Tag: Financial Meaning

  • Commitment Fee

    A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced….

  • Conventional Mortgage

    A loan based on the credit of the borrower and on the collateral for the mortgage….

  • Debenture Bond

    An unsecured bond whose holder has the claim of a general creditor on all assets of the issuer not pledged specifically to secure other debt. Compare subordinated debenture bond, and collateral trust bonds….

  • Covenants

    Provisions in a bond indenture or preferred stock agreement that require the bond or preferred stock issuer to take certain specified actions (affirmative covenants) or to refrain from taking certain specified actions (negative covenants)….

  • Deed of Trust

    Indenture….

  • Credit Enhancement

    Purchase of the financial guarantee of a large insurance company to raise funds….

  • Compound Interest

    Interest is said to be compounded where at periodic intervals unpaid interest is added to unpaid principal, and interest then begins to accrue on the aggregate sum. See Weilandv Loon, 116 N. W.2d 391, 79 S. D. 608.

  • Debt Ratio

    Total debt divided by total assets….

  • Cumulative Voting

    Cumulative Voting

    That by which the voter concentrates his ballots on one or more candidates, instead of voting for the full number to be elected. Thus, a stockholder holding fifty shares may, under such a system, if five directors are to be chosen, cast two hundred and fifty votes for one, or one hundred and […]

  • Correlation

    See: Correlation coefficient….

  • Domestic Market

    Financial Definition of Domestic Market Meaning of Domestic Market Part of a nation’s internal market representing the mechanisms for issuing and trading securities of entities domiciled within that nation. Compare external market and foreign […]

  • Depreciation

    Depreciation

    Diminution in value, particularly the deterioration or the loss or lessening in value arising from age and use of a property. See In Re Davies’ Estate, 96 N. Y.S.2d 191, 197 Misc. 827.

  • 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 […]

  • Coupon

    The periodic interest payment made to the bondholders during the life of the bond….

  • Compounding

    The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period….