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

Category: Finance Dictionary

AUTOMATIC PROPORTIONAL REINSURANCE

Reinsurance that transfers risk. The losses and gains are split between the insurer and reinsurer. The reinsurer must pay a fee to transfer the commission.

AUTOSHIP

When a shipment is made regularly with an automated payment. It helps with commission.

AVERAGE LIFE

1. the time before a debt is to be paid. the figures are used to compare the best option. Refer to half life. AKA economic life.

AXONOMETRIC PROJECTION

1. a projection that shows an ojects three dimensions. The axes are oriented relative to the projected surface. 2. A 3d drawing of a building based on a floor plan. The lines

ASSESSABLE INSURANCE

Insurance when a premium rate that uses possible future rate hikes to have a higher payment. AKA assessment insurance.

ASSESSMENT RATIO

The way assessed value and market value are linked. It is used for tax purposes.

ADJUSTED FUNDS FROM OPERATIONS (AFFO)

How much a real estate company has available to it. It uses operation funds, amortized funds, rent, and revenue. AKA cash available for distribution or CAD.

ADVANCE OPTION

A shortterm LINE OF CREDIT granted by an UNDERWRITER to an issuer of securities that can be drawn if the underwriter cannot successfully place the securities. The advance option thus guarantees the

ADVERSE USE

Using property without owner permission. Commonly used in relation to easements and water authorities.

AFTER-ACQUIRED PROPERTY

When property is bought by a debtor after entering a contract. Other property has already been used to secure the loan. The acquired property is safe if bankruptcy must be filed.

AID

When a foreign country asks for help financially after some crisis. There is a net inflow of foreign funds in the country.

ALIENATION CLAUSE

1. in insurance it is a rule that cancels insurance if the owner sells the property. 2.in a loan it is the rule stating the asset is owned once the loan is

ALL SUITE HOTEL

A room that has a kitchen and living room as well as the common bedroom and bathroom.

ALPHABET STOCK

Separate classes of COMMON STOCK issued by a company, where each class (often denoted by a letter of the alphabet) represents a different subsidiary. Investors in an alphabet stock receive the RENT

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