• Is the designation that an order has been canceled by the customer prior to its completion or partial execution.

 Embedded terms in definition
 Referenced Terms
 12b 1 funds: Mutual funds that do not charge an upfront or back-end commission, but instead take Out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12b-I (passed in 1980).

 Activities of daily living: ADLs
Activities of Daily Living are terms used in long term care insurance policies or programs to specify someone s ability to function independently. ADLs usually include eating, dressing, bathing, transferring in & Out of bed, and using the toilet, though some definitions are more liberal than others. LTC insurance policies often base eligibility for benefits on inability to perform 2 or 3 ADLs.

 Adverse selection problem: Banks have to be aware of a particular type of borrowers. Some borrowers will have hidden negative information not available to the bank. As the bank demands a higher interest rate, borrowers with safe projects will drop Out. Hence, the fraction of borrowers with risky projects will depend on the interest rate. The higher the interest rate, the higher risk will be the pool of applicants. This is called the adverse selection problem.

 Average percent payout: The average of the percentage of a company's profits paid Out in dividends to shareholders, typically calculated over the last five years. A high percent payout can be a danger sign. Recent payout figures higher than 50%, and higher than the average payout, may forewarn of a dividend cut. A dividend cut would likely cause the stock price to fall. Generally, the higher the payout ratio, the lower the expected growth rate for the company's EPS in the future.
Sometimes, although the dividend payout is more than earnings, the company has strong cash flow and can cover the dividend in the short term. However, a company paying out dividends in excess of earnings on a recurring basis is a risky investment.

 B/d: Is a Broker/Dealer or securities firm. Also, refers to Barrels per Day. This measures the flow of oil Out of a field or production at a refinery or other facility.

 Related Terms

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