Depository Transfer Check

A depository transfer check (DTC) is used by a designated collection bank to deposit the daily receipts of a corporation from multiple locations. Depository transfer checks are a way to ensure better cash management for companies, which collect cash at multiple locations.Data is transferred by a third-party information service from each location, from which DTCs are created for each deposit location. This information is then entered into the check-processing system at the destination bank for deposit.

Deficit Spending Unit

A deficit spending unit is an economic term used to describe how an economy, or an economic group within that economy, has spent more than it has earned over a specified measurement period. Both companies and governments may experience a deficit spending unit.

Days Sales Of Inventory

The days sales of inventory (DSI) is a financial ratio that indicates the average time in days that a company takes to turn its inventory, including goods that are a work in progress, into sales. DSI is also known as the average age of inventory, days inventory outstanding (DIO), days in inventory (DII), days sales inventory, or days inventory and is interpreted in multiple ways. Indicating the liquidity of the inventory, the figure represents how many days a company’s current stock of inventory will last. Generally, a lower DSI is preferred as it indicates a shorter duration to clear off the inventory, though the average DSI varies from one industry to another.

Subprime Mortgage

A subprime mortgage is one that’s normally issued to borrowers with low credit ratings. A prime conventional mortgage isn’t offered, because the lender views the borrower as having a greater-than-average risk of defaulting on the loan.Lending institutions often charge interest on subprime mortgages at a much higher rate than on prime mortgages to compensate for carrying more risk. These are often adjustable-rate mortgages (ARMs) as well, so the interest rate can potentially increase at specified points in time.

Venture Capital Funds

Venture capital funds are pooled investment funds that manage the money of investors who seek private equity stakes in startups and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as very high-risk/high-return opportunities.In the past, venture capital (VC) investments were only accessible to professional venture capitalists, but now accredited investors have a greater ability to take part in venture capital investments. Still, VC funds remain largely out of reach to ordinary investors.

Holding Period Return

Holding period return is the total return received from holding an asset or portfolio of assets over a period of time, known as the holding period. It is generally expressed as a percentage and is particularly useful for comparing returns on investments purchased at different periods in time.

Export Credit Agency

An export credit agency offers trade finance and other services to facilitate domestic companies' international exports. Most countries have ECAs that provide loans, loan guarantees and insurance to help eliminate the uncertainty of exporting to other countries.The purpose of ECAs is to support the domestic economy and employment by helping companies find overseas markets for their products. ECAs can be government agencies, quasi-governmental agencies or even private organizations—including the arms of commercial financial institutions.

Held By Production Clause

"Held by production" is a provision in an oil or natural gas property lease that allows the lessee, generally an energy company, to continue drilling activities on the property as long as it is economically producing a minimum amount of oil or gas. The held-by-production provision thereby extends the lessee's right to operate the property beyond the initial lease term. This provision is also a feature of mineral property leases.

Held-To-Maturity

Held-to-maturity (HTM) securities are purchased to be owned until maturity. For example, a company's management might invest in a bond that they plan to hold to maturity. There are different accounting treatments for HTM securities compared to securities that are liquidated in the short term.

Held-For-Trading Security

A held-for-trading security is a debt or equity investment that investors purchase with the intent of selling within a short period of time, usually less than one year. Within that time frame, the investor hopes to see appreciation in the value of the security and sell it for a profit.Because of accounting standards, companies have to classify investments in debt or equity securities when they are purchased. Other than held-for trading, other options include held-to maturity or available for sale.

Going-Concern Value

Going concern value is a value that assumes the company will remain in business indefinitely and continue to be profitable. Going concern value is also known as total value. This differs from the value that would be realized if its assets were liquidated—the liquidation value—because an ongoing operation has the ability to continue to earn a profit, which contributes to its value. A company should always be considered a going concern unless there is a good reason to believe that it will be going out of business.

Ground Lease

A ground lease is an agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner.

Cost-Benefit Analysis

A cost-benefit analysis is a systematic process that businesses use to analyze which decisions to make and which to forgo. The cost-benefit analyst sums the potential rewards expected from a situation or action and then subtracts the total costs associated with taking that action. Some consultants or analysts also build models to assign a dollar value on intangible items, such as the benefits and costs associated with living in a certain town.

Morningstar Risk Rating

The Morningstar risk rating, or simply Morningstar rating, is a ranking given to publicly traded mutual funds and exchange traded funds (ETFs) by the investment research firm Morningstar. Risk is assessed across five levels designed to help investors quickly identify funds to consider for their portfolios.Funds receive ratings ranging from 1 to 5, with 1 given to the worst performers and 5 for the best. The ranking is based on variations in a fund's monthly returns—with an emphasis on downside variations—as compared to similar funds.

Garage Liability Insurance

Garage liability insurance is specialty insurance targeted to the automotive industry. Automobile dealerships, parking lots or parking garages operators, tow-truck operators, service stations, and customization and repair shops will add garage liability insurance to their business liability coverage. The policy protects property damage and bodily injury resulting from operations.This insurance is not the same thing as garage-keepers coverage.

Ultra-Short Bond Fund

An ultra-short bond fund is a bond fund that invests only in fixed-income instruments with very short-term maturities. An ultra-short bond fund will invest in instruments with maturities of less than one year. Because of their focus on bonds with very short durations, these portfolios offer minimal interest-rate sensitivity and therefore lower risk and total return potential. This strategy, however, tends to offer higher yields than money market instruments with fewer price fluctuations than a typical short-term fund.Note that a short-term bond fund like this should not be confused with a bear bond fund or ETF that goes short bonds on a leveraged basis.

Solvency Ratio

A solvency ratio is a key metric used to measure an enterprise’s ability to meet its long-term debt obligations and is used often by prospective business lenders. A solvency ratio indicates whether a company’s cash flow is sufficient to meet its long-term liabilities and thus is a measure of its financial health. An unfavorable ratio can indicate some likelihood that a company will default on its debt obligations.

Make Whole Call Provision

A make-whole call provision is a type of call provision on a bond allowing the issuer to pay off remaining debt early. The issuer typically has to make a lump-sum payment to the investor. The payment is derived from a formula based on the net present value (NPV) of previously scheduled coupon payments and the principal that the investor would have received.

Product Life Cycles

The term product life cycle refers to the length of time from when a product is introduced to consumers into the market until it's removed from the shelves. This concept is used by management and by marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging. The process of strategizing ways to continuously support and maintain a product is called product life cycle management.

Fiscal Year-End

The term "fiscal year-end" refers to the completion of any one-year or 12-month accounting period other than a typical calendar year. A fiscal year is often the period used for calculating annual financial statements. A company's fiscal year may differ from the calendar year, and may not close on December 31 due to the nature of a company's needs.Once companies choose its fiscal year-end—typically when they are first incorporating or forming their company—it is required to stick with it year to year. This allows accounting data to be consistent in terms of time frames.

Comparative Market Analysis

A comparative market analysis (CMA) estimates a home's price based on recently sold, similar properties in the immediate area. Real estate agents and brokers create CMA reports to help sellers set listing prices for their homes and help buyers make competitive offers. In addition, you can perform your own comparative market analysis by researching comparable properties (known as "comps") on real estate listing sites, such as realtor.com.