Category: Finance Dictionary

Distance measuring exactly 1852 meters or 6076.11 feet. One nautical mile equals 1.15 miles or 1.85 kilometers. By a 1920 international agreement, it replaced the British Nautical mile (6080 feet) and US

Callable bonds’ principal is returned (1) before maturation in a declining interest rate environment or (2) after maturation in a rising interest rate environment. The first situation may require reinvesting the principal

Up-to-date asset value is less than up-to-date liability value.

Invoice payment terms. 10 days within the invoice date, the net amount is due on a net 10. Net 30 is within 30 days, and so on.

Calculated as: In a specific time period, total premiums paid minus the total cash value minus any policy dividends generated. Insurers make comparisons of net cost every ten or 20 years if

Working capital’s efficient use measured. Calculated as: Net income divided by Working capital.

Gross national product (GNP) minus capital consumption allowances.

Premium amount minus appointed dividends. This term also refers to the non-participating policy rate found in a rate book.

Recognized revenue amount in a company’s preferred stock holdings. The revenue amount is based on how much calculated profit over a company share count holdings.

Computer network design. Mapping hardware, software, protocols, and devices. Outcome is successfully allowing different systems and devices to inter-communicate.

Under the Nixon administration, this new plan transferred back to the state level some powers previously held by the federal government. Some powers were removed from the state level under Franklin Roosevelt’s

The insured must notify the insurer about a newly purchased vehicle within 30 days from purchase date. Some coverage automatically activates under the policy for vehicles purchased during the term of the

The Financial Accounting Standards Board (FASB) and the Government Accounting Standards Board (GASB) regulate these standards.

Natural process that takes free nitrogen (N2) from the air, converts or fixes it in nitrogen compounds that plants use as nutrients, as in fertilizer. In nature, certain bacteria present in the

Opposite of having privilege. A right is not exercisable under this condition or state.

An investment or debt instrument’s stated annual interest rate. Does not include a compounding component and is not adjusted even if the return is paid monthly, semiannually or annually. Also known as

When upward and downward price movement are not equal.