Secured Loans
Financial assets
Claims on real assets.
Financial control
The management of a firms costs and expenses in order to control them in
relation to budgeted amounts.
Financial distress
Events preceding and including bankruptcy, such as violation of loan contracts.
Financial distress costs
Legal and administrative costs of liquidation or reorganization. Also includes
implied costs associated with impaired ability to do business (indirect costs).
Financial engineering
Combining or dividing existing instruments to create new financial products.
Financial future
A contract entered into now that provides for the delivery of a specified asset in
exchange for the selling price at some specified future date.
Financial intermediaries
Institutions that provide the market function of matching borrowers and lenders or
traders.
Financial lease
Long-term, non-cancelable lease.
Financial leverage
Use of debt to increase the expected return on equity. Financial leverage is
measured by the ratio of debt to debt plus equity.
Financial leverage clientele
A group of investors who have a preference for investing in firms that adhere to a
particular financial leverage policy.
