Bad Debt Expense
What is a 'Bad Debt Expense' Bad debt expense represents the amount of uncollectible accounts receivable that occurs in a given period. Bad debt expense occurs as a result of a customer being unable to fulfill its obligation to pay an outstanding debt due to bankruptcy or other financial problems. This expense is the cost of a...
Earnings Credit Rate (ECR)
Earnings Credit Rate (ECR) What is 'Earnings Credit Rate - ECR' A daily calculation of interest paid on idle funds that reduce bank service charges. A calculated amount is then used to pay for banking fees. Therefore, customers with larger deposits and balances tend to pay lower bank fees for their accounts. The rate paid is often...
Kijun Line
What is 'Kijun Line' The mid-point between the highest high and lowest low of a particular security. The kijun line, also called kijun-sen, is the base line used specifically in ichimoku kinko hyo (or ichimoku cloud) candlestick charts. It is one of two moving average lines displayed in the chart, and is a 26-period moving average. (The...
Oil Initially In Place (OIIP)
What is 'Oil Initially In Place - OIIP' The amount of crude first estimated to be in a reservoir. Oil initially in place differs from oil reserves, as OIIP refers to the total amount of oil that is potentially in a reservoir and not the amount of oil that can be recovered. Calculating OIIP requires engineers to...
Kijun-Sen
What is 'Kijun-Sen' The Kijun-Sen is a major indicator line and component of the Ichimoku Kinko Hyo indicator, also known as the Ichimoku cloud. It is generally used as a metric for medium-term momentum. The Kijun-Sen line calculation utilizes the following formula: Explaining 'Kijun-Sen' The Kijun-Sen is almost always used, specifically, in combination with the...
Imputed Interest
What is an 'Imputed Interest' Imputed interest is used by the Internal Revenue Service (IRS) as a means of collecting tax revenues on loans or securities that pay little or no interest. Imputed interest is important for discount bonds, such as zero-coupon bonds, and other securities that are sold below face value and mature at par. The...
Offering Price
DefinitionAsk price, also called offer price, offer, asking price, or simply ask, is the price a seller states they will accept. Offering Price What is an 'Offering Price' An offering price is the price at which publicly issued securities are made available for purchase by the investment bank underwriting the issue. A security's offering price includes the...
Offering
What is 'Offering' The issue or sale of a security by a company. It is often used in reference to an initial public offering (IPO) when a company's stock is made available for purchase by the public but it can also be used in the context of a bond issue. Explaining 'Offering' Usually, a...
Offshore Mutual Fund
What is 'Offshore Mutual Fund' A mutual fund that is based in an offshore jurisdiction, which is generally considered to be outside the United States. The term is often used, perhaps incorrectly, to describe a fund that is not in a high-tax country. Explaining 'Offshore Mutual Fund' Always be careful when investing...
Time Value of Money
DefinitionThe time value of money is the greater benefit of receiving money now rather than later. It is founded on time preference. Time Value of Money Time value of money is a concept according to which the value money present at the current time is worth more than how much the same amount of money will be worth in...