Pure expectations theory

Pure expectations theory

Pure expectations theory

A theory that asserts that the forward rates exclusively represent the expected future rates. In other words, the entire term structure reflects the markets expectations of future short-term rates. For example, an increasing sloping term structure implies increasing short-term interest rates. Related: biased expectations theories

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Purchase method

Purchase method

Purchase method

Accounting for an acquisition using market value for the consolidation of the two entities’ net assets on the balance sheet. Generally, depreciation and amortization will increase for this method compared with pooling and will result in lower net income.

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Purchase and sale

Purchase and sale

Purchase and sale

A method of securities distribution in which the securities firm purchases the securities from the issuer for its own account at a stated price and then resells them, as contrasted with a best-efforts sale.

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Purchase agreement

Purchase agreement

Purchase agreement

As used in connection with project financing, an agreement to purchase a specific amount of project output per period.

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Purchase accounting

Purchase accounting

Purchase accounting

Method of accounting for a merger in which the acquirer is treated as having purchased the assets and assumed liabilities of the acquiree, which are all written up or down to their respective fair market values, the difference between the purchase price and the net assets acquired being attributed to goodwill.

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