Corporate finance Corporate finance Accord and satisfaction is the purchase of the release from a debt obligation. The payment is typically less than what is owed and is not paid by the actual performance of the original obligation. The accord is the agreement to discharge the obligation and the satisfaction is the legal " consideration" which binds the parties to the agreement. ...more on Wikipedia about "Accord and satisfaction"
An activist shareholder is one who uses an equity stake in a corporation not simply as an item within a portfolio but as an opportunity to redefine and redirect the management of that corporation. ...more on Wikipedia about "Activist shareholder"
In English and Welsh insolvency law, an Administration Order is a method used to protect a company experiencing short or medium term financial problems from its creditors. A court order is issued that forbids any form of legal or insolvency action without the court's permission. ...more on Wikipedia about "Administration Order"
In the simplest meaning, asset based lending, refers to any kind of lending secured by an asset. This means, if the loan is not repayed, the asset is taken. In this sense, a mortgage is an example of an asset backed loan. More commonly however, the phrase is used to describe lending to business and large corporations using assets not normally used in other loans. These can include exotic things like lending against the value of a trademark or whole assets of intellectual property. For example, Midway Games took out a line of credit secured by its Mortal Kombat franchise; if it fails to repay, the bank then owns the Mortal Kombat franchise and can sell the rights to it. ...more on Wikipedia about "Asset based lending"
A bankers' acceptance starts as an order to a bank by a bank's customer to pay a sum of money at a future date, typically within six months. At this stage, it is like a postdated check. When the bank endorses the order for payment as "accepted", it assumes responsibility for ultimate payment to the holder of the acceptance. At this point, the acceptance may be traded in secondary markets much like any other claim on the bank. ...more on Wikipedia about "Bankers' acceptance"
In a bankmail engagement, the bank of a target firm refuses financing options to firms with takeover bids. This takeover tool serves multiple purposes, which include 1) thwarting merger acquisition through financial restrictions, 2) increasing the transaction costs of the competitor’s firm to find other financial options, and 3) to permit more time for the target firm to develop other strategies or resources. ...more on Wikipedia about "Bankmail"
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested by creditors in an effort to recoup a portion of what they are owed; however, in the overwhelming majority of cases, the bankruptcy is initiated by the bankrupt individual or organization. ...more on Wikipedia about "Bankruptcy" My www.shortopedia.com and me.
Canadian Bankruptcy Law is a federal law set out in the Bankruptcy and Insolvency Act, and is applicable to both businesses and individuals. The office of the Superintendent of Bankruptcy, a federal agency, is responsible for ensuring that bankruptcies are administered in a fair and orderly manner. ...more on Wikipedia about "Bankruptcy in Canada"
A bridge loan (or swing loan) is a type of short-term loan in the financial industry. Bridge loans are typically taken out for a period of 2 weeks to 3 years in order to finance projects. Bridge loans are often used for commercial real estate purchases, to quickly close on a property, retrieve real estate from foreclosure, and to take advantage of a shot-term financing opportunity in order to secure long term financing. Speed is a bridge loan's number one asset. ...more on Wikipedia about "Bridge loan"
A buyout is an investment transaction by which the entire or a controlling part of the stock of a company is sold. A firm buysout the stake of the company to strengthen its influence on the company's decision making body. It can be either a leveraged buyout or a management buyout. ...more on Wikipedia about "Buyout"
The Capital Structure of a corporation is the way in which that entity finances itself -- by some combination of equity sales, equity options, bonds, and loans. ...more on Wikipedia about "Capital structure"
In finance, cash flow refers to the amounts of cash being received and spent by a business during a defined period of time, sometimes tied to a specific project. ...more on Wikipedia about "Cash flow"
Cashflow matching is a process of hedging in which a company or other entity matches its cash outflows (i.e. financial obligations) with its cash inflows. ...more on Wikipedia about "Cashflow matching"
Cashier balancing is a process usually conducted in businesses such as grocery stores, restaurants and banks that takes place at the closing of the business day or at the end of a cashier's shift. This balancing process makes the cashier responsible for the money in his or her cash register. ...more on Wikipedia about "Cashier balancing"
Commercial paper is a money market security issued by large banks and corporations. It is generally not used to finance long-term investments but rather for purchases of inventory or to manage working capital. It is commonly bought by money funds (the issuing amounts are often too high for individual investors), and is generally regarded as a very safe investment. As a relatively low risk option returns are not large. ...more on Wikipedia about "Commercial paper"
Common stock, also referred to as common shares, are, as the name implies, the most usual and commonly held form of stock in a corporation. The other type of shares that the public can hold in a corporation is known as preferred stock. Common stock that has been re-purchased by the corporation is known as treasury stock and is available for a variety of corporate uses. ...more on Wikipedia about "Common stock"
Controlling interest is to have control of a large enough portion of voting stock in a company such that no other stock holder can oppose you. In theory this means that controlling interest is 50% of the voting stock plus one. In practice, though, controlling interest can be far less than that, as it is rare that 100% of a company's voting shareholders actively vote. ...more on Wikipedia about "Controlling interest"
Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analyses used to make these decisions. The discipline as a whole may be divided among long-term and short-term decisions and techniques with the primary goal being the enhancing of corporate value by ensuring that return on capital exceeds cost of capital, without taking excessive financial risks. ...more on Wikipedia about "Corporate finance"
A credit-linked note is a security issued by a special purpose company or trust, designed to offer investors par value at maturity unless a referenced credit defaults. In the case of default, the investors receive a recovery rate. ...more on Wikipedia about "Credit-linked note"
Diluted EPS is a company's EPS figure as calculated using fully diluted shares outstanding (i.e. including the impact of stock option grants and convertible bonds). This is important in showing the users of the income statement a "worst-case" scenario if everyone that could have received stock without purchasing it directly for the full market value, decreasing the "worst-case" EPS. ...more on Wikipedia about "Diluted EPS"
In finance and economics, divestment or divestiture is the reduction of some kind of asset, for either financial or social goals. A divestment is the opposite of an investment. ...more on Wikipedia about "Divestment"
A dividend is the distribution or sharing of parts of profits to a company's shareholders. ...more on Wikipedia about "Dividend"
Earnings per share (EPS) are the earnings returned on the initial investment amount. ...more on Wikipedia about "Earnings per share"
Employee stock options are stock options for the company's own stock that are often offered to upper-level employees as part of the executive compensation package, especially by American corporations. An employee stock option is identical to a call option on the company's stock, with some extra restrictions. ...more on Wikipedia about "Employee stock option"
Financial distress is a term in Corporate Finance used to indicate a condition when promises to creditors of a company are broken or honored with difficulty. Somtimes financial distress can lead to bankruptcy. Financial distress is usually associated with some costs to the company and these are known as Costs of Financial Distress. A common example of a cost of financial distress is bankrupty costs. ...more on Wikipedia about "Financial distress"
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