What Is Trailing Price-To-Earnings? Trailing price-to-earnings (P/E) is a relative valuation multiple that is based on the last 12 months of actual earnings. It is calculated by taking the current stock price and dividing it by the trailing earnings per share (EPS) for the past 12 months. Trailing P/E can be contrasted with the forward P/E
What Are Tranches? Tranches are segments created from a pool of securities—usually debt instruments such as bonds or mortgages—that are divvied up by risk, time to maturity, or other characteristics in order to be marketable to different investors. Each portion or tranche of a securitized or structured product is one of several related securities offered
What is a Transaction Authentication Number (TAN) A transaction authentication number is a one-time code used in the processing of online transactions. A transaction authorization number (TAN) represents an additional layer of security beyond a password to securely log into an account or conduct a transaction. BREAKING DOWN Transaction Authentication Number (TAN) Transaction authentication numbers (TANs)
What Are Transaction Costs? Transaction costs are expenses incurred when buying or selling a good or service. Transaction costs represent the labor required to bring a good or service to market, giving rise to entire industries dedicated to facilitating exchanges. In a financial sense, transaction costs include brokers’ commissions and spreads, which are the differences
What Is a Transaction Date? A transaction date is a date upon which a trade takes place for a security or other financial instrument. The transaction date represents the time at which ownership officially transfers. In banking, the date a transaction appears in the account is also referred to as the transaction date, although it
What Is a Trade Deficit? A trade deficit occurs when a country’s imports exceed its exports during a given time period. It is also referred to as a negative balance of trade (BOT). The balance can be calculated on different categories of transactions: goods (a.k.a., “merchandise”), services, goods and services. Balances are also calculated for
What Is Trade Credit? Trade credit is a business-to-business (B2B) agreement in which a customer can purchase goods without paying cash up front, and paying the supplier at a later scheduled date. Usually, businesses that operate with trade credits will give buyers 30, 60, or 90 days to pay, with the transaction recorded through an invoice.
What Is the Trade Date? The trade date is the month, day, and year that an order is executed in the market. It catalogs when an order to purchase, sell, or otherwise transact in a security is performed and is determined for all types of investment security transactions in the market. Key Takeaways A trade
What is Trade Date Accounting Trade date accounting is an accounting method company accountants and bookkeepers use to record transactions. Trade date accounting records the transaction as of the date at which an agreement has been entered (the trade date), instead of on the date the transaction has been finalized (the settlement date). However, if
What Is Trade Finance? Trade finance represents the financial instruments and products that are used by companies to facilitate international trade and commerce. Trade finance makes it possible and easier for importers and exporters to transact business through trade. Trade finance is an umbrella term meaning it covers many financial products that banks and companies utilize to
