GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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50% - Moderately

Profit


Synonyms:making a profit, making money, raking in the cash
Filed Under: financial-banking, investments
Tags: banking, investment
 

Definition of profit

profit
1. The money made by a business when revenues exceed expenses

Related Terms and Acronyms:

  • accounting period (AP)   The time period used in a set of accounting books or financial statements, often 12 months.
  • net operating loss (NOL)   A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
  • operating cash flow (OCF)   The money a company generates from its business operations. This revenue excludes costs from certain investments.
  • ordinary dividends   The distribution of a company's profits that are subject to full taxation.
  • other income/expenses   Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.
  • protected cell company (SPC)   A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
  • revenue   Money earned by a company from its business activities.
  • stock insurance company   An insurance company with multiple stockholders each owning shares in the corporation.
  • surplus   When an entity's income exceeds its expenses.
  • swap   An agreement between two businesses to exchange commodities, payments or other financial products to reduce the risk of volatile market conditions or to obtain a better price or rate. For example, interest rate swaps, where floating rate interest is exchanged for fixed rate interest, protects a corporation against rises in rates or allows it to take advantage of a better rate. A cross-currency swap enables two parties to enter into an agreement in which one exchanges its currency for the other's to meet their separate requirements.

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