FINANCIAL RATIO Definition

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FINANCIAL RATIO is the result of dividing one financial statement item by another. Ratios help analysts interpret financial statements by focusing on specific relationships.

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CUMULATIVE, in securities, is where a preferred stock dividend is cumulative if the dividend accrues when payments are not made as scheduled.

MARKET DISCOUNT BOND is any bond having market discount except: short-term obligations with fixed maturity dates of up to 1 year from the date of issue, tax-exempt obligations that you bought before May 1, 1993, U.S. savings bonds, and certain installment obligations.

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