Finance

Cost-Plus Contract: Payment for Costs Plus Profit
Explore the intricacies of cost-plus contracts, including their types, benefits, challenges, examples, and historical context.
Cost, Fixed: An In-depth Examination of Fixed Costs
An exploration of fixed costs in business, including definitions, examples, and their significance in various economic and financial contexts.
Counteroffer: Rejection of an Offer with a Substitute Proposal
A counteroffer is the rejection of an original offer to buy or sell with a simultaneous substitute offer, typically involving different terms such as price, financing arrangements, or other conditions.
CR: Credit
CR is the common abbreviation for Credit, a key concept in finance and accounting.
Credit Bureau: Private Organization that Maintains Consumer Credit Data Files
A comprehensive overview of credit bureaus, which are private organizations that collect and maintain consumer credit data files and provide credit information to authorized users for a fee.
Credit Card: An Indication of Creditworthiness
A comprehensive guide to understanding credit cards, their functionality, types, historical context, and impact on the financial world.
Credit Default Swap: Financial Derivatives and Risk Management
A comprehensive overview of Credit Default Swaps (CDS) including their functions, mechanisms, examples, historical context, and implications in financial markets.
Credit Limit: Maximum Balance Permitted by Credit Card Issuers
An in-depth guide to understanding what a credit limit is, how it is determined, its types, its impact on credit scores, and practical considerations for managing it.
Crown Jewels: Key Assets in Corporate Takeovers
An Overview of Crown Jewels in Corporate Mergers and Acquisitions, focusing on their role as desirable properties whose disposal reduces a company's value and attractiveness as a takeover candidate.
Cumulative Dividend: Overview and Significance
A comprehensive guide to Cumulative Dividends including their definition, types, examples, historical context, and applicability in finance, particularly associated with Cumulative Preferred Stock.
Dating in Commercial Transactions: Extension of Credit Terms
An exploration into the practice of extending credit terms beyond the supplier's customary terms, often used to support business operations and improve cash flow.
Day Order: An Overview
A day order is a directive to buy or sell securities that expires unless executed or canceled on the day it is placed. This article delves into the definition, examples, and differences of a day order in comparison to other order types such as Good-Till-Canceled Orders (GTC).
Dealer: A Comprehensive Guide
An in-depth exploration of what constitutes a dealer in the context of securities, real estate, and other forms of commerce.
Debit Memorandum: Notice of a Charge Against an Account
A detailed explanation of a Debit Memorandum, including its definition, types, special considerations, examples, historical context, and more.
Debt Instrument: An Agreement to Repay Debt
A detailed exploration of debt instruments including their types, uses, and implications in finance and economics.
Debtor: One Who Owes an Obligation
A comprehensive overview of the concept of a debtor, involving obligations, bankruptcy, and the relationship with creditors.
Deductions from Gross Income (DFROM): Understanding the Concept
Learn about the Deductions from Gross Income (DFROM), including the choice between Itemized Deductions and the Standard Deduction. Discover the implications of Above the Line deductions and the impact on taxable income.
Defaulted Interest: An In-Depth Overview
An exhaustive definition of defaulted interest, detailing its implications, historical context, comparisons, and related terms.
Deferred Charge: Intangible Expenditure Carried Forward as an Asset
A deferred charge represents an intangible expenditure that is carried forward as an asset and amortized over the period it represents. It commonly includes fees such as those for arranging long-term loans.
Deferred Group Annuity: A Retirement Income Solution
Deferred Group Annuity involves retirement income payments that begin after a stipulated future time period and continue for life, providing a structured way to secure retirement income.
Defined-Benefit Pension Plan: An In-Depth Analysis
A comprehensive overview of Defined-Benefit Pension Plans, focusing on their structure, formula, contributions, tax implications, and more.
Deflation: Decline in the Prices of Goods and Services
An in-depth exploration of deflation, its causes, impacts, differences from inflation and disinflation, historical context, and more.
Delinquency: Understanding Past-Due Obligations
Comprehensive analysis of delinquency, covering its general meaning, financial context, types, and its distinctions from default.
Delivery Date: Definition and Context
An exploration of 'Delivery Date' in finance, including its meaning in futures contracts and NYSE transactions.
Demand Deposit: Understanding Immediate Access Accounts
Demand Deposit accounts allow immediate access to funds without prior notice to the bank. Withdraw money via checks, cash from ATMs, or online transfers.
Demand Note: Payable Instrument Definition
A detailed definition and explanation of a demand note, its types, special considerations, and historical context.
Depletion: Process and Methods
Depletion is the process whereby the cost or other basis of a natural resource, such as a coal interest, is recovered upon the extraction and sale of the deposit. There are two primary methods for determining the depletion allowance: cost and percentage.
Deposit In Transit: Understanding Bank Reconciliations
Comprehensive guide to understanding deposits in transit, their importance in bank reconciliations, and their role in accounting.
Depreciation Accounting: Understanding the Deduction for Asset Exhaustion
A comprehensive guide to the concept of depreciation in accounting, focusing on its application for taxpayers and businesses, along with its economic implications.
Depreciation Allowance: Understanding Total Depreciation Deducted Against Property
Explore the concept of depreciation allowance, its implications in business, how it permits annual deductions for wear and tear, and the overall diminution of property value.
Devaluation: Definition and Analysis
An in-depth explanation of Devaluation, its types, historical context, and its impact on the global economy.
DIP: Momentary Weakness in Securities Prices
A detailed explanation of a 'DIP' in securities prices, its relevance in trading strategies, and advice for investors.
Direct-Reduction Mortgage: A Balanced Approach to Loan Repayment
A detailed examination of Direct-Reduction Mortgages, which require payments that cover both interest and principal, ensuring loan amortization over the loan's term.
Disbursement: Paying Out Money in Discharge of Debt or Expense
Disbursement refers to the act of paying out money in the discharge of a debt or an expense, distinguishing it from distribution.
Discount Bond: Below Face Value Investment Instrument
Comprehensive guide on Discount Bonds, their types, examples, historical context, and comparisons with related financial instruments.
Discounted Loan: Financial Instrument below Face Value
A discounted loan is a financial instrument offered or traded for less than its face value. This entry covers its types, applications, and examples.
Discretionary Income: Understanding Spendable Income After Necessities
Discretionary income is the amount of spendable income remaining after the purchase of physical necessities such as food, clothing, and shelter, as well as the payment of taxes. It is crucial for marketers of non-essential goods.
Disproportionate Distribution: Understanding Redistribution in Corporate Finance
A comprehensive article explaining Disproportionate Distribution, a financial term referring to the unequal distribution of cash or property to shareholders, altering their proportionate interests in a corporation.
Dividend Yield: Annual Percentage of Return on Stock
A comprehensive overview of Dividend Yield, which represents the annual percentage of return earned by an investor on a common or preferred stock.
Double-Digit Inflation: An In-depth Analysis
Understanding double-digit inflation, its causes, effects, historical examples, and implications on the economy.
Double-dipping: Ethical and Financial Implications
Double-dipping refers to the practice of individuals receiving benefits from two sources simultaneously, often leading to ethical and financial concerns.
Downpayment: Initial Cash Payment Towards Property or Goods
A downpayment is the portion of the total cost of property or goods that is paid upfront in cash, reducing the amount of debt incurred.
Downside Risk: Estimation of Investment Decline
A comprehensive examination of downside risk, a measure of the potential decline in investment value considering various market factors.
Draw: Financial and Legal Actions Defined
An in-depth exploration of 'Draw' encompassing its usage in banking, finance, and legal contexts.
Due Date: Time Fixed for Payment of Debt, Tax, Interest, etc.
A comprehensive guide to understanding due dates in financial and legal contexts, covering various types of payments including debt, tax, and interest.
Each Way Commission: Understanding Broker Involvement on Both Sides of a Trade
A comprehensive explanation of each way commission, where brokers earn on both purchase and sale sides of a trade, including definitions, examples, and related terms.
Earnest Money Deposit: A Show of Good Faith in Real Estate Transactions
An in-depth look at Earnest Money Deposit, its purpose in real estate transactions, how it works, comparisons, historical context, and FAQs.
Economic Sanctions: International Trade and Financial Restrictions
Economic sanctions are restrictions upon trade and financial dealings that a country imposes upon another for political reasons, usually as punishment for following policies of which the sanctioning country disapproves.
Education IRA: Tax-Advantaged Savings for Education
A comprehensive guide to Education IRAs, also known as Coverdell Education Savings Accounts, including structure, benefits, and usage.
Effective Net Worth: Comprehensive Insight
A detailed exploration of Effective Net Worth, including its definition, relevance, calculation, examples, and related terms.
Effective Tax Rate: A Comprehensive Guide
An in-depth examination of the concept of Effective Tax Rate, how it is calculated, its significance, and its comparison to other tax rates.
Endowment Contract: Insurance Agreement with Both Life and Fixed Terms Benefits
An endowment contract is an insurance policy that includes both life expectancy elements and provisions for a single payment during the life of the insured.
Entrepreneurial Profit: Compensation for Expertise and Successful Effort
Entrepreneurial profit represents the earnings that compensate a skilled businessperson for their expertise and successful efforts, typically exceeding the normal profit expected from competent management.
Equipment Leasing: Comprehensive Overview
Equipment leasing entails acquiring equipment and leasing it to businesses, generating income and offering tax benefits.
Equity Buildup: The Gradual Increase in Property Equity
Equity buildup refers to the gradual increase in an owner's equity in mortgaged property caused by the amortization of loan principal.
Equity Kicker: A Strategic Investment Enhancer
An in-depth look at the concept of an equity kicker, a term used in finance to signify a form of compensation provided to lenders, which offers them potential upside in the form of equity in a company.
Escalation: Exploring Mechanisms and Implications
Elucidating the concept of Escalation, its various types, implementations, and implications, with a particular focus on Escalator Clauses in contracts.
Escrow Account: A Safekeeping Solution for Funds
An in-depth exploration of escrow accounts, their roles in real estate, and applications for holding funds securely until they are needed.
Escrow Agent: Role and Responsibilities
An escrow agent is a neutral third party responsible for holding funds or assets until certain conditions are met, commonly used in real estate transactions.
Eurocommercial Paper: Short-Term Financial Instruments
Detailed Explanation of Eurocommercial Paper, Including Definition, Types, Historical Context, Applicability, Comparisons, and Frequently Asked Questions.
Event Risk: The Potential of Occurrence Impacting Business or Investment
Event Risk pertains to the likelihood of a specific event affecting a particular business or investment. This is distinct from market or systemic risk, which influences all entities within the same category.
Exact Interest: A Detailed Understanding
An exploration of Exact Interest, its calculation methodology based on a 365-day year, and its distinctions from Ordinary Interest, which operates on a 360-day year.
Excess (Accelerated) Depreciation: Understanding the Concept and Its Implications
Excess (Accelerated) Depreciation refers to the accumulated difference between accelerated depreciation claimed for tax purposes and what straight-line depreciation would have been. This excess is often recaptured and taxed as ordinary income upon a sale.
EXIMBANK: Export-Import Bank Overview
An in-depth look at the Export-Import Bank, its roles, history, operations, and its impact on international trade.
Exit Fee: Definition and Explanation
An exit fee, commonly known as a back-end load, is a fee charged to investors when they withdraw funds from an investment fund.
Expected Actual Capacity: Understanding Capacity in Context
Detailed explanation of the concept of Expected Actual Capacity in various contexts, including its relevance in industries such as manufacturing, finance, and project management.
Expense Ratio: Definition and Analysis
Comprehensive explanation of the Expense Ratio, including its role in real estate and mutual funds, calculation methods, examples, and relevance.
Expiration: Date on which a Contract Ceases to be Effective
Expiration refers to the date on which a contract, agreement, license, magazine subscription, etc., ceases to be effective. In options trading, it denotes the last day an option can be exercised.
Externalities: Impact Beyond Direct Involvement
Externalities are unintended side effects of economic activities that affect third parties; they can be either positive or negative.
Face Amount of Bond: Definition and Explanation
The face amount of a bond, also known as its face value, is the nominal or par value of the bond, representing the amount paid back to the bondholder at maturity.
Fair Market Rent: Comprehensive Guide
An in-depth exploration of Fair Market Rent, the amount a property would command if it were now available for lease, including its definition, types, considerations, examples, historical context, applicability, related terms, FAQs, references, and more.
Fannie Mae: Federal National Mortgage Association
A comprehensive overview of Fannie Mae, also known as the Federal National Mortgage Association, including its history, functions, and impact on the housing market.
Federal Reserve Bank: An Integral Component of the Federal Reserve System
A detailed examination of the Federal Reserve Bank, one of the 12 regional banks that comprise the Federal Reserve System, responsible for overseeing regional commercial and savings banks and providing them with critical resources.
Fiduciary Bond: Types and Applications
Comprehensive explanation of Fiduciary Bond, including its different types, legal implications, examples, and historical context. See also Judicial Bond.
Financial Leverage: Understanding Leverage in Finance
Financial leverage involves using borrowed funds to increase the potential return on investment. This article explains types of financial leverage, examples, historical context, its applicability, and more.
First Mortgage: Defining the Primary Lien on Property
A comprehensive overview of the First Mortgage, including its role, types, legal considerations, historical context, and comparison with other types of mortgages.
Fiscal Tax Year: Detailed Overview
A comprehensive look at the Fiscal Tax Year, including its definitions, variations, and implications in accounting and taxation.
Fiscal Year: A Comprehensive Definition
A thorough exploration of the fiscal year, including its purpose, differences from the calendar year, and its implications for businesses and governments.
FIT Investment: Comprehensive Guide to FIT Investments
A detailed exploration of FIT Investments, covering various types, historical context, and applicability in modern financial markets.
Fixed Cost: A Key Component of Total Costs
Fixed cost represents expenses that do not change with the level of production or output. It is crucial for determining total and per-unit costs.
Fixed-Price Contract: A Comprehensive Overview
A Fixed-Price Contract is a type of contract where the price is predetermined and remains unchanged, regardless of the actual costs incurred during production.
Flat: Multiple Meanings and Usages
An in-depth exploration of the term 'flat' covering various contexts in finance, real estate, trading, and more.
FLOAT Banking: Checks in Transit and Conditional Credits
An in-depth look at the concept of Float in Banking, Securities, and Insurance, including checks in transit, new issue of securities, and insurance premiums.
Floating an Issue: Introduction and Key Concepts
Comprehensive explanation of 'Floating an Issue', covering underwriting, issuance process, historical context, and related terminology in finance.
Floor Loan: Minimum Amount a Lender is Willing to Advance
A comprehensive overview of Floor Loan, the minimum amount a lender is willing to advance, including definitions, examples, and related terms.
Flow of Funds: Economic and Financial Dynamics
Comprehensive explanation of the 'Flow of Funds' concept in economics and municipal bonds, covering the transfer of funds through financial intermediaries and the priority of municipal revenues.
For Your Information (FYI): Memo and Finance Contexts
Understanding the term 'For Your Information (FYI)', its use in business and finance contexts, with examples and historical background.

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