Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

APPRECIATION

When an asset’s value increases due to improvements or additions.

ARCHANGEL

A strong angel investor with a successful history in investment. A consultant kept by angels to research and present opportunities.

ARMA MODEL

Refer to autoregressive moving average (ARMA) model.

AS IS

A clause stating that an item is bought with no warranty. The buyer takes the item as it is with any apparent or nonapparent faults.

ASSOCIATE COMPANY

A firm that another firm controls. At least 20% of shares are usually used for this. The directories are interlocked to make sure a common policy and similiar objectives are in place.

AUGMENTED PRODUCT

A product that has products added to it to make more than one stream for revenue. Refer to agile product.

AUTO COVERAGE

Coverage for a vehicle that is used on public roads. Trailers are also covered.

AUTOMATIC PREMIUM LOAN CLAUSE

When an loan based on cash surrender value is taken out to cover life insurance premuims. It prevents loss and past due status.

AVERAGE INDUSTRIAL WAGE

1. A party given access to make security, financial, and operations decisions. 2. the hourly rate an employee is paid. Farmers do not pay this way. This becomes the benchmark pay per

AVOIDABLE COST

To avoid a variable cost by taking a specific action. A fixed cost is not avoidable.

ADJOINING ROOMS

Rooms in a hotel that have no connecting passages but are next to each other.

ADVANCE AGAINST COLLECTION

A bank loan that is short term given to an exporter or seller. It is paid when the buyer pays for the shipment. The bank can take their money out at that

ADVERSE SELECTION

When an insurance company covers someone who is lieing about a preexisting condition. The policy harms the company that took the application. AKA antiselection.

AFFORDABILITY

When an acquisition is analyzed and is deemed to be worth the resources it takes to manage it.

AGENT AD LITEM

When one party represents another in court when they cannot be there.

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