Asset/Liability Management Also termed surplus management. Refers to management of a financial institution’s funds to fulfill the two primary goals of earning adequate returns and maintaining more assets than liabilities at all times. … [Read more...]
Asset Activity Ratios
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Asset Activity Ratios Ratio evaluating the efficiency of asset management of a firm. … [Read more...]
Asset Allocation Decision
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Asset Allocation Decision Any decision pertaining to distribution of a firm’s investment funds over the available asset classes. … [Read more...]
Asset Classes
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Asset Classes Classes of assets. For example, bonds, stocks, foreign securities and real estate. … [Read more...]
Asset Class Breakdown
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Asset Class Breakdown Percentages, when taken relatively, of core asset classes, for example, fixed income and cash, equities, along with real estate and international holdings, that form a part of a mutual fund, ETF or other investments. … [Read more...]
Asset-Coverage Test
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Asset-Coverage Test Restriction placed through bond indenture that allows for additional borrowing provided asset to debt ratio is consistently above a minimum specified previously. … [Read more...]
Asset for Asset Swap
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Asset for Asset Swap Exchange by a creditor of a defaulting borrower’s debt for another defaulting borrower’s debt. … [Read more...]
Asset Pricing Model
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Asset Pricing Model Model used for evaluating an asset’s required rate of return. … [Read more...]
Asset Stripping
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Asset Stripping Purchase of an undervalued company with an intent to make a profit from asset sales. The assets, for example equipment and property, may have greater value than the company as a whole in some cases. … [Read more...]
Asset Substitution
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Asset Substitution Investment in assets of a riskier nature than expected by bondholders of a firm. … [Read more...]
Asset Substitution Problem
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Asset Substitution Problem Problem arising when riskier assets replace a firm’s current existing assets and the debt holders are placed at higher risk owing to this … [Read more...]
Asset Swap
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Asset Swap Rate of interest swaps undertaken to modify the characteristics of cash flow of assets of any firm so that liabilities and cash flows match. … [Read more...]
Asset Turnover
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Asset Turnover Net sales compared with total assets as a ratio. … [Read more...]
Asset Pricing Model
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Asset Pricing Model Model that calculates the required return rate of a given asset. For example, Capital Asset Pricing Model. … [Read more...]
Assets Requirements
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Assets Requirements Element commonly found in any financial plan that outlines proposed capital spending and net working capital applications. … [Read more...]
Asset Size
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Asset Size In the portfolio of a mutual fund, the total market value of securities invested in. Describes the fund’s size. … [Read more...]
Assignment
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Assignment Acceptance of exercise notice by option writer requiring him to sell, in a call, or buy, in a put, at a given price, the underlying security. … [Read more...]
Asymmetry
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Asymmetry Absence of equivalence or balance between two elements. For example, unequal tax charged on dividend payment and expenses. … [Read more...]
Asymmetric Information
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Asymmetric Information Non uniform dissemination of information so that it is unknown to some and known to others. … [Read more...]
