Stephen A. Ross,
Massachusetts Institute of Technology
Randolph W. Westerfield,
University of Southern California
Bradford D. Jordan,
University of Kentucky
Gordon S. Roberts,
York University
| Agency Problem | The possibility of conflicts of interest between the stockholders and management of a firm.
(See Refer to page 11)
|
 |
|
|
| Capital Budgeting | The process of planning and managing a firm's investment in fixed assets.
(See Refer to page 4)
|
|
|
|
| Capital Markets | Financial markets where long-term debt and equity securities are bought and sold.
(See Refer to page 17)
|
|
|
|
| Capital Structure | The mix of debt and equity maintained by a firm.
(See Refer to page 5)
|
|
|
|
| Corporation | A business created as a distinct legal entity owned by one or more individuals or entities.
(See Refer to page 7)
|
|
|
|
| Demutualization | The legal process of a life insurance company shifting from mutual ownership by policyholders to shareholder ownership.
(See Refer to page 22)
|
|
|
|
| Derivative Securities | Securities whose returns depend on the price of an underlying asset and that allow market participants to offset the exposure of their cash market positions.
(See Refer to page 22, 801)
|
|
|
|
| Financial Engineering | Creation of new securities or financial processes.
(See Refer to page 21)
|
|
|
|
| Money Markets | Financial markets where short-term debt securities are bought and sold.
(See Refer to page 17)
|
|
|
|
| Partnership | A business formed by two or more co-owners.
(See Refer to page 6)
|
|
|
|
| Regulatory Dialectic | The pressures financial institutions and regulatory bodies exert on each other.
(See Refer to page 22)
|
|
|
|
| Sole Proprietorship | A business owned by a single individual.
(See Refer to page 6)
|
|
|
|
| Stakeholder | Anyone who potentially has a claim on a firm.
(See Refer to page 14)
|
|
|
|
| Working Capital Management | Planning and managing the firm's current assets and liabilities.
(See Refer to page 5)
|
2002 McGraw-Hill Higher Education