Day 4
You will receive newly created stock shares if you get this kind of dividend. For example, if you have 10 stocks with a dividend of 1/10, you'll get one extra stock for your dividend.
The day when a company declares publically that they're going to offer dividends.
With this kind of dividend, a company provides products or physical goods for a dividend, instead of money or stocks.
A process that occurs if a company decides to re-purchase its stock shares. Companies may do this if they think their stock is undervalued.
Cash Dividend: Payment Schedule
Dividends of this kind are usually paid out annually or on a quarterly basis.
On this day, an organization must record all the people who will get a dividend. They must also record what amount all the shareholders are owed.
This day directly follows the cum-dividend date. Once this day occurs, the dividend will go to the person who sold the stock, not the stock's purchaser.
A process that allows businesses to lower the price per share of their stocks by making each stock worth less. This can raise the level of investor interest in stocks.
This kind of dividend may be desired by investors who have high levels of income, since they may help lower the investor's taxes.
A concept that tells us that investors will choose to invest their money in companies that offer the kinds of dividends they want.
Information Content of Dividends Theory
This theory asserts that we can assume companies that offer high dividends are strong. These companies can be considered good investments.
Businesses offer this kind of dividend as cash, usually by means of a bank transfer or through a check. This is how dividends are most commonly offered.
With this kind of stock split, you will triple the amount of stocks you hold. The individual worth of each stock drops while the total value stays the same.
This represents the final date that you can buy stock and qualify to receive a dividend from the company.
A term used when talking about a payment made by a company to shareholders in the company. The payment comes from profits earned by the organization and is based on how many shares you own.
Stock Split: Company Ownership
While the individual worth of stocks is decreased with this process, investors maintain the same level of ownership in the company, as the number of stocks they hold increases.
A disbursement account designed to end every day with a balance set at zero. If any money remains in this account at day's end, the company will remove it.
We use this term to refer to the odds that someone who borrowed money won't repay their debt. Lenders consider this when determining if they'll offer someone credit.
This financial document is used to record cash transactions that come into or go out of a business as it completes various activities.
Baumol-Allais-Tobin Model / BAT model
A method that allows companies to see how much cash to keep. It involves making regular, scheduled deposits of a set amount of funds.
A requirement placed on businesses by banks after the business takes out a loan. These force the business to keep a set level of cash on hand.
A risk associated with repaying investments. You don't face this risk if you choose to simply hold onto your excess cash.
You accomplish this if you take money from multiple accounts and place them all into one account.
Businesses can use this model to place both upper and lower limits on how much cash they have, allowing for movement between these limits.
A process that involves lessening how much time is required for a businesses to turn sales into available cash.
In business, this term is used to describe the action a business takes when it spends money.
This represents both disbursement and collection float considered together. You find it by subtracting disbursement float from collection float.
Speculative
Precautionary
Transaction
Maintaining high levels of this can cause problems for a businesses as it doesn't result in interest and it may be better utilized to create returns.
Businesses use this collections system if they have customers mail payments to a post office box in check form. A service collects and deposits these checks.
A model for inventory management that tries to set up an ideal level for a business's inventory. It works well for products that have a stable level of demand.
A type of security investment offered by the government. These are available for short term investments and can be used to hold a business's extra cash.
We use this to refer to the difference between money a company has in its books and the money actually contained in the business's bank accounts.
A variety of securities that have been grouped together and that are managed by business professionals.
Check 21 / Check Clearing for the 21st Century Act
An act that allows banks to electronically process checks.
A type of cash float that starts going into effect after one company gets a check from another company and delivers the check to their bank.
These are any kind of investment that a business can liquidate within a single year or less.
We consider this to be the average length of time, in days, from the time a business makes a sale to the time they collect on that sale.
Controlled Disbursement Account
Banks tell businesses that have this kind of account about the checks that should be disbursed for a specific day. This can help the process of money management.
The kind of cash float that occurs first. Writing a check begins this.
A process that involves trading money from one currency to another. Different exchange rates allow some companies to generate a profit through this process.
A rule that asserts that anticipated changes within interest rates are responsible for shifting the exchange rate.
Foreign Currency Exchange Rate: Supply
Changing this can influence the exchange rate. Increasing the amount of currency will lower the exchange rate, while restricting the amount of currency raises it.
Absolute Purchase Price Parity
A kind of purchase price parity designed to keep the price levels of goods balanced in different countries. This ensures products have the same relative cost in different areas.
A risk associated with investing in currencies from other countries. This can negatively impact a company's reported finances if they must report during drops in the exchange rate.
International Corporate Finance: Political Risks
These risks are caused by political actions. Fluctuations in a currency's value are most common, but changes in tax rates and political upheaval, such as civil wars, are also issues.
Businesses use this exchange rate when they try to predict what the exchange rate will be in the future.
Foreign Currency Exchange Rate: Demand
This can increase or decrease the exchange rate. For example, if consumers want more goods from one country, they will want more of that country's currency as well.
International Capital Management: Long-Run Approach
An approach to handling international capital management that focuses on alleviating risks in the long-term while dismissing fluctuations in the short-term.
We complete this action if we buy something from a different country because that country offers a better price, even after taking the cost of currency exchange into consideration.
A process that can lower one country's real purchasing power.
We consider this to be the chance that over the short-term an investor will be met with less than favorable exchange rates.
A law that asserts that if a product's price increases, so will its supply. Conversely, if a product drops in price, its supply will fall as well.
Purchasing Power Parity Theory
This theory says that identical products sold in different countries will match up in cost if you take the exchange rate into consideration.
This is another term used to describe the exchange rate as it currently stands.
International Capital Management: Home Currency Approach
Businesses use this approach to international capital management when they base all business on their own country's currency.
This law tells us that people demand less of a good as it becomes more expensive, and will want more of a good when it is less expensive.
We see this if we look at the interest rates of two countries and find the difference between one and the other to be the same as the difference found for the forward and spot exchange rates.
Day 4
You will receive newly created stock shares if you get this kind of dividend. For example, if you have 10 stocks with a dividend of 1/10, you'll get one extra stock for your dividend.
The day when a company declares publically that they're going to offer dividends.
With this kind of dividend, a company provides products or physical goods for a dividend, instead of money or stocks.
A process that occurs if a company decides to re-purchase its stock shares. Companies may do this if they think their stock is undervalued.
Cash Dividend: Payment Schedule
Dividends of this kind are usually paid out annually or on a quarterly basis.
On this day, an organization must record all the people who will get a dividend. They must also record what amount all the shareholders are owed.
This day directly follows the cum-dividend date. Once this day occurs, the dividend will go to the person who sold the stock, not the stock's purchaser.
A process that allows businesses to lower the price per share of their stocks by making each stock worth less. This can raise the level of investor interest in stocks.
This kind of dividend may be desired by investors who have high levels of income, since they may help lower the investor's taxes.
A concept that tells us that investors will choose to invest their money in companies that offer the kinds of dividends they want.
Information Content of Dividends Theory
This theory asserts that we can assume companies that offer high dividends are strong. These companies can be considered good investments.
Businesses offer this kind of dividend as cash, usually by means of a bank transfer or through a check. This is how dividends are most commonly offered.
With this kind of stock split, you will triple the amount of stocks you hold. The individual worth of each stock drops while the total value stays the same.
This represents the final date that you can buy stock and qualify to receive a dividend from the company.
A term used when talking about a payment made by a company to shareholders in the company. The payment comes from profits earned by the organization and is based on how many shares you own.
Stock Split: Company Ownership
While the individual worth of stocks is decreased with this process, investors maintain the same level of ownership in the company, as the number of stocks they hold increases.
A disbursement account designed to end every day with a balance set at zero. If any money remains in this account at day's end, the company will remove it.
We use this term to refer to the odds that someone who borrowed money won't repay their debt. Lenders consider this when determining if they'll offer someone credit.
This financial document is used to record cash transactions that come into or go out of a business as it completes various activities.
Baumol-Allais-Tobin Model / BAT model
A method that allows companies to see how much cash to keep. It involves making regular, scheduled deposits of a set amount of funds.
A requirement placed on businesses by banks after the business takes out a loan. These force the business to keep a set level of cash on hand.
A risk associated with repaying investments. You don't face this risk if you choose to simply hold onto your excess cash.
You accomplish this if you take money from multiple accounts and place them all into one account.
Businesses can use this model to place both upper and lower limits on how much cash they have, allowing for movement between these limits.
A process that involves lessening how much time is required for a businesses to turn sales into available cash.
In business, this term is used to describe the action a business takes when it spends money.
This represents both disbursement and collection float considered together. You find it by subtracting disbursement float from collection float.
Speculative
Precautionary
Transaction
Maintaining high levels of this can cause problems for a businesses as it doesn't result in interest and it may be better utilized to create returns.
Businesses use this collections system if they have customers mail payments to a post office box in check form. A service collects and deposits these checks.
A model for inventory management that tries to set up an ideal level for a business's inventory. It works well for products that have a stable level of demand.
A type of security investment offered by the government. These are available for short term investments and can be used to hold a business's extra cash.
We use this to refer to the difference between money a company has in its books and the money actually contained in the business's bank accounts.
A variety of securities that have been grouped together and that are managed by business professionals.
Check 21 / Check Clearing for the 21st Century Act
An act that allows banks to electronically process checks.
A type of cash float that starts going into effect after one company gets a check from another company and delivers the check to their bank.
These are any kind of investment that a business can liquidate within a single year or less.
We consider this to be the average length of time, in days, from the time a business makes a sale to the time they collect on that sale.
Controlled Disbursement Account
Banks tell businesses that have this kind of account about the checks that should be disbursed for a specific day. This can help the process of money management.
The kind of cash float that occurs first. Writing a check begins this.
A process that involves trading money from one currency to another. Different exchange rates allow some companies to generate a profit through this process.
A rule that asserts that anticipated changes within interest rates are responsible for shifting the exchange rate.
Foreign Currency Exchange Rate: Supply
Changing this can influence the exchange rate. Increasing the amount of currency will lower the exchange rate, while restricting the amount of currency raises it.
Absolute Purchase Price Parity
A kind of purchase price parity designed to keep the price levels of goods balanced in different countries. This ensures products have the same relative cost in different areas.
A risk associated with investing in currencies from other countries. This can negatively impact a company's reported finances if they must report during drops in the exchange rate.
International Corporate Finance: Political Risks
These risks are caused by political actions. Fluctuations in a currency's value are most common, but changes in tax rates and political upheaval, such as civil wars, are also issues.
Businesses use this exchange rate when they try to predict what the exchange rate will be in the future.
Foreign Currency Exchange Rate: Demand
This can increase or decrease the exchange rate. For example, if consumers want more goods from one country, they will want more of that country's currency as well.
International Capital Management: Long-Run Approach
An approach to handling international capital management that focuses on alleviating risks in the long-term while dismissing fluctuations in the short-term.
We complete this action if we buy something from a different country because that country offers a better price, even after taking the cost of currency exchange into consideration.
A process that can lower one country's real purchasing power.
We consider this to be the chance that over the short-term an investor will be met with less than favorable exchange rates.
A law that asserts that if a product's price increases, so will its supply. Conversely, if a product drops in price, its supply will fall as well.
Purchasing Power Parity Theory
This theory says that identical products sold in different countries will match up in cost if you take the exchange rate into consideration.
This is another term used to describe the exchange rate as it currently stands.
International Capital Management: Home Currency Approach
Businesses use this approach to international capital management when they base all business on their own country's currency.
This law tells us that people demand less of a good as it becomes more expensive, and will want more of a good when it is less expensive.
We see this if we look at the interest rates of two countries and find the difference between one and the other to be the same as the difference found for the forward and spot exchange rates.
