Archives for 2010

Extendable Notes

Extendable Notes A note whose maturity can be extended through a mutual agreement between investors and issuer. … [Read more...]

Extension

Extension An arrangement that is voluntarily undertaken to restructure debt of a company, owing to which postponement of payment date occurs. … [Read more...]

Extension Date

Extension Date Expiry date or extension date of the first option. … [Read more...]

Extension Swap

Extension Swap Maturity enhancement by means of a swap. For example, by selling 2-year notes and purchasing longer current maturity notes. … [Read more...]

External Finance

External Finance New issues of stock of debt securities or other funds not generated by the firm. … [Read more...]

External Market

External Market Also termed international market, Euromarket, offshore market. The mechanism for securities trading where the securities are offered at one single instance to investors in different countries and the issue is not within the jurisdiction of any one country. … [Read more...]

Externality

Externality The outcomes of an economic activity that influences third parties who are not directly involved in the activity. Can be positive or negative. … [Read more...]

Extra or Special Dividends

Extra or Special Dividends In addition to a company’s normal dividend (quarterly dividend), extra or special dividends are sometimes announced. … [Read more...]

Extraordinary Positive Value

Extraordinary Positive Value An NPV (net present value) that is positive. … [Read more...]

Extrapolative Statistical Models

Extrapolative Statistical Models Models used to project outcomes for the future by applying formulas to historical data. For example, simple linear trend model, the simple autoregressive model and the simple exponential model. … [Read more...]

Ex-Dividend

Ex-Dividend Signifies zero dividend. An investor purchasing these shares when they are ex-dividend will not receive dividends declared by the company. … [Read more...]

Ex-Rights Date

Ex-Rights Date Date when a common stock share can be bought ex-rights. The buyer has no claim to recently declared share purchase rights. … [Read more...]

Factor Portfolio

Factor Portfolio Adequately and highly diversified portfolio constructed so as to have a beta of 1.0 over one factor and on other factors, beta of zero. … [Read more...]

Face value

Face value See: Par value. Amount stated on bond/ stock certificate. … [Read more...]

Factor

Factor Buyer of a company’s accounts receivables, who/ that also collects the debts. Normally, a financial institution carries out these activities. … [Read more...]

Factor Analysis

Factor Analysis A procedure used in statistics that analyses a specific phenomenon. For example, an explanation for return on a common stock, given on basis of behavior of a class of factors that are predictive. … [Read more...]

Factor Model

Factor Model Method used in breaking up the factors that impact a security's return rate into common influences and company -specific ones. … [Read more...]

Factory Orders

Factory Orders Economic indicator showing the dollar value of fresh factory orders for durable and non-durable goods. The report is released by the Commerce Department’s Census Bureau every month and generally follows the durable goods orders report. … [Read more...]

Factoring

Factoring The purchase of a company’s accounts receivable by a factor (financial institution). … [Read more...]

Fail

Fail A fail occurs in a trade when the seller does not on deliver securities in the form agreed upon in the contract or buyer does not deliver funds in the form agreed upon in the contract. … [Read more...]