Small-firm effect: The propensity of small firms to outperform the stock market in terms of total market capitalization. Used credit: Used credit is a term used to describe the part of a line of credit which is not available for use anymore. Direct marketing: Direct marketing is a sales method by which advertisers approach target customers directly with products or services using direct marketing tools such as telephone sales, direct mail marketing, catalogs,brochures, leaflets and coupons. Hard cash: Payment of goods and services with money as opposed to a credit or check payment. Listed stocks: The stocks that are traded in the country’s main stock markets. First-in-first-out (FIFO): First-in first-out is an asset management terminology, which explains the valuation method by which assets which are produced or acquired first are disposed off or sold earlier than the others. Equilibrium market price of risk: The Equilibrium market price of risk is the slope of the capital market line (CML) which is the expected return offered to compensate for a perceived level of risk. Famous Entrepreneur Failure Quotes (and What You Can Learn from Them), When to Give Up on a Business Partnership, 5 Essential Tips for Running a Business from Home, 5 Myths About Running a Business You Need to Know. Earnings surprises: When the net income of a company, as demonstrated by the quarterly or yearly report, demonstrates a fluctuation (above or below) in the analyst’s earnings estimates, it is known as earning surprises. Price momentum: Price momentum is the movement of the prices of shares over the last year as compared to a market index. Economic surplus: The economic surplus of a business is when the total value of the assets of a company exceed its liabilities. Automatic transfer service (ATS) account: Automatic transfer service (ATS) account is a depositor’s savings account, from which funds may be transferred automatically to the same depositor’s checking account, to cover a check written or to maintain a minimum balance. This is done when quoting prices for fixed-income securities sold at a discount, particularly the U.S. Government issues. Incubators are developed and managed by incubator management and deliver their services, in their organizational structure, and in the types of clients they serve. Copyright © Business Zeal & Buzzle.com, Inc. Business bankruptcy: The legally declared inability or impairment of a business to pay off its creditors and the business debts is known as business bankruptcy. Underwriting income: Underwriting income is the money generated by insurance companies, calculated by deducting the earned premium from the losses incurred. Seasonal business: Seasonal business, is basic trade that is dependent and highly affected by seasonal factors. Vertical integration: Vertical integration is a business strategy where the company moves up or down the supply chain. An excess of this amount is considered as usury and results in stiff fines and forfeiture of interest or principal. Business bank account: A business bank account is essential when starting off with any business be it a limited company, partnership or any other key business structure. The mutual fund invests into each asset class, an amount which is usually within a set minimum and maximum. Bank discount basis: The bank discount basis is used by financial institutions as a quoting convention. Residual claim: Residual claims are also known as equity claims. Investment analysts: Investment analysts examine the performance of companies, market sectors and the economy, so as to arrive at an estimate of the financial values and guide the client to take the best investment recourse. It was created by the International Monetary Fund (IMF) in 1969. Plan sponsors: Plan sponsors of a company are in charge of the company’s retirement and pension plans. These debts or business liabilities are settled over time by benefits which include money, goods or services. Information costs: The transaction costs incurred in assessing the merits of the required goods and services. Handy definitions of financial and economic jargon - from libor and quantitave easing to black swans and dead cat bounces. It relates to the practice of designating permitted use of land based on mapped zones which separate one set of land uses from another. Stated conversion price: The price the issuer grants the security holder to purchase the common stock when a convertible security is issued. Yield curve: By definition, a line that plots the interest rates, of bonds having equal credit quality, but differing maturity dates at a set point of time. Passive portfolio strategy: A strategy that relies on variegation to match the performance of some market index. Accounting insolvency: Accounting insolvency occurs when total liabilities exceed total assets in the balance sheet of a business. Nearby futures contract: Of the several futures contracts, the one with the closest day on which payment has to be made is known as the nearby futures contract. Random sampling is that which is done in the absence of strict criterion. Vertical analysis: Vertical analysis is a method of analyzing financial statements in which assets, liabilities and equities are represented as a portion of the total account, as compared to horizontal analysis where a single year’s entries are considered a base, and the other years represent changes relative to that base. Loan-to-value: Loan-to-value (LTV) is one of the key risk assessment features examined by financial institutions before approving a mortgage amount. This percentage changes from time to time depending on the economic circumstances. Gross profit, margin, markup, net profit, overheads, revenue, turnover. Home mortgage interest: An interest on the home mortgage secured by the taxpayer’s personal residence. Get Definitions of Key Business Concepts from Chegg In business there are many key concepts and terms that are crucial for students to know and understand. In the world of business and finance there is a lot of jargon, or normal everyday words but with different meanings. Amortized loan: A loan for which the principal and interest is paid in a series of equal or nearly equal regular installments. Mean-variance efficient portfolio: Mean-variance efficient portfolio also known as the Markowitz efficient portfolio, is one wherewith the given amount of risk, the highest expected returns are realized. General warranty deed: A general warranty deed is a title held by the grantor, or the seller guarantees that he holds the clear title to a piece of real estate and has therefore, a right to sell it. Current assets: A balance sheet item of a business which is equivalent of the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one year. This cap regulates the amount of equity a foreign national or company may possess in domestic companies or in certain industries. Sell hedge: A sell hedge means the sale of a futures contract or option on a security or commodity that one owns, in order to hedge against the risk of a decline in its price. These also include the expenses for providing custodial and accounting services, maintaining shareholder records and providing shareholders with financial statements. Over-the-counter market (OTC): A decentralized securities market where the brokers and traders carry on the trading over the telephone or electronic network, instead an actual trading floor. Long hedge: This is a hedging strategy used by business manufacturers who want to lock in the price of a commodity, to be purchased some time in the future so as to secure an advantage over the possible price increases. Business finance: In the case of a company or a business, corporate finance or business financing is the task of providing the funds for the corporation’s activities. General Partnership A general partnership is a type of Master Business … Safety cushion: The term safety cushion refers to the difference between a portfolio’s actual value and the minimum available return that triggers the contingent immunization strategy. Investment banking: A financial institution which buys and sells securities, manages and advises corporate mergers, raises capital and undertakes other financial services such as foreign exchange, commodity trading and exchange of securities. Sessions enables to measure the traffic that a company amortized, periodic refinancing be! Used in asset allocation planning invests into each asset class, an industry, company or.. Messages to the real estate property is provided, including small businesses or mortgage by taking another one with meanings... 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