Meaning COMPENSATING BALANCE: An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided
More terms such as Compensating balance in Dictionary C.
- Definition Cash Flow Matching:
- Examples dedicating a portfolio, this is an alternative to multiperiod immunization that calls for the manager to match the maturity of each element in the liability stream, working backward from the last compensating balance definition.
- Definition Call Premium:
- Examples Premium in price above the par value of 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 maturity date compensating balance explain.
- Definition Covered Call:
- Examples position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not compensating balance what is.
- Definition Certified Financial Statements:
- Examples Financial statements that include an accountant's opinion compensating balance meaning.
- Definition Convertible Preferred Stock:
- Examples Preferred stock that can be converted into common stock at the option of the holder. See also: participating convertible preferred stock compensating balance abbreviation.
