...Capitalize: An accounting method to delay the recognition of expenses by showing them as long term assets. If a company buys an asset with long lifespan, it can extend its cost over a long time in order to avoid showing negative revenue. http://www.investopedia.com/terms/c/capitalize.asp http://www.accountingcoach.com/blog/capitalize Capitalization: Adding the cost of acquiring the asset to the cost of the asset. http://www.sharetipsinfo.com/capitalize-capitalization.html Acid Test Ratio: Purchase Accounting: http://accounting-financial-tax.com/2008/12/purchasing-objectives-its-impact-on-profitability/ Financial Terms Forward Bidding- When we invite bid from others for auction. The settled amount will reach maximum value here. Reverse Bidding- when we set the upper cap on price and the participants bid for lower prices. The settled amount can reach a minimum here. Private Placement- When a company issues shares/securities to a select grp of investors (<49). Two types- preferential issue, QIP. In this, less regulatory clearances are required. Preferential Allotment of shares/ Preferential Issues- Process by which allotment of securities/share is done to a select group of investors. This is done because raising capital from public issue often takes time and is expensive. http://articles.economictimes.indiatimes.com/2009-09-20/news/28485898_1_placement-preferential-allotment-public-offer QIP (Qualified Institutional Placement)- When the company issues to select group...
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...Glossary of School Finance Terms Published by Wisconsin Association of School District Administrators (WASDA) And Wisconsin Association of School Business Officials (WASBO) January 2003 Acknowledgements We gratefully acknowledge the efforts of Nicholas C. A. Alioto and Roger J. Dickson of the Public Business Consulting Group, LLC for their efforts in compiling and authoring this document. The authors express their appreciation to the following individuals, who provided assistance with its development: Larry Krebs of the Neenah School District, Dennis Hanson of the Wisconsin Department of Public Instruction, Tom Griggs of Godfrey & Kahn, S.C. and Nelson Flynn of Michael Best & Friedrich, LLP. The definitions provided herein were compiled by the authors and rewritten using their own knowledge and definitions from the following sources: Wisconsin Department of Public Instruction, Robert W. Baird and Company, and the glossaries from the departments of public instruction from Indiana and Michigan. This publication may be reprinted without permission courtesy of the Wisconsin Association of School District Administrators and the Wisconsin Association of School Business Officials. A limited supply of additional copies are available for a fee. Contact the WASDA office for more information or go to www.wasda.org or www.wasbo.com to view online. This publication was commissioned by the Wisconsin Association of School District Administrators and Wisconsin Association of School Business...
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...Financial Terms and Roles · Finance -- The science of the management of money and other assets. · Efficient market – A market in which prices correctly reflect all relevant information. · Primary market – This is part of the capital market that deals with issuing of new securities. · Secondary market – This part also called the aftermarket, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. Another frequent use of the secondary market is to refer to loans which are sold by a mortgage bank to investors such as Fannie Mae and Freddie Mac. · Risk – The possibility that shareholders will lose money when they invest in a company that has debt, if the company’s cash flow proves inadequate to meet its financial obligations. · Security – is a negotiable financial instrument with a recognized financial worth. · Stock – The capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity). · Bond -- A debt that is issued for a period of more that one year. The government sells bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principal amount of the loan at a specified time. Interest-bearing bonds pay interest periodically. · Capital – Financial assets or the financial...
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...Financial Terms and Roles Alvaro Garcia Jr. FIN/370 August 19, 2013 Dr. Rachel Ang Finance – Individuals and businesses evaluate investments and raise capital to fund them. Understanding and having knowledge of finance will benefit both personal and professional life. Efficient market – Investors respond to new information buying and selling their investments the speed with which investors act and the way that prices respond to the information determine the efficiency of the market. Primary market – is a market in which new, as opposed to previously issued, securities are bought and sold for the first time. The key feature of the primary market is that the firms selling securities actually receive the money raised. Secondary market – is where all subsequent trading of previously issued securities takes place. The principal benefit of the secondary market for the shareholders of firms that sell their securities to the public, you could easily sell those shares in the secondary market if you decided you no longer wanted to hold them. Risk – Do not take additional risk unless expected to be compensated with additional return. For example, offering investors a higher expected rate of return on the riskier investments. Security – Security markets provide a link between the corporation and investors. The securities markets are another component of the financial marketplace. Stock – Stock prices can react to information, good decisions will result in higher stock prices...
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...Financial Terms and Roles FIN\370 Jeff D. Garcia Finance - the management of revenues, esp. those affecting the public, as in the fields of banking and investment * Efficient market - Market where all pertinent information is available to all participants at the same time, and where prices respond immediately to available information. Stock markets are considered the best examples of efficient markets. * Primary market - Market in which buyers and sellers negotiate and transact business directly, without any intermediary such as resellers. * Secondary market - Financial market where previously issued securities (such bonds, notes, shares) and financial instruments (such as bills of exchange and certificates of deposit) are bought and sold. All commodity and stock exchanges, and over-the-counter markets, serve as secondary markets which (by providing an avenue for resale) help in reducing the risk of investment and in maintaining liquidity in the financial system. * Risk - Finance: The probability that an actual return on an investment will be lower than the expected return. Financial risk is divided into the following categories: Basic risk, Capital risk, Country risk, Default risk, Delivery risk, Economic risk, Exchange rate risk, Interest rate risk, Liquidity risk, Operations risk, Payment system risk, Political risk, Refinancing risk, Reinvestment risk, Settlement risk, Sovereign risk, and Underwriting risk. * Security - Finance: A financing...
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... “FINANCIAL MARKET” IN PARTIAL FULFILLMENT OF THE REQUIREMENTS IN ECON. 101(ECONOMIC W/ TAXATION & LANDREFORM) SUBMITTED TO: MR. ANDASIL J. ABUBAKAR, M (PHIL) “Instructor” SUBMITTED BY: GROUP 1 STUDENTS 1st semester/ A.Y 2012-2013 PART 1- FINANCIAL MARKET INTRODUCTION Throughout his text, Mishkin stresses that the evolution of financial markets, both in the U.S. and throughout the world, has resulted from an intricate interplay of three factors: chance, necessity, and design. In short, history matters, and it matters a lot. In addition, throughout his text Mishkin consistently stresses the importance of information. He argues that it is impossible to understand the special nature of financial markets relative to markets for real goods and services unless one understands the peculiar types of "asymmetric information problems" intrinsically associated with financial assets. He argues that these asymmetric information problems have largely shaped the structure of financial markets in the past, and that the recent surge of innovations in information technology (IT) -- in particular, Internet-related IT -- is leading to a dramatic restucturing of financial markets today. The notes, below, provide basic background information on financial markets as covered in Mishkin in Chapters 2...
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...Introduction: BEXIMCO Pharmaceuticals Limited’ belongs to BEXIMCO Group, the largest private sector industrial conglomerate in Bangladesh. Over the last thirty years the company was making good profit. In this paper, the last two years financial statement of BEXIMCO Pharmaceuticals Limited has been analyzed.. Company Profile of ‘BEXIMCO Pharmaceuticals Limited’: BEXIMCO Pharmaceuticals Ltd. (BPL) is a leading manufacturer of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. The company is the largest exporter of pharmaceuticals in the country and its state-of-the-art manufacturing facilities are certified by global regulatory bodies of Australia, Gulf nations, Brazil, among others. The company is consistently building upon its portfolio and currently producing more than 400 products in different dosage forms covering broader therapeutic categories which include antibiotics, antihypertensives, antidiabetics, antireretrovirals, anti asthma inhalers etc, among many others. Ensuring access to quality medicines is the powerful aspiration that motivates more than 3000 employees of the organization, and each of them is guided by the same moral and social responsibilities the company values most. Key Company Information: Year of Establishment :: 1976 Country of Incorporation :: Bangladesh Commercial Production :: 1980 Status :: Public Limited Company Business Lines :: Manufacturing and marketing of pharmaceutical Finished Formulation Products...
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...Domenick Luongo Fin 635: Dr. Wong 5/4/15 The Great Recession: The Financial Crisis of 2008 Table of Contents: I. Introduction......................................3 II. Cause & Effect of the Housing Bubble..............3 III. Financial Industry................................5 IV. Global Contagion..................................6 a. European Sovereign Debt Crisis of 2007-2008.....7 V. LIBOR.............................................8 b. LIBOR & the Crisis in Lending...................8 VI. Unemployment......................................9 VII. United States Stock Market.......................10 VIII. Laws & Resolutions...............................10 c. Dodd-Frank Wall Street Reform & Consumer.......11 Protection Act Timeline d. Dodd-Frank Wall Street & Reform Consumer.......11 Protection Act e. European Laws & Resolutions....................11 IX. Conclusion.......................................12 Introduction The financial crisis of 2007-2008 is considered to be the worst financial crisis since the Great Depression in 1929. Not only were some of the largest firms in the world threatened but also, the normal lives of everyday people faced great challenges as the entire financial market and banking industry was damaged. The prevention of the folding of these firms was backed with bailouts from national governments and banks. The crisis was the cause of business declines...
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...Review of Accounting Studies, 8, 531–560, 2003 # 2003 Kluwer Academic Publishers. Manufactured in The Netherlands. Financial Statement Analysis of Leverage and How It Informs About Profitability and Price-to-Book Ratios DORON NISSIM dn75@columbia.edu Graduate School of Business, Columbia University, 3022 Broadway, Uris Hall 604, New York, NY 10027 STEPHEN H. PENMAN shp38@columbia.edu Graduate School of Business, Columbia University, 3022 Broadway, Uris Hall 612, New York, NY 10027 Abstract. This paper presents a financial statement analysis that distinguishes leverage that arises in financing activities from leverage that arises in operations. The analysis yields two leveraging equations, one for borrowing to finance operations and one for borrowing in the course of operations. These leveraging equations describe how the two types of leverage affect book rates of return on equity. An empirical analysis shows that the financial statement analysis explains cross-sectional differences in current and future rates of return as well as price-to-book ratios, which are based on expected rates of return on equity. The paper therefore concludes that balance sheet line items for operating liabilities are priced differently than those dealing with financing liabilities. Accordingly, financial statement analysis that distinguishes the two types of liabilities informs on future profitability and aids in the evaluation of appropriate price-to-book ratios. Keywords: financing leverage, operating liability...
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...The financial service terms form is part of your Financial Service Agreement with The Toronto-Dominion Bank and its affiliates. The financial service terms document helps explain what the services are provided by the bank with detailing the use and important information about their accounts. When a person signs the financial service agreement any existing agreement between the bank and the person who signs the agreement, for any particular product or service is replaced by this new agreement. There are few exceptions in which replacements of the existing agreement are not replaced. These exceptions are “any provisions whereby you have indicated who may deal with your joint account or whether your joint account has a right of survivorship remain valid until replaced with a new joint ownership record; and all provisions dealing with the specific terms of a particular product or service, including term, interest rate, amount of investment or any other terms particular to the product or service provided to you by us, to the extent that such provisions are not contained in the Agreement, remain valid until expiry or renewal.” It is not necessary that all the services mentioned in the contract will be used by the signatory. Person can request for new services later on, and if the bank introduces any new services then the signatory will be informed. There are seven parts of the Financial Service Terms, in which it is clearly stated what the services in your agreement are. The first...
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...Financial Terms Finance for Business FIN 370 Financial Terms •Finance (D) Finance refers to money management by individuals, companies, and government. (R) Finance’s role in the business world is to maximize profits, evaluate investments in order to raise funds with as little risk as possible, which is possible if information is adequately interpreted. • Efficient market (D) The standards to which stock prices reflect all available and relevant information. (R) To assist in explaining the accuracy of market prices, it is an attempt to decrease inefficiencies in the market pricing. • Primary market (D) The market in which new (never been issued) securities are bought and sold for the first time. (R) The main role of the primary market is to assist businesses in raising funds by selling new stock. The firm selling the securities (stock) collects the monies from the sells. • Secondary market (D) This market sells and trades the previously issued securities. (R) The secondary market provides the individual security holder the opportunity to sell or trade their own securities to earn money; the gain or loss from the transaction does not affect the business because the person who bought the stock and not the business owns the security. • Risk (D) The possibility that the expected return can be different from what was projected. (R) Risk is part of business and usually the higher the risk the better the return. There are several examples of risk they can be...
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...Financial Terms and Roles Kay McCulloch FIN/370 Novemeber 18, 2013 Dr. Dee Barton Financial Terms and Roles Finance Finance is the study of how people and businesses evaluate investments and raise capital to fund them (Titman, Keown, Martin, 2011, Pg. 4). There are four principles of Finance. They are Money has a Time Value, There is a Risk-Return Tradeoff, Cash Flows are the source of value, and Market Prices Reflect Information. Efficient Market Efficient Market is one in which the flow of relevant information in regard to investment options is easily accessed and reliable ("What Is An Efficient Market?", 2013). Anyone who is involved in trade is able to make use of the information to assess the past performance of the security in question. They can accurately identify the reasons for the current unit price and can responsibly project the future performance of the security based on current indicator. Primary Market Primary Market is a market in which new, as opposed to previously issued, securities are bought and sold for the first time (Titman, Keown, Martin, 2011, Pg.26). This market is used for firms to issue new securities to raise money that they can then use to finance their business. Secondary Market A secondary market is where previously used securities are subsequently traded. In this market, the issuing firm does not receive any new finances on the securities already sold; it is just transferred from one investor to another (Titman, Keown, Martin, 2011...
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...A Appreciation - A currency is said to 'appreciate' when it strengthens in price in response to market demand. Arbitrage - The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets Ask (Offer) Price - The price at which the market is prepared to sell a specific currency in a Foreign Exchange Contract or Cross Currency Contract. At this price, the trader can buy the base currency. In the quotation, it is shown on the right side of the quotation. For example, in the quote USD/CHF 1.4527/32, the ask price is 1.4532; meaning you can buy one US dollar for 1.4532 Swiss francs. At Best - An instruction given to a broker to buy or sell at the best rate that can be obtained. At or Better - An order to deal at a specific rate or better. B Balance of Trade - The value of a country's exports minus its imports. Bar Chart - A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar, the opening price, which is marked with a little horizontal line to the left of the bar, and the closing price, which is marked with a little horizontal line of the right of the bar. Base Currency - The first currency in a Currency Pair. It shows how much the base currency is worth as measured against the second currency. For example, if the USD/CHF rate equals 1.6215 then one USD is worth CHF 1.6215...
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...Financial Terms and Roles Create a list of definitions for the following terms and identify their roles in finance: * Finance – Finance is the source through which a resource is provided. For example, cash is a resource, and where the cash comes from is the source. * Efficient market – A market where the values of all securities at any given time reflect all of the current available information, which results in the market value and intrinsic value being the same. * Primary market – Market where all securities are offered for the very first time for purchase to potential investors. The price at initial offering is the same for all buyers. * Secondary market - Market where all securities previously issued by a firm is traded again. The prices of securities on this market will differ from the initially offered price. * Risk – A likely variable associated with income streams or expected revenue. Risk is also known as the chance of difference. * Security – Bonds are a representation of a debt agreement, whereas Stocks are a representation of ownership. Securities can also be interest based or dividend based. * Stock – A Representation of ownership, or a claim to assets and earnings, within an issuing security or business. Stocks are classified into two different stocks, common and preferred. * Bond - A long term promissory note, or type of debt issued by a borrower. The borrower promises to pay the holder of a bond a predetermined and...
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...Finance – The study of how people and businesses evaluate investments and raise capital to fund them. Efficient market – A market in which prices correctly reflect all relevant information. Primary market – A market in which new, as opposed to previously issued, securities are bought and sold for the first time. Secondary market – Is where all subsequent trading of previously issued securities takes place. Risk – Is often defined as the standard deviation of the return on total investment. Security – A negotiable instrument that represents a financial claim. Stock – Ownership of a corporation indicated by shared, which represent a piece of the corporation’s assets and earnings. Bond – A long-term (10-year or more) promissory note issued by a borrower, promising to pay the owner of the security a predetermined amount of interest each year. Capital – Money that is used to generate income or make an investment. Debt – Money that has been borrowed and must be repaid. This includes such things as bank loans and bonds. Yield – The percentage return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note. Rate of return – In securities, the amount of revenue an investment generates over a gien period of time as a percentage of the amount of capital invested. Return on investment – The money that a person or company earns as a percentage of the total value of the assets that are invested. Cash flow – A revenue or expense stream that...
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