Friday, Jul 30th

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Lockbox

A service offered by banks to companies in which the company receives payments by mail to a post office box and the bank picks up the payments several times a day, deposits them into the company's account, and notifies the company of the deposit. This enables the company to put the money to work as soon as it's received, but the amounts must be large in order for the value obtained to exceed the cost of the service.

Bookings

Although the term bookings has multiple meanings, in the financial sense bookings are funds that are expected to be received from customers in the near future based on accepted orders or contracts.

Cancellations, amendments and extensions can have a positive or negative impact on bookings. Bookings differ from sales, where money has been received for services or products provided. The lodging industry frequently uses bookings in their daily business, commonly classifying incoming reservations as room & asset bookings. Developing an accurate perspective on bookings is critical for effective financial management performance. Bookings must be properly accounted for or financial reports can appear grossly overstated. Public companies use bookings as a means to keep shareholders informed of future prospects and revenue targets. The term "derived bookings" is money received against previously posted bookings.

 

 

Average Directional Index - ADX

An indicator used in technical analysis as an objective value for the strength of trend. ADX is non-directional so it will quantify a trend's strength regardless of whether it is up or down. ADX is usually plotted in a chart window along with two lines known as the DMI (Directional Movement Indicators). ADX is derived from the relationship of the DMI lines.

 

Double Declining Balance Depreciation

The double declining balance depreciation method is like the straight-line method on steroids. 

Standard & Poor's 500 Index - S&P 500

An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

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