What Is the Adjusted Exercise Price? The adjusted exercise price is an option contract’s strike price after adjustments have been made for corporate actions such as stock splits or special dividends made to its underlying security. Any time that changes occur to the securities on which options are written, the strike price and delivery quantity
What Is Adjusted Gross Estate? The adjusted gross estate is the net worth of a deceased person’s estate after deducting the cost of any outstanding debts and administrative costs. Key Takeaways Adjusted gross estate is the net worth of a deceased person’s estate outstanding debts and administrative costs.Taxes are levied on the adjusted gross estate
What Is the Adjusted Net Asset Method? The adjusted net asset method is a business valuation technique that changes the stated values of a company’s assets and liabilities to reflect its estimated current fair market values better. By adjusting asset or liability values up or down, the net effect offers values that can be used
What Is Adjusted Net Worth? Adjusted net worth calculates the value of an insurance company, using capital values, surplus values, and an estimated value for business on the company’s books. It starts with the estimated value for the business and adds unrealized capital gains, the capital surplus, and the voluntary reserves. Key Takeaways Adjusted net worth is a
What Is Adjusted Underwriting Profit? Adjusted underwriting profit is the profit that an insurance company earns after paying out insurance claims and expenses. Insurance companies earn revenue by underwriting new insurance policies and earning income on their financial investments. Subtracted from this revenue are expenses associated with running the business and payments on any claims that are made by
Who is an Adjuster An adjuster is an insurance claims agent. A claims adjuster is charged with evaluating an insurance claim to determine the insurance company’s liability under the terms of an owner’s policy. Understanding Adjuster There are different types of adjusters. They may represent the insurance company, they may be hired by the claimant
What Is an Adjusting Journal Entry? An adjusting journal entry is an entry in a company’s general ledger that occurs at the end of an accounting period to record any unrecognized income or expenses for the period. When a transaction is started in one accounting period and ended in a later period, an adjusting journal
What is Adjustment Bond? Adjustment bond is a new security issued for the outstanding debt of a corporation facing bankruptcy that needs to recapitalize its debt structure. Understanding Adjustment Bond An adjustment bond is issued by a corporation when it restructures its debts to cope with financial difficulties or potential bankruptcy. During restructuring, holders of existing
What Is an Adjustment Bureau? An adjustment bureau is an organization that focuses on helping businesses to collect outstanding debts from delinquent debtors. Adjustment bureaus are also known as collection agencies. Most adjustment bureaus earn a percentage of the outstanding debt upon successful collection. An adjustment bureau is not a loan agency or a debt
What Is an Adjustment Credit? The term adjustment credit refers to a short-term loan extended by a Federal Reserve Bank to a smaller commercial bank when it needs to maintain its reserve requirements and support short-term lending. Adjustment credits are a common form of borrowing between commercial banks and Federal Reserve Banks. A commercial bank
