Relationship and Resource Management in Operations
This text explains in practical terms the importance of the business relationships with internal and external counterparts while demonstrating how things can go wrong and what causes the situation.
TABLE OF CONTENTS Relationship and Resource Management in Operations
A-B
- AAA
- The highest credit rating for a company or asset the risk of default is negligible.
- Accrued interest
- Interest due on a bond or other fixed income security that must be paid by the buyer of a security to its seller. Usual compensation: coupon rate of interest times elapsed days from prior interest payment date (i.e. coupon date) up to but not including settlement date.
- Actual settlement date
- Date the transaction effectively settles in the clearing house (exchange of securities eventually against cash).
- Add-on
- In capital adequacy calculations, the extra capital required to allow for the possibility of a deal moving into profit before a markto-market calculation is next made.
- Affirmation
- Affirmation refers to the counterparty s agreement with the terms of the trade as communicated.
- Agent
- One who executes orders for or otherwise acts on behalf of another (the principal) and is subject to its control and authority. The agent takes no financial risk and may receive a fee or commission.
- Agent bank
- A commercial bank that provides services as per their instructions.
- Allocation (give up)
- The process of moving the trade from the executing broker to the clearing broker in exchange-traded derivatives.
- Amortization
- Accounting procedure that gradually reduces the cost value of a limited life asset or intangible asset through periodic charges to income. The purpose of amortization is to reflect the resale or redemption value. Amortization also refers to the reduction of debt by regular payments of interest and principal to pay off a loan...
Copyright David Loader 2002 under license agreement with Books24x7
