Adopted Budget Financial Glossary
What is it? Original budget given at the beginning of the fiscal year.Finance Term Definition Added By: Marissa
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Other Similar Finance Terms:
Financial Term Bargain Purchase Option is An option given to the lessee to purchase the equipment on lease at a price that is less than the expected fair market value so that, at the inception of the lease, it is reasonable to assume that the lessee will definitely purchase the equipment on the option date.Financial Term Redemption Penalty is An additional charge made by the lender if the mortgage is repaid within a pre-agreed period of time. These have become increasingly common with the growth in fixed rate and heavily discounted products. They are generally imposed to stop borrowers hopping from one lender to another simply to take advantage of the latest heavy discount or cheap fixed rate. Normally expressed as a number of months interest within a set period of years i.e. 6 months interest if redeemed within the first seven years but may also be expressed as a percentage of the mortgage debt i.e. 5% of the mortgage if redeemed within the first seven years. Careful attention should be paid to these penalties as they vary considerably from lender to lender and the lower and shorter the penalty the more attractive the deal.
Financial Term External Financing is Financing projects through new issues of securities; debt and/or equity.
Financial Term Life Insurance is A type of insurance which pays out a lump sum to your dependants if you die.
Financial Term Minorities is When a company owns a minority shareholding in another company the accounts will show the proportion of net assets and profits which are attributable to the company rather than to the shareholders of the company with the majority shareholding.