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SCRAP VALUE
see SALVAGE VALUE.
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SDCF
is Sales & Distribution Cash
Flow.
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SEC
is the Securities and Exchange Commission.
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SECA
is Self-Employment Contributions
Act of 1954.
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SECURED
is an obligation backed by
a pledge of collateral. Opposite of unsecured.
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SECURED LIABILITY
is a liability that
has a degree of protection towards satisfaction if unpaid because the
debtor has pledged personal/company assets towards satisfaction of that
liability; e.g., a property mortgage is a secured liability because the
mortgage holder has a guarantee through a lien on the property.
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SECURITIES FRAUD
, in most cases, is
nothing more than stealing. Federal and state securities laws contain
more technical definitions. But when investors are enticed into purchasing
security instruments based on untrue data, statements or promises, it
is securities fraud.
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SECURITIZATION
is the process of creating a pass-through,
such as the mortgage pass-through security, by which the pooled assets
become standard securities backed by those assets. Also, refers to the
replacement of non-marketable loans and/or cash flows provided by financial
intermediaries with negotiable securities issued in the public capital
markets.
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SECURITY
dependent upon usage is:
a. a guarantee that an obligation will be met; b. defense against financial
failure; financial independence; c. property that your creditor can claim
in case you default on your obligation; or, d. a formal declaration that
documents a fact of relevance to finance and investment; the holder of
which has a right to receive interest or dividends, e.g. stocks and bonds.
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SECURITY STOCK
see SAFETY STOCK.
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SEGMENT REVENUE
is revenue, including
intersegment revenue, which is directly attributable or reasonably allocable
to a segment. Includes interest and dividend income and related securities
gains only if the segment is a financial segment (bank, insurance company,
etc.).
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SEGMENTATION
is the act of dividing
or partitioning; separation by the creation of a boundary that divides
or keeps apart, e.g. segmenting a market along the characteristics and
needs of a particular consumer group.
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SEGREGATED FUND
is a pooled investment
fund, much like a mutual fund, established by an insurance company and
segregated from the general capital of the company. Its chief distinction
from a mutual fund is its guarantee that, regardless of fund performance,
at least a minimum percentage of the investor's payments into the fund
will be returned when the fund matures.
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SELF-CONTRUCT ASSETS
is the costs incurred
to build it yourself.
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SELL SIDE
typically refers to brokers and dealers that sell securities to investors such as mutual funds and hedge funds.
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SELL-IN ACCOUNTING
records shipments
to wholesalers as product sales whether or not they expand retail or
wholesale stocking, i.e. revenue is recorded when a product enters the
distribution stream while sell-through does not. See SELL-THROUGH ACCOUNTING.
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SELL-THROUGH
, in retail sales, is
the number of product distributed that are actually sold, e.g. movies
sold as compared to rented.
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SELL-THROUGH ACCOUNTING
is where revenue
is not recognized until after the product has been subsequently shipped
from the wholesalers. See SELL-IN ACCOUNTING.
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SELLER GUARANTEE DEPOSIT
is a good-faith
deposit of funds that is made to demonstrate that the seller is confident
enough in their technical skills and time management abilities to guarantee
that they will complete the project 100% and on time. If the project
is completed successfully, then the seller receives back the Seller Guarantee
Deposit (minus the Seller Guarantee Deposit Processing Fee). If the project
is not completed successfully, the seller forfeits the entire Seller
Guarantee Deposit as liquidated damages for the breech.
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SELLING & ADMINISTRATIVE EXPENSE BUDGET
is a budget
of planned expenditures for non-manufacturing activities, such as sales
commissions and office salaries. See OPERATING BUDGET.
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SEMIVARIALBLE COST
is one that varies
with changes in volume, but, unlike variable cost, does not vary in direct
proportion. This component contains both fixed and variable elements,
e.g., a rented vehicle may have a rental fee (fixed), but contain a mileage
adder (variable).
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SENSEX
is a Bombay Stock Exchange Index
(BSE 30-Share Benchmark Sensex Index).
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SENSITIVE ASSETS
are those assets that
can be affected by uncontrollable external factors. There are interest
rate sensitive assets (assets yielding cash-flows at some fixed points
in the future) and theft-sensitive assets (inventory for example).
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SENSITIVE LIABILITIES
normally refers
to 'interest rate sensitive liabilities' (i.e., liabilities where there
is a floating interest rate).
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SENSITIVITY ANALYSIS
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SEPARABLE COSTS
are all costs (manufacturing,
marketing, distribution, etc.) incurred beyond the splitoff point that
are assignable to one or more individual products.
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SEPARATE DETERMINATION CONCEPT
holds
that each component of any category of assets or liabilities should be
valued separately when arriving at a total to be shown in the accounts
for that category. For example, the value of each stock item should be
calculated individually (at the lower of cost and net realizable value)
and these values should then be totaled to give the stock figure which
will appear in the accounts. Stock should not be valued at the lower
of total cost and total NRV.
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SEPARATE VALUATION CONCEPT
is a recording
and measurement rule that relates to the determination of the aggregate
amount of any item. In order to determine the aggregate amount of an
asset or a liability, each individual asset or liability that comprises
the aggregate must be determined separately. This is important because
material items may reflect different economic circumstances. There must
be a review of each material item to comply with the appropriate accounting
standards.
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SERIAL BOND
is a bond issue in which
the bonds mature periodically over a number of years.
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SERIES A PREFERRED STOCK
is the first
round of stock offered during the seed or early stage round by a portfolio
company to the venture investor or fund. This stock is convertible into
common stock in certain cases such as an IPO or the sale of the company.
Later rounds of preferred stock in a private company are called Series
B, Series C and so on.
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