Exchange Chain Means Definition

Exchange Chain Means Definition

What Is the Replacement Chain Method? The replacement chain method is a capital budgeting decision model that compares two or more mutually exclusive capital proposals with unequal lives. The replacement chain method takes into consideration the different life spans of alternative plans, as well as their expected cash flows. That makes it easier to compare

Change Assets Definition

Change Assets Definition

What Is a Replacement Property? Replacement property is any property that is received in place of property that has been destroyed, lost, or stolen. Replacement property can be personal or business property and can include various types of assets, such as real estate, equipment, and vehicles. Replacement property is often insured by a casualty-insurance carrier.

Repo 105 Definition

Repo 105 Definition

What Was Repo 105? Repo 105 was a type of loophole in accounting for repurchase (repo) transactions that the now-extinguished Lehman Brothers exploited in an attempt to hide true amounts of leverage during its times of trouble during the 2007-2008 financial crisis. In this repurchase agreement, since updated to close the loophole, a company could

What Is Repricing?

What Is Repricing?

What Is Repricing? Repricing involves the exchange of worthless employee stock options for new options that have intrinsic value. This is a common practice for companies to keep or incentivize executives and other highly valued employees when the value of the company’s shares falls below the exercise price or break-even point for the options issued

Reinvestment: Definition, Examples, and Risks

Reinvestment: Definition, Examples, and Risks

What Is Reinvestment? Reinvestment is the practice of using dividends, interest, or any other form of income distribution earned in an investment to purchase additional shares or units, rather than receiving the distributions in cash. Key Takeaways Reinvestment is when income distributions received from an investment are plowed back into that investment instead of receiving cash.Reinvestment works by