Obsolete Inventory
What is 'Obsolete Inventory' An obsolete inventory item is defined as inventory that has reached the end of its product life cycle and has not seen any sales or utilization for a certain length of time, which is generally stipulated by the industry in question. This form of inventory must be written down, and it might result in significant losses...
Pacific Exchange (PCX)
What is 'Pacific Exchange - PCX' An exchange network that coordinates the trading of stock options between both institutional and individual investors. The PCX was one of four U.S. exchanges to trade equity options and the first to develop and implement an electronic trading system. At one time, the PCX had operations in both Los Angeles and...
EBITA
What is 'EBITA' EBITA is an acronym for earnings before interest, taxes and amortization. To calculate a company's EBITA, start with its earnings before tax (EBT), which can be found on the income statement, and add interest and amortization expenses back in. EBITA is a variation of the more commonly used EBITDA, which deducts depreciation expenses. Both are used to gauge a...
Federal Funds Rate
Definition According to the Federal Reserve, the federal funds rate refers to the interest rate at which depository institutions lend reserve balances to other depository institutions on an uncollateralized basis overnight in the United States. Reserve balances are sums of money stored at the Federal Reserve in order to meet the reserve requirements of financial institutions such as banks and...
DCF
DCF means Discounted Cash Flow DCF is closely related to Net Cash Flow DCF focuses on long term value DCF evaluates based on future cash flow Further Reading The economics of short-term performance obsession - www.tandfonline.com Empirical Research of DCF model in Business Appraisal - en.cnki.com.cn ' target='_blank' href='https://api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-ZCPG200407004.htm'>PDF]Probabilistic DCF analysis and capital budgeting and...
CAD
What is 'CAD' What currency is CAD? CAD is the currency abbreviation or currency symbol for the Canadian dollar (CAD). The Canadian dollar is made up of 100 cents, and is often presented with the dollar sign as C$ to allow it to be distinguished from other currencies denominated in dollars, such as the U.S. Dollar (USD)....
Game Changer
What is a 'Game Changer' 1. A person who is a visionary. 2. A company that alters its business strategy and conceives an entirely new business plan. This type of company switches up and forms a new business strategy in order to compete directly or indirectly with competitors. A game changer changes the way that something is...
W-8 Form
What is a 'W-8 Form' A W-8 form is an Internal Revenue Service (IRS) form that provides foreigners with an exemption from specified U.S. information return reporting and backup withholding regulations. There are a variety of W-8 forms. Explaining 'W-8 Form' Non-resident aliens and foreign businesses that earn income from one or more U.S. sources utilize the W-8 form. Its purpose is...
ABA Bank Index
What is 'ABA Bank Index' A banking index that is made up of community banks and banking institutions. This index was created to represent the smaller institutions of the banking industry and stands in contrast to the KBW Banking Index in that respect. The ABA index trades on the Nasdaq under the symbol ABAQ. Explaining...
J Curve
What is 'J Curve' A theory stating that a country's trade deficit will worsen initially after the depreciation of its currency because higher prices on foreign imports will be greater than the reduced volume of imports. Explaining 'J Curve' The effects of the change in the price of exports compared to imports will eventually...