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 [...]
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 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 [...]
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 RateAbsolute 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 PriorityPar value (also called nominal value) of a bond is usually 100 (or 1000 or some other nice round number), in general par value is the price at which the bond will be redeemed or repaid in the end.
A bond is said to be trading above par if its current market price is greater than [...]
Abnormal return is the component of the total return on an investment or portfolio of investments, which can’t be explained by systematic factors. Systematic factors are those which can’t be influenced by that one particular investor, usually the term represents the general movement of the whole market.
Abnormal return is often also called excess return.
Abnormal return [...]
An abandonment option provides its holder with the possibility (right, but not the obligation) to withdraw or pull out of an investment earlier than on the previously agreed end date.
Abandonment option is often bound with some specified conditions which must be met in order for the abandonment option to be exercised.
To abandon an option means to consciously choose not to sell or exercise it before it expires.
When an option is far out of the money and close to expiration, there is little chance that it will get in the money soon enough and its price in the options market will probably be very low (or [...]
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