Financial and Business Terms - from Ban to Bar
Thursday, May 7, 2009
- Bank collection float: The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank.
- Bank discount basis: A convention used for quoting bids and offers for treasury bills in terms of annualized yield , based on a 360-day year.
- Bank draft: A draft addressed to a bank.
- Bank line: Line of credit granted by a bank to a customer.
- Bank wire: A computer message system linking major banks. It is used not for effecting payments, but as a mechanism to advise the receiving bank of some action that has occurred, e.g. the payment by a customer of funds into that bank's account.
- Banker's acceptance: A short-term credit investment created by a non-financial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts from face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions.
- Bank for International Settlements (BIS): An international bank headquartered in Basel, Switzerland, which serves as a forum for monetary cooperation among several European central banks, the Bank of Japan, and the Bankruptcy State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from the stockholders to the bondholders.
- Bankruptcy cost view: The argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of leverage is less than 100% debt finaning.
- Bankruptcy risk: The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
- Bankruptcy view: The argument that expected bankruptcy costs preclude firms from being financed entirely with debt.
- Bar: Slang for one million dollars.
- Barbell strategy: A strategy in which the maturities of the securities included in the portfolio are concentrated at two extremes.
- Bargain-purchase-price option: Gives the lessee the option to purchase the asset at a price below fair market value when the lease expires.
- BARRA's performance analysis (PERFAN): A method developed by BARRA, a consulting firm in Berkeley, Calif. It is commonly used by institutional investors applying performance attribution analysis to evaluate their money managers' performances.
- Barrier options: Contracts with trigger points that, when crossed, automatically generate buying or selling of other options. These are very exotic options.
Labels: Financial and Business Terms / Dictionary
posted @ 1:49 PM,
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