Finance Dictionary ( daily finance terms and concepts will be added and discussed)

Long-Term Assets
On the balance sheet, the value of a company’s property, equipment and other capital assets, minus depreciation. These are usually recorded “at cost” and so do not necessarily reflect the market value of the assets.
 
Long-Term Debt
Often companies need more funds to support their activities than their profits can provide. Therefore they will borrow money and make interest payments regularly. Long-term debt describes the debt amount due after one year or more.
 
Long Term Debt-to-Capitalization
A ratio that indicates a company’s financial leverage. It is calculated by dividing long term debt by the capital available to the company. The available capital is the sum of long term debt, preferred stock and stocholders’ equity.
 
M2
A category of the money supply that includes M1 in addition to all time deposits, savings deposits, and noninstitutional Money-Market Funds.
 
M3
A category of the money supply that includes M2 in addition to all large time deposits, institutional Money-Market Funds, short-term repurchase agreements and certain other large liquid assets.
 
Make a Market
To stand ready to buy or sell a particular security as a dealer for its own account. A market maker accepts the risk of holding the security.
 
Margin Account
A brokerage account in which the broker lends the customer cash to purchase securities. The loan in the account is collateralized by the securities, and if the value of the stock drops sufficiently, the account holder will be required to deposit more cash or sell a portion of the stock
 
Margin Call
The Federal Reserve Board’s demand that a customer deposit a specified amount of money or securities when a purchase is made in a Margin Account. The amount is expressed as a percentage of the market value of the securities at the time of purchase. The deposit must be made within one payment period.
 
Margin Call
The Federal Reserve Board’s demand that a customer deposit a specified amount of money or securities when a purchase is made in a Margin Account. The amount is expressed as a percentage of the market value of the securities at the time of purchase. The deposit must be made within one payment period.
 
Margin Of Profit Ratio
Also known as the Operating Profit Ratio. A measure of a corporation’s relative profitability. It is calculated by dividing the operating profit by the net sales.
 
Margin Of Profit Ratio
Also known as the Operating Profit Ratio. A measure of a corporation’s relative profitability. It is calculated by dividing the operating profit by the net sales.
 
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