|
 |
||
 |
| This dictionary contains: 24549 financial terms |
 |
Effective margin (EM)
|
|
Effective margin (EM)The amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.
RELATED TERMS--------------------------------------
Spread
1) The gap between bid and ask prices of a stock or other security. 2) The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. 3) Difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public. 4) The price an issuer pays above a benchmark fixed-income yield to borrow money.
Margin
1) Borrowed money that is used to purchase securities, practice referred to as 'buying on margin'. 2) The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account. 3) In a general business context, the difference between a product's (or service's) selling price and the cost of production. 4) The portion of the interest rate on an adjustable-rate mortgage that is over and above the adjustment-index rate.
Income
Money received by an individual as a salary, or from investments. Cash deposits and bonds will provide income in the form of interest. Shares will, in most but not all cases, provide income in the form of twice-yearly dividends.
Interest
The amount of money a lender loans a borrower to pay for using the borrower's principal.
SIMILAR TERMS--------------------------------------
Effective annual interest rate
An annual measure of the time value of money that fully reflects the effects of compounding.
Effective annual yield
Annualized interest rate on a security computed using compound interest techniques.
Effective call price
The strike price in a market redemption provision plus the accrued interest to the redemption date.
Effective convexity
The convexity of a bond calculated using cash flows that change with yields.
Effective date
In an interest rate swap, the date the swap begins accruing interest.
Effective debt
The total debt owed by a firm to its creditors.
Effective duration
The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option.
Effective interest rate
The annual rate at which an investment grows in value when interest is credited more often than once a year.
Effective net worth
Net worth plus subordinated debt.
Effective rate
A measure of the time value of money that fully reflects the effects of compounding.
Effective sale
A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference between the last round-lot price and the odd-lot price is the odd-lot differential.
Effective spread
The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price.
Effective tax rate
The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.
Effective yield
Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern.
PREVIOUS AND NEXT TERMS--------------------------------------
Effective convexity
The convexity of a bond calculated using cash flows that change with yields.
Effective date
In an interest rate swap, the date the swap begins accruing interest.
Effective debt
The total debt owed by a firm to its creditors.
Effective duration
The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option.
Effective interest rate
The annual rate at which an investment grows in value when interest is credited more often than once a year.
Effective margin (EM)
Effective net worth
Net worth plus subordinated debt.
Effective rate
A measure of the time value of money that fully reflects the effects of compounding.
Effective sale
A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference between the last round-lot price and the odd-lot price is the odd-lot differential.
Effective spread
The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price.
Effective tax rate
The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.
RELATED TERMS--------------------------------------
Spread
1) The gap between bid and ask prices of a stock or other security. 2) The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. 3) Difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public. 4) The price an issuer pays above a benchmark fixed-income yield to borrow money.
Margin
1) Borrowed money that is used to purchase securities, practice referred to as 'buying on margin'. 2) The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account. 3) In a general business context, the difference between a product's (or service's) selling price and the cost of production. 4) The portion of the interest rate on an adjustable-rate mortgage that is over and above the adjustment-index rate.
Income
Money received by an individual as a salary, or from investments. Cash deposits and bonds will provide income in the form of interest. Shares will, in most but not all cases, provide income in the form of twice-yearly dividends.
Interest
The amount of money a lender loans a borrower to pay for using the borrower's principal.
SIMILAR TERMS--------------------------------------
Effective annual interest rate
An annual measure of the time value of money that fully reflects the effects of compounding.
Effective annual yield
Annualized interest rate on a security computed using compound interest techniques.
Effective call price
The strike price in a market redemption provision plus the accrued interest to the redemption date.
Effective convexity
The convexity of a bond calculated using cash flows that change with yields.
Effective date
In an interest rate swap, the date the swap begins accruing interest.
Effective debt
The total debt owed by a firm to its creditors.
Effective duration
The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option.
Effective interest rate
The annual rate at which an investment grows in value when interest is credited more often than once a year.
Effective net worth
Net worth plus subordinated debt.
Effective rate
A measure of the time value of money that fully reflects the effects of compounding.
Effective sale
A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference between the last round-lot price and the odd-lot price is the odd-lot differential.
Effective spread
The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price.
Effective tax rate
The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.
Effective yield
Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern.
PREVIOUS AND NEXT TERMS--------------------------------------
Effective convexity
The convexity of a bond calculated using cash flows that change with yields.
Effective date
In an interest rate swap, the date the swap begins accruing interest.
Effective debt
The total debt owed by a firm to its creditors.
Effective duration
The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option.
Effective interest rate
The annual rate at which an investment grows in value when interest is credited more often than once a year.
Effective margin (EM)
Effective net worth
Net worth plus subordinated debt.
Effective rate
A measure of the time value of money that fully reflects the effects of compounding.
Effective sale
A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference between the last round-lot price and the odd-lot price is the odd-lot differential.
Effective spread
The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price.
Effective tax rate
The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.
We thank you for using the Financial Dictionary to search for Effective margin (EM). If you have a better definition for Effective margin (EM) than the one presented here, please let us know by making use of the suggest a term option. This definition of Effective margin (EM) may be disputed by other professionals. Our attempt is to provide easy definitions on Effective margin (EM) and any other medical topic for the public at large.
This dictionary contains 24549 terms.
|
|