Glossary

• Acquirer
  A firm or individual that is acquiring something.
  
  
• Acquisition
  When a firm buys another firm.
  
  
• Acquisition cost
  Refers to the price (including the closing costs) to purchase another company or property.
  
  
• Acquisition of assets
  A merger or consolidation in which an acquirer purchases the selling firm's assets.
  
  
• Acquisition of stock
  A merger or consolidation in which an acquirer purchases te acquiree's stock.
  
  
• Accountant's opinion
  A signed statement from an independent public accountant after examination of a firm's records and accounts. The opinion may be unqualified or qualified. See: Qualified opinion.
  
  
• Accounting earnings
  Earnings of a firm as reported on its income statement.
  
  
• Accounting exposure
  The change in the value of a firm's foreign currency-denominated accounts due to a change in exchange rates.
  
  
• Accounting insolvency
  Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.
  
  
• Accounting liquidity
  The ease and quickness with which assets can be converted to cash.
  
  
• Accounts payable
  Money owed to suppliers.
  
  
• Accounts receivable
  Money owed by customers.
  
  
• Accounts receivable financing
  A short-termfinancing method in which accounts receivable are collateral for cash advances. See: Factoring.
  
  
• Accounts receivable turnover
  The ratio of netcreditsales to averageaccounts receivable, which is a measure of how quickly customers pay their bills.
  
  
• Accounts receivable turnover
  The ratio of netcreditsales to averageaccounts receivable, which is a measure of how quickly customers pay their bills.
  
  
• Business Broker
  A business broker is a person or firm that acts as an intermediary between sellers and buyers of businesses.
  
  Business brokers, also called business transfer agents, or intermediaries, assist buyers and sellers of privately held business in the buying and selling process. They typically estimate the value of the business; advertise it for sale with or without disclosing its identity; handle the initial interviews, discussions, and negotiations with prospective buyers; facilitate the progress of the due diligence investigation and generally assist with the business sale.
  
  
• Balance sheet
  Also called the statement of financial condition, it is a summary of a company's assets,liabilities, and owners equity.
  
  
• Basis point
  Basis point In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points greater than an interest rate of 4.5%.
  
  
• Book value
  A company's book value is its total assets minus intangible assets and liabilities, such as debt. A company's book value might be more or less than its market value. Book value per share The ratio of stockholder equity to the average number of common shares.
  
  
• Book value per share
  Book value per share should not be thought of as an indicator of economic worth, since it reflects accounting valuation (and not necessarily market valuation).
  
  
• Bought deal
  Bought deal security issue where one or two underwriters buy the entire issue.
  
  
• Break-even analysis
  Break-even analysis An analysis of the level of sales at which a project would make zero profit.
  
  
• Accelerated depreciation
  Any depreciation method that produces larger deductions for depreciation in the early years of a assets life. Accelerated cost recovery system (A.C.R.S.), which is a depreciation schedule allowed for tax purposes, is one such example.
  
  
• Capital gain
  Increase in the value of a capital asset when it is sold or transferred, compared to its initial worth.
  
  
• Capital loss
  Loss realized from buying a security or commodity at one price and subsequently selling it at another, or holding it to redemption and then redeeming it.
  
  
• Capital market
  Market for loanable funds that covers medium and long term finance.
  
  
• Capital resources
  Equity Ownership interest possessed by shareholders in a corporation - stock as opposed to bonds.
  
  
• Cash Cow
  Company with high profits but relatively few growth opportunities
  
  
• Cash market
  Physical market , spot market Market where people buy and sell actual commodities or financial instruments for instant delivery.
  
  
• Cash settlement
  The settlement of a contract through payment of the cash equivalent of the profit or loss as opposed to the physical delivery of the underlying instrument.