ASSET
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Asset - Anything owned by a company which has a market value. These are: CAPTIAL ASSETS, which are long-term assets not usually bought or sold; land, building, equipment, furniture and fixtures, etc.: CURRENT ASSETS like cash, accounts receivable; manufactured goods ready to be sold, and other assets which are likely to be sold within a year; deferred charge, i.e. expenditure made now for a future date, such as advance rent or insurance premia; and INTAGIBLE ASSETS, like goodwill, copyright, trademark, patents, import and export permits, leases, and distribution rights.
Asset Coverage A company’s net assets covering a debt. The concept becomes important when a company goes into liquidation. From the total book value of the assets are deducted the claims of creditors, and the ratio of what remains to the total number of preference shares represents the asset coverage for such shares. The asset coverage for equity shares is the ratio obtained after deducting all creditor’s dues and the value of he preference shares, divided by the number of equity shares. The result is also called the net book value of equity shares.
Asset Financing This converts particular assets of a company into liquid cash in exchange for a security interest to be paid to a bank or a financing company. Distinct from borrowing from banks. Usually it take the forms of loans against accounts receivable (which is an asset). But increasingly a company’s inventories and fixed assets are being mortgaged to raise loans.
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Trading Terms - A
Active Share. A-D Index or Advance-Decline Index, After-Tax , Aging Schedule, Annual General Meeting, Amortization, Annual Report , Application Money, Asset.. More
Trading Terms - B
Bad Delivery, Balance of Trade, Balance Sheet , Bear , Bear Cycle , Bear Hammering , Bear Market, BSE Sensitive Index , Bullion, Buy and Hold Strategy,.. More