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Asset

Asset

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Published by Gustavo
Financial Terms Related to Asset
Financial Terms Related to Asset

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Published by: Gustavo on May 13, 2011
Copyright:Traditional Copyright: All rights reserved

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05/23/2013

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Financial Terms related to Asset
This document is part of the valuable contentsavailable atwww.ftpall.com
,
a free onlineglossary with more than five thousand financialand business terms.
This document can be copied and distributed freelyrespecting its original format. It is forbidden itstranscription, translation or change on its formatwithout authorization of its author or editor.
ASSET
• A merger or consolidation in which an acquirer purchases the selling
• Found by subtracting applicable taxes from the proceeds from the sale of 
an old asset.Asset 
• (1) Anything
that an individual or a corporation owns that has economicvalue to its owner. Examples of an asset are cash, accounts receivable,inventory, real estate, and securities. (2) A Balance Sheet item expressingwhat a corporation owns.
• Any possession that
has value in an exchange.Asset activity ratios 
 
• Ratios that measure how effectively the firm is managing its assets.
 
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• The division of an investment portfolio into major asset categories, such
as bonds, common stocks, or cash, usually to balance risk and rewardappropriate for an investor's age.Asset allocation decision 
• The decision regarding how an institution's funds should be distributed
among the major classes of assets in which it may invest.Asset allocation fund 
• A Mutual Fund that splits its investment assets among stocks, bonds, and
other vehicles in an attempt to provide a consistent return for the investor.Asset and asset allocation 
• "An
ything of value that you own that adds to your net worth; assetallocation refers to managing your finances by choosing or rejectinginvestments based on a specified strategy, such as aggressive growth,current income, minimizing taxes, etc.Asset and liability management 
• Is the process for financial institutions and corporations to adjust their 
funding and usage of funds. Some approaches are the Bucket, GAP,Hedging, Matched Book, Matched Funding, Financial Swaps, andStructured Products. With the lowering of various insurance, investmentand commercial banking barriers, the definition is now more inclusive.Previously, it tended to be reserved for non-investment banking andbrokerage operations. Broker/dealer institutions tended to describe theirhedging activities as risk management.Asset backed securities 
• Is a security backed by notes or receivables against as
sets other than
 
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real estate. Some examples are autos, credit cards, and royalties.Asset backed security 
• A security that is collateralized by loans, leases, receivables, or 
installment contracts on personal property, not real estate.Asset based financing 
• Methods of financing in which lenders and equity investors look
principally to the cash flow from a particular asset or set of assets for areturn on, and the return of, their financing.Asset classes 
• Categories of assets, such as stocks, bonds, real estate and foreign
• A bond indenture restriction that permits additional borrowing on if the
ratio of assets to debt does not fall below a specified minimum.Asset for asset swap 
• Creditors exchange the debt of one defaulting borrower for the debt of 
another defaulting borrower.Asset pricing model 
• A model, such as the Capital Asset Pricing Model
(CAPM), thatdetermines the required rate of return on a particular asset.Asset substitution 
• A firm's investing in assets that are riskier than those that the debt
• Arises when the stockholders substitute riskier assets for the firm's
existing assets and expropriate value from the debt holders.

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