- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
- Company Profile:
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The amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future. To determine the present value, each future cash flow is multiplied by a present value factor. For example, if the opportunity cost of funds is 10%, the present value of $100 to be received in one year is $100 x [1/(1 + 0.10)] = $91.
Industry:Financial services
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A bond without any interest yield.
Industry:Financial services
Income (such as investment income) that does not come from active participation in a business. Specified by the U.S. tax code.
Industry:Financial services
Factor used to calculate an estimate of the present value of an amount to be received in a future period. If the opportunity cost of funds is 10% over next year, the factor is [1/(1 + 0.10)].
Industry:Financial services
Putting money into a profitable business opportunity that is deemed passive by the IRS and thus benefits from tax deductions.
Industry:Financial services
The ratio of the NPV of a project to the initial outlay required for it. The index is an efficiency measure for investment decisions under capital rationing.
Industry:Financial services
Buying a well diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities.
Industry:Financial services
Highest-ranking officer in a corporation after the chief executive officer
Industry:Financial services
