Dealer Market Marketplace wherein traders who specialize in specific commodities undertake purchase and sale of assets for accounts held by them. … [Read more...]
Debt/Equity Ratio
Debt/Equity Ratio Denotes financial leverage of the firm. Relates creditor provided assets to shareholder provided assets. Calculated as long-term debt divided by equity held by common stockholders. … [Read more...]
Debenture Bond
Debenture Bond Also refer: subordinated debenture bond, collateral trust bonds. Bond of the unsecured kind. Where the holder can lay a general creditor’s claim to every asset of the issuer that is not specifically pledged elsewhere. … [Read more...]
Debt Assignment
Debt Assignment Transference of debt to a third party from the creditor. … [Read more...]
Debt Capacity
Debt Capacity Borrowing ability. Denotes how much the firm can borrow until a point where there is no more increase in the value of the firm. … [Read more...]
Debt Displacement
Debt Displacement The magnitude of loan that is displaced by lease. Firms engaged in significant leasing are forced to restrict their borrowings. … [Read more...]
Debt Instrument
Debt Instrument Asset like corporate bonds or government bonds, that require fixed dollar payments. … [Read more...]
Debt Leverage
Debt Leverage Enhancement of returns earned from equity when borrowed money partially finances the investment or firm. … [Read more...]
Debt Limitation
Debt Limitation Bond stipulation limiting the ability to incur more debts by a firm. … [Read more...]
Debt Market
Debt Market Marketplace where debt instruments are traded. … [Read more...]
Debt Overhang
Debt Overhang A state of affairs wherein the company’s future ability to repay debt stock is expected to fall short of requirements. … [Read more...]
Debt Ratio
Debt Ratio Ratio that is obtained by dividing total debt by total assets of the company. … [Read more...]
Debt Relief
Debt Relief Reduction of interest and or principal on loans of LDC type. … [Read more...]
Debt Securities
Debt Securities Transactions similar to loans creating IOUs. For example- bank CDs, commercial paper, bonds, bills. … [Read more...]
Debt Service
Debt Service Retirement of debt by means of payments towards interest (+) principal repayments made to creditors. … [Read more...]
Debt Service Parity Approach
Debt Service Parity Approach Alternative payments that give a company the same schedule exactly for post tax debt payments (both principal and interest are included). … [Read more...]
Debt-Service Coverage Ratio
Debt-Service Coverage Ratio Earnings calculated before interest and taxes are deducted (+) a third of the rental charges, divided by expenses incurred towards interest (+) a third of rental charges (+) principal repayments divided by 1 (–) rate of tax. … [Read more...]
Debt Swap
Debt Swap Also termed debt-equity swap. Transaction group whereby a company buys the dollar debt in a bank of a country at a discounted price and swaps it for local currency with the central bank for purpose of purchasing local shares. … [Read more...]