Term
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Definition
| computing ratios that compare values of key accounts listed on a firms financial statements |
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Term
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Definition
| financial ratios that measure the ability of a for to obtain the cash it needs to pay its short term debt |
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Term
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Definition
| financial ratios that measure how effectively a firm is using its assets to generate revenue |
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Term
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Definition
| ratios that measure the extent to which a firm relies on debt financing in its capital structure |
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Term
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Definition
| ratios that measure the rate of return a firm is earning on various measures of investment |
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Term
| budgeted income statement |
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Definition
| a projection showing how a firm's budgeted sales and costs will affect expected net income |
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Term
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Definition
| a projected financial statement that forecasts the types and amounts of assets a firm will need to implement its future plans and how they will finance them |
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Term
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Definition
| a forecast of future cash flows that help financial managers identify when their firm is likely to experience temporary shortages of cash |
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Term
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Definition
| the difference between a firm's current assets and its current liabilities |
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Term
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Definition
| safe and highly liquid assets that many firms list with their cash holdings on their balance sheet |
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Term
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Definition
| short-term promissory notes issued by large corporations |
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Term
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Definition
| short term markable IOU's issued by the U.S. government |
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Term
| money market mutual funds |
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Definition
| a mutual fund that pools funds from many investors and uses the funds to purchase high liquid securites |
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Term
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Definition
| funds that arise as a natural result of a firm's business operations without the need of special arrangements |
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Term
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Definition
| financing granted by sellers when they deliver goods and services to customers without immediate payment |
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Term
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Definition
| a financial agreement between a firm and a bank in which the bank pre-approves credit up to a specified limit |
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Term
| revolving credit agreement |
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Definition
| a guaranteed line of credit in which a bank makes a binding commitment to provide a business with funds up to a specified limit |
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Term
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Definition
| a company that provides short-term financing to firms by purchasing their accounts receivables at a discount |
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Term
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Definition
| the process a firm uses to evaluate long-term investment proposals |
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Term
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Definition
| the principle that a dollar received today is worth more than a dollar received in the future |
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Term
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Definition
| the amount of money that would grow to become some future amount in a specified number of time |
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Term
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Definition
| the sum of the present values of expected future cash flows from an investment minus the cost of that investment |
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Term
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Definition
| the mix of equity and debt financing a firm uses to meet its permanent financing needs |
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Term
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Definition
| the basic form of ownership in a corporation |
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Term
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Definition
| a type of stock that gives its holder preference over common stockholders in terms of dividends and claims on assets |
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Term
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Definition
| a long-term debt instrument issued by a corporation |
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Term
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Definition
| the date when a bond will come due |
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Term
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Definition
| the interest paid on a bond expressed as a percentage of the bond's par value |
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Term
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Definition
| the amount of interest earned on a bond expressed as a percentage of the bond's current market price |
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Term
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Definition
| a bond backed by the pledge of specific assets |
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Term
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Definition
| a series of bonds issued at the same time but having different maturity dates to spread out the repayment |
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Term
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Definition
| a bond that the issuer can redeem at a given price prior to maturity |
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Term
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Definition
| a bond that gives its holder the right to exchange it for a stated number of shares of common stock in some specified time period |
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Term
| primary securities market |
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Definition
| the market where newly issued securities are traded. (where firms that issue securities raise more money |
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Term
| secondary securities market |
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Definition
| the market where previously issued securities are traded |
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Term
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Definition
| a primary market issue in which new securities are offered to any investors who are willing to purchase them |
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Term
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Definition
| a primary market issue that is negotiated between issuing corporation and a small group of investors |
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Term
| New York Stock Exchange (NYSE) |
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Definition
| the largest securities exchange in the U.S. and the world. |
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Term
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Definition
| a major stock exchange that handles trades through a computer network |
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Term
| over-the-counter market (OTC) |
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Definition
| the market where securities that are not listed on exchanges are traded |
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Term
| electronic communications network (ECN) |
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Definition
| an automated trading system that automatically matches buyers and sellers, executing trades quickly |
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Term
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Definition
| a strategy of investing in a wide variety of securities to reduce risk |
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Term
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Definition
| an order telling a broker to buy or sell a certain equity |
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Term
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Definition
| an order to a broker to buy a specific stock only when the price is below a certain level |
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Term
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Definition
| an investment vehicle that pools the contributions of many investors and buys a wide array of stocks or other securities |
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Term
| exchange traded fund (ETF) |
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Definition
| shares traded on securities that represent the legal right of ownership over individual stock owners |
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Term
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Definition
| a statistic that tracks how the prices of a specific set of stocks have changed |
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