Introduction to Finance: Markets, Investments, and Financial Management, Fourteenth Edition

GLOSSARY

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acceptance

receivable from the sale of merchandise on the basis of a draft or bill of exchange drawn against the buyer or the buyer's bank

accommodative function

Fed efforts to meet credit needs of individuals and institutions, clearing checks, and supporting depository institutions

adjustable-rate mortgage (ARM)

interest rate and periodic payments that vary with market interest rates over the real estate loan's life

administrative inflation

the tendency of prices, aided by union-corporation contracts, to rise during economic expansion and to resist declines during recessions

advance factoring

factor pays the firm for its receivables before the account due date

aftermarket

period during which members of the syndicate may not sell the securities for less than the initial offering price

agency costs

tangible and intangible expenses borne by shareholders because of the actual or potential self- serving actions of managers

agents

hired by the principals to run the firm

American depository receipt (ADR)

receipt that represents foreign shares to U.S. investors

amortized loan

a loan repaid in equal payments over a specified time

annual percentage rate (APR)

determined by multiplying the interest rate charged per period by the number of periods in a year

annual report

contains descriptive information and numerical records on the operating and financial performance of a firm during the past year

annualize a return

state the return as the annual return that would result in the observed percentage return ...