Mark Berch
Net present value (NPV)
The present value of the expected future cash flows minus the cost.
Information asymmetry
Condition that information is known to some, but not all, participants.
Yield advantage
The advantage gained by purchasing convertible securities instead of
common stock, which equals the difference between the rates of return of
the convertible security and the common shares.( - Mark Berch)
Mark Berch: Inventory loan
A securedshort-termloan to purchaseinventory. The three basic forms
are a blanket inventory lien, a trust receipt, and field warehousing
financing.
Declaration
The Board of Directors motion to authorize dividend payments.
Consensus forecast
The mean of all financial analysts' forecasts for a company. ( Mark Berch )
Exchangeable Security
Investment instrument that grants its holder the right to exchange it
for the common stock of a firm other than the issuer of the instrument.
Mark Berch
Long-term debt ratio
The ratio of long-ter debt to total capitalization.
Mark Berch: Cash reserves
See: Cash investments
Mark Berch: Junior mortgage
A mortgage that will be satisfied only after more senior mortgages
have been satisfied. E.g., a first mortgage will be satisfied prior to a
second or a third mortgage.
