Professional Documents
Culture Documents
Financial Terms Related To Asset
Financial Terms Related To Asset
Financial Terms Related To Asset
ASSET
Acquisition of assets
• A merger or consolidation in which an acquirer purchases the selling
firm's assets.
After tax proceeds from sale of old asset
• Found by subtracting applicable taxes from the proceeds from the sale of
an old asset.
Asset
• (1) Anything that an individual or a corporation owns that has economic
value to its owner. Examples of an asset are cash, accounts receivable,
inventory, real estate, and securities. (2) A Balance Sheet item expressing
what a corporation owns.
• Any possession that has value in an exchange.
Asset activity ratios
• Ratios that measure how effectively the firm is managing its assets.
www.ftpall.com 2|Page
Asset allocation
• The division of an investment portfolio into major asset categories, such
as bonds, common stocks, or cash, usually to balance risk and reward
appropriate for an investor's age.
Asset allocation decision
• The decision regarding how an institution's funds should be distributed
among the major classes of assets in which it may invest.
Asset allocation fund
real estate. Some examples are autos, credit cards, and royalties.
Asset backed security
• A security that is collateralized by loans, leases, receivables, or
installment contracts on personal property, not real estate.
Asset based financing
• Methods of financing in which lenders and equity investors look
principally to the cash flow from a particular asset or set of assets for a
return on, and the return of, their financing.
Asset swap
• An interest rate swap used to alter the cash flow characteristics of an
institution's assets so as to provide a better match with its liabilities.
Asset turnover
• The ratio of net sales to total assets.
Asset/equity ratio
• The ratio of total assets to stockholder equity.
Asset/liability management
• All tangible property -- including securities, real estate, and other property
-- held for the long term.
• see Fixed Assets
• A fixed asset that is amortized; land; or financial asset (common shares,
preferred shares, and fixed income securities like bonds) held by a
corporation.
Capital asset pricing model
• Abbreviated CAPM. An economic theory that describes the relationship
production of its income. Tangible fixed assets include real estate, plant,
and equipment. Intangible fixed assets include patents, trademarks, and
customer recognition.
• A tangible, long term asset such as land or building, held for use rather
than sale.
Fixed asset turnover
• Measures the efficiency with which the firm has been using its net fixed,
or earning, assets to generate sales.
goodwill.
• A legal claim to some future benefit, typically a claim to future cash.
Goodwill, intellectual property, patents, copyrights, and trademarks are
examples of intangible assets.
Intangible assets
• Refer to items such as goodwill or intellectual properties. Among the
latter are copyrights, patents, and trademarks.
Limitation on asset dispositions
subtracting the company's liabilities, and dividing this value by the number
of shares of the company outstanding. Thus, the NAV indicates the current
buying or selling price of a share in an investment company.
• Abbreviated NAV. The value of a fund's investments. For a mutual fund,
the net asset value per share usually represents the fund's market price,
subject to a possible sales or redemption charge. For a closed end fund,
the market price may vary significantly from the net asset value.
• Abbreviated NAV. The value of a Mutual Fund share calculated once a
• The difference between the four pincipal current assets (cash, marketable
securities, accounts receivable, and inventories) and accounts payable.
Other assets
• Assets other than current and fixed, normally deposits and prepaid
expenses
Other current assets
• Value of non-cash assets, including prepaid expenses and accounts
receivable, due within 1 year.