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Investment Glossary
Investment College- Glossary of Similar Terms (All Items)
Term | Definition |
---|---|
Acid Test (Quick Ratio) | All assets minus inventories and pre-paid expenses divided by current liabilities. |
Adjustment bonds (Income bonds; "cram down" bonds) | Only required to make interest payments if the corporation earns a specified level of income; otherwise there is no obligation for the issuer to pay. |
Ad Valorem taxes (Open Menu Property taxes) | The backing source of general obligation bonds; based on the value of the property |
Additional paid in capital (Surplus capital; Capital in excess of par) | The amount above par value paid for the common shares to the company for the stock on the initial public offering |
Advanced refunding (Pre-refunded; defeasance) | By defeasing the debt, the issuer can sell new debt prior to maturity or a call date of the old bonds, using those collections as the income source backing the new bond. Issuers defease their debt when interest rates fall, locking in low current rates by |