175) Prospectus: A Prospectus is a formal legal document that is required by and filed with the

Securities and Exchange Commission (SEC) that provides details about an investment offering
for sale to the public.

176) Industry life cycle: The industry lifecycle traces the evolution of a given industry based on
the business characteristics commonly displayed in each phase. An industry lifecycle is broken
into five separate phases: Early stages phase, innovation phase, cost/shakeout phase, maturity
phase and decline phase.

178) Invoice price: Invoice price (sometimes referred to as "dealer cost") is the price that
appears on the invoice that the manufacturer sends to the dealer when the dealer receives a car
from the factory. This includes freight, destination or delivery charges.

179) Insolvency: Insolvency can be defined as the situation in which any organization or
individual is unable to meet its short-term or immediate debt obligations

180) Income statement: An income statement is a financial statement that reports a company's
financial performance over a specific accounting period.

181) IRR (Internal Rate of Return): Internal rate of return (IRR) is the interest rate at which
the net present value of all the cash flows (both positive and negative) from a project or
investment equal zero.

182) Indenture: An indenture is a legal contract that reflects or covers a debt or purchase
obligation. It specifically refers to two types of practices: in historical usage, an indentured
servant status, and in modern usage, it is an instrument used for commercial debt or real estate
transaction.

183) Inventory management: Inventory management is the supervision of non-capitalized

assets (inventory) and stock items. A component of supply chain management, inventory
management supervises the flow of goods from manufacturers to warehouses and from these
facilities to point of sale.

184) Junk bond: A high-risk, high-yield bond used to finance mergers, leveraged buyouts, and
troubled companies.

185) January effect: The January effect is a seasonal increase in stock prices during the month
of January.

186) Just-in-time system : Just-in-time (JIT) is an inventory strategy companies employ to

increase efficiency and decrease waste by receiving goods only as they are needed in the
production process, thereby reducing inventory costs. This method requires producers to forecast
demand accurately.

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187) Joint venture: A joint venture (JV) is a business arrangement in which two or more parties
agree to pool their resources for the purpose of accomplishing a specific task. This task can be a
new project or any other business activity

188) Keyman indemnification: Key employee or keyman is a term used specifically for an
important employee or executive who is core to the operation of the business and his death,
disability or absence could prove to be disastrous for the company or organization.

189) Liabilities: A liability is a company's financial debt or obligations that arise during the
course of its business operations.

190) LIFO, FIFO:

LIFO: LIFO is the acronym for last-in, meaning that the most recently produced items are
recorded as sold first.

FIFO: "FIFO" stands for first-in, first-out, meaning that the oldest inventory items are recorded
as sold first but do not necessarily mean that the exact oldest physical object has been tracked
and sold.

191) Liquidity: Liquidity is the term used to describe how easy it is to convert assets to cash. In
simpler terms, liquidity is to get your money whenever you need it. The most liquid asset, and
what everything else is compared to, is cash.

192) Leasing: The hiring out by one firm (the lessor) of an ASSET such as a factory building,
piece of machinery or vehicle to another firm (the lessee) in return for the payment of an agreed
rental.

193) Line of credit: A line of credit (LOC) is an arrangement between a financial institution,
usually a bank, and a customer, that established the maximum amount of a loan that the customer
can borrow.

194) Life cycle: A life cycle is defined as the developmental stages that occur during an
organism's lifetime. A life cycle ends when an organism dies.

195) Life insurance company: Life insurance company is a Financial intermediary (the insurer)
that shares the financial risk of untimely death of its policy holder (the insured). In exchange for
premium payments, the insurance company provides a lump-sum payment, known as a death
benefit, to beneficiaries upon the insured's death.

196) Lockbox agreement: Lockbox Agreement means that certain Lockbox Agreement dated as
of the date hereof, among Lender, the Borrower and the Lockbox Agent.

197) Liquid asset: The term liquid assets refers to cash on hand, or other assets that can easily
be converted into cash without losing much of the original value.

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198) Long term debt: long term debt refers to debt instruments with maturities greater than one
year. Owner of such debt generally receive periodic payments of interest.

199) Liquidity risk: Liquidity risk is the risk that a company or bank may be unable to meet
short term financial demands. This usually occurs due to the inability to convert a security or
hard asset to cash without a loss of capital and/or income in the process.

200) Market risk: The part of a security’s risk associated with economy, or market, factors that
systematically affect firms. It cannot be eliminated bby diversification.

201) Mutual fund: A mutual fund is an investment vehicle made up of a pool of moneys
collected from many investors for the purpose of investing in securities such as stocks, bonds,
money market instruments and other assets.

202) Market order: A market order is a buy or sell order to be executed immediately at
current market prices. As long as there are willing sellers and buyers, market orders are filled.

203) margin call: A margin call is a broker's demand on an investor using margin to deposit
additional money or securities so that the margin account is brought up to the minimum
maintenance margin.

204) Market price: The market price is the current price at which an asset or service can be
bought or sold. Economic theory contends that the market price converges at a point where the
forces of supply and demand meet.

205) Merger: A merger usually involves combining two companies into a single larger
company. The combination of the two companies involves a transfer of ownership, either
through a stock swap or a cash payment between the two companies.

206) Mortgage: A mortgage is a form of debt that finances investment in property. The debt is
secured by the property, so if the property owner does not meet payment obligations, the creditor
can seize the property. Financial institutions such as savings institutions and mortgage
companies serve as intermediaries originating mortgages.

207) MM Theory: The Modigliani-Miller theorem (M&M) states that the market value of a
company is calculated using its earning power and the risk of its underlying assets and is
independent of the way it finances investments or distributes dividends.

208) Net income: Net income is a company’s total earnings or profit. Net income is calculated
by taking revenue and subtracting the cost of doing business such as depreciation, interest, taxes
and other expenses.

209) Net float: The difference between disbursement float and collection float; the difference
between the balance shown in the checkbook and the balance shown on the bank’s books.

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210) NPV(Net Present Value): The present value of an asset’s future cash flows minus its
purchase price (initial investment).

211) Nominal rate: The rate of interest on a security that is free of all risks.

212) Nasdaq: The computerized trading network used by NASD Automated Quotation system
or Nasdaq and The Wall Street Journal and other newspapers provide information on Nasdaq and
transactions.

213) Off balance sheet activities: Activities in which the assets and liabilities involved do not
appear on the firm’s balance sheet

214) Opportunity cost: The return on best alternative use of an asset; the highest return that will
not be earned if funds are invested in a particular project.

215) Over the counter market: The collection of brokers and dealers, connected electronically
by the telephones or computers, that provides for trading in securities not listed on the physical
stock exchange.

216) Open Market Operations: Open market operations is when the Central Bank buys or
sells securities, such as Treasury notes or mortgage-backed securities, from its member banks.
This is the major tool the Central Bank uses to raise or lower interest rates.

217) Raw Materials: Raw materials are materials or substances used in the primary
production or manufacturing of goods. Raw materials are often referred to as commodities,
which are bought and sold on commodities exchanges worldwide.

218) Risk Free Rate Of Return: The nominal, or quoted, risk free rate, rRF, is the interest rate on
a security that has absolutely no risk at all-that is, one that has a guaranteed outcome in the
future, regardless of the market conditions.

219) Return On Equity (ROE): Return on equity (ROE) is the amount of net income returned
as a percentage of shareholders equity. Return on equity measures a corporation's profitability by
revealing how much profit a company generates with the money shareholders have invested.

220) Receivables Collection Period: A receivables collection period is a measure of cash flow
that is calculated by dividing average receivables by credit sales per day.

223) Return On Total Assets: The return on total assets (ROTA) is a ratio that measures a
company's earnings before interest and taxes (EBIT) against its total net assets. The ratio is
considered to be an indicator of how effectively a company is using its assets to generate
earnings before contractual obligations must be paid.

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224) Risk Premium (RP): The portion of the expected return that can be attributed to the
additional risk of an investment. It is the difference between the expected rate of return on a
given risky asset and the expected rate of return on a less risky asset.

225) Risk: Risk implies future uncertainty about deviation from expected earnings or expected
outcome. Risk measures the uncertainty that an investor is willing to take to realize a gain from
an investment.

226) Required rate of return: The required rate of return (RRR) is the minimum annual
percentage earned by an investment that will induce individuals or companies to put money into
a particular security or project. The RRR is used in both equity valuation and in corporate
finance.

227) Red-line method: The red line method is the technique for inventory control, as is the two
bin method. In the red line method, a line is drawn around the inside of the bin at the level of the
reorder point of the inventory clerk places as order when the red line shows.

228) Recession: A recession is when the economy declines significantly for at least six months.
That means there's a drop in the following five economic indicators: real GDP, income,
employment, manufacturing and retail sales.

229) Ratio analysis: Ratio Analysis is a form of Financial Statement Analysis that is used to
obtain a quick indication of a firm's financial performance in several key areas.

230) Outsourcing: Outsourcing is a business practice used by companies to reduce costs or

improve efficiency by shifting tasks, operations, jobs or processes to an external contracted third
party for a significant period of time.

231) P/E: The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that
measures its current share price relative to its per-share earnings.

232) par value: Par value is the face value of a bond. It is the principal amount that the lender
(investor) is lending to the borrower (issuer).

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