Bridge financing definition
Bridge financing is a type of financing (source of capital) which is given for a specified and limited time period (temporary is the key word here), until the company that receives it secures a more permanent and stable form of financing. Therefore bridge financing acts as a “bridge” between now and the more [...]
Break-even tax rate definition
The term break-even tax rate is related to the impact of taxes and tax rates on investment returns.
Break-even tax rate is the tax rate at which an investor would have equal outcomes of entering a potential investment or transaction and not entering the transaction.
In this case the investor would be indifferent between [...]
Breadth ratio definition
Breadth Ratio is a measure of breadth of a stock market. Similarly to the Advance/Decline line or index, it compares the number of rising stocks to the number of falling stocks in a particular period. But unlike the A/D line, the breadth ratio divides the number of rising stocks by the number of [...]
Breadth of the market definition
Breadth of the market represents the number of stocks participating in a particular market’s move as a percentage of the total number of stocks.
For example, let’s take the S&P500 index, which contains 500 stocks. If the S&P500 index is rising on a particular day and of the 500 stocks included in [...]
Stock exchange in various languages
Bourse is French expression for a stock exchange. Similarly, in German it is die Börse, in Spanish it is bolsa, and Italians call their stock exchange borsa.
Market’s bottom (noun)
Market bottom is the lowest point the price has reached during a particular period or in a particular down move.
A market bottoming (verb)
When the market has reached a bottom (a low point) and it starts to move up again, we say that the market is bottoming.
Underwriting and book runner
Book runner is a function performed during the underwriting of a new security issue.
Book runner is a person (or usually a financial institution) who takes care for the book – the register of all securities already underwritten.
Definition of book cash
Book cash is the cash balance a company has reported in its accounting (financial statements). Equivalent expression to book cash is ledger cash.
The book of a trader’s positions
In common financial language the expression the book represents all the positions of a bank, company, or a trader.
Bond points definition
A bond point is a unit that is commonly used to measure bond prices. One bond point equals 1 dollar or 1 percentage point in the price of a bond, whose nominal value (face value or par value) is 100 dollars.
Bond points example
For example, a price of 80 (in bond points) represents 80% [...]
Definition of bond indexing
Bond indexing means building a portfolio of bonds or fixed income securities that will track the performance of a specified bond index as closely as possible.
Balance of trade definition and calculation
Balance of trade is a measure of international trade and an important macroeconomic indicator. It is the net flow of goods between a country and other countries, calculated by subtracting imports from exports.
A more frequent expression with equivalent meaning is trade balance.
Balance of trade interpretation
When the balance of trade is [...]
Accounts Receivable Turnover Ratio calculation
Accounts Receivable Turnover Ratio is the ratio of net credit sales to average accounts receivable.
Net credit sales represent the value of company’s products sold to customers without collecting the cash (on credit) in a particular time period (there are two kinds of sales: cash sales, which you now don’t include, and [...]
Accounts receivable as an accounting term represent all money that the company’s customer owe to that company.
Accounts receivable increase when the company sells its products or services, but agrees with the customer to collect the cash later.
Accounts receivable decrease when the company’s customers repay the money owed.
In general having too much money in accounts receivable [...]
Accounts payable as an accounting term represent all money owed to the company’s suppliers. Accounts payable are one of the company’s sources of financing and influence the company‘s working capital.
Accounts payable increase when the company buys materials and other things used in its operational activity without paying for them in cash at that moment.
Accounts payable [...]
Depreciation
Accelerated depreciation is a method used in accounting for costs and assets. Through depreciation a company’s accounting reflects the fact that the assets the company holds (for example some machines used in producing the output) decrease in value over time (as they get old and their condition may deteriorate through using them). Technically depreciation is [...]
Accelerated Cost Recovery System (ACRS) is an accounting method and schedule of accelerated depreciation allowed for tax purposes.
Read more: Accelerated Cost Recovery System (ACRS)Absorption rate is a real estate related term, which represents the rate at which real estate in an area can be sold or leased.
Read more: Absorption RateAbsorbed market
The expression absorbed describes a situation in the stock market, when there are corresponding orders on both sides of the market in a particular stock – it means that at the current price there are both people willing to buy and people willing to sell. As a result, in an absorbed market further transactions [...]
Absolute priority or absolute priority rule is a rule in bankruptcy, when the senior creditors must first be fully paid before less senior (or junior) creditors receive any repayment. Creditors are classified by seniority and the more senior a creditor is, the greater generally is his chance of getting the money back and the less [...]
Read more: Absolute Priority
