Copy of `Oesterreichische Nationalbank - Dictionary`

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Oesterreichische Nationalbank - Dictionary Category: Economy and Finance Date & country: 04/10/2008, AU Words: 3913

burn rate
The rate at which a new company uses up its venture capital to finance overhead before generating positive cash flow from operations. It is the rate of negative cash flow, usually quoted as a monthly rate....

business
Any permitted gainful activity of a certain duration that is pursued on a self-employed basis, excluding the professions and primary agricultural production. (The meaning also covers the English terms `trade` in its occupational sense and `industry` in the broad sense of any particular branch of activity.) The term `Gewerbebetrieb` therefore refers...

business angel
Much smaller amounts, of up to EUR 0.25 million, are most readily available from `business angels`. These are wealthy individuals, often successful entrepreneurs themselves, who invest both money and time in very early-stage companies - frequently acting as mentors to young management teams. They invest in businesses they understand well, and nurtu...

business continuity
a payment system`s arrangements which aim to ensure that it meets agreed service levels even if one or more components of the system fail or if it is affected by an abnormal external event. Include both preventative measures and arrangements to deal with contingencies....

business cycle
A pattern of fluctuation in economic activity, characterized by alternate expansion and contraction. In general, business activity expands with rising industrial production, and with rising employment, prices, wages, interest rates, and profits. Activity reaches a high point of prosperity and stays there for a time. Then activity begins to contract...

business cycle
More or less regular swings or wave-like fluctuations in the pace of a country`s economic growth, well above and well below the long-term trend in the growth rate of total production; the ups and downs of overall business activity, as evidenced by surges and declines in GNP and GDP, unemployment rates, and the general price level; the boom-and-bust...

business process audit
Frequently an audit begun as a business process audit is continued as an organizational audit if it turns out during the course of the audit that the review should be extended to organizational aspects....

business strike
A coin produced for general circulation (as opposed to a proof or uncirculated coin specially made for collectors)....

business strike
A regular issue coin, struck on regular planchets by dies given normal preparation. These are the coins struck for commerce that the Mint places into circulation....

business torpor
torpor: 1. A state of mental or physical inactivity or insensibility. 2. Lethargy; apathy....

business-related services
Business-related services constitute the largest sector of the economy employing around 55 million persons in 2001 - or nearly 55 % of total employment in the EU market economy. The sector creates an equivalent share of total value added compared to 36 % for manufacturing. Business-related services consist of 4 major groups of activities, namely bu...

buy-and-hold strategy
Buy-and-hold strategy: A passive investment strategy with no active buying and selling of stocks from the time the portfolio is created until the end of the investment horizon....

buy-back
Another term for a repo. [Harvey]...

bylaws
Bylaws contain specific provisions for the organization and operation of the corporation, including such matters as stocks, bonds, and dividends; the election, structure, and operation of the board of directors; quorum and voting requirements for shareholders` meetings; notices, amendments, and places for meetings. The bylaws may not contain a prov...

bylaws
In the US, the rules under which a corporation`s internal management operates. They include details such as election of directors, duties of officers and how share transfers can be conducted....

call
An option contract that gives the holder the right to buy a certain quantity (usually 100 shares) of an underlying security from the writer of the option, at a specified price (the strike price) up to a specified date (the expiration date). also called call option....

call feature
A predetermined date and price at which the issuer can redeem the bond prior to its stated maturity. Bonds can be called for many reasons, but a call typically occurs when interest rates drop and issuers are able to obtain lower interest rates to finance their debt. Some bonds are issued as non-callable and subsequently remain in the marketplace un...

call feature
The right that the issuer has to redeem a debenture prior to maturity. It usually begins at a premium to par and declines annually....

call money
a loan contract which is automatically renewed every day unless the lender or the borrower indicates that it wishes the funds to be returned within a short period of time....

call option
A call option is the right to buy or take a long position in a given stock, commodity, index, or futures contract at a fixed price on or before a specified date....

call option
An option contract granting the purchaser the right to buy the underlying instruments at the agreed strike price. A call obliges the seller to sell the underlying instrument at the agreed strike price, if the option is assigned to him....

call option
An option contract that gives the holder of the option the right (but not the obligation) to purchase, and obligates the writer to sell, a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract....

call option
An option that provides the right but not the obligation to buy the underlying security....

call price
The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a specified call date....

call privilege
Callable Bond. A bond that can be redeemed by the issuer before the stated maturity date. Usually, the bond cannot be redeemed before a certain time, say 5 years. And often bonds are only callable at certain times. If a call date is missed, the bond may not be callable until the next call date. The call privilege is to enable the issuer to refund t...

call provision
An embedded option which gives the bond issuer the right to buy back the issue in part, or in entirety, prior to maturity....

call swaption
A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The writer therefore becomes the fixed-rate receiver/floating-rate payer....

callable bond
Bonds which are redeemable by the issuer prior to the maturity date at a specified price at or above par....

callable bond
Callable bonds document the issuer`s right to buy back the bond on a certain date (or certain dates) at a rate agreed already today. This call option is used when interest rates are falling. The investor has therefore implicitly sold the option to the issuer. From the perspective of the buyer of the bond, a callable bond thus consists of a long str...

Camembert
A very famous French cheese dating back to the 18th century. Camembert is a soft cheese (45-50% fat content) made from cow`s milk, pale yellow in colour with a white furry skin speckled with brown flecks. At the beginning of its ripening Camembert is crumbly but it gets softer and creamier over time (usually 2-3 weeks). Mass-produced Camembert is m...

candidate country
A candidate country is a country that has formally applied to the European Union for membership and has been officially recognized by the European Council as a candidate for membership. OeNB REPB. from May 1, 2004: Bulgaria, Romania, Turkey...

canonical coefficient
A canonical correlation is the correlation of two canonical (latent) variables, one representing a set of independent variables, the other a set of dependent variables. Whereas multiple regression is used for many-to-one relationships, canonical correlation is used for many-to-many relationships....

canonical coefficient
Canonical coefficient, also called the canonical function coefficient or the canonical weight: The canonical coefficients are the weights in the linear equation of variables which creates the canonical variables. As such they are analogous to beta weights in regression analysis. There will be one canonical coefficient for each original variable in ...

cap floater
Cap floaters are floating rate bonds whose interest rate must not surpass a certain upper limit. Since issuers want to hedge against rising interest rates, they acquire a cap. The buyer of the floater, on the other hand, sells the cap in order to receive a higher premium on the reference interest rate....

capacity building
Capacity Building involves assisting locally based organisations to develop their own ability to deliver projects for target groups. Enhancing the capacity of such organisations involves providing support to develop the skills of individuals within the organisation as well as improving organisational structures and processes themselves. Building ca...

capacity output
Capacity utilization for an individual manufacturing plant is the ratio of the plant`s actual output level to its potential or capacity output level. Capacity output is a measure of the extent to which the manufacturing plant can produce goods, given its current technology and fixed factors of production (such as the capital stock)....

capacity utilization
The ratio of the actual production of factories and other productive establishments (e.g., mining, utilities) to total potential output. This ratio measures the extent to which the nation`s production capabilities are being used....

CAPEX
Capex is defined as expenditures for additions to intangible assets, property, plant and equipment, excluding additions to non-current assets accounted for in accordance with SFAS No. 143 `Accounting for Asset Retirement Obligations`, goodwill, trademarks and acquired customer lists....

capital account
8.46. The capital account records acquisitions less disposals of non-financial assets by resident units and measures the change in net worth due to saving (final balancing item in the current accounts) and capital transfers. 8.47. The capital account makes it possible to determine the extent to which acquisitions less disposals of non-financial ass...

capital account
The capital account records the values of the non-financial assets that are acquired, or disposed of, by resident institutional units by engaging in transactions, and shows the change in net worth due to saving and capital transfers or internal bookkeeping transactions linked to production (changes in inventories and consumption of fixed capital)....

capital account
The new definition of the capital account covers capital transfers and the acquisition/disposal of non-produced non-financial assets. Current transfers are to be recorded in the current account....

capital and reserves
For the purpose of the reporting scheme, this category comprises the amounts arising from the issue of equity capital by reporting MFIs to shareholders or other proprietors, representing for the holder property rights in the MFI and generally an entitlement to a share in its profits and to a share in its own funds in the event of liquidation. Funds...

Capital Asset Pricing Model
An economic theory that describes the relationship between risk and expected return, and serves as a model for the pricing of risky securities. The C.A.P.M. asserts that the only risk that is priced by rational investors is systematic risk, because that risk cannot be eliminated by diversification. The C.A.P.M. says that the expected return of a se...

Capital Asset Pricing Model
Way of balancing the market risk of a security, or a portfolio of securities, and its return. CAPM is based on this principle: The required rate of return on a security equals the return required for securities that have no risk (like U.S. Treasury bills), plus a risk premium. You can determine the premium by the amount of market risk, as indicated...

capital charges
Charges against interest and amortization of monies invested in an enterprise...

capital consumption allowance
Capital consumption allowance (cca) is the wear and tear on capital in the production process. It is a non-income charge since it is not an explicit payment. Capital consumption allowance is a form of forced saving by business (Sb) because it is part of current income that is unavailable for spending. Depreciation is the real world accounting techn...

capital consumption allowance
The percentage of the GDP which is due to depreciation. GDP minus capital consumption allowance equals net national product....

capital controls
Barriers to the free movement of capital across national borders and between foreign exchanges. Examples include outright prohibitions on certain types of foreign investment, quantitative restrictions on foreign ownership of domestic firms, limits or prohibitions on holdings by firms or individuals of foreign exchange-denominated assets, and requir...

capital deepening
Increasing the quantity of capital without altering the proportions of the other factors of production. This will occur where the capital stock and employment are both increasing. Where the capital stock is increased and the numbers employed remain constant or fall then production has become more capital-intensive and capital deepening has occurred...

capital expenditure
Expenditure on new construction, land, extensions and alterations of existing buildings and the purchase of fixed assets such as plant and machinery. Also includes expenditure on stocks and grants and lending for capital purposes. Also covers some intangibles, such as patents and in-house creation of software under recognised projects. (vermögenswi...

capital formation
Investment spending, nowadays called capital formation in the national accounts, relates to capital as a factor of production. When economists talk about investment spending, they are referring to the production and purchase of capital goods, that is, man-made means of production such as machinery and equipment, buildings, dams, roads and bridges. ...

capital formation
The transfer of savings from households and governments to the business sector, resulting in increased output and economic expansion....

capital gains tax
... one of the most potent ways to promote economic growth was to cut the tax rate for capital gains - the profit made on an investment, such as real estate or stock, at the time it is sold....

capital guarantee
An investment product where the company offering the product or other company associated with it, guarantees that it will return at least the original amount invested, plus any income that has accumulated. This also means the funds are generally managed conservatively to minimise the chance of any loss. The term Capital Guarantee implies an organis...

capital income
Capital income covers interests on saving certificates, bank deposits and dividends from shares....

capital income
the sum of profits, rental payments, and interest payments...

capital increase
increase in capital through the issuance of new shares...

capital loss
The loss that results when a capital asset is sold for less than its purchase price....

capital market
The market in which corporate equity and longer-term debt securities (those maturing in more than one year) are issued and traded....

Capital Requirements Directive
The Capital Requirements Directive, comprising Directive 2006/48/EC and Directive 2006/49/EC, was published in the Official Journal on Friday 30 June...

capital stock
Capital stock is defined as the value of all fixed assets in use, where fixed assets are described as produced assets (i.e. excluding land) that are used in the production process for more than a year....

capital surplus
Amounts of directly contributed equity capital in excess of the par value....

capital transfers in cash
A capital transfer may be in cash or in kind. If in cash, the transfer is linked to, or conditional on, the acquistion ordisposal ofa fixed asset by one or both parties to the transaction (e.g. an investment grant). BPM5-344...

capital transfers in kind
A capital transfer may be in cash or in kind. If in cash, the transfer is linked to, or conditional on, the acquistion or disposal of a fixed asset by one or both parties to the transaction (e.g. an investment grant)....

capitalization costs
The purchase price of the leased asset. It also represents the price at which a leasing company buys the equipment from its supplier....

capitalize
Recognizing an expenditure benefiting a future period as an asset rather than as an expense of the current period; expenditures for major equipment are capitalized as they have a useful life beyond a few accounting years, and, thus, meet the criterion of an asset....

capitalize
Term meaning that a cost item is recorded as an asset on the balance sheet instead of on the income statement. Some companies use this device to manipulate earnings and make the company look more profitable than it really is....

capital-output ratio
Capital-labour ratio is the amount of capital used per worker and gives an indication of the capital intensity of the process. Capital-output ratio shows the capital required to produce one unit of output, both measured in real terms....

capital-output ratio
The ratio that shows the amount of units of capital that are needed to produce a certain level of output....

capitive insurance company
A captive insurance company is an insurance company that has been set up to provide coverage at a lower cost than available by going through the general insurance market. The company`s stock is controlled by one interest or a group of related interests so as to provide coverage for their business operations. A captive insurance company may be a non...

capitive insurance company
Any pure captive insurance company, association captive insurance company, or industrial insured captive insurance company formed or licensed under the provisions of this chapter. A company which is wholly-owned by another organization (generally non-insurance), the main purpose of which is to insure the risks of the parent organization....

caplet
The individual options comprising a cap are sometimes referred to as caplets....

capped floating rate note
The Capped FRN offers a floating yield to the investor that is higher than the market yield, subject to a certain maximum level....

captive
noun; The term `Captive` is used generally to describe an insurance company that insures the risks of its owners who are not in the business of insurance. In its purest applications, it is a means of self insurance but the reality is that many captives now buy reinsurance and do a proportion of their business with third parties....

carbon footprint
The term carbon footprint refers to the amount of carbon dioxide - a potent greenhouse gas - that is given off by an organisation or an individual burning fossil fuels. This doesn`t only include the obvious, such as car and plane travel, heating and the like, but also covers the cost in fossil fuel of creating and transporting every item that we us...

card-based e-money
Card-based e-money: e-money stored on a portable DP medium issued to the customer, typically a smart card equipped with a microchip....

card-based product
electronic money products which provide the customer with a portable, specialised computer device, typically an IC card containing a microprocessor chip....

Cardiff process
comprehensive structural reform and modernisation to improve the innovative capacity and efficiency of the labour market and the markets in goods, services and capital...

CARDS programme
Since 1991 the European Union has committed, through various assistance programmes, € 6.8 billion to the Western Balkans. In 2000 aid to the region was streamlined through a new programme called CARDS (Community Assistance for Reconstruction, Development and Stabilisation) adopted with the Council Regulation (EC) No 2666/2000 [202 KB] of 5 December...

carousel fraud
Two examples of VAT fraud are `carousel fraud” and `missing trader intra-community fraud”. In carousel fraud, goods are apparently exported, thus making them exempt from VAT, but the export does not actually take place; the transaction may then be reversed in the `receiving country”, thus doubling the fraud while leaving stock levels in both ...

carry forward
To offset, on a balance sheet for tax purposes, losses for a specific period against a subsequent period`s net income....

carrying amount
as an IFRS term, carrying amount ist far more frequent than book value: `Carrying amount is the accounting book value of an asset or the book value of the relevant assets and liabilities of a CGU (Cash generating Unit).`...

carrying value
An accounting measure of value, where the value of an asset or a company is based on the figures in the company`s balance sheet. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset. For a company, carrying value is a company`s total assets minus intangible a...

carry-over effect
Carry-over effects denote the annual average rate of growth that would result if the level of GDP reached in the fourth quarter of a given year (`year 1) remained constant throughout the following year (`year 2`). This is equivalent to the percentage difference between the level of GDP in the fourth quarter of year 1 and the average level for that ...

cash asset ratio
Cash asset ratio - the most stringent test of liquidity. The formula is cash plus marketable securities divided by total current liabilities. Cash asset ratio = (cash + marketable securities) / total current liabilities...

cash asset ratio
same as cash ratio...

cash balance plan
A cash balance plan is a defined benefit plan that defines an employee`s benefit as the amount credited to an account. The account receives allocations (usually expressed as a percentage of pay) as the employee works. The account is also credited with interest adjustments until it is paid to the employee. How is a cash balance plan different from ...

cash balance plan
As reported in the Wall Street Journal, the definition says, `A cash-balance pension plan is a defined-benefit pension plan that defines the promised employee benefit by reference to a notional account balance. An employees` notional account balance is increased with periodic notional principal credits and notional fixed or variable interest or inv...

cash card
card for use only in ATMs or cash dispensers (other cards often have a cash function that permits the holder to withdraw cash)....

cash card
Cash card: card used to obtain cash from an automated teller machine (ATM). The vast majority of cards used as cash cards in Germany are eurocheque cards (used also as debit cards) and cards issued by banks to customers. Credit cards may generally be used for this purpose as well....

cash card
These are plastic cards, issued typically by banks and building societies and used for withdrawing cash from Automatic Teller Machines (ATMs) - also known as hole in the wall machines. Like credit cards, cash cards have a magnetic stripe on the back which contains account information. To withdraw cash, the user needs to input a personal identificat...

cash clearing
a method for clearing futures contracts in which positions are periodically marked-to-market and resulting obligations are satisfied by cash payments, known as variation margin....

cash collateral
Cash refers only to money which is represented by a credit to an account, or similar claims on repayment of money (such as money market deposits), thus explicitly excluding banknotes....

cash flow
A phrase describing the positive or negative cash position of a business as it relates to revenue and expenditures....

cash flow
The positive (inflow) or negative (outflow) movements of cash caused by an activity over a specific period of time....

cash flow
Cash flow/debt ratio: purpose = To assess both solvency and risk; formula = Cash flow generated by operations / Total debt; source of data = Balance sheet...

cash flow statement
A cash flow statement is a financial report that shows incoming and outgoing money during a particular period (often monthly or quarterly). It does not include non-cash items such as depreciation. This makes it useful for determining the short-term viability of a company, particularly its ability to pay bills....

cash flow-to-sales ratio
The auditor should also consider calculating and evaluating certain cash flow ratios such as: Cash Flow Return on Assets, Cash Flow to Sales, Cash Flow Adequacy, and Debt Coverage which may indicate the contractor`s efficiency in generating cash from operations, its ability to satisfy primary cash requirements, and the adequacy of its cash flow to ...

cash market
A place where people buy and sell the actual commodities, i.e., grain elevator, bank, etc....

cash method
The form of accounting in which you report income in the year you actively or constructively receive it and you deduct expenses in the year paid. Most individuals use this method. Compare accrual method....