Regulatory surplus: The business term regulatory surplus refers to the surplus as measured using regulatory accounting principles (RAP), which may allow the non-market valuation of assets or liabilities and which may be materially different from economic surplus. Switching: When the position of a certain futures contract is liquidated and a position in another futures contract of the same type is bought simultaneously, it is known as switching. Equity market: Equity or stock market are the vital part of the market economy of any country and basically, refers to a market where the issuing and trading of shares of companies are done, either through exchanges or over-the-counter markets. For example, a market for cars could be divided into private buyers, small fleet buyers and second hand car buyers. Fundamental beta: A statistical model, fundamental beta used in the prediction of the risk of the security using market related and other financial data. Bad debts: A term related to finance and accounting, bad debts is the portion of receivables that can no longer be collected or the income from the sale that can never be realized. Holding period: The holding period is the percentage appreciation in the value of the portfolio or an asset during the period in which it was held. Alerts notifies you on terms and definitions of portfolio investment technique through paid out than the financial. Real Estate: When a licensed real estate appraiser makes an expert judgment or estimate of the quality or value of real estate on a given date it is known as real estate appraisal. Adjustment interval: On an adjustable rate mortgage, the adjustment interval is the time between changes in the interest rate or monthly payment based on the index. Relative yield spread: Relative Yield spread refers to the ratio of the yield spread to the yield level. Rate anticipation swaps: Rate anticipation swap refers to the sale of one bond combined with the purchase of another bond of different maturity in order to take maximum advantage of expected changes in interest rates. Principal: In economics, principal refers to the original asset underlying an income stream, as distinguished from interest earned on that asset. Would you like to write for us? Magic of diversification: The effective risk reduction of a portfolio that is obtained without the expected returns being reduced, through the combination of assets with negative covariances. This is then used to convert that income to an estimate of present worth for the property. Risky asset: A risky asset is an asset whose future return on asset cannot be ascertained specifically. This can be further divided into market timing costs and market impact costs. Structured portfolio strategy: An investment portfolio strategy which is designed to match or exceed the performance of some specific future liabilities. Forward contract: A transaction which takes place in a cash market where the seller agrees to provide a cash commodity to a buyer, at a future date. It is designed as a hedge against loss regardless of price movements on the underlying asset. Yield curve: By definition, a line that plots the interest rates, of bonds having equal credit quality, but differing maturity dates at a set point of time. Management/Closely held shares: The Securities and Exchange Commission define the management or closely held shares as “the percentage of shares held by persons closely related to a company”. Noun phrases. Every business has assets, which in its simplest terms are items with value. Opening price: The price range at which the transactions are done or the first bids and offers are made at the stock market. U.S. treasury note: The U.S treasury note is a debt obligation that matures between 1 to 10 years. Partnership: This is a business partnership form of business ownership where the partners come together to carry on a trade or business, wherein person contributes money, labor, property or skill, and has a share in the profits and losses of the business. Passive portfolio strategy: A strategy that relies on variegation to match the performance of some market index. An abbreviation for “days beyond terms,” which indicates how many days past the due date an invoice is late. Such a business generates a majority of its revenue from services offered. Term or acronym Meaning Code . Portfolio: A financial portfolio is an aggregation of all the investments, real or financial. Hard goods: Products that are utilized for a number of years instead of being disposed off quickly, for example, household appliances and other durable goods are known as hard goods. Residual claim: Residual claims are also known as equity claims. Rate of interest: Rate of interest is the rate, as a proportion of the principal, at which interest is calculated. The motive being that with the incubation management start-up company will stay in business for the long term. The official statement is a disclosure of the finances surrounding the issue of the municipal bond and acts as an indication of how the investor will be repaid. The ownership rights of the assets are then distributed among these stakeholders. Sign up to receive the latest and greatest articles from our site automatically each week (give or take)...right to your inbox. Telemarketing: Telemarketing is a direct marketing method through which products and services of a company are promoted among consumers over the telephone. Notice day: The day that the futures traders are notified of their need to fulfill the terms of their contracts. "I'm in the computer business.") Payment-in-kind (PIK) bond: A bond where the coupon payments can be made in cash or in the form of additional bonds by the issuer. Product comparison advertising: An advertising technique where one brand is compared, directly or indirectly, with other brands. He is responsible for monitoring the daily operations of the business and reporting to the board of directors and the top executive officers. Board of trustees: In a non-profit organization, the Board of Trustees provide the way for members or associates of the organization to elect or appoint individuals that will supervise the functioning of the organization. Perpetual warrants: Warrants without an expiration date. Bulldog market: A bulldog market is slang for the U.K. stock market. Margin requirement (options): An uncovered individual or institution selling an option is required to deposit and maintain a certain amount of cash, so that the daily position valuation is covered and predictable intra-day price changes are addressed. Adverse possession: A real estate terminology, adverse possession is used to denote the process by which the title to a property is acquired without compensation. It dictates the rules for your products and services and lays out expectations for you and your customers. Horizontal merger: A merger between two companies with the same product lines or services. Random sampling is that which is done in the absence of strict criterion. Net financing cost: Net financing cost or the cost of carry, is the difference between the cost of buying an asset and its cash yield. For example, automobiles, land, currencies, etc are considered as tangible assets. Revenue fund: Revenue fund refers to a fund accounting for all revenues from an enterprise financed by a municipal revenue bond. Market sectors: The sectionalization of a market based on certain characteristics. High-growth ventures: A business venture which is designed in such a way that there is a rapid growth rate and a substantial profit increase. Accounts receivable. Service business: Service business refers to a business that deals in services and not products. Loan-to-value: Loan-to-value (LTV) is one of the key risk assessment features examined by financial institutions before approving a mortgage amount. There are also some accounting definitions to make a list complete. Securities: This refers to the municipal bonds and takes into account the issuer’s present and future ability to generate enough tax revenue to meet its contractual obligations. The mutual fund invests into each asset class, an amount which is usually within a set minimum and maximum. Example of Business Glossary in Dataedo Bank card: A plastic card issued by the bank, a bank card allows you access to your bank account. Mostly in case of amount balances, sums of money are rebated. Advertising opportunity: A product or service that has the potential of generating additional revenue through advertising. Funding risk: The impact or the risk associated with high funding costs or lack of availability of funds on a project’s cash flow is known as funding risk. Copyright © Business Zeal & Buzzle.com, Inc. Floor trader: A member of the stock and exchange commodities market, a floor trader executes the orders on the trading floor for his account. But opting out of some of these cookies may have an effect on your browsing experience. Lending institution: A public or private financial institution that offers loans to business organizations or individuals at a certain interest rate. Overbought\Oversold indicator: The Overbought/Oversold Indicator is a technical analysis tool that uses a moving average of the difference between the advancing and declining issues to define when the prices moved too far and in which direction. Non-cumulative preferred stock: The preferred stocks where there is no accrual for the unpaid dividend payments. This “good faith” money paid is thereon applied to the purchase price or is forfeited in the event of the cancellation of the contract. These cookies do not store any personal information. Variable rate: Variable rate is a term used to describe a type of interest rate or dividend that may change or fluctuate anytime, depending upon the market interest rates, during the life of the loan. Hemline theory: An informal theory which likens the fluctuations in the stock to the hemline of a woman’s dress. This comprehensive glossary is here to clarify confusing lingo, demystify buzzwords, and provide citable definitions to help grow your vocabulary. Lists of vocabulary, useful phrases and terms used in all areas of business, guidelines for letter-writing and presentations, business conversation topics, exercises, idioms and … Market timer: Market timers are people who are able to make investment decisions of financial assets by predicting the market price movements. It classifies inventory items in terms of importance. Adventure capital: The capital needed in the earliest stages of starting a venture is called the adventure capital. Autarky: A term in international trade for describing a situation in which there is no cross border trade. Once the development of the product is done, it is introduced or launched into the market. 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