Vernimmen | corporate finance | Glossary letter F

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LETTER A

Abandonment risk	Abeyance	Accelerated book-building
Accelerated depreciation	Accelerated share repurchase	Acceleration, Acceleration clause
Account balancing	Account receivable aging	Accountant letter
Accounting criteria of value creation	Accounting currency risk	Accounting procedures with an impact on earnings
Accounts payable	Accounts receivable	Accredited investors
Accretion	Accretive	Accrual basis accounting
Accrual bond	Accruals	Accrued benefits
Accrued expense	Accrued income	Accrued interests
Acid test ratio	Acquisitions	Act of God
Acting in concert	Active Fund Management	ActivitÃ©s post-marchÃ©
Actuary	Adjustable rate preference shares	Adjustable-rate debt security
Adjusted Net Asset Value	Adjusted present value, APV	Administrative synergy
ADR	Advance dividend	Advance rate
Affiliates	Affirmative covenant	African Development Bank (ADB)
AG or Aktiengesellschaft	Agency costs	Agency theory
Agent bank	Agent fee	Aging, Ageing, aging balance, ageing balance
Agreement in principle	AIM	All-in cost
All-share transaction	Alliance	Allocative efficiency
Allotment	ALM	Alpha
Alternative assets	Alternative Investment Market	Alternative management
American Depositary Receipt	American option	Amortisation
Amortisation of the loan	Analytical accounting	ANAV
Angel investors or Business angels	Annual effective interest rate	Annual meeting
Annual Premium Equivalent	Annualise or annualised	Annuity
Annuity factor	Antidilution	Antitrust laws
APE	Apparent dilution	Appraisal clause
Appraisal or Valuation	APR or Annual Percentage Rate	APT
APV	Arbitrage	Arbitrage pricing theory, APT
Arbitration, Arbitrators	Arm's length	Arranger
Arranging the deal	Arrears, Unpaid	Articles of Incorporation or Articles of Association
Ask or Offer or Bid or Spread or Bid-Ask	Asset allocation	Asset backed commercial paper
Asset backed securities	Asset beta	Asset contribution
Asset coverage	Asset intensive	Asset turnover
Asset-Liability Management	Assets	Assignment, assignor and assignee
Associate	Associated undertaking	Asymmetry - issuer/investor
Asymmetry - option	Asymmetry - shareholder / creditor	At par, Above par, Below par
At the money	Atypical silent partner	Auction
Auction clause	Audit trail	Average collection
Average life	Average life of a bond

LETTER B

B2B or business-to-business	Back testing	Back-office
Back-stop	Back-up line	Back-Up Servicer
Backdoor equity hypothesis	Backlog	Backwardation
Bad debt	Bad debt reserve	Bail-in
Balance sheet	Balloon loan and Balloon payment	Bank guarantee
Bank holiday	Bank-based economy	Bankruptcy
Bankruptcy costs	Barrels, BPD, bbl/d, bpd, bd or b/d	Barrier currency option
Barrier interest rate option	Barrier option	Barriers to entry
Barter	Base	Base metals
Basis point	Basis risk	Bear market
Bearer	Bearer bond	Bearer shares
Behavio(u)ral finance	Bellwether or Barometer stock	Below investment grade
Below the line	Benchmark	Benchmark switching
Benchmarking	Beneficial owner	Best efforts basis
Beta	Beta coefficient	Beta of assets
Bid-ask spread	Bill of exchange	Bill of lading or B/L
BIMBO	Binomial method	BIS or Bank for International Settlements
Bitcoin	Black - Scholes Model	Black-out period
Blind trust	Block	Block ownership
Block trading	Blocking minority	Blue chip
Blue Sky laws	Board of Directors	Board of Trustees
Bolt-on projects	Bona fide	Bond
Bond indenture	Bond redeemable in shares	Bond redemption premium
Bond resolution	Bond value of the convertible bond	Bonus issue
Book	Book entry	Book profitability
Book value	Book value of shareholders' equity	Book Value Per Share
Book-building	Bookkeeping	Bookrunner
Bootstrap game	Bootstraping	Bootstrapping model
BOT	Bottom-up approach	Bought deal
Brands and market share	Break costs or Break-up fees	Breakeven
Brent crude, Brent blend, London brent, Brent petroleum	Bricks and mortar	Bridge equity
Bridge loan	Broker	Brought over the wall
Build-Operate-Transfer	Building society	Bull market
Bullet bond	Bullet repayment	Bullion
Burn rate	BUS	Business angels
Business cycle	Business day	Business loarpose. Also called a financial loan.
Buy and hold	Buy-back	Buy-sell provision
Buy-side	Buyer's credit	Buyer's monopoly
Buyout, LBO, Leveraged BuyOut	BVPS	By the book
By-category income statement format	By-destination income statement format	By-nature income statement format

LETTER C

CAGR or Compound Annual Growth Rate	Calendar day	Calendar year and Accounting year
Call option	Call protection	Call provision
Callable	Callable	Callable bond
Callable capital, Paid-in capital	Callable instrument	Callable loan
Cancellation of debt	Cancellation of debt + Cancellation of loan + Debt cancellation + Loan cancellation	Cancellation of loan
Cap	Capacity utilisation rate	Capex
Capital adequacy ratio	Capital allowance	Capital Asset Pricing Model, CAPM
Capital base	Capital decrease	Capital employed
Capital expenditures	Capital flight	Capital gain/loss
Capital increase	Capital intensity	Capital invested
Capital lease	Capital market economy	Capital market line
Capital markets	Capital rationing	Capital ratios
Capital reduction	Capital structure	Capital turn
Capital-employed analysis	Capital-intensive	Capitalisation
Capitalisation factor	Capitalisation issue	CAPM
Captive insurance company	Carried interest	Carry trade
Carrybacks	Carryforwards	Carveout
Cash & carry trade or basis trading	Cash (and cash equivalents)	Cash Against Documents or CAD
Cash back	Cash budget	Cash certificate
Cash cow	Cash flow	Cash flow budget
Cash flow fade model	Cash flow from operating activities	Cash flow from operations
Cash flow matching approach	Cash flow plan	Cash flow return on investment, CFROI
Cash flow statement	Cash flow value	Cash management
Cash mutual fund	Cash pooling	Cash ratio
Cash Value Added	Cat bond	Catastrophe bond
CBO	CD	CDO
CDPC	CDS	CDX Index or CDX
Certificate of deposit, CD	CFA or Chartered Financial Analyst	CFO or Collateralised Fund Obligation
CFROI	CFTC	Chapter 11
Characteristic line	Charges	Chart analysis
Chartist	Chattel	Chattel
Chattel Mortgage	Chattel mortgage	Chicago Mercantile Exchange
Chief Executive Officer	Chief Financial Officer	Chief Information Officer
Chief Operating Officer	Chinese wall	Chirographic creditor
Churn rate	Circling	Class action
Claw-back clause	Claw-back commitment	Claw-back provision
Clear title	Clearing house	Clearstream
Clientele effect	CLO	Closely held
Closing	Closing rate method	Club deal
CMBS	CME	Co-financing
Co-lead managers	Co-leads	Co-managers
Collateral	Collateralised bond obligation	Collateralised debt obligation, CDO
Collateralised loan obligation	Collection period	Combined leverage
Combined ratio	Comfort letter	Comingling
Comingling risk	Commercial bills	Commercial currency risk
Commercial interest rate risk	Commercial loan	Commercial Mortgage-Backed Securities
Commercial paper	Commercial synergy	Commitment fee
Committed facility	Commodity Futures Trading Commission	Common equity
Common stock	Company-friendly bankruptcy process	Comparables model
Comparative analysis	Competitive bidding	Completed contract method
Compliance	Compound interest	Comprehensive insurance
Concentration bank	Concert	Condition precedent
Condition sale	Condition subsequent	Confidentiality Agreement
Confidentiality agreement	Confidentiality letter	Confirmed credit line
Conflict of interest	Conforming	Conforming loan
Conglomerate	Conglomerate discount	Consensus forecast
Consequential damage	Consideration	Consolidated accounts
Consolidation	Consolidation methods	Constant amortisation
Construction contracts	Consumer loans	Consumer Price Index
Contango	Contingent assets	Contingent claims model
Contingent liabilities	Contingent tax liabilities	Contingent taxation
Contingent value rights, CVR	Contribution margin	Contribution of assets
Contribution of shares	Control premium	Conventional convertible preferred stock
Conversion option into shares of the target company	Conversion premium	Conversion price
Conversion ratio	Conversion value of the convertible bond	Convertible bonds
Convertible preferred stock	Convexity	Cooke ratio
Cooling-off period	Core capital	Corporate Finance
Corporate governance	Corporate social responsibility	Correlation
Corridor bond	Cost	Cost of capital
Cost of carry	Cost of debt	Cost of equity
Cost of refunding	Cost of shareholders' equity	Counterparty risk
Countertrade	Coupon payment	Coupon rate
Coupon reinvestment risk	Cov-lite loan	Covariance
Covenant-lite loan	Covenants	Covered warrant
CP	CPI	Credit bureau
Credit default swap	Credit derivative	Credit derivative product company
Credit enhancement	Credit exposure	Credit facility
Credit insurance	Credit line	Credit ratings
Credit risk	Credit scoring	Credit spread
Credit-based economy	Creditor-friendly bankruptcy process	Creditors (U.K.)
Creditworthiness	Cross default covenant	Cross-collaterisation
Crossover	Crossover fund	Crowdfounding
CSR	Cum dividend	Cure period
Currency at (forward) premium/at discount	Currency risk	Currency swap (with principal)
Currency swap without principal	Currency translation	Current assets
Current liabilities	Current rate method	Current ratio
Current yield	Custodian	Custody
Customer credit	CVA	CVR

LETTER D

DAC	Daisy chain	Data room
Dated Brent	Dated date	Day trader
Day-count convention	Days of finished goods inventory ratio	Days of goods held for resale ratio
Days of raw material ratio	Days of work-in-process ratio	Days purchases outstanding
Days sales outstanding	Days' inventory ratio	Days' payables ratio
Days' receivables ratio	DCF model	DDM
De-rating	De-recognition	Debenture
Debit	Debt	Debt cancellation
Debt capital	Debt cycle	Debt financing
Debt securitisation fund	Debt security	Debt service
Debt service ratio	Debt wall	Debt warrant
Debtor-friendly bankruptcy process	Debtor-in-possession	Decapitalisation
Deductible	Deductible	Deductible
Deed	Deed of release	Deed of surrender
Deep in the money	Deep market	Deep out of the money
Default risk	Defeasance	Defensive stock
Deferred compensation	Deferred income	Deferred Purchase Price
Deferred redemption period	Deferred tax assets	Deferred tax assets and liabilities
Deferred tax liabilities	Deferred taxation	Defined benefit plans
Defined contribution plans	Deflation	Delinquent
Delisting	Delta	Demand elasticity
Dematerialisation	Dematerialised	Demerger
Depletion	Depositary receipt, DR	Depreciation
Depreciation and amortisation	Depreciation ratio	Deregulation
Derivative	Differed Acquisition Costs	Dilution - EPS
Dilution - shareholders	Dilution loss	Dilution of control
Dilution profit	Dilutive	Direct finance
Direct method	Direct valuation method	Discontinuing operations
Discount rate	Discounted average life of all the cash flows of a bond	Discounted cash flow model, DCF model
Discounted payback period	Discounting	Discounting factor
Discounting of bills of exchange	Discounting with recourse	Disinflation
Disintermediation	Disinvestment	Disposal
Distressed	Distribution system	Diversification
Diversity score	Divestiture	Dividend
Dividend cover	Dividend discount model, DDM	Dividend per share, DPS
Dividend recapitalisation	Dividend tax credit	Dividend yield
DJIA	Documentary credit	Domiciliation
Double taxation	Double-entry accounting	Downgrade
Downsizing	DPS	DR
Dragon bond	Drop dead date	Dual class shares
Dual currency bond	Dual listing	Due diligence
Duration	Dutch auction	Dutch clause

LETTER E

E-commerce	Earn-out clause	Earnings
Earnings Before Interest and Taxes	Earnings before interest, taxes, depreciation and amortisation	Earnings per share, EPS
Earnings retention ratio	Earnings yield	EBIT multiple
EBITDA margin	EBITDA multiple	EBITDA, Earnings before interest, tax, depreciation and amortisation
EBITDAR, Earnings before interest, taxes, depreciation, amortisation and rent	EBRD	Economic analysis
Economic and Monetary Union	Economic indicators of value creation	Economic profit
Economic rent	Economic risk	Economic value added, EVA, EVA Model
Economy of scale	Efficient frontier	Efficient market
Efficient market hypothesis	Efficient portfolio	EGM
Electronic bill of exchange	Electronic promissory note	Eligibility criteria
Eligible	Eligible bills	Embedded option
Embedded Value	Emerging Markets	Employee stock ownership program, ESOP
Employee-shareholders	EMTN, Euro MTN	EMU
Encumbrance	Endowment	Enhancement
ENPV	Enterprise value	Enterprise value multiples
EONIA, Euro Overnight Index Average	EPOS	EPS
Equalisation tax	Equilibrium value	Equipment Trust Certificates
Equity	Equity affiliate	Equity beta
Equity capital multiples	Equity credit	Equity cycle
Equity in drag	Equity kicker	Equity line
Equity method	Equity premium puzzle	Equity ratio
Equity risk premium	Equity sweetener	Equity warrant
Equity-for-debt swap	Equity-linked securities	Equivalent annual cost method
Escalation clause	Escalator clause	Escrow account
ESOP	ETF	EUR
EUREX	EURIBOR, Euribor	Eurimean
Euro	Euro MTN	Euro Overnight Index Average
Euro STOXX	Eurobond	Euroclear
Eurocredits	Euronext	European Bank for Reconstruction and Development
European Central Bank	European Interbank Offered Rate	European option
European Union	European-style option	Eurostat
Eurozone	Eurozone Public Offering of Securities	EVA
EVA model	Event of default	Event-study analysis
Exceptional items	Excess loss	Exchange controthe government authorities in a given country.
Exchange ratio	Exchange risk	Exchange traded fund
Exchangeable bonds	Exclusive negotiations	Exercise date
Exercise period	Exit clause	Expanded net present value, ENPV
Expected equity risk premium	Expected outcome	Expected return
Expected return of a market portfolio	Expenses	Expert systems
Explicit forecast period	Export credit	Exposure
Expropriation effect	Extended trade-off model	Extendible
Extendible note	EXtensible Business Reporting Language	External capital
External projects	Extraordinary general meeting of shareholders, EGM	Extraordinary items

LETTER F

Face value	Facility fee	Factor
Factoring	Fair Market Value or FMV	Fairness opinion
Fairway bond	Fallen angels	Fama-French model
Family-owned company	FASB	FCFF
FCFF	FED	Federal Open Market Committee
FFO	Fiat money	FIFO, First in, first out
Final maturity	Finance lease	Financial Accounting Standards Board
Financial analysis	Financial analysis techniques	Financial analyst
Financial assets	Financial breakeven	Financial buyer
Financial communication	Financial cost	Financial currency risk
Financial distress	Financial distress cost	Financial expense
Financial income	Financial interest rate risk	Financial investor
Financial leverage	Financial leverage - dynamic	Financial loan
Financial resources	Financial risk	Financial risk management
Financial security	Financial Services Authorithy	Financial structure
Financial sweetener	Financial synergy	Financial system
Financing cycle	Finished goods	Firm underwriting
Firm value	First in, first out	First loss
First mover advantage	Fisher formula	Fixed assets
Fixed costs	Fixed income securities	Fixed-price offering
Fixed-rate debt security	Flex	Float
Floater	Floating-rate debt security	Floor
Floor plan loan	Flotation	Flow-back
Forced conversion	Foreclosure	Foreign bond
Foreign currency advances	Foreign currency hedging	Foreign exchange gains and losses
Foreign exchange risk	Forfaiting	Forward currency transaction
Forward exchange rate	Forward rate agreement, FRA	Forward transaction
Forward-forward rate	Forward-looking	FRA
Franchise	Free cash flow	Free cash flow to the firm, FCFF
Free float	Free float factor	Free issue
Free rider	Free share	Friendly offer
Front-end fee	Front-office	Frozen account
Frozen assets	FSA	FTSE
Full commitment	Full consolidation	Fully valued
Fully-diluted EPS	Fund manager	Fund of Funds
Fundamental analysis	Fundamental valuation method	Funds from operation ( FFO)
Fungibility	Future

LETTER G

GAAP	Gamma	GARP
GDP	GDR	Gearing
General accounting	GKO	Global coordinator
Global Depositary Receipt, GDR	Global Relationship Manager	Going concern
Golden share	Goodwill	Goodwill amortisation
Gordon-Shapiro formula	Grace period	Grace period
Grandfather clause	Green bond	Greenfield
Greenmail	Greenshoe	Grey market
GRM	Gross capital employed	Gross debt
Gross dividend	Gross Domestic Product	Gross margin
Gross operating profit	Gross trading profit	Gross Written Premium
Gross yield to maturity	Growth at a reasonable price	Growth potential
Growth stock	Guaranted Investment Contract	GWP

LETTER H

Haircut	Hard capital rationing	Hard currency
Hazard insurance	Hedge fund	Hedging
Hedging principle	Herding instinct, herding behavior	Hidden assets
Hidden option	High-yield bonds	Hight Net Worth Individual
Hire Purchase	Historical equity risk premium	Historical value
Holdback	Holding company	Holding company discount
Holding-period return	Hostile offer	Hurdle rate
Hurricane bond	Hybrid securities	Hyperinflationary country

LETTER I

IADB	IAS	IASB
IBRD	ICE	ICO
ICO	Identified purchase cost	Idiosyncratic risk
IFC	IFRS	Ijara
Ijara-wa-Iqtina	IMF	Immunisation
Impaired debt	Impairment losses	Impairment test
Implicit rating	Implied volatility	In the money
Incentive contracting	Income	Income statement
Income stock	Incoterms	Incremental project
Incumbrance	Indenture	Index floater
Index management	Index trackers	Index-linked securities
Indication of Interest	Indirect finance	Indirect method
Indirect valuation method	Industrial synergy	Industry risk
Ineligible	Inflation	Inflation risk
Information cascade	Informational efficiency	Initial Coin Offering
Initial Coin Offering	Initial margin	Initial public offering, IPO
Insider	Insider trading	Insolvent
Instalment	Institutional investors	Insurance
Intangible asset	Intangible capital	Intangible fixed asset
Inter-American Development Bank	Interchangeability	Interest
Interest charge	Interest cover	Interest expense
Interest rate	Interest rate option	Interest rate risk
Interest rate swap rate, IRS rate	Interest rate swap, IRS	Interest-bearing
Interest-bearing current account	Interest-only loan	Interim dividend
Interim interest payments	Intermediated debt	Intermediation
Internal capital	Internal financing	Internal growth model
Internal rate of return, IRR	International Bank for Reconstruction and Development	International bond
International Finance Corporation	International Monetary Fund	International Swaps and Derivatives Association
Intra-annual dividend	Intra-group transactions	Intraday
Intrinsic risk	Intrinsic value - option	Intrinsic value - share
Inventories	Inventory valuation methods	Inverse floaters
Invested capital	Investment	Investment banking
Investment cycle	Investment decision principles	Investment grade
Investment horizon	Investment of funds method	Investment outflows
Investment outlay	Investors	IOI
IOU	IPO	IPO discount
IRR	IRS	IRS rate
ISDA	Islamic finance	Issue at a discount
Issue at a premium	Issue at par	Issue discount
Issue price	Istisna'a

LETTER J

January effect	Joint and several	Joint lead manager
Joint venture	Joint-lead	Jointly and severally
Jumbo	Jumbo bond	Jumbo issue
Junior bond	Junior debt	Junk bonds
Just in-time

LETTER K

Kanban	Kerb market	Key performance indicators
Key person insurance	Kicker	Knock-in/out
Know Your Customer	KPI	KYC

LETTER L

L/C	Laddering	Large cap
Last in, first out	Last trading day	LBO
LBU	Lead	Lead arranger
Lead bank	Lead manager	Lease
Leasing	Legal merger	Lender led
Lender of last resort	Lending facility	Lessee
Lessor	Letter of comfort	Letter of credit, L/C
Letter of intent, LOI	Level of control	Level of ownership
Leverage	Leverage effect	Leveraged build-up, LBU
Leveraged buy-out, LBO	Leveraged lease	Leveraged management buy-out
Leveraged recapitalisation	Leveraged share buyback	Levered beta
Levered cost of equity	Liabilities	LIBOR, London Interbank Offered Rate
Life of the bond	Life of the loan	Lifecycle of financing sources
LIFFE, Liffe	LIFO, Last in, first out	Limited share partnerships, LSP
Liquidated damages	Liquidation	Liquidator
Liquidity - assets	Liquidity - balance sheet	Liquidity - investments
Liquidity - liabilities	Liquidity - security	Liquidity discount
Liquidity event	Liquidity facility	Liquidity line
Liquidity preference theory	Liquidity premium	Liquidity ratios
Liquidity risk - company	Liquidity risk - market	Listed security
Listing	LMBO	Loan cancellation
Loan to value	Lock up period	Lockbox system
Locking in future prices or rates	LOI	London Interbank Offered Rate
Long (position)	Longevity swap	Lookback option
Loss rate	Loss Ratio	Love money
LSP	Ltv	LYON, Liquid Yield Option Notes

LETTER M

MAC clause	Majority interest	Make whole
Management buy-in	Management buy-out, MBO	Management fee
Manager, managing bank	Managing bank	Mandate
Mandated lead arranger, MLA	Mandatory convertible bonds	Mandatory convertible preferred stock
Mandatory offer	Margin	Margin analysis
Margin call	Marginal cost	Marginal rate of return
Market	Market capitalisation	Market expansion
Market financing	Market flex	Market growth
Market in equilibrium	Market indicators of value creation	Market maker
Market multiples	Market order	Market plane
Market portfolio	Market premium	Market return
Market risk	Market risk - strategic positioning of the company	Market risk premium
Market share	Market value	Market value added, MVA
Market-based economy	Marketable securities	Mass production
Master agreement	Master credit agreement	Master trust
Matching hypothesis	Matching principle	Material adverse change clause
Maturity	Maturity mismatch	MBI
MBO	MBS	McDonough ratios
Medium term note, MTN	Memorandum of understanding, MOU	Merchant bank
Merger	Mezzanine debt	Mezzaniner
Micro-Cap	Microcredit	Microfinance
Mid-Cap	Middle-office	Milestone
Mimicry	Minimum-price offering	Minority discount
Minority interests	Minority ownerships	Minority shareholder
Minority value	Minsky moment	MIRR
MLA	Model risk	Modified duration
Modified internal rate of return, Modified IRR, MIRR	Modified IRR	Modigliani-Miller theorem
Momentum	Monetary items	Money market
Money-market funds	Monoline	Monoline insurance company
Monte Carlo simulation	Moral hazard	Moratorium
Mortgage loan	Mortgage-Backed Securites	Most favoured nation
MOU	MTN	MTN programme
Mudharaba	Multilateral Development Bank (MDB)	Multiple voting shares
Multiple(s)	Multiples method	Multiplier effect
Murabaha	Musharaka	Mutual Fund
MVA

LETTER N

NASDAQ	Natural disaster risks	Natural hedge
NAV	NBV	NDA
NDA	Negative capital employed	Negative carry
Negative covenant	Negative equity	Negative working capital
Net asset value	Net asset value of a fund, NAV	Net assets
Net assets per share	Net Book Value	Net debt
Net financial debt	Net financial expense/income	Net fixed assets
Net income	Net pension costs	Net present value
Net profit	Net worth	Net Written Premium
Netting	New equity puzzle	No-petition
Nominal rate	Nominal value	Nominee agreement
Non conforming loan	Non core-assets	Non Disclosure Agreement
Non investment grade, non-investment grade	Non recurrent items	Non recurring items
Non-accredited investor	Non-conforming	Non-Disclosure Agreement
Non-monetary items	Non-operating assets	Non-operating working capital
Non-performing	Non-performing debt	Non-petition
Non-recourse discounting	Non-voting shares	NOPAT
NOPAT multiple	Normalised cash flow	Normalised earnings
Normative analysis	Normative cash flow	Normative margin
Notes to the accounts	Notice of Default	Notional amount
Notional pooling	Novation	NPV
NWP	NYMEX	NYSE

LETTER O

O/N	OECD	Off-balance sheet commitments
Off-balance sheet financing	Off-balance sheet financing techniques	Offering
Offering Circular	Offset	OGM
Oligopoly	One on one	One to one
Operating assets	Operating balance	Operating breakeven
Operating cash flow	Operating charges	Operating expenses
Operating income	Operating inflows	Operating lease
Operating leverage	Operating liabilities	Operating margin
Operating outflows	Operating outlay	Operating payments
Operating profit	Operating receipts	Operating result
Operating revenues	Operating working capital	Operational efficiency
Opportunity cost	Opportunity cost of capital	Optimal capital structure
Option	Option model	Option on option
Option to abandon	Option to defer progress of the project	Option to develop or extend the business
Option to launch a new project	Option to postpone a project	Option to reduce or contract business
Order book	Ordinary general meeting of shareholders, OGM	Organic growth
Organised market	Organization for Economic Co-operation and development	Orphan company
OTC	OTC market	Other operating expenses
Other operating income	Out of the money	Outside shareholders
Outsourcing	Over the counter	Over-performing
Over-the-counter market	Overall dilution	Overdraft
Overhang	Overlay bank	Oversubscribed

LETTER P

P/E ratio, PER, Price-to-earnings ratio	Paid-up capital	Paper
Paper bill of exchange	Paper promissory note	Par value
Parent company	Parent company regime	Parent group
Pari passu covenant	Parity	Partial commitment
Participant	Participating preference shares	Participation certificates
Pass through	Passthrough certificates	Path of wealth, POW
Pay through	Pay-in-kind securities	Payables
Payback period	Payback ratio	Payment method
Payment term	Payout ratio	PBR
PDS	PE	Pecking order theory
Peer comparison method	Percentage control	Percentage interest
Percentage of completion method	Performance bond	Performing
Permanent financing	Perpetual bond	Perpetual subordinated loans and notes
Perpetuals	Perpetuity	Petro-dollars
Pierce the corporate veil	PIK securities	PIPO
Pitch	Plain vanilla	Ploughed back
Poison pill	Political risk	Ponzi scheme
Pooling of interest method	Pooling on demand	POP
Portable alpha	Portable debt	Portfolio insurance
Portfolio manager	Position	Positive carry
Positive covenant	POW	PPP
Praecipium	Pragmatic valuation approach	Prcess-oriented production
Pre-emption (right of)	Pre-emptive action	Pre-emptive right
Pre-emptive subscription rights	Preference share	Preferential dividend
Preferred habitat theory	Preferred securities	Preferred share
Premium	Premium bond	Prepaid expenses
Prepaid income	Prepayment	Prepayment penalty
Present value	Present Value Index, PVI	Price adjustment
Price-To-Book ratio, PBR	Price-to-earnings ratio	Primary dealers
Principal	Principal-protected notes	Principle of prudence
Priority dividend shares (non-voting) (PDS)	Private equity	Private equity firm
Private Initial Public Offering	Private negotiation	Private placement
Privileged share	Pro forma, pro forma statements	Product life cycle
Production	Production models	Profit
Profit and loss account/statement, P&L	Profit before tax and non recurrent items	Profit before tax and non recurring items
Profit generating capacity	Profit on ordinary activities	Profit sharing
Profitability	Program trading	Project bond
Project financing	Projected benefit obligation, PBO	Promissory note
Proportional rate	Proportionate consolidation	Prospectus
Provision	Provision for employee benefits and pensions	Proxy
Public offer	Public offering	Public Offering price
Public-to-Private, P to P	Purchase method	Purchase warrant
Purchases	Purchasing Power Parity	Put on the seller
Put option	Put provision	Put warrant
Put-call parity	Puttable	Puttable bond
Puttable instrument	PV	PVI
Pyramid scheme

LETTER Q

Q ratio	QIB	Qualified Institutional Buyers, QIB
Qualified majority	Queuing	Quick ratio

LETTER R

R&D	Rally	Range note
Ratchet effect	Rate of discount	Rate of return
Rate tunnel	Rating	Rating agency
Rating outlook	Raw material prices risk	Raw materials
RCF	Re-characterisation	Re-rating
Re-regulation	Real Estate Investment Trust	Real options
Realised gain	Realised loss	Realised rate
Recapitalisation	Receivables	Receiver
Receivership	Recommended offer	Recoverable value
Recurrent items	Recurring items	Red Herring
Redemption	Reevaluation	Reference rate
Refinancing	Registered bond	Regulation
Regulatory changes	Regulatory risk	Reinsurance company
REIT	Relationship Manager	Relative value ratio
Rendez-vous clause	Repayment by equal instalments	Repayment by tranches (or series)
Repayment in fine	Replacement cost	Replenishment
Replicating portfolio	Repo, repurchase agreement	Representations and warranties
Reps and warranties	Repurchase agreement	Request For Proposal
Required rate of return	Requirements in working capital	Rescheduling
Research and development costs, R&D	Reserve stock split	Reserved capital increase
Residential Mortgage-Backed Securities	Residual value	Resistance level
Restated net asset value, RNAV	Restrictive covenant	Restructuring charges
Restructuring provisions	Retail investor	Retail public offering
Retained Cash Flow	Retained earnings	Retainer
Return	Return on capital employed, ROCE	Return on investment
Revaluation	Revenue bonds	Revenues
Reverse flex	Reverse repo	Reverse takeover
Revolving credit	RFP	Right of approval
Right of first refusal	Rights issue	Risk
Risk of a fraud	Risk of default	Risk of illiquidity
Risk premium	Risk-free assets	Risk-free rate
Risk/return ratio	RM	RMBS
RNAV	Roadshow	ROCE
ROE	Rule 144A	Run-rate

LETTER S

Salam	Sale-leaseback	Sales
Salvage value	Samurai bond	Scale problem
Scenario analysis	Scissors effect	Scope of consolidation
Scrip issue	Seasoned equity offering, SEO	SEC
Second proposition of the Modigliani-Miller theorem	Secondary market	Secondary share offering
Securities lending	Securitisation	Securitisation buy-out
Securitisation vehicle	Security	Security
Security market line	Seed capital	Self-control
Self-hedging	Self-mimicry	Sell-side
Selling group	Semi-strong efficient market	Senior Banker
Senior debt	Seniority	SEO
Separation theorem	Sequential pay	Service cost
Setoff	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	Shogun bond
Short (position)	Short Term European Paper	Shotgun clause
Sight draft	Signal	Signalling theory
Significant influence	Signing	Signing fee
Silent partner	Sinking fund	SIV
Size premium	Small and Medium-sized companies	Small cap
Smart beta	SME	Soft call provision
Soft currency	Soft loan	Soft rationing
Solvency	Solvency II	Solvency risk
Solvency-and-liquidity analysis	Sovereign spread	Sovereign-wealth fund
SPA	SPAC	Special method of translation
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	SPV	Squeeze-out
SRI fund	Stability principle	Stakebuilding
Stand-alone valuation	Standard deviation	Start-up costs
Statement of changes in financial position	STEP	Step up bond
Stewardship	Stock	Stock Exchange
Stock options	Stock-picking approach	Straight bond
Straight line depreciation	Strategic assets (poison pills)	Strategic value
Strike price	Strip financing	Strong-efficient market
Structured Investment Vehicles	Structured product	Structurer
Stub equity	Sub-participation	Sub-prime
Subordinated debt	Subordination	Subrogation
Subscription parity	Subscription right	Subscription warrant
Subsidiary	Substitute Servicer	Sukuk
Sum-of-the-parts method	Sunset provision	Supplier credit
Supply chain	Support level	Survivorship bias
Swap	Swap point	Swap-driven Eurobond
Swaption	Sweetener	Syndicate
Syndicated loan	Synergy	Synthetic lease
Synthetic rating	Systematic risk

LETTER T

Take and pay contract	Take or pay contract	Takeover
Takeover bid	Tangible fixed asset	Tap issue
Tapping the reserves	Tax loss carrybacks	Tax loss carryforwards
Tax proof	Tax shield	Technical analysis
Technical dilution	Temporal method	Temporary differences
Tender offer	Term sheet	Terminal value
The bottom-up approach is also called the stock-picking approach.	Theory of markets in equilibrium	Theta
Ticker	Tier 1	Time deposit
Time diversification	Time draft	Time value
Time value of money	Timing differences	Timing problem
TMT	Tobin's Q	Toll revenue bond
Toogle notes	Top-down approach	Total breakeven
Total debt service	Total return swap	Total shareholder return, TSR
Tracking stock	Trade buyer	Trade payables
Trade receivables	Trade sale	Trade-off model
Trading profit	Trailing ratio	Transaction multiples
Transaction multiples method	Transaction, the management fee is a front-end, flat percentage fee,	Transfer
Transfer of assets	Translation	Translation risk
Treasury	Treasury method	Treasury shares
Treasury shares	Treeing	Trend analysis
Triple net lease	Triple net rent	Triple track
True sale	True sale	Trust preference shares
TSR	Turnover assets	Turnover liabilities

LETTER U

Ultra High Net Worth Individual	UNCTAD	Under-performing
Underlying asset	Undersubscribed	Underwriting
Underwriting fee	Underwritten deal	Undiversifiable risk
Unit credit method	United Nations Conference on Trade and Development	Universal Registration Document
Unlevered beta	Unlevered cost of equity	Unlimited liability
Unlisted	Unsecured	Unsolicited offer
Unwinding a position	Upgrade	Upward flex
URD	US GAAP

LETTER V

Value	Value added	Value and financial securities
Value at risk	Value creation	Value Date
Value drivers	Value of Business in Force	Value stock
Value-added tax (VAT)	VAR	Variable costs
Variance	Variance Swap	VBI
Vega	Venture capital	Volatility
Volatility - bonds	Volatility - dividends	Volume growth
Volume-weighted average price	Vulture fund	VWAP

LETTER W

WACC	Wait and see option	Waiver
Wakala	WAL	Warehousing agreement
Warehousing certificate	Warm up	Warrant
Warrant kicker	Weak currency	Weak-form efficient market
Wealth	Weather derivative	Weekend effect
Weighted average cost	Weighted Average Cost of Capital, WACC	Weighted Average Life
Whistle blower	White knight	White paper
White paper	Wholly-owned subsidiary	Windfall profit
Window dressing	Winners' curse	Withholding tax
Without recourse	Work out	Work-in-progress
Working capital	Working capital needs	Working capital requirements
Working capital turnover ratios	Wrap	Write-downs

LETTER X

XBRL

LETTER Y

Yankee bond	Yield	Yield curve
Yield spread	Yield stock	Yield to maturity, YTM
Yieldco	YTM

LETTER Z

Z-score	ZBA	Zero balance account, ZBA
Zero coupon	Zero-coupon bond	Zero-coupon bond
Zero-coupon bond

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