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"SOFT" CAPITAL RATIONING  look up translate image
Capital rationing that under certain circumstances can be violated or even viewed as made up of targets rather than absolute constraints.
10-K  look up translate image
Annual report required by the SEC each year. Provides a comprehensive overview of a company's state of business. Must be filed within 90 days after fiscal year end. A 10Q report is filed quarterly.
12B-1 FEES  look up translate image
The percent of a mutual fund's assets used to defray marketing and distribution expenses. The amount of the fee is stated in the fund's prospectus. The SEC has recently proposed that 12B-1 fees in excess of 0.25% be classed as a load. A true " no load" fund has neither a sales charge nor 12b-1 fee.
12B-1 FUNDS  look up translate image
Mutual funds that do not charge an upfront or back-end commission, but instead take out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12b-I (passed in 1980).
48-HOUR RULE  look up translate image
The requirement that all pool information, as specified under the PSA Uniform Practices, in a TBA transaction be communicated by the seller to the buyer before 3 p.m. EST on the business day 48-hours prior to the agreed upon trade date.
ABANDONMENT OPTION  look up translate image
The option of terminating an investment earlier than originally planned.
ABNORMAL RETURNS  look up translate image
Part of the return that is not due to systematic influences (market wide influences). In other words, abnormal returns are above those predicted by the market movement alone. Related: excess returns.
ABSOLUTE PRIORITY  look up translate image
Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full before junior creditors receive any payment.
Schedule of depreciation rates allowed for tax purposes.
ACCELERATED DEPRECIATION  look up translate image
Any depreciation method that produces larger deductions for depreciation in the early years of a project's life. Accelerated cost recovery system (ACRS), which is a depreciation schedule allowed for tax purposes, is one such example.
ACCOUNTING EARNINGS  look up translate image
Earnings of a firm as reported on its income statement.
ACCOUNTING EXPOSURE  look up translate image
The change in the value of a firm's foreign currency denominated accounts due to a change in exchange rates.
ACCOUNTING INSOLVENCY  look up translate image
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.
ACCOUNTING LIQUIDITY  look up translate image
The ease and quickness with which assets can be converted to cash.
ACCOUNTS PAYABLE  look up translate image
Money owed to suppliers.
ACCOUNTS RECEIVABLE  look up translate image
Money owed by customers.
ACCOUNTS RECEIVABLE TURNOVER  look up translate image
The ratio of net credit sales to average accounts receivable, a measure of how quickly customers pay their bills.
ACCRETION (OF A DISCOUNT)  look up translate image
In portfolio accounting, a straight-line accumulation of capital gains on discount bond in anticipation of receipt of par at maturity.
ACCRUAL BOND  look up translate image
A bond on which interest accrues, but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity.
ACCRUED INTEREST  look up translate image
The accumulated coupon interest earned but not yet paid to the seller of a bond by the buyer (unless the bond is in default).
An approximate measure of the liability of a plan in the event of a termination at the date the calculation is performed. Related: projected benefit obligation.
ACID-TEST RATIO  look up translate image
Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.
ACQUIREE  look up translate image
A firm that is being acquired.
ACQUIRER  look up translate image
A firm or individual that is acquiring something.
ACQUISITION OF ASSETS  look up translate image
A merger or consolidation in which an acquirer purchases the selling firm's assets.
ACQUISITION OF STOCK  look up translate image
A merger or consolidation in which an acquirer purchases the acquiree's stock.
ACT OF STATE DOCTRINE  look up translate image
This doctrine says that a nation is sovereign within its own borders and its domestic actions may not be questioned in the courts of another nation.
ACTIVE  look up translate image
A market in which there is much trading.
ACTIVE PORTFOLIO STRATEGY  look up translate image
A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly. Related: passive portfolio strategy
ACTUALS  look up translate image
The physical commodity underlying a futures contract. Cash commodity, physical.
ADDITIONAL HEDGE  look up translate image
A protection against borrower fallout risk in the mortgage pipeline.
Publicly traded issues that may be collateralized by mortgages and MBSs.
ADJUSTED PRESENT VALUE (APV)  look up translate image
The net present value analysis of an asset if financed solely by equity (present value of un-levered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leverage buy-out.
ADMINISTRATIVE PRICING RULES  look up translate image
IRS rules used to allocate income on export sales to a foreign sales corporation.
ADVANCE COMMITMENT  look up translate image
A promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price.
ADVERSE SELECTION  look up translate image
A situation in which market participation is a negative signal.
AFFIRMATIVE COVENANT  look up translate image
A bond covenant that specifies certain actions the firm must take.
AFTER-TAX PROFIT MARGIN  look up translate image
The ratio of net income to net sales.
AFTER-TAX REAL RATE OF RETURN  look up translate image
Money after-tax rate of return minus the inflation rate.
AGENCIES  look up translate image
Federal agency securities.
AGENCY BANK  look up translate image
A form of organization commonly used by foreign banks to enter the U.S. market. An agency bank cannot accept deposits or extend loans in its own name; it acts as agent for the parent bank.
AGENCY BASIS  look up translate image
A means of compensating the broker of a program trade solely on the basis of commission established through bids submitted by various brokerage firms. agency incentive arrangement. A means of compensating the broker of a program trade using benchmark prices for issues to be traded in determining commissions or fees.
AGENCY COST VIEW  look up translate image
The argument that specifies that the various agency costs create a complex environment in which total agency costs are at a minimum with some, but less than 100%, debt financing.
AGENCY COSTS  look up translate image
The incremental costs of having an agent make decisions for a principal.
AGENCY PASS-THROUGHS  look up translate image
Mortgage pass-through securities whose principal and interest payments are guaranteed by government agencies, such as the Government National Mortgage Association (" Ginnie Mae "), Federal Home Loan Mortgage Corporation (" Freddie Mac") and Federal National Mortgage Association (" Fannie Mae").
AGENCY PROBLEM  look up translate image
Conflicts of interest among stockholders, bondholders, and managers.
AGENCY THEORY  look up translate image
The analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of anther person, a principal.
AGENT  look up translate image
The decision-maker in a principal-agent relationship.
AGGREGATION  look up translate image
Process in corporate financial planning whereby the smaller investment proposals of each of the firm's operational units are added up and in effect treated as a big picture.
AGING SCHEDULE  look up translate image
A table of accounts receivable broken down into age categories (such as 0-30 days, 30-60 days, and 60-90 days), which is used to see whether customer payments are keeping close to schedule.
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Financial terms
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Created by admin
Created on 2011-05-04 19:09:57
Number of terms 2795
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