Solvency (See Chapters 4 and 14 of the Vernimmen) Solvency reflects the ability of a company to honour its commitments in the event of liquidation, i.e. if its operations are wound up and assets are put up for sale. A company may be regarded as insolvent once its shareholders’ equity turns negative. This means that it owes more than it owns. Solvency (See Chapters 4 and 14 of the Vernimmen) Solvency reflects the ability of a company to honour its commitments in the event of liquidation, i.e. if its operations are wound up and assets are put up for sale. A company may be regarded as insolvent once its shareholders’ equity turns negative. This means that it owes more than it owns. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Solvency" :

SEC SEO SPA SPAC SPV STEP Salam Sale-leaseback Sales Salvage value Samurai bond Scale problem Scenario analysis Scissors effect Scope of consolidation Seasoned equity offering, SEO Second proposition of the Modigliani-Miller theorem Secondary market Secondary share offering Securities lending Securitisation Securitisation buy-out Securitisation vehicle Security Security market line Seed capital Self-control Self-hedging Self-mimicry Selling group Semi-strong efficient market Senior debt Sensitivity analysis Separation theorem Service cost Settlement date Shadow rating Share Share buyback Share cum debt warrant Share exchange offer

Share purchase agreement, SPA Shareholder return Shareholder structure Shareholders Shareholders’ agreement Shareholders’ equity Shares with multiple voting rights Short (position) Short Term European Paper Shotgun clause Signal Signalling theory Significant influence Silent partner Size premium Small cap Soft currency Soft rationing Solvency Solvency II Solvency risk Solvency-and-liquidity analysis Sovereign spread Sovereign-wealth fund Special method Special purpose acquisition vehicles Special-purpose vehicle, SPV Specific risk Speculation Speculative grade Spin-off Split Split rating Split-off Split-up Spot date Spot price Spread Squeeze-out Stability principle Stakebuilding

Stand-alone valuation Standard deviation Start-up costs Statement of changes in financial position Stewardship Stock Stock options Stock-picking approach Straight bond Straight line depreciation Strategic assets (poison pills) Strategic value Strike price Strip financing Strong-efficient market Structural basis of debt Structured product Structurer Stub equity Subordinated debt Subscription parity Subscription right Subscription warrant Subsidiary Sukuk Sum-of-the-parts method Supplier credit Supply chain Support level Survivorship bias Swap Swap point Swap-driven Eurobond Swaption Sweetener Syndicated loan Synergy Synthetic lease Synthetic rating Systematic risk