Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
Inventory or receivables valuation’s financial accounting calculation. Calculated for inventory accounting as: sold asset’s expected return minus asset’s sale expenses. Calculated for receivables accounting as: amount due minus outstanding balance recovery cost.
The most profit gained after underwriting.
A single person’s effect from using a good or a service on the total perceived value of that product or service for others. The more people who use a product or service,
First time stock or bond offered to the public. May be an initial public offer (IPO) or a established firm’s issued security after floating several prior issues.
A country that has a strong development opportunity and ability.
An alloying metal element for making Austenitic stainless steels. High degree of corrosion resistance, ductility, harden-ability, and tensile strength are its contributions.
Insurance premium allowed discounted or reduced on auto accident policies. As high as 60 percent of premium. It is awarded on the basis that no claims by the policy holder or by
Provided the employer or management keeps its side of the bargain, a union pledges to not initiate any strike action during the life of the agreement as stated in this type of
The schedule of natural gas trading with a delivery through pipes.
A bond that can’t be redeemed in any alternate form.
The number of outstanding futures not accomidated by delivery availability.
An international organization that helps develop growth and opportunity.
An insurance policy that includes more than two different kinds of coverage; for example, personal and commercial.
The amount of time it takes to pay back investments. The investment repayment takes the form of cash flows over the life of the asset. A discount rate can be given. Refer
When stock with heavy options trades near strike price of its most active option.
When the price of cash is greater than the price of the futures. Refer to basis risk and negative basis.
The amount an insurer needs to cover its expenses and generate profit. Fair premium is determined using premium loading and pure premium.
The inflaction of a wholesale purchase. It is based on the manufacturing process not the associated services. Refer to consumer price index, harmonized index of consume prices, and retail price index.
The way premium on property and causality insurance is calculated. Premium loading factors are not used in the process. AKA standard risk. Refer to speculative risk.
An agreement where an insurer agrees to absorb loss at a percent rather than a specified cash amount. Refer to surplus share.