition Chief Operating Officer (COO) Determines The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president means what
• Definition Yield Equivalent Corporate Comparing to A comparison of the after-tax yield of government bonds selling at a discount and corporate bonds selling at par description
• Definition Counterparty Depends on Party on the other side of a trade or transaction definition
• Definition Overvaluation Currency Which equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total explain
• Definition Banks Consortium Difference several banks that may or may not be of the same nationality. Consortium banks are common in the Euromarket and are active in loan what is
• Definition Cow Cash When earnings per share to stockholders as dividends. Or, a company or division of a company that generates a steady and significant amount of meaning
• Definition Commitment Pros and cons Describes a trader's obligation to accept or make delivery on a futures contract. Related: Open interest abbreviation
• Definition Feature Call Similarities Part of the indenture agreement between the bond issuer and buyer describing the schedule and price of redemptions prior to maturity how to
• Definition Claim Contingent How much A claim that can be made only if one or more specified outcomes occur help
• Definition Hedging Cross How many with a futures contract that is different from the underlying being hedged. Use of a hedging instrument different from the security being crossword
• Definition Debenture Consumer Compare An investment note issued directly to the public by a financial institution examples
• Definition Costs Closing Why All the expenses involved in transferring ownership of real estate encyclopedia
• Definition Charge Carrying How better The fee a broker charges for carrying securities on credit, such as on a margin account information about
• Definition Purchase Closing When A transaction in which the purchaser's intention is to reduce or eliminate a short position in a stock, or in a given series of options tutorial
• Definition Carry Determines Related: Net financing cost error
• Definition Ratio Current Comparing to ability. Determined by dividing current assets by current liabilities. The higher the ratio, the more liquid the company answer
• Definition Creditworthiness Depends on Eligibility of an individual or firm to borrow money means what
• Definition Cincinnati Stock Exchange (CSE) Which is the only fully automated stock exchange in the U.S. It has no trading floor, but handles all members' transactions using computers description
• Definition Contango Difference A market condition in which futures prices are higher in the distant delivery months definition
• Definition Chartered Financial Analyst (CFA) When has passed examinations in economics, financial accounting, portfolio management, security analysis, and standards of conduct given by the explain
• Definition 100 Convertible Pros and cons convertibles of greatest institutional importance. Weighted by issue size, it measures the performance of its components against that of what is
• Definition Risk Commercial Similarities The risk that a foreign debtor will be unable to pay its debts because of business events, such as bankruptcy meaning
• Definition Premium Call How much a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled abbreviation
• Definition Bonds Citizen How many Certificateless municipals that can be registered on stock exchanges and are listed in newspapers how to
• Definition Arbitrage Currency Compare exchange rates in different money markets by buying a currency in one market and selling it in another market help
• Definition Hedgers Commercial Why in commodities so that they can guarantee prices at which they will buy raw materials or sell their products crossword
• Definition Capital market line (CML) How better of the risk-free asset and the market portfolio. The line represents the risk premium you earn for taking on extra risk. Defined by the examples
• Definition Away Called When Convertible: Redeemed before maturity.Option: Call or put option exercised against the stockholder.Sale: Delivery required on a short sale encyclopedia
• Definition Coupon Current Determines is, a bond with a coupon close to the yields currently offered on new bonds of a similar maturity and credit risk information about
• Definition Sharing Risk Currency Comparing to transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in tutorial
• Definition Value Market Current Depends on The value of a client's portfolio at today's market price, as listed in a brokerage statement error
• Definition Cfat Which Cash flow after taxes answer
• Definition Convexity Difference Property that a curve is above a straight line connecting two end points. If the curve falls below the straight line, it is called concave means what
• Definition Cushion When The minimum period between the time a bond is issued and the time it is called description
• Definition Convertible exchangeable preferred stock Pros and cons exchanged, at the issuer's option, into convertible bonds that have the same conversion features as the convertible preferred stock definition
• Definition Return Tax Consolidated Similarities A tax return combining the reports of affiliated companies, that are at least 80% owned by a parent company explain
• Definition Durables Consumer How much Consumer products that are expected to last three years or more, such as an automobile or a home appliance what is
• Definition Surplus Capital How many Amounts of directly contributed equity capital in excess of the par value meaning
• Definition Basis Cash Compare Refers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out abbreviation
• Definition Churning Why Excessive trading of a client's account in order to increase the broker's commissions how to
• Definition Cycle Conversion Cash How better The length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable help
• Definition Stocks Countercyclical When Stocks whose price tends to rise when the economy is in recession or the market is bearish, and vice versa crossword
• Definition Finance Corporate Determines discipline of finance. It deals with the operation of the firm (both the investment decision and the financing decision) from the firm' examples
• Definition Risk Country Comparing to General level of political, financial, and economic uncertainty in a country affect which the value of loans or investments in that country encyclopedia

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Country risk definition Corporate finance explain Countercyclical stocks what is Cash conversion cycle meaning Churning abbreviation Cash basis how to Capital.

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