Datasets:
sohomghosh
/
FinRAD_Financial_Readability_Assessment_Dataset

Dataset card Data Studio Files Community
1
terms
stringlengths
1
156
definitions
stringlengths
3
4.2k
source
stringclasses
15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
73
gunning_fog
float64
0.4
56
EXPERIENCE RATING
A procedure to calculate PREMIUM on an INSU- RANCE CONTRACT through modifications based on past loss experience. The INSURER examines actual CLAIMS and associated expenses for a group of INSUREDS in order to project possible future claims; based on its analysisit sets a premium that it believes will be sufficient to cover EXPECTED LOSS and PROFIT LOAD. See also EXPERIENCE ACCOUNT, SCHEDULE RATING.
palgrave
0
33.24
13.8
16.3
13.29
14.4
11.19
15.833333
16.65
EXPERIENCE REFUND
The amount of PREMIUM an INSURER returns to an INSURED if the loss record is better than the amount indicated by the PURE PREMIUM incorporated in the basic premium rate.
palgrave
0
41.03
15
0
10.17
15.6
8.81
21
17.33
EXPIRATION CYCLE
The standard cycle of CONTRACT expiries related to EXCHANGE-TRADED DERIVATIVES. Certain contracts follow a quarterly expiration cycle, while others opt for a shorter cycle (daily, weekly, monthly).
palgrave
0
23.93
13.3
0
17.16
15.1
13.08
8.25
11.33
EXPIRY
See DATE.
palgrave
0
77.91
2.9
0
-10.31
-1.7
0.1
0
0.8
EXPIRY DATE
The date on which an OPTION contract comes due, after which it becomes invalid. Also known as EXPIRY.
palgrave
0
79.26
4.4
0
7.04
5.1
9.35
3.5
3.6
EXPLODING OPTION
A BULL SPREAD or BEAR SPREAD that generates a payoff once the two STRIKE PRICES defining the SPREAD are breached, i.e., the spread “explodes,” or terminates, resulting in an immediate payoff.
palgrave
0
56.93
13
0
12.14
18.5
10.78
19.5
17.56
EXPONENTIAL INTERPOLATION
A technique of INTERPOLATION that uses DISCOUNT FACTORS to connect two points on a YIELD CURVE.− ti− t1= D1CUBIC SPLINE INTERPOLATION, LINEAR INTERPOLATION.
palgrave
0
31.21
14.6
0
15.79
17.5
13.02
14.5
10.94
EXPONENTIAL SMOOTHING
A statistical mechanism where more recent data observations are given greater weight in computations than older obser- vations. Such exponential smoothing is used in econometric modeling, and certain forms of VALUE-AT-RISK modeling. Also known as EXPONENTIAL WEIGHTING.
palgrave
0
33.61
11.6
13
17.27
14.4
11.93
8.166667
12.49
EXPONENTIAL WEIGHTING
See EXPONENTIAL SMOOTHING.
palgrave
0
9.21
12.7
0
18.92
17.8
14.31
1.5
14.53
EXPORT IMPORT BANK
The US EXPORT CREDIT agency, created to encour- age TRADE flows by providing export credit GUARANTEES and guaranteeing LOANS made by banks to US exporters. Also known as EXIMBANK.
palgrave
0
48.3
10.1
0
11.53
10.4
11.43
8.75
12.7
EXPORTS
Goods and services produced domestically and sold to nonresi- dents, including VISIBLES (such as goods) and INVISIBLES (services). Some invisibles are sent abroad, while nonresident visitors use others domes- tically; capital exports can involve LOANS to nonresidents or the pur- chase of ASSETS or INVESTMENTS abroad. See also BALANCE OF TRADE, IMPORTS.
palgrave
0
37
12.4
14.1
14.67
14.7
11.48
12.333333
13.84
EXPOSED TO THE MARKET
A purchase or sale ORDER in the SECURITIES markets that must be shown to the market at large before it can beINTERNALIZED or CROSSED on an alternative venue. See also SUNSHINE TRADE.
palgrave
0
63.7
8.4
0
9.45
8.8
8.38
8.5
10.15
EXPRESS AUTHORITY
See ACTUAL AUTHORITY.
palgrave
0
-24.64
17.4
0
9.23
9.9
14.31
2.5
27.87
EXPROPRIATION
The taking of private property by a government author- ity for public use, to enforce social equality, or to deny private ownership, generally outside the framework of laws. See also NATIONALIZATION, PRIVATIZATION.
palgrave
0
29.86
13.1
0
14.32
13.5
10.84
11.5
13.9
EXTENDIBLE OPTION
An OVER-THE-COUNTER COMPLEX OPTION that allows the buyer to EXERCISE the CONTRACT on a particular reset date or reset the STRIKE PRICE to the current market level and extend the option for another reset period. The extendible option is a variation of the PARTIAL LOOKBACK OPTION.
palgrave
0
39.67
13.4
0
12.02
14
10.27
14.5
12.68
EXTENDIBLE SWAP
A structured DERIVATIVE comprised of an INTEREST RATE SWAP and an OPTION that grants one party the right to require its COUNTERPARTY to continue a previously contracted swap under existing terms for an additional period of time. See also PAYER ,RECEIVER EXTENDIBLE SWAP.
palgrave
0
32.73
14
0
13.05
14.3
11.68
15.75
17.9
EXTENSION RISK
The RISK that one party to a CONTRACT or financial transaction will choose to extend the terms of the contract, to the potential financial detriment of the second party.
palgrave
0
50.5
13.4
0
11.09
16
9.43
18.5
15.74
EXTERNAL AUDIT
A form of AUDIT performed on a company or other organ- ization by an independent AUDITOR. The issuance of an AUDIT OPINION requires the use of an external auditor. See also INTERNAL AUDIT.
palgrave
0
51.85
8.8
11.2
8.27
6.3
8.97
6.5
9.25
EXTERNAL DEBT
DEBT raised by a country or company outside of its own national system, generally in a FOREIGN CURRENCY.
palgrave
0
44.75
11.5
0
9.8
10.3
10.67
13
13.87
EXTRAORDINARY ITEMS
Profit and loss items incurred in a company’s business which are not expected to recur in the future (and which may be excluded by analysts in order to perform an accurate period on period com- parison). Extraordinary items appear ABOVE THE LINE, as a separate disclos- ure item. See also EXCEPTIONAL ITEMS.
palgrave
0
45.46
11.2
14.1
10.09
10.4
10.26
12.333333
13.84
EXTREME MORTALITY BOND
A form of INSURANCE-LINKED SECURITY that seeks to protect the sponsoring INSURER or REINSURER from an extreme, or catastrophic, rise in mortality rates within a defined target population that would trigger payout on life INSURANCE policies. Such bonds can be used bythe sponsor to transfer the RISK associated with high mortality from a low PROBABILITY event, such as a terrorist attack or a pandemic.ε> 0, and for Weibull ε < 0.
palgrave
0
27.49
18.1
0
12.25
20.2
12.37
24.25
20.86
FACE VALUE
The PRINCIPAL amount of a SECURITY; for standard securities transactions, face value and PAR VALUE are often equivalent. Face value is distinguished from MARKET VALUE, although they may converge to the same value at MATURITY.
palgrave
0
36.79
12.5
0
13.22
13
9.47
12.25
15
FACILITY
A line of CREDIT granted by a BANK to a client. The availabil- ity of the facility depends on the nature of the CONTRACT and the fees paid by the client; the most reliable facilities, which are a form of COMMITTED FUNDING, command higher fees in relation to those that may be cancelled or withdrawn by the bank on short notice (e.g., ADVISED LINE).
palgrave
0
55.92
13.4
0
8.14
15.5
10.65
18.5
15.93
FACILITY FEE
See COMMITMENT FEE.
palgrave
0
59.97
5.6
0
5.35
6.8
14.31
1.5
14.53
FACTOR
A firm that specializes in ING activities, generally a non- BANK FINANCIAL INSTITUTION with significant CREDIT RISK expertise.
palgrave
0
10.91
16.2
0
16.59
16.1
15.06
16
22.76
FACTOR MODEL
See MULTIFACTOR RISK MODEL.
palgrave
0
33.58
9.6
0
10.15
8.8
15.68
2
11.6
FACTOR OF PRODUCTION
The essential elements that are used in the pro- duction of goods, including land, labor, and CAPITAL (broadly defined to include all productive ASSETS, such as plant and equipment and raw materialINVENTORIES).
palgrave
0
22.08
18.1
0
14.28
20.9
11.64
22
19.05
FACTORING
The process of obtaining short-term FINANCING through the outright sale of ACCOUNTS RECEIVABLE to a third party FACTOR on a NONRECOURSE basis. See also ACCOUNTS RECEIVABLE FINANCING, FORFAITING.
palgrave
0
40.35
11.1
0
15.88
13.6
9.97
10.5
12.74
FACULTATIVE
A process where a REINSURER can accept or reject coverage for individual RISKS presented for consideration by a CEDING INSURER. See also REINSURANCE.
palgrave
0
25.96
12.5
0
13.03
10.3
11.76
8.25
16.77
FACULTATIVE OBLIGATORY TREATY
A hybrid of FACULTATIVE REINSU- RANCE and TREATY REINSURANCE where the CEDING INSURER can choose to assign certain RISKS to the REINSURER, who is then required to accept them.FACULTATIVE OBLIGATORY TREATY.
palgrave
0
31.55
16.6
0
15.33
20.7
11.8
21.5
18.85
FAIL TO DELIVER
A situation where a selling DEALER has not delivered SECURITIES to the buying dealer, and will thus not receive payment. Fails arecommonly used as a measure of settlements-based OPERATIONAL RISK. See also FAIL TO RECEIVE, AGED FAIL.
palgrave
0
50.53
9.3
11.2
11.64
9.7
9.79
7.166667
11.41
FAIL TO RECEIVE
A situation where a buying DEALER has not received SECURITIES from the selling dealer, and will thus not make its payment. Fails are commonly used as a measure of settlements-based OPERATIONAL RISK. See also AGED FAIL, FAIL TO DELIVER.
palgrave
0
58.28
8.4
11.2
10.25
8.9
9.95
7.5
11.35
FAIR PREMIUM
An INSURANCE pricing methodology where the PREMIUM charged an INSURED is intended to cover EXPECTED LOSSES and operating and administrative expenses, and provide an equitable RETURN to provid-ers of CAPITAL. Fair premium comprises of PURE PREMIUM and PREMIUM F LOADING (which also includes EXPENSE LOADING). Also known as GROSSRATE.
palgrave
0
29.55
13.2
15.5
15.19
14.1
11.53
12.833333
14.68
FAIR PRESENTATION
In the United States, a general ACCOUNTING concept indicating that the FINANCIAL STATEMENTS of a company should reflect the true financial position, and should not be misleading. See also TRUE AND FAIR VIEW.
palgrave
0
46.27
10.9
0
12.47
11.8
8.28
12.25
12.66
FALLEN ANGEL
A BOND with an INVESTMENT GRADE CREDIT RATING at the time of issuance that has been downgraded to SUBINVESTMENT GRADE status as a result of a deterioration in the ISSUER’S financial position. See also HIGH-YIELD BOND.
palgrave
0
53.21
10.3
0
11.25
11.4
10.67
12
13.87
FALLING KNIFE
A SECURITY whose value has fallen sharply in a short period of time. A falling knife may represent an INVESTMENT oppor- tunity for INVESTORS who believe the security is OVERSOLD. See also CATCH A .
palgrave
0
51.55
8.9
11.2
8.68
6.8
9.31
6.833333
10.4
FALLING TOP
A TECHNICAL ANALYSIS charting figures depicting a declin- ing SECURITIES price or INDEX value over time, with ever-lower resistance lev- els, generally considered to be a BEARISH signal. Also known as DESCENDING TOP. See also ASCENDING TOP, DESCENDING BOTTOM, RISING BOTTOM.
palgrave
0
32.19
12.2
14.1
13.8
12.3
11.63
10.5
14.26
FALSE MARKET
A market where TRADING actions are influenced by erroneous information or misinformation, creating complications in the PRICE DISCOVERY process. A false market may develop in ILLIQUID SECURITIES or EMERGING MARKET securities, where standards of information transparency are not as rigorous.
palgrave
0
17.34
15.8
0
18.56
18.1
11.34
16.5
19
FANNIE MAE
See FEDERAL NATIONAL MORTGAGE ASSOCIATION.
palgrave
0
-35.13
19.4
0
21.2
16.9
16.52
4.5
26
FARMER MAC
See FEDERAL AGRICULTURAL MORTGAGE CORPORATION.
palgrave
0
-35.13
19.4
0
25.84
20.6
16.52
4.5
26
FAST MARKET
A financial market that is characterized by heavy vol- ume and high levels of market VOLATILITY, and which can generate ORDER IMBALANCES. See also LOCKED MARKET.
palgrave
0
49.82
9.5
0
11.3
9.7
9.75
8
12.89
FAST TAPE
A market condition that occurs when TRADING in a par- ticular SECURITY or contract is so rapid and heavy that the current price is unavailable.
palgrave
0
46.1
13
0
10.16
13.5
11.19
16.5
16.4
FAT TAIL
See KURTOSIS.
palgrave
0
35.61
8.8
0
1.3
7.8
11.63
1
20.8
FCFE
See FREE CASH FLOW TO EQUITY.
palgrave
0
90.77
2.1
0
1.38
0.4
6.57
3
9.07
FCFF
See FREE CASH FLOW TO FIRM.
palgrave
0
116.15
-1.5
0
-0.54
-1.2
6.57
2
2.4
FCM
See FUTURES COMMISSION MERCHANT.
palgrave
0
33.58
9.6
0
17.4
14.7
15.68
2
11.6
FDIC
See FEDERAL DEPOSIT INSURANCE CORPORATION.
palgrave
0
-18.21
17
0
21.2
16.9
13.36
4.5
26
FEASIBLE PORTFOLIO
Any PORTFOLIO an INVESTOR can construct from available ASSETS in the marketplace. A feasible portfolio represents any com- bination of investable assets, but need not necessarily provide the greatest RETURN for a given level of RISK. See also EFFICIENT PORTFOLIO.
palgrave
0
41.06
10.8
13
13.62
11.6
10.61
8.666667
12.32
FED FUNDS
See FEDERAL FUNDS.
palgrave
0
59.97
5.6
0
3.43
5.2
14.31
1.5
14.53
FED WIRE
An electronic network connecting the FEDERAL RESERVE BOARD, the 12 FEDERAL RESERVE BANKS, the US Treasury and US agencies, which is used for immediate payments, FEDERAL FUNDS transfers, and TREASURY NOTE, TREASURY BOND, and AGENCY SECURITY transfers.
palgrave
0
25.46
18.9
0
15.62
24.3
12.3
25.5
20.21
FEDERAL FUNDS RATE
The overnight INTEREST RATE charged on FEDERAL FUNDS, and a widely followed indicator of market rates.
palgrave
0
55.24
9.5
0
13.22
12.2
12.33
11
13.9
FEDERAL RESERVE BANKS
The 12 BANKS in the US FEDERAL RESERVE SYSTEM that are responsible for providing CENTRAL BANK services to MEMBER BANKS, LENDING via the DISCOUNT WINDOW, monitoring the activities of banks operating within their jurisdictions, and assisting in the formulation of MONETARY POLICY via the FEDERAL OPEN MARKETS COMMITTEE.
palgrave
0
-2.63
25.6
0
15.74
29.1
13.58
37
29.2
FEDERAL RESERVE SYSTEM
The US CENTRAL BANK system, created in 1913 via the Federal Reserve Act, comprised of 12 FEDERAL RESERVE BANKS, the FEDERAL RESERVE BOARD, the FEDERAL OPEN MARKETS COMMITTEE, and MEMBER BANKS (which hold EQUITY in the 12 Federal Reserve banks). Operating responsibilities are divided between the board and the banks.
palgrave
0
37.64
14.2
0
12.94
16.2
9.93
18
15.6
FEDERAL TRADE COMMISSION (FTC)
A US federal agency responsible for promoting competitive behavior by preventing TRADE restraints, price dis- crimination, formation of MONOPOLY power, and illegal or predatory pricing policies. The FTC acts via voluntary enforcement and formal LITIGATION.
palgrave
0
11.41
16
0
18.21
17.2
14.43
15.75
23
FEEDER FUND
A FUND that invests CAPITAL gathered from INVESTORS solely or primarily in another fund (i.e., a MASTER FUND). The feeder fund structure is widely employed in the HEDGE FUND sector.
palgrave
0
56.25
9.1
0
10.14
9.9
11.22
8
7.33
FENCE
See COLLAR.
palgrave
0
77.91
2.9
0
-4.51
3.1
0.1
0
0.8
FHLB
See FEDERAL HOME LOAN BANKS.
palgrave
0
83.32
2.9
0
4.96
3.7
10.2
2.5
10
FHLMC
See FEDERAL HOME LOAN MORTGAGE CORPORATION.
palgrave
0
31.55
10.4
0
14.95
11.4
11.83
4
15.73
FIAT MONEY
CURRENCY backed by an issuing nation’s proclamation that it is legal tender rather than a specific RESERVE of GOLD or metal; fiat moneyis not specifically convertible into metal. Most currency in circulation through- out the world is fiat money.
palgrave
0
43.22
12.1
0
12.94
13.3
10.27
13.75
14.98
FIDELITY BOND
In INSURANCE, a BOND that GUARANTEES an INSURER will pay the INSURED for losses caused by dishonesty or FRAUD of employees.
palgrave
0
50.16
11.5
0
10.62
12.1
12.2
15.5
17.92
FIDUCIARY
An individual or institution that is responsible for administer- ing duties for the express benefit of other parties. See also DUTY.
palgrave
0
26.98
12.1
0
11.34
8.9
10.92
6.75
13.72
FIDUCIARY DEPOSIT
A DEPOSIT placed by a customer through an AGENT BANK with a second (recipient) bank; the recipient bank forwards INTEREST on the deposit to the agent bank for onward disbursement to the client. The recipient bank posts the funds on its BALANCE SHEET as an INTERBANK placement rather than a customer DEPOSIT.
palgrave
0
53.55
12.3
0
11.03
14.7
8.57
16
13.48
FIDUCIARY DUTY
(1) The legal duty that DIRECTORS and executives have in representing SHAREHOLDER interests; this includes, but is not limited to, DUTY OF CARE and DUTY OF LOYALTY. (2) The legal duty that a FIDUCIARY has in administering assigned tasks or services.
palgrave
0
12.94
21.6
0
11.91
23.1
11.83
29.5
25.18
FIGHTING THE TAPE
The general practice of attempting to take a controlling position in a company’s COMMON STOCK. Fighting the tape is generally unsuccessful in all but the most thinly traded stocks, and is illegal in certain jurisdictions unless accompanied by formal disclosure of holdings and/ or a full TENDER OFFER.
palgrave
0
30.2
15
0
13.23
15.5
11.08
17.5
17.93
FILL OR KILL
A common form of designating an ALL-OR-NONE ORDER. Written trade tickets may be marked “FOK” as an abbreviation. See alsoGOOD TILL CANCELLED ORDER, MARKET ORDER, STOP LOSS ORDER.
palgrave
0
53.58
8.1
8.8
10.76
8.6
8.61
4.666667
8.01
FILZ
Literally “interwoven” material or fabric; the term is commonly used in Switzerland to describe the close, and sometimes conflicted, relation- ships that exist between board DIRECTORS, including instances of nepotism and INTERLOCKING DIRECTORSHIPS.
palgrave
0
4.14
20.9
0
20.2
25.9
12.93
26.5
25.32
FINAL TRADING DAY
The last day during which TRADING can occur in anEXCHANGE-TRADED DERIVATIVE CONTRACT.
palgrave
0
42.38
10.3
0
16.63
13.6
12.13
7
8.13
FINALITY
The time at which funds that have been placed by a depositor in a BANK become irrevocable and cannot be returned, unless consent is obtained from the PAYEE. Finality can range from immediate (for WIRE TRANSFERS) to several days (for CHECKS, which can be debited if rejected by the DRAWEE bank). See also AVAILABILITY.
palgrave
0
53.21
10.3
12.5
9.8
10.6
9.79
11.666667
12.39
FINANCE
The broad area of study and practice related to MONEY, BANKING, INVESTMENT, INSURANCE, and RISK MANAGEMENT.
palgrave
0
46.78
10.7
0
13.98
13.7
12.33
12
16.4
FINANCE BILL
A form of BILL OF EXCHANGE used for short-term FINANCING purposes, and which cannot be sold or marketed to a third party.
palgrave
0
57.61
10.7
0
8.3
11
6.88
14
14.25
FINANCE HOUSE
In the United Kingdom, a FINANCE COMPANY.
palgrave
0
55.91
7.2
0
7.37
5.6
6.24
3.5
2.8
FINANCIAL ACCOUNTING
The recording and reporting of a company’s financial transactions based on ACCOUNTING PRINCIPLES or other applic- able standards, which is followed by an EXTERNAL AUDIT and interim/ annual presentation to external STAKEHOLDERS. See also MANAGEMENT ACCOUNTING.INTERNATIONAL ACCOUNTING STANDARDS BOARD.
palgrave
0
9.38
16.8
0
20.77
20
12.3
17.25
21.13
FINANCIAL ANALYSIS
The process of analyzing a company’s FINANCIAL STATEMENTS in order to determine its financial strength, its trends over time, and how it compares with peers in its industry. Financial analysis is used by BANKS extending loans to clients, INVESTMENT BANKS and SECURITIES FIRMS recommending specific INVESTMENT actions on STOCKS, and CREDIT RATING AGENCIES rating the LIABILITIES of ISSUERS. See also CREDIT ANALYSIS.BANKRUPTCY.
palgrave
0
33.54
13.7
16.3
16.13
16.6
12.05
15.666667
16.67
FINANCIAL ENGINEERING
The area of FINANCE concerned with creat- ing financing, INVESTMENT and RISK MANAGEMENT solutions through the development of new instruments or the repackaging of existing instruments,e.g., the development of new DERIVATIVES with unique payoff profiles or the creation of SYNTHETIC ASSETS and LIABILITIES formed from packages of derivatives and UNDERLYINGS. Financial engineering relies heavily on quan- titative methods and modeling in order to generate solutions with very specific RISK and RETURN characteristics. See also STRUCTURED FINANCE.
palgrave
0
11.96
17.9
19.3
18.11
20.3
12.99
20.666667
20.65
FINANCIAL FUTURE
An EXCHANGE-TRADED FUTURES CONTRACT that references a financial ASSET or marketplace. Key contracts include INTEREST RATE FUTURES, CURRENCY FUTURES, EQUITY FUTURES, and INDEX FUTURES, and may be designed to settle on a PHYSICAL or CASH BASIS. See also COMMODITY FUTURE.
palgrave
0
32.6
12
13
14.02
12.3
11.4
8.666667
13.32
FINANCIAL GUARANTEE
(1) A CONTRACT that provides for timely payment of PRINCIPAL and INTEREST to providers of CAPITAL. (2) A RISK TRANSFER mechanism that functions as a form of CONTINGENT DEBT FINANCING by giving the BENEFICIARY access to funds from the GUARANTOR in the event a loss TRIGGER is breached.
palgrave
0
22.76
22
0
11.51
25.8
13.25
32
25.03
FINANCIAL HOLDING COMPANY
In the United States, a HOLDING COMPANY authorized under the GRAMM-LEACH-BLILEY ACT to own entities involved in SECURITIES TRADING and UNDERWRITING, CORPORATE FINANCE, INSURANCE, INVESTMENT MANAGEMENT, and commercial banking.
palgrave
0
-0.27
20.5
0
21.13
25.1
14.33
25.5
24.01
FINANCIAL INSTITUTION
A regulated organization that provides a range of BANKING and INVESTMENT services. Such institutions can be constituted in different forms (e.g., COMMERCIAL BANK, INVESTMENT BANK, UNIVERSAL BANK, MERCHANT BANK, BOUTIQUE) and deal with disparate products and clients.
palgrave
0
35.78
12.9
0
17.06
17.1
12.66
13.75
14.97
FINANCIAL INSURANCE
See FINITE INSURANCE.
palgrave
0
34.59
9.2
0
9.23
9.9
14.31
1.5
14.53
FINANCIAL LEASE
See CAPITAL LEASE.
palgrave
0
59.97
5.6
0
3.43
5.2
9.05
1.5
1.2
FINANCIAL PAPER
COMMERCIAL PAPER issued by a BANK or SECURITIES FIRM. See also INDUSTRIAL PAPER.
palgrave
0
39.5
9.4
0
9.22
6.5
10.03
3.75
11.83
FINANCIAL RATIOS
Measures derived from information contained in the FINANCIAL STATEMENTS of a company that provide additional insight into financial strength and performance. Ratios, which vary by industry, can be computed for profitability, activity, LIQUIDITY, CASH FLOW, andSOLVENCY/ LEVERAGE. Results can be compared on a historical basis to estab- lish a trend, and against other peer companies.Common profitability ratios: GROSS MARGIN, NET INTEREST MARGIN, NET PROFIT MARGIN, OPERATING MARGIN, RETURN ON ASSETS, RETURN ON EQUITY, RETURN ON INVESTMENT, DUPONT RATIO.Common activity ratios: INVENTORY TURNOVER, ACCOUNTS PAYABLE TURNOVER, ACCOUNTS RECEIVABLE TURNOVER, ASSET TURNOVER.Common liquidity ratios: CURRENT RATIO, QUICK RATIO, DAYS PAYABLES OUTSTANDING, DAYS SALES INVENTORY, DAYS SALES OUTSTANDING, DAYS COST OF GOODS SOLD.Common cash flow ratios: CASH FLOW TO CAPITAL INVESTMENT, CASH FLOW TO DEBT.Common solvency/leverage ratios: FIXED CHARGE COVERAGE, TIMES INTEREST EARNED, DEBT TO EQUITY, DEBT TO ASSETS, CONTINGENTS TO ASSETS. Also known as ACCOUNTING RATIOS.
palgrave
0
9.56
20.9
20.7
18.58
26.7
11.89
25.333333
20.79
FINANCIAL REINSURANCE
See FINITE REINSURANCE.
palgrave
0
34.59
9.2
0
13.12
13
14.31
1.5
14.53
FINANCIAL RISK
The RISK of loss arising from the financial activities of a firm, broadly taken to include CREDIT RISK, MARKET RISK, and LIQUIDITY RISK. See also OPERATING RISK.
palgrave
0
49.31
9.7
0
10.03
8.9
10.15
7.75
11.33
FINANCIAL SERVICE DIRECTIVE
A directive established by the EUROPEAN UNION in 1996 indicating that a BANK or other FINANCIAL INSTITU- TION authorized to provide services in one member country can provide the same services in other member countries. See also MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE, PASSPORTING.
palgrave
0
32.73
14
0
14.97
15.9
10.58
16.25
16.97
FINANCIAL SERVICES ACT 1986
In the United Kingdom, an Act of Parliament designed to increase regulatory and self-regulatory control over INVESTMENTS and provide INVESTORS with additional protections. It was amended through the FINANCIAL SERVICES AND MARKETS ACT 2000.LEACH-BLILEY ACT.
palgrave
0
28.33
13.7
0
18.21
17.2
12.17
12.25
13.86
FINANCIAL SLACK
The excess DEBT financing capacity available to a company, which can be applied to a future ACQUISITION or capitalINVESTMENT.
palgrave
0
18.35
15.4
0
14.79
14.6
12.06
14.5
16.02
FINANCIAL STATEMENTS
The key financial information conveyed by a company based on the use of standardized accounting standards. The main financial statements include the BALANCE SHEET, INCOME STATEMENT, and CASH FLOW STATEMENT, along with supplementary FOOTNOTES. Also known as ACCOUNTS, FINANCIALS.
palgrave
0
49.82
9.5
12.5
16.46
14
10.76
8.166667
11.35
FINANCIAL YEAR
See FISCAL YEAR.
palgrave
0
93.81
0.9
0
-0.46
2.1
9.05
0.5
1.2
FINANCIALS
See FINANCIAL STATEMENTS.
palgrave
0
34.59
9.2
0
16.95
16.2
14.31
1.5
14.53
FINANCIER
A professional involved in originating and structuring business transactions and associated financing arrangements, employed by a BANK, MERCHANT BANK, or BOUTIQUE. See also BANKER, INVESTMENT BANKER, PRIVATE BANKER.
palgrave
0
23.43
13.5
0
19.6
17.2
11.66
11
17.03
FINANCING CASH FLOW
The portion of the corporate STATEMENT OF CASH FLOWS depicting the cash inflows and cash outflows that impact a firm’s LIABILITIES and CAPITAL, including issuance/repayment of short- and long- term DEBT, issuance of COMMON STOCK and PREFERRED STOCK, repur- chase of TREASURY STOCK, and payment of DIVIDENDS. See also INVESTING CASH FLOW, OPERATING CASH FLOW.
palgrave
0
43.56
14
0
13.93
18.4
11.03
18.25
16.82
FINE PAPER
See FIRST CLASS PAPER.
palgrave
0
92.8
1.3
0
2.9
2.9
0.2
1
1.6
FINE PRINT
The detailed legal language often contained in CONTRACTS or other documentation that contains relevant conditions, REPRESENTATIONS, WARRANTIES, and other essential information. Also known as SMALL PRINT.
palgrave
0
15.98
14.3
0
20.4
17.3
11.57
8.5
14.43
FINISHED GOODS INVENTORY
A class of INVENTORY held by a com- pany that includes all goods that are finalized and ready for sale. See also RAW MATERIAL INVENTORY, WORK-IN-PROCESS INVENTORY.
palgrave
0
49.31
9.7
0
10.26
9.2
8.4
8.75
9.84
FINITE QUOTA SHARE
A FINITE REINSURANCE agreement where the REINSURER agrees to pay, on behalf of the CEDING INSURER, a fixed or vari- able proportion of CLAIMS and expenses as they occur; ceding COMMISSIONS and INVESTMENT income from RESERVES typically cover actual claims, but if they prove insufficient the reinsurer funds the shortfall and recovers the diffe- rence from the insurer over the life of the contract.
palgrave
0
6.52
28.3
0
13.36
35.2
13.23
45
32.48
FINITE REINSURANCE
A REINSURANCE agreement used primar- ily to finance, rather than transfer, a CEDING INSURER’s RISK exposures. The INSURER pays PREMIUMS into an EXPERIENCE ACCOUNT and the REINSURER covers losses under the policy once they exceed the funded amount (up to predefined maximum limits). Finite reinsurance can be writ- ten in a variety of forms, including SPREAD LOSS, FINITE QUOTA SHARE, LOSS PORTFOLIO TRANSFER, ADVERSE DEVELOPMENT COVER, FUNDED EXCESS OF LOSS, and AGGREGATE STOP LOSS. Also known as FINANCIAL REINSURANCE. See also FINITE INSURANCE.
palgrave
0
37.71
12.1
14.3
13.74
13.2
11.31
12.1
14.83
FIRE SALE
Liquidation of an ASSET at a distressed, or sharply DIS- COUNTED, price. A fire sale may be required if an INVESTOR or company is in urgent need of cash resources. See also DISTRESSED ASSET, VULTURE BID.
palgrave
0
76.22
5.6
7.8
7.76
6.6
9.06
5.666667
5.91
FIRM COMMITMENT
(1) A contractual agreement by a BANK to a client to provide a maximum amount of financing under a FACILITY, generally in exchange for a commitment fee. (2) See BOUGHT DEAL. (1) Also known asCOMMITTED FACILITY.
palgrave
0
26.48
18.5
0
9.88
19.5
11.12
26
22.18
FIRM ORDER
An ORDER submitted by a client to a BROKER or DEALER that remains valid until it is cancelled by the client. If the specific parameters regarding price, quantity, and time can be executed the broker/dealer is not required to refer back to the client.
palgrave
0
57.61
10.7
0
9.34
11.7
9.75
14.5
14.25