Scale-enhancing
Describes a project that is in the same riskclass as the whole firm. That is, the project allows the firm to grow larger in the context of their current business rather than diversify into new businesses.
Value stocks
Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or P/E ratios) in a variety of countries.
Liquid market
A market allowing the buying or selling of large quantities of an asset at any time and at low transactionscosts.
Mark Berch:Internal measure
The number of days that a firm can finance operations without additional cash income.
Interest rate cap
An interest rate agreement in which payments are made when the reference rate exceeds the strike rate. Also called an interest rate ceiling.
Late trading
Late trading of mutual fund shares occurs when investors placing trades after 4 PM receive the 4 PM price. These late traders can use the information revealed after 4 PM to guide their trades: buying funds when their current value is greater than their 4 PM value and selling the funds when the reverse is true. Doing so allows them to earn expected abnormal returns at the expense of the fund's long-term shareholders. Mark Berch
Limited company
A form of business commonly used in the U.K. comparable to incorporation in the U.S.
Describes a project that is in the same riskclass as the whole firm. That is, the project allows the firm to grow larger in the context of their current business rather than diversify into new businesses.
Value stocks
Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or P/E ratios) in a variety of countries.
Liquid market
A market allowing the buying or selling of large quantities of an asset at any time and at low transactionscosts.
Mark Berch:Internal measure
The number of days that a firm can finance operations without additional cash income.
Interest rate cap
An interest rate agreement in which payments are made when the reference rate exceeds the strike rate. Also called an interest rate ceiling.
Late trading
Late trading of mutual fund shares occurs when investors placing trades after 4 PM receive the 4 PM price. These late traders can use the information revealed after 4 PM to guide their trades: buying funds when their current value is greater than their 4 PM value and selling the funds when the reverse is true. Doing so allows them to earn expected abnormal returns at the expense of the fund's long-term shareholders. Mark Berch
Limited company
A form of business commonly used in the U.K. comparable to incorporation in the U.S.
