Category: Finance Dictionary

Organizing by alphabetic method, ordering entries by letter-sequence. This method treats a multi-word entry as a single stream of letters with no spaces in it. Most reference books follow this method. One

Offer by deed change to a debtor close to default. Intent is to allow the debtor time to liquidate assets, or arrange to settle the debts without being declared bankrupt. Some or

Indicates serious and immediate health effects possible to any person exposed to a hazard even for a short period. Concentration level of an extremely hazardous substance in air.

Buying a company by using the company’s assets as collateral for the loan(s) to pay for the purchase. The company’s cash flow and assets are sold off to pay for the loan

A life insurance policy written for investors where the costs come from an insurance linked security.

Even if the principal amount is exhausted this settlement agreement’s life-time option continues paying the beneficiary in installments.

Estimated total profit, or loss, resulting over the life an ongoing business relationship with a customer. Comparatively higher value from marketing expenditure and/or salesperson compensation justify a high lifetime return on goods

For the several insurers covering the same property with a severe loss, this is a method of apportioning that a loss.

A private partnership with accredited investors that invest in a variety of stock.

The maximum amount of insurance a company can write without seeking a reinsurer.

A Statistical term. Defines the relationship of direct proportionality between two variables, expressed by a linear functions, graph plots a straight line, when one variable changes the other variable must change in

Lending institutions’ reluctance to loan reserve money based on short-term money-availability concerns. This makes it more expensive for banks to borrow funds from each other as interbank market interest rates increase placing

Solid waste lost to waste handling system, discarded carelessly, becoming uncollectible.

Energy utilities’ demand reduction method. Demand is load. Different geographical areas have their energy generation temporarily switched off.

Where bid price equals the asked price as a temporary situation.

In a particular environment or industry, these are all successive steps comprising a logistic process.

The jurisdiction of foreign courts is extend to local territory, usually on a reciprocal basis for specific types of cases, by this local law.

If held for more than one year, this is a capital assets’ gain or loss.

Without violating its literal interpretation, an allowed legal interpretation or practice unintentionally ambiguous due to a textual exception, omission, or technical defect, evades or frustrates the intent of a contract, law, or

When new equity is issued after a trigger event. It is a contingency measure.