Characteristic line
The market model applied to a single security. The slope of the line is a security's beta. |
Similar financial terms
Security characteristic lineA plot of the excess return on a security over the risk-free rate as a function of the excess return on the market.
Bottom line
The net profit of a company
Swingline facility
Bank borrowing facility to provide finance while the firm replaces U.S. commercial paper with eurocommercial paper.
Straight line depreciation
An equal dollar amount of depreciation in each accounting period.
Simple linear trend model
An extrapolative statistical model that asserts that earnings have a base level and grow at a constant amount each period.
Simple linear regression
A regression analysis between only two variables, one dependent and the other explanatory.
Security market line
Line representing the relationship between expected return and market risk.
Revolving line of credit
A bank line of credit on which the customer pays a commitment fee and can take down and repay funds according to his needs. Normally the line involves a firm commitment from the bank for a period of several years.
Old-line factoring
Factoring arrangement that provides collection, insurance, and finance for accounts receivable.
Mortgage-pipeline risk
The risk associated with taking applications from prospective mortgage borrowers who may opt to decline to accept a quoted mortgage rate within a certain grace period.
Mortgage pipeline
The period from the taking of applications from prospective mortgage borrowers to the marketing of the loans.
Log-linear least-squares method
A statistical technique for fitting a curve to a set of data points. One of the variables is transformed by taking its logarithm, and then a straight line is fitted to the transformed set of data points.
Linear regression
A statistical technique for fitting a straight line to a set of data points.
Linear programming
Technique for finding the maximum value of some equation subject to stated linear constraints.
Line of credit
An informal arrangement between a bank and a customer establishing a maximum loan balance that the bank will permit the borrower to maintain.
Multicolinearity
One variable is the expression of the other
Bank line
Line of credit granted by a bank to a customer.
Capital market line (CML)
The line defined by every combination of the risk-free asset and the market portfolio.
Cash flow time-line
Line depicting the operating activities and cash flows for a firm over a particular period.
Pipeline
A type of risk often associated with mortgages. It occurs from the time an application is accepted to the sale of the asset. Some analysts partition this process into two parts: production and inventory. Production starts at the time of the application and continues until the closing of the mortgage. Inventory risk starts at the closing and continues until the product is hedged or sold. Different hedging techniques are suggested for the two partitions.
Trendline
In charting, a line drawn across the bottom or top of a price chart indicating the direction or trend of price movement. If up, the trendline is called bullish; if down, it is called bearish.
