Page 689 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

674 The Complete Guide to Executive Compensation

currency Paper money and coins that are a country’s medium of exchange.
current assets Cash and those assets that can be converted to cash within a year.
current liabilities Debts expected to be paid within the business year.
current ratio Current assets divided by current liabilities.
current-value accounting See fair-value accounting.
cyclical stocks Common stocks that move in the direction of change with sector business cycle.

day care programs See childcare program.
day trader A short-term investor who attempts to capitalize on daily changes in stock price, closing
out the account at the end of each day with an online broker.
DCF See discounted cash flow.
dead cat bounce A brief rise in the price of a stock before it falls dramatically.
dead hand When only ousted directors could approve takeover bids.
death benefit The amount paid to the beneficiary upon death of the insured person.
debenture A bond backed by the company’s general credit (rather than a lien against specific assets).
A convertible debenture is a bond issued by the company that permits the holder to convert it into shares
of common stock at specified terms (e.g., dates and prices).
debt The amount owed by the company that must be paid at some time in the future. Typically, it is
described in terms of short term (portion due within a year) and long term (portion to be paid in more
than a year from the date of this balance sheet).
debt to assets ratio See debt to capital ratio.
debt to capital ratio Total liabilities divided by total assets
debt to equity ratio Long-term debt divided by shareholder equity.
debt to service ratio The organization’s borrowing divided into its equity.
decentralization The movement of authority and responsibility down through the organization by
delegation of top management.
decentralized See decentralization.
decile One-tenth.
decline stage The fourth and final stage in the market lifecycle. Revenues are declining and the
company either returns the company to an earlier market stage or faces eventual bankruptcy.
deductible Amount subtracted before payment.
deductible formula See shareholder protection formula.
deed Certificate of land ownership.
default Loss of a right due to nonperformance of obligation, such as when a company does not pay
the interest and/or the principal due on its debt.
defensive portfolio Short-term securities unlikely to change much in value.
deferral stock option Exercise price of the stock option is adjusted in relation to amount of compen-
sation benefit plan.
deferred compensation Pay that is paid at a later date than when earned. Deferrals may be volun-
tary or involuntary. The latter includes a wide variety of retirement programs.
deferred compensation plan A plan describing the conditions and benefits for deferring payment to
a future point in time.
deferred income Earned pay deferred to a later date for receipt.