Term
| Working Capital Management |
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Definition
| the managing of short-term assets and liabilities |
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Term
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Definition
| cash kept on hand by a firm to pay normal daily expenses, such as employee wages and bills for suppleis and utilities |
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Term
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Definition
| an address, usually a commercial bank, at which a company recieves payments in order to speed collections from customers |
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Term
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Definition
| temporary investment of "extra" cash by organizations for up to one year in U.S. Treasury bills, certificates of deposit, commerical paper, or eurodollar loans |
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Term
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Definition
| short-term debt obligations the U.S. government sells to raise money |
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Term
| Commericial Certificates of Deposit (CDs) |
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Definition
| certificates of deposit issued by commercial banks and brokerage companies, available in minimum amounts of $100,000, which may be traded prior to maturity |
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Term
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Definition
| a written promise form one company to another to pay a specific amount of money |
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Term
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Definition
| a market centered in London for trading U.S. dollars in foreign countries |
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Term
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Definition
| credit extended by suppliers for the purchase of their goods and services |
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Term
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Definition
| an arrangement by which a bank agrees to lend a specified amount of money to an organization upon request |
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Term
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Definition
| loans backed by collateral that the bank can claim if the borrowers do not repay them |
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Term
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Definition
| loans backed only by the borrower's good reputation and previous credit rating |
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Term
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Definition
| the interest rate that commercial banks charge their best customers (usually large corporations) for short-term loans |
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Term
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Definition
| a finance company to which businesses sell their accounts recievable--usually for a percentage of the total face value |
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Term
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Definition
| production facilities (plants), offices, and equipment--all of which are expected to last for many years |
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Term
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Definition
| the process of analyzing the needs of the business and selecting the assets that will maximize its value |
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Term
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Definition
| debts that will be repaid over a number of years, such as long-term loans and bond issues |
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Term
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Definition
| debt instruments that larger companies sell to raise long-term funds |
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Term
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Definition
| debentures, or bonds that are not back by specified collateral |
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Term
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Definition
| bonds that are backed by specific collateral that must be forfeited in the event that the issuing firm defaults |
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Term
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Definition
| a sequence of small bond issues of progressivley longer maturity |
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Term
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Definition
| bonds with interest rates that change with current interest rates otherwise available in the economy |
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Term
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Definition
| a special type of high-interest-rate bond that carries higher inherent risks |
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Term
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Definition
| earnings after expenses and taxes that are reinvested in the assets of the firm and belong to the owners in the form of equity |
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Term
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Definition
| the dividend per sahre divided by the stock price |
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Term
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Definition
| the market where firms raise financial capital |
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Term
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Definition
| stock exchanges and over-the-counter markets where investors can trade their securities with others |
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Term
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Definition
| the sale of stocks and bonds for corporations |
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Term
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Definition
| the mechanism for buying and selling securities |
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Term
| Over-the-Counter Market (OTC) |
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Definition
| a network of dealers all over the country linked by computers, telephones, and Teletype machines |
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