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Definition: The increase that a buyout of another company will have on the acquiring company’s earnings per share.

Definition: The annual amount of money earned by the owner of a bond because he bought it for less than its original (ie, face) value but will receive the face value when the bond’s term is over (ie: the maturity date arrives).

Definition: The number of times each year that customers are billed by a company, pay those bills, and then are billed again.  The formula: Sales / Ending Accounts Receivable.

Definition: A process a bank account owner takes to make sure that what it believes is in the account is the same as what the bank believes is in the bank account.

Definition: A depreciation method that allows the recording of depreciation in excess of the amount that would be recorded under the straight-line depreciation method.

Definition: Standing for Accelerated Cost Recovery System, a law that allows depreciation of equipment (and other assets) in the early years of its life to be larger than it would be under the straight-line method. This lowers a company’s income taxes. ACRS was introduced 1981, modified in 1984, and superceded by the Modified Accelerated Cost

Definition: The rule which says that, with regard to being paid back, lenders and creditors to a corporation get in line ahead of shareholders in the unfortunate event that a company goes out of business. Lenders and creditors are paid back with the money received from the sale of the company’s assets, called liquidation. Only

See: Premium bond.

Definition: The ability of a person (or business) to pay back money that is lent to him or her.

Definition: Letting an option expire because on its expiration date it has no value. Investors say that the option expired “out of the money”.