Over 10,000 financial glossary terms...
Random Glossary Terms
Average life: Also referred to as the weighted-average life (WAL). The average number of years that each dollar of unpaid principal due on the mortgage remains outstanding. Average life is computed as the weighted-average time to the receipt of all future cash flows, using as the weights the dollar amounts of the principal paydowns.
Owner's equity: Paid-in capital plus donated capital plus retained earnings less liabilities.
Position diagram: Diagram showing the possible payoffs from a derivative investment.
Hurdle rate: The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate, the project may be accepted.
General mortgage: A type of obligation that covers all a borrower's mortgageable properties, not just one specific property.
