Mark Berch:Required reserves
Claim dilution
A decrease in the likelihood that one or more of a firm'sclaimants will be fully repaid, including time value of money considerations.
Principal Finance Officer
The head of an investment bank's Principal Finance division or a person that overseas the principal finance dealings of a firm. These dealings usually involve high grade bonds that are used to finance new projects for firms.
Treasury bills
Debtobligations of the US Treasury that have maturities of one year or less. Maturities for T-bills are usually 91 days, 182 days, or 52 weeks. Treasury bills are sold at a discount from face value and do not pay interest before maturity. The interest is the difference between the purchase price of the bill and the amount that is paid to you either at maturity (this amount is the face value) or when you sell the bill prior to maturity.
Mark Berch:Required reserves
The dollar amounts, based on reserve ratios, that banks are required to keep on deposit at a Federal Reserve Bank.
Nonqualifying stock option
An employee stock option that does not satisfy IRS qualifying rules and therefore is liable for taxation upon exercise .
Reinvoicing center
A central financialsubsidiary an MNC uses to reduce transaction exposure by billing all home country exports in the home currency and reinvoicing to each operating affiliate in that affiliate's localcurrency. It can also be used as a netting center. Mark Berch
Depreciation
A non-cash expense (also known as non-cash charge) that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets. To be clear, this is an accounting expense not a real expense that demands cash. The sum of depreciation expenses of prior years leads to the balance sheet item Accumulated Depreciation.
