The term 'Settlement Date' refers to the specific date on which a transaction is finalized and the respective assets are transferred between the buyer and the seller. This term is relevant in various domains such as real estate and securities trading.
Settlement day refers to the date on which trades are officially cleared through the delivery of the securities or foreign exchange, finalizing the transaction.
A Settlement Statement is a detailed document that outlines the funds payable by each party involved in a real estate transaction, showing how these funds are distributed.
A settlor is the person in a trust relationship who creates or intentionally causes the trust to come into existence. Other terms used to designate this person include donor, trustor, and grantor.
Costs associated with establishing a new manufacturing procedure. Setup costs include design costs, acquisition and location of machinery, and employee hiring and training.
A directive approved by the European Commission in 1983 and implemented in the UK by the Companies Act 1989, which governs consolidated financial statements prepared by corporate groups. Superseded by the Company Reporting Directive of 2006.
Several liability is a legal concept in which multiple parties can be held independently responsible for their own specified obligations or debts in a contractual agreement.
Ownership of real property held individually, separate from co-owners or other entities.
Severance benefits are stipulated funds or compensation provided to employees who are terminated or laid off from a company.
Severance damages represent compensation awarded to property owners when a portion of their property is condemned and taken for public use. These damages account for the depreciation in value or inconvenience caused to the remaining property.
Severance pay is an income bridge provided by some employers for employees transitioning from employment to unemployment. The amount is negotiable and taxable in the year received.
Severe long-term restrictions impede a holding company's ability to exercise its rights over the assets or management of a subsidiary undertaking. Such restrictions are grounds for excluding a subsidiary from consolidation and treating it as a fixed-asset investment.
A sewer is a system of pipes, containment areas, and treatment facilities designed for the disposal of waste and the containment of rainwater. This infrastructure plays a crucial role in maintaining public health and environmental quality by efficiently managing sewage and stormwater.
Sex stereotyping involves attributing specific traits, behaviors, abilities, or roles to individuals based on their sex or gender. This phenomenon can manifest in various aspects of life, such as employment, credit ratings, consumer behavior, and more. It is a form of prejudice that places expectations and limitations on individuals simply because of their sex, often resulting in discrimination and unequal treatment.
Sexual harassment refers to unwelcome and often intimidating verbal or physical sexual advances. It often carries threats of employment reprisals if such advances are refused and has been defined by federal government and courts as illegal employment discrimination.
The Statement of Financial Accounting Concepts (SFAC) is a set of guidelines that provides a framework for the creation, presentation, and interpretation of financial reports prepared by the Financial Accounting Standards Board (FASB).
Shadow Advance Corporation Tax (Shadow ACT) refers to the system that applied to any unrelieved surplus Advance Corporation Tax (ACT) on 6 April 1999, when ACT was abolished. It preserved the right to carry forward surplus ACT without reducing the corporation tax liability for periods after 6 April 1999.
A shadow director is an individual whose directions, typically, the board of directors of a company follow, although this individual is not officially appointed as a director. Certain legal provisions, particularly those under the Companies Act, hold shadow directors accountable in similar ways to formally appointed directors.
The shadow price represents the change in the optimal value of the objective function for a linear programming problem per unit increase in the right-hand side of a constraint.
A shakedown is a trial run conducted before placing a procedure, application, or service into operational use. This process is employed to identify and resolve potential problems or 'bugs.'
A shakeout is a market phenomenon where weaker or marginally financed participants are eliminated due to changing market conditions. In financial markets, it often results in speculators being forced to sell their positions, typically at a loss.
A shakeup refers to a rapid and significant change in the management and structure of an organization. It is often intended to redirect the organization's path, often following a period of stress or underperformance.
A bond issued in a primary market at a price exceeding 90% of its face value, meaning the discount does not surpass 10%. Such bonds are typically seen as less risky compared to more deeply discounted bonds.
A transaction intended to create the appearance of rights and obligations different from the actual intended agreements to deceive other parties, often tax authorities.
The Shanghai Stock Exchange (SSE) is the principal stock market of the People's Republic of China, established in its contemporary form in 1990. As the fifth-largest stock exchange globally by market capitalization, it plays a crucial role in Chinese and international finance. The main indicator is the SSE Composite Index.
The Shanghai Stock Exchange (SSE) is one of the largest stock exchanges in the world, located in Shanghai, China. It plays a pivotal role in China's capital markets and offers a platform for securities trading, including stocks, bonds, and derivatives.
A Share Broker, also known as a Stock Broker, is a professional who buys and sells stocks, bonds, and other securities on behalf of clients, typically in exchange for a fee or commission. Share brokers have extensive knowledge of the financial markets and help clients make informed investment decisions.
Share capital is a crucial component of a company's finances, received from its owners or shareholders in exchange for shares. It represents the equity funding that a company relies on to conduct its operations and grow.
A share certificate is a document that provides evidence of ownership of shares in a company. It details the number and class of shares owned by the shareholder, the serial number of the shares, and usually includes signatures from at least one director and the company secretary.
A Share Incentive Plan (SIP) is a tax-advantaged share scheme introduced by the British government to encourage employee ownership in participating companies. Under such a plan, a trustee acquires and holds shares for the benefit of employees, providing significant tax advantages under predetermined conditions.
A Share Incentive Plan (SIP) is a tax-advantaged employee share scheme that allows employees to purchase or receive shares in the company they work for, promoting employee ownership and aligning their interests with shareholders.
A share incentive scheme is a program designed to reward employees with company shares upon reaching certain performance targets, fostering ownership and motivation within the workforce.
Share of market refers to the percentage of sales a company or product holds within a specific market relative to its competitors. It's a key indicator of competitive positioning and business performance.
Share of mind refers to the level of awareness or recognition that a brand has among consumers, relative to competitors. It is a critical measure in marketing that indicates how well a brand occupies the consumer's mind when they think of a specific product or service category.
A share option is a benefit often offered to employees that provides them the opportunity to purchase company shares at a favorable fixed price or discounted market rate. This guide explores the definition, examples, FAQs, related terms, and additional resources.
Share premium is the amount payable for shares in a company that is issued by the company itself, in excess of their nominal value. The premium received must be credited to a share premium account, which is restricted in use and cannot be utilized for paying dividends to shareholders.
A share premium account records the amount received by a company over and above the par value of its shares. Such balances are used for specific purposes under regulatory stipulations.
A share register, also known as a register of members, is an official record kept by a company that details the names and addresses of the shareholders and the number of shares they hold.
Share splitting involves dividing the share capital of a company into smaller units. This practice usually aims to make shares more affordable and increase their liquidity in the market.
A share transfer refers to the change in ownership of a share or stock, where the process is carried out electronically in modern brokerage systems.
A share warrant is a financial instrument that gives the holder the right, but not the obligation, to purchase company stock at a specified price before a warrant expiration date.
A share-based payment transaction involves the consideration for goods or services paid in equity instruments (like shares or share options) or payment based on their value. These can be equity-settled, cash-settled, or offer a choice between equity and cash, as per certain financial standards.
A sharecropper is a tenant farmer who works the land for the owner of the property. Sharecroppers traditionally receive seed, tools, and other necessities, often including housing, from the landlord. Sharecroppers are usually paid a portion of the proceeds from the harvested crop.
A Shared-Appreciation Mortgage (SAM) is a residential loan characterized by a fixed interest rate set below market rates. The lender is entitled to a specified share of the appreciation in property value over a specified time interval.
A specialized home loan arrangement where the lender is granted a share of the equity in the property, allowing them to participate in the proceeds from its resale.
A shareholder, also known as a stockholder, is an individual or entity that legally owns one or more shares of stock in a public or private corporation. Shareholders are entitled to certain rights, such as voting on corporate matters and receiving dividends, if distributed.
Shareholder debt refers to the financial obligations incurred by a company to its shareholders, where interest paid on this debt is tax-deductible. It is commonly used in highly leveraged funding arrangements typically associated with private equity firms.
An approach to business planning that prioritizes maximizing the value of shares for shareholders above other business objectives.
A method for valuing the entire equity in a company, based on the net present value of future cash flows. Developed by Alfred Rappaport in the 1980s, Shareholder Value Analysis (SVA) emphasizes the time value of money and focuses on future performance rather than past accounting records.
Shareholder Value Analysis (SVA) is a financial management method that focuses on increasing the value delivered to shareholders through strategic decision-making and performance evaluation.
Shareholders' equity represents the owners' claim after subtracting total liabilities from total assets. It is a crucial metric for understanding a company’s financial health and includes components like share capital and reserves.
Benefits offered by a company to its shareholders as a reward for their loyalty. The benefits are given in addition to dividends and are tax-free.
Shares represent units of ownership in a company, conferring certain rights such as earning dividends and voting in company matters. They can differ in type, such as ordinary shares and preference shares, and their trading is subject to various regulations depending on whether the company is public or private.
Shares authorized refer to the number of shares of stock specified in a company's Articles of Incorporation, which the company is permitted to issue. This figure is displayed in the capital accounts section of a company's balance sheet and typically exceeds the shares issued and outstanding.
Shares issued at a price below their par value. The discount is the difference between the par value and the issue price. It is illegal to issue shares at a discount in the UK.
A share issued at a price above its par value is referred to as being issued at a premium. The premium is the difference between the issue price and the par value of the share.
Shares of Beneficial Interest are proof of an individual's rights and interest in the assets held in a trust or other legal entity.
Shares outstanding, also known as outstanding shares, refer to a company's issued share capital less any shares that have been repurchased by the company. This includes shares not available to the general public, such as those held by company officers or reserved under employee share incentive schemes.
An approved share option scheme established by an employer for the benefit of executives or other employees. HM Customs and Revenue has detailed rules regarding the income tax and capital gains tax chargeable to individuals benefiting from such a scheme.
The ShareSave, also known as a Savings Related Share Option Scheme (SAYE), is a tax-efficient savings plan for employees. Under this scheme, employees can save money each month for a set period and then use their savings to buy shares at a fixed price that was set at the beginning of the savings contract.
Shareware is a type of software distribution model that allows users to try the software before purchasing it.
Shark repellent is a measure undertaken by a corporation to discourage unwanted takeover attempts by making the company less attractive to the potential acquirer.
A firm specializing in the early detection of takeover activities, monitoring trading patterns in a client's stock to identify parties accumulating shares.
An inquiry set up by the Financial Reporting Council (FRC) in 2011 to examine the reporting of liquidity risk and other factors that may threaten the viability of an entity as a going concern, triggered by the financial crisis of 2007-08.
Shekels refer to the ancient and modern form of money originally used in ancient Mesopotamian regions and later recognized as the monetary unit of Israel.
A shell company is a non-trading entity often used for various company maneuvers, including future business activities, tax advantages, or simplified company registration.
A shell corporation is a company that is incorporated but has no significant assets or operations. It may serve legitimate purposes, such as obtaining financing, but can also be used in fraudulent schemes.
The Sherman Antitrust Act of 1890 was the first federal act that outlawed monopolistic business practices. Its purpose was to promote economic fairness and competitiveness and to curb concentrations of power that interfere with trade and reduce economic competition.
A shift is the designated period during which an employee is assigned to work, typically lasting eight hours with additional time allotted for breaks or a meal period.
Extra compensation paid as inducement to accept shift work, especially during evening and midnight hours.
The concept of shifting and incidence of taxation refers to the determination of the economic entity that ultimately bears the tax burden. Certain taxes can be transferred to consumers through price adjustments, while others are absorbed by businesses.
A comprehensive term that can refer to various business-related areas, ranging from retail establishments and production floors to brokerage offices and unionized workforces.
A union member elected by their peers to represent them in dealing with management regarding grievances and other workplace issues.
A comprehensive overview of what a 'shopper' signifies, both as a potential customer and as locally distributed newspapers that focus on advertising local businesses and offers.
A shopping center is a collection of retail stores organized around a common parking area and often featuring key large stores, such as department stores, discount stores, or food stores. This term can also include enclosed malls or walkways.
Consumer products that require considerable time, concentration, and research to make an informed judgment about their relative merits and price.
Shopping services facilitate product acquisition through representative comparisons or dedicated channels, aiding consumers in securing competitive prices or discounts.
A short bond, also known as a short-term bond, refers to a bond with a short maturity period, generally meaning one year or less. These bonds are often classified as current liabilities under the accounting definition of short-term debt.
Short covering is the process by which a short seller purchases securities in the open market to repay the borrowed securities originally sold short. It is an essential action taken to mitigate potential losses or lock in profits.
In various contexts, a short form is an instrument or document that serves as a reference or a simplified version of a longer, more complex document.
Short interest represents the total number of shares of a stock that have been sold short but have not yet been repurchased or closed out. It provides insight into potential market sentiment and investor speculation.
A position held by a dealer in securities, commodities, currencies, etc., where sales exceed holdings because the dealer expects prices to fall, enabling the shorts to be covered at a profit. Contrasts with a long position.
The short run is a period of time long enough for existing firms in an industry to increase production in reaction to changing economic conditions, but not long enough to allow them to increase capacity or for new firms to enter the industry.
A short sale can refer to both an arrangement within financial markets involving the sale of securities, as well as an arrangement between a mortgagor and mortgagee involving a real estate transaction.
Short selling is a trading strategy where an investor borrows shares and sells them on the open market, planning to buy them back later for less money.
A short squeeze occurs when many traders with short positions are forced to buy stocks or commodities to cover their positions and prevent losses, leading to a sudden surge in buying and even higher prices.
The term 'short term' refers to various financial concepts that involve a period of one year or less. This includes assets, liabilities, investments, and taxation definitions.
A tax year that is less than 12 months, usually applicable to start-up companies or businesses that are terminating.
A standard auditors' report in the USA that conforms to the short-form reporting requirements of the Securities and Exchange Commission and the American Institute of Certified Public Accountants. The report is generally divided into two paragraphs: one outlining what the auditor has done and the other detailing the findings.
The short-sale rule, often known as the plus-tick rule, was a regulation enforced by the Securities and Exchange Commission (SEC) requiring that short sales be made only in a rising market. This rule aimed to prevent the manipulation and excessive downward pressure on stock prices.
For tax purposes, a short-term capital gain (loss) is the profit (loss) realized from the sale of securities or other capital assets not held long enough to qualify for a long-term capital gain (loss).
Short-term debt, also known as short-term liabilities, refers to debt obligations that are due for payment within one year from the date of the balance sheet. These are recorded under current liabilities, showcasing the financial obligations a company needs to settle in the near term.
A short-term note issuance facility (SNIF) is a financing arrangement through which an institution can issue short-term notes to investors. This facility provides liquidity and flexibility for the issuing entity to meet its short-term funding needs.
Short-termism refers to policies and practices aimed at maximizing current profits rather than promoting long-term development and wealth creation. It can have significant negative implications on research and development, stakeholder interests, and overall company stability.
A 'shortfall' occurs when the amount of something, such as revenue or contributions, is smaller than what was planned or budgeted for, leading to a deficit.
Shrinkage refers to the difference between the actual physical inventory and the amount that should be on hand according to the book inventory, as well as weight loss experienced in various contexts such as natural grain drying and commodity processing.
Shrinkwrap is a clear plastic coating that covers the boxes in which commercial software is sold, usually serving as an indication that the software is genuine and untampered. It is a significant aspect of retail software distribution.
A production stoppage caused by various factors such as equipment installation or breakdown, shortage of work orders, lack of materials or skilled labor, and other disruptions.
The shutdown point represents the output price level at which a firm's revenues exactly cover fixed costs. Below this price level, a firm's losses would be minimized by ceasing operations as continued production would generate greater losses.
The term 'shyster' refers to an unscrupulous business person, often in the legal profession, who engages in deceptive or unethical practices. Shysters exploit their knowledge and authority to manipulate others for personal gain.
