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Business Definitions Stock Split: A Term Paper

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Common exchanges are the New York Stock Exchange and American Stock Exchange. Secured bonds: A secured bond is a bond issued with the backing of collateral. A common example of a secured bond would be a mortgage bond. If the bond is defaulted on, the title of the collateral is transferred to the bondholder.

Factoring: Factoring occurs when a company sells their accounts receivable, or customer's debt, to another entity at a discount. The entity then assumes all credit risk of the account debtors, and receives the cash as these debts are settled. This process is also known as accounts receivable financing.

Trade credit: Trade credit refers to a company's open account arrangement with vendors. As the company makes purchases, the vendor debits the company's account, and bills them for this credit transaction.

Commercial paper: Commercial paper is an unsecured obligation issued by a corporation or bank to finance short-term credit needs, with typical maturity dates from two to 270 days. Generally issued by companies with high credit ratings, commercial paper investments are generally low risk.

Line of credit: A line...

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A common form of credit line is the credit card.
Retained earnings: Retained earnings are earnings not paid in dividends to shareholders, but instead reinvested into the company or used to pay debt.

Accounts Payable: Accounts payable, or AP, represents the money owed to vendors for services or purchases. AP appears on a general ledger balance sheet as a liability, and represents negative cash flow on payment.

Certificates of deposits: CD's are short or medium termed FDIC insured debts that bear interest, often offered by banks. CD's offer high rates of return, since the money deposited is tied up until the certificate matures, under penalty of early withdrawal. CD's are considered low risk investments.

Accounts receivable: Accounts receivable is money owed to a company from customers purchasing goods or services on credit., and is viewed as a current asset on GL balance sheets.

References

Investorwords.com. Retrieved Dec 7, 2006 from Investor Words. Website: http://www.investorwords.com.

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References

Investorwords.com. Retrieved Dec 7, 2006 from Investor Words. Website: http://www.investorwords.com.
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