The practice of liberally interpreting, or manipulating, accounting rules in order to convey a stronger financial position. Smoothing income flows, reversing RESERVES, and capitalizing costs that should be expensed are forms of

In the US markets, the period between the filing of a final PROSPECTUS and the offering of a NEW ISSUE of securities to public investors. The cooling off period is typically 20

Advertising or offers sent in the same mailing envelope to potential customers from multiple businesses . These businesses work in the same market but have products that do not compete. They co-mail

Similar to co-insurance. The insured and provider share in the paying for the cost for services.

A provision detailing what portion of a claim the insurer pays and what portion the insured pays.

A measure of INFLATION at the consumer level, excluding certain items such as food and oil. See also CONSUMER PRICE INDEX, HARMONIZED INDEX OF CONSUMER PRICES, RETAIL PRICE INDEX.

An attempt to gain sufficient market share in an ASSET or security in order to manipulate the price for gain. Cornering attempts, which are generally illegal, are usually unsuccessful unless the asset

An authorizing document issued by a government or legal authority that delineates the activities a CORPORATION is permitted to undertake. See also ARTICLES OF INCORPORATION.

The broad marketplace for trans actions that are designed to change the ownership, structure, and/or control of a company. Common corporate control transactions include MERGERS, friendly or HOSTILE TAKEOVERS, LEVERAGED BUYOUTS, and

The broad area dealing with the way in which a company behaves towards, and conducts business with, its internal and external STAKEHOLDERS, including employees, investors, creditors, customers, and regulators. In certain national

(1) The general class of financial transactions that a company may consider to alter its structure, operations, or business focus, including MERGER, ACQUISITION, CARVEOUT, DIVESTITURE, RECAPITALIZATION, LEVERAGED BUYOUT, or MANAGEMENT BUYOUT. (2)

The concept and action of ensuring that a corporate organization exists in perpetuity, providing returns and benefits for multiple generations of internal and external STAKEHOLDERS. Sustainability generally demands close ties and cooperation

A statistical measure that indicates the extent to which two or more variables (such as financial ASSET prices) move in the same direction, or different directions. Correlation is often used to price

A measure of CORRELATION, typically computed as: where Cov (A,B) is the covariance between ASSETS A and B, A is the STANDARD DEVIATION of asset A and B is the standard deviation

The RISK of loss arising from a change in the historical relationships, or CORRELATIONS, between ASSETS. Correlation risk can be found in certain COMPLEX OPTIONS and COMPLEX SWAPS and may also impact

To jointly sign and endorse. A co-signer of a loan is liable for paying back the debt if the other individuals fail to do so. Co-signing is a way for someone with

The joining of service capability from either inside or outside a business, or both, to realize the same goal. Outsourcing, as an example, can provide internal expertise missing within a company and

INFLATION that results from increased costs of production, including raw materials and labor. Higher production costs are priced into goods and services, leading labor to demand higher wages to meet the higher

The total costs a firm bears in funding its operations through DEBT and EQUITY, equal to the rate of return needed to induce CAPITAL suppliers to invest or lend. The cost of

The FUTURE VALUE of costs and benefits associated with holding an ASSET, which typically includes the cost of financing, INSURANCE, transportation and/or storage, less benefits derived from lending the asset and any