Legal Dictionary

Search results for: “cash flow”

  • Internal Rate of Return

    Dollar-weighted rate of return. Discount rate at which net present value (NPV) investment is zero. The rate at which a bond’s future cash flows, discounted back to today, equals its price….

  • Dividend Yield

    Concept of Dividend Yield in the context of Real Property A short definition of Dividend Yield: Ratio of cash flow to cash invested, expressed as a percentage.

  • Collateralized Mortgage Obligation

    Collateralized Mortgage Obligation (CMO) Definition (in the Accounting Vocabulary)The The New York State Society of Certified Public Accountants offers the following definition of Collateralized Mortgage Obligation (CMO) in a way that is easy for anybody to understand: SECURITY whose cash flows […]

  • Distributions

    Payments from fund or corporate cash flow. May include dividends from earnings, capital gains from sale of portfolio holdings and return of capital. Fund distributions can be made by check or by investing in additional shares. Funds are required to distribute capital gains (if any) to […]

  • Securitization

    The process of creating a passthrough, such as the mortgage pass-through security, by which the pooled assets become standard securities backed by those assets. Also, refers to the replacement of nonmarketable loans and/or cash flows provided by financial intermediaries with negotiable […]

  • Residuals

    (1) Parts of stock returns not explained by the explanatory variable (the market-index return). They measure the impact of firm-specific events during a particular period. (2) Remainder cash flows generated by pool collateral and those needed to fund bonds supported by the collateral….

  • Projected Maturity Date

    With CMOs, final payment at the end of the estimated cash flow window….

  • Pro Forma Statement

    A financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows….

  • Principal Only (Po)

    A mortgage-backed security in which the holder receives only principal cash flows on the underlying mortgage pool. The principal-only portion of a stripped MBS. For PO securities, all of the principal distribution due from the underlying collateral pool is paid to the registered holder of the […]

  • Portfolio Internal Rate Of Return

    The rate of return computed by first determining the cash flows for all the bonds in the portfolio and then finding the interest rate that will make the present value of the cash flows equal to the market value of the portfolio….

  • Planned Amortization Class Cmo

    (1) One class of CMO that carries the most stable cash flows and the lowest prepayement risk of any class of CMO. Because of that stable cash flow, it is considered the least risky CMO. (2) A CMO bond class that stipulates cash-flow contributions to a sinking fund. With the PAC, principal […]

  • Other Sources

    Amount of funds generated during the period from operations by sources other than depreciation or deferred taxes. Part of Free cash flow calculation….

  • Net Salvage Value

    The after-tax net cash flow for terminating the project….

  • Multiple Rates Of Return

    More than one rate of return from the same project that make the net present value of the project equal to zero. This situation arises when the IRR method is used for a project in which negative cash flows follow positive cash flows. For each sign change in the cash flows, there is a rate…

  • Mortgage Pass-Through Security

    Also called a passthrough, a security created when one or more mortgage holders form a collection (pool) of mortgages sells shares or participation certificates in the pool. The cash flow from the collateral pool is passed through to the security holder as monthly payments of […]