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Practice // Glossary letter V

GLOSSARY LETTER
  • FIND A WORD
  • LETTER 1
  • LETTER A
  • LETTER B
  • LETTER C
  • LETTER D
  • LETTER E
  • LETTER F
  • LETTER G
  • LETTER H
  • LETTER I
  • LETTER J
  • LETTER K
  • LETTER L
  • LETTER M
  • LETTER N
  • LETTER O
  • LETTER P
  • LETTER Q
  • LETTER R
  • LETTER S
  • LETTER T
  • LETTER U
  • LETTER V
  • LETTER W
  • LETTER X
  • LETTER Y
  • LETTER Z
  • LETTER Â

FIND A WORD

LETTER 1

130/30 fund

LETTER A

Abandonment risk Abeyance Absolute return
Accelerated book-building Accelerated depreciation Accelerated share repurchase
Acceleration, Acceleration clause Account balancing Account conversion
Account receivable aging Accountant letter Accounting criteria of value creation
Accounting currency risk Accounting information Accounting procedures with an impact on earnings
Accounting rate of return Accounting standard Accounting statement
Accounts payable Accounts receivable Accredited investors
Accretion Accretive Accrual basis accounting
Accrual bond Accruals Accrued benefits
Accrued coupon Accrued expense Accrued income
Accrued interests Accumulator Acid test ratio
Acquisition Facility Acquisition holding company Acquisitions
Act of God Acting in concert Active Fund Management
Active share Activist fund Activist shareholder
Activités post-marché Actuarial floor Actuarial margin
Actuarial rate Actuarial rate of return on a bond Actuary
Adjustable Parity Bonds redeemable in shares Adjustable rate preference shares Adjustable-rate debt security
Adjusted Net Asset Value Adjusted present value, APV Adjustment to per share data
Administrative synergy ADR Advance dividend
Advance rate Adverse selection Affiliates
Affirmative covenant African Development Bank (ADB) After-market
AG or Aktiengesellschaft Agency 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 ALRG Alternative assets
Alternative electronic platform Alternative Investment Market Alternative management
Alternative offer American Depositary Receipt American option
Amortisation Amortisation of the loan Analytical accounting
ANAV Anchor investor Angel investors or Business angels
Annual effective interest rate Annual meeting Annual Premium Equivalent
Annualise or annualised Annuity Annuity - increasing cash flows
Annuity factor Anti-takeover features Anticipation mechanism
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 Arrangement fee Arranger
Arranging the deal Arrears, Unpaid Article 11
Article 12 Article 9 Articles of association
Articles of Incorporation or Articles of Association Asian option Ask or Offer or Bid or Spread or Bid-Ask
Asset allocation Asset and liability management Asset and liability warranty clause
Asset backed commercial paper Asset backed securities Asset beta
Asset contribution Asset coverage Asset intensive
Asset Liability Refinancing Gap Asset management Asset token
Asset turnover Asset-backed loan Asset-Liability Management
Asset-light Assets Assignment, assignor and assignee
Assimilation 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
Audit trail Auditor Average collection
Average life Average life of a bond Average life of a loan

LETTER B

B2B or business-to-business Back office Back testing
Back-office Back-stop Back-up
Back-up line Back-Up Servicer Backdoor equity hypothesis
Backlog Backwardation Bad debt
Bad debt reserve Badwill Bail out
Bail-in Balance sheet Balance sheet in an asset-based approach
Balance sheet in an economic approach Balloon loan and Balloon payment Bank
Bank base rate Bank guarantee Bank holiday
Bank loan Bank overdrafts Bank-based economy
Banking market Banking penetration Banking syndicate
Bankruptcy Bankruptcy costs Bargaining zone
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 Basel 2 or Basel II
Basel III Basis of a forward contract Basis point
Basis risk Bates model 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 bid/offer order
Best efforts basis Best execution Best in Class
Best limit order Beta Beta coefficient
Beta of assets Bid Bond Bid-ask spread
Bill of exchange Bill of lading or B/L BIMBO
Binding offer Binomial method BIS or Bank for International Settlements
Bitcoin Black - Scholes Model Black-out period
Blind trust Block Block ownership
Block purchase Block trade Block trading
Blockchain Blockchain Blocking minority
Blue chip Blue Sky laws Board of Directors
Board of Trustees Bolt-on projects Bona fide
Bond Bond denomination Bond indenture
Bond issue Bond market Bond redeemable in shares
Bond redemption premium Bond resolution Bond value of the convertible bond
Bond with warrants Bonds redeemable in cash and new or existing shares Bonds with redeemable equity warrants
Bonds with share warrants Bonus issue Book
Book entry Book profitability Book to market
Book value Book value of shareholders' equity Book Value Per Share
Book-building Bookkeeping Bookrunner
Bootstrap game Bootstraping Bootstrapping model
Borrowing resources BOT Bottom line
Bottom-up approach Bought deal Brands
Brands and market share Break costs or Break-up fees Breakeven
Breakeven effect Brent crude, Brent blend, London brent, Brent petroleum Bricks and mortar
Bridge equity Bridge loan Broker
Broker's note Brought over the wall Build-Operate-Transfer
Build-up Building society Buildings
Bull market Bullet bond Bullet repayment
Bullion Bund Burn rate
BUS Business angels Business cycle
Business day Business loan Business loarpose. Also called a financial loan.
Business plan Buy and hold Buy or Sell
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 clause 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
Capacity utilisation rate Capex Capex facility
Capital Capital adequacy ratio Capital allowance
Capital Asset Pricing Model, CAPM Capital base Capital call facility
Capital decrease Capital employed Capital expenditures
Capital flight Capital gain/loss Capital increase
Capital increase - agency theory Capital increase in cash Capital intensity
Capital invested Capital lease Capital market economy
Capital market line Capital market line Capital markets
Capital rationing Capital ratios Capital reduction
Capital structure Capital structure arbitrage Capital turn
Capital-employed analysis Capital-intensive Capitalisation
Capitalisation contract Capitalisation factor Capitalisation issue
Capitalisation rate Capitalised production CAPM
Captive insurance company Captive reinsurance Carbon credit
Carried interest Carry trade Carry-back
Carrybacks Carryforwards Carve-out
Carveout Cash & carry trade or basis trading Cash (and cash equivalents)
Cash Against Documents or CAD Cash at risk Cash back
Cash budget Cash burn Cash certificate
Cash cow Cash flow Cash flow at risk
Cash flow budget Cash Flow fade Cash flow fade model
Cash flow from operating activities Cash flow from operations Cash flow hedge
Cash flow matching approach Cash flow plan Cash flow return on investment, CFROI
Cash flow statement Cash flow value Cash management
Cash market Cash mutual fund Cash pooling
Cash ratio Cash settlement Cash sweep
Cash Value Added Cash-generating unit Cat bond
Catastrophe bond CBO CBOE
CD CDO CDPC
CDS CDX Index or CDX Centralised cash management
Centralised market Certificate of deposit, CD CFA or Chartered Financial Analyst
CFD CFO or Collateralised Fund Obligation CFROI
CFTC Chairman Change in inventories of finished goods
Change in working capital Change of control Change of control clause
Chaos Chaotic functions Chapter 11
Characteristic line Charges Chart analysis
Charter Chartist Chattel
Chattel Chattel Mortgage Chattel mortgage
Cheque Chi-X 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
Clawback Clear title Clearing house
Clearnet Clearstream Clientele effect
Clipping CLO Closely held
Closing Closing rate method Club deal
CMBS CME CNAV
Co-financing Co-lead managers Co-leads
Co-managers COGS Collar
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 foreign exchange position Commercial interest rate risk Commercial loan
Commercial Mortgage-Backed Securities Commercial paper Commercial position
Commercial synergy Commitment fee Committed facility
Committees -Board of Directors Commodity Futures Trading Commission Common equity
Common stock Community token Company-friendly bankruptcy process
Comparables model Comparative analysis Competing offer
Competing public offer Competition Competition authorities
Competitive bidding Completed contract method Compliance
Comply or explain Compound interest Comprehensive income
Comprehensive insurance Concentration bank Concert
Condition precedent Condition sale Condition subsequent
Conditional contract Confidentiality Agreement Confidentiality agreement
Confidentiality letter Confirmed credit line Conflict between management and shareholders
Conflict between shareholders and creditors Conflict of interest Conforming
Conforming loan Conglomerate Conglomerate discount
Conglomerate discount Consensus forecast Consent fee
Consequential damage Consideration Consolidated accounts
Consolidation Consolidation methods Consortium
Constant amortisation Constant currency Construction contracts
Consumer loans Consumer Price Index Consumption
Contango Contingent assets Contingent claims model
Contingent liabilities Contingent market Contingent tax liabilities
Contingent taxation Contingent value rights, CVR Continuation plan
Contract for difference Contribution margin Contribution margin
Contribution of assets Contribution of shares Contribution value
Control Control premium Control value
Controlling block Convenience rate Conventional convertible preferred stock
Conversion - historical rate method Conversion option into shares of the target company Conversion period
Conversion premium Conversion price Conversion ratio
Conversion value of the convertible bond Convertible Convertible bonds
Convertible preferred stock Convexity Cooke ratio
Cooling-off period Core capital Corner stone investor
Corporate Finance Corporate governance Corporate loan
Corporate social responsibility Corporate venture Correlation
Corridor bond Cost Cost of capital
Cost of capital - Emerging countries Cost of carry Cost of debt
Cost of equity Cost of refunding Cost of self-financing
Cost of shareholders' equity Counterparty risk Countertrade
Country risk premium Coupon Coupon payment
Coupon rate Coupon reinvestment risk Cov-lite loan
Covariance Covenant light Covenant-lite loan
Covenants Covered bond Covered warrant
Covered warrants CP CPI
Creative accounting Credentials Credit bureau
Credit default swap Credit derivative Credit derivative product company
Credit enhancement Credit exposure Credit facility
Credit insurance Credit line Credit manager
Credit ratings Credit risk Credit scoring
Credit spread Credit-based economy Creditor-friendly bankruptcy process
Creditors (U.K.) Creditworthiness Creeping takeover
Criteria for choosing an investment Cross currency swap Cross default
Cross default covenant Cross-border merger Cross-collaterisation
Cross-shareholdings Crossover Crossover fund
Crowdequity Crowdfounding Crowdfunding
Crowdlending Cryptocurrency CSR
Cum dividend Cure period Currency at (forward) premium/at discount
Currency risk Currency swap (with principal) Currency swap without principal
Currency translation Current account Current assets
Current currency Current EPS adjusted for the cost of carbon Current liabilities
Current rate method Current ratio Current yield
Custodian Custody Custody fee
Customer credit Cut-off CVA
CVR

LETTER D

DAC Daisy chain Dashboard
Data room Dated Brent Dated date
Day trader Day-count convention Days inventory outstanding
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 payable oustanding Days purchases outstanding
Days sales outstanding Days' inventory ratio Days' payables ratio
Days' receivables ratio DCF model DCM
DDM De-rating De-recognition
Debenture Debit Debt
Debt cancellation Debt capital Debt capital market
Debt cycle Debt financing Debt policy
Debt push down Debt refinancing Debt securitisation fund
Debt security Debt service Debt service coverage ratio
Debt service ratio Debt structure Debt waiver
Debt wall Debt warrant Debt/equity
Debtor-friendly bankruptcy process Debtor-in-possession Decapitalisation
Declining balance depreciation Deconsolidation Decorrelation
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 repayement 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 or amortization period
Depreciation ratio Depth of a market Deregulation
Derivative Derivatives market Despacing
Devaluation Development capital Development capital fund
Differed Acquisition Costs Dilution - EPS Dilution - shareholders
Dilution loss Dilution of control Dilution profit
Dilutive DIO Direct approach - valuation
Direct debit Direct finance Direct method
Direct valuation method Director Discontinuing operations
Discount Discount for non-voting shares 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 Diversified company - cost of capital
Diversified portfolio Diversity score Divestiture
Dividend Dividend cover Dividend discount model, DDM
Dividend growth rate Dividend payout Dividend payout - ratio or rate
Dividend per share, DPS Dividend policy Dividend recapitalisation
Dividend tax credit Dividend yield DJIA
Documentary credit Domiciliation Double taxation
Double voting rights Double-entry accounting Downgrade
Downside Downsizing DPO
DPS DR Drag along
Dragon bond Dribble out Drop dead date
Dual class shares Dual currency bond Dual listing
Dual track Due diligence Duration
Dutch auction Dutch clause

LETTER E

E-commerce Earn-out clause Earnings
Earnings at risk Earnings Before Interest and Taxes Earnings before interest, taxes, depreciation and amortisation
Earnings per share, EPS Earnings retention ratio Earnings yield
EBIT EBIT multiple EBITA
EBITDA margin EBITDA multiple EBITDA, Earnings before interest, tax, depreciation and amortisation
EBITDAR, Earnings before interest, taxes, depreciation, amortisation and rent EBRD ECM
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 ECP
Efficient frontier Efficient market Efficient market hypothesis
Efficient portfolio EFRAG EGM
Electronic bill of exchange Electronic Datoroom Electronic promissory note
Electronic roadshows Eligibility criteria Eligible
Eligible bills ELTIF Embedded option
Embedded Value Emerging countries - cost of capital Emerging Markets
EMIR Employee benefits Employee productivity
Employee savings Employee stock ownership program, ESOP Employee-shareholders
EMTN, Euro MTN EMU ENCB
Encumbrance Endowment Enhancement
ENPV Enterprise value Enterprise value multiples
Entrenchment theory Entrepreneur EONIA, Euro Overnight Index Average
EPOS EPS Equalisation tax
Equiduct Equilibrium value Equipment leasing
Equipment Trust Certificates Equity Equity
Equity affiliate Equity beta Equity Capital Markets
Equity capital multiples Equity content Equity credit
Equity crowdfunding Equity cycle Equity in drag
Equity kicker Equity line Equity method
Equity Neutral Convertible Bond Equity premium puzzle Equity ratio
Equity risk premium Equity sponsor Equity story
Equity swap Equity sweetener Equity token
Equity value Equity warrant Equity-for-debt swap
Equity-linked securities Equivalent annual cost method Equivalent rates
ERP Escalation clause Escalator clause
Escrow account ESG ESMA
ESOP ESRS ETF
Ether ETO EUR
EUREX EURIBOR, Euribor Eurimean
Euro Euro Commercial Paper (ECP) Euro MTN
Euro Overnight Index Average Euro PP Euro STOXX
Eurobond Euroclear Eurocredits
Eurocurrencies Eurolist Euronext
Euronext Access Euronext Access+ Euronext Growth
European Bank for Reconstruction and Development European Central Bank European Company, Societas Europaea (SE)
European Financial Reporting Advisory Group European Interbank Offered Rate European Long-Term Investment Fund
European option European Sustainability Reporting Standards European Union
European-style option Eurostat Eurozone
Eurozone Public Offering of Securities EVA EVA model
Event driven Event of default Event-study analysis
Exceptional depreciation Exceptional expenses Exceptional items
Excess loss Exchange controthe government authorities in a given country. Exchange ratio
Exchange risk Exchange traded fund Exchangeable bonds
Exclusive negotiations Exclusivity - M&A process Exercise date
Exercise period Exit Exit clause
Exotic product Expanded net present value, ENPV Expected equity risk premium
Expected outcome Expected return Expected return of a market portfolio
Expected Shortfall Expenses Experience curve
Expert systems Explicit forecast period Explicit time horizon
Export credit Exposure Expropriation effect
Extended trade-off model Extendible Extendible note
EXtensible Business Reporting Language Extension clause External capital
External growth External projects External shareholder
Extraordinary general meeting of shareholders, EGM Extraordinary items

LETTER F

Face value Facility fee Factor
Factoring Factoring fee Fair disclosure - principle of
Fair Market Value or FMV Fair value Fair Value hedge
Fairness opinion Fairway bond Fallen angels
Fama-French model Family Office Family shareholding
Family-owned company FASB FCFF
FCFF FED Federal Open Market Committee
Fee Wallet FFO Fiat money
FIFO, First in, first out Final maturity Finance
Finance lease Financial Accounting Standards Board Financial analysis
Financial analysis - Standard plan Financial analysis techniques Financial analyst
Financial assets Financial autonomy ratio Financial breakeven
Financial bubble Financial buyer Financial capital
Financial capitalism Financial communication Financial cost
Financial currency risk Financial distress Financial distress cost
Financial engineering Financial expense Financial expenses
Financial flexibility Financial foreign exchange position Financial holding company
Financial income Financial income Financial information
Financial interest rate risk Financial investments Financial investor
Financial leverage Financial leverage - dynamic Financial loan
Financial package Financial profitability Financial resources
Financial risk Financial risk management Financial security
Financial Services Authorithy Financial structure Financial sweetener
Financial synergy Financial system Financial year
Financing Financing cycle Financing options
Financing plan Financing through a capital increase Finished goods
Fintech Fire sale Firm price offer
Firm underwriting Firm value First dividend
First in, first out First loss First mover advantage
First-time issuer Fisher formula Fitch
Fixed assets Fixed costs Fixed income securities
Fixed price placement Fixed rate Fixed-price offering
Fixed-rate bond Fixed-rate debt security Fixing
Flex Float Floater
Floating-rate debt security Floor Floor plan loan
Floor underwriting Flotation Flow-back
Forced conversion Foreclosure Foreign bond
Foreign currency advances Foreign currency hedging Foreign exchange gains and losses
Foreign exchange option Foreign exchange risk Foreign exchange swap
Forfaiting Forward currency transaction Forward exchange rate
Forward foreign exchange Forward rate Forward rate agreement, FRA
Forward transaction Forward-forward rate Forward-looking
FRA FRA Borrower FRA Lender
Fractals Franchise Free cash flow
Free cash flow before tax Free cash flow multiple Free cash flow to equity
Free cash flow to the firm, FCFF Free Cash Flow Yield Free float
Free float factor Free issue Free rider
Free share Frequency Frequency risk
Friendly offer Friends & family 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 Futures market

LETTER G

GAAP Gamma GARP
GBP GDP GDR
Gearing General accounting General Meeting
General partner (GP) Geography of capital GKO
Global coordinator Global Depositary Receipt, GDR Global offering
Global Relationship Manager Going concern Going concern principle
Golden parachute Golden share Golden share
Goodwill Goodwill amortisation Goodwill method
Gordon-Shapiro formula Grace period Grace period
Grandfather clause Greeks Green bond
Green Bonds Principles Green or sustainable term loan Green RCF
Greenfield Greenmail Greenshoe
Greenshoe option Greenwashing 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 Group Growth at a reasonable price
Growth potential Growth rate Growth stock
Growth stock Guaranted Investment Contract Guarantee
GWP

LETTER H

Haircut Hard capital rationing Hard currency
Hard non call Hard non-call period Hart Scott Rodino
Hazard insurance Head office expenses Hedge fund
Hedger Hedging Hedging principle
Herding instinct, herding behavior Hidden assets Hidden option
High grade High-yield bonds Hight Net Worth Individual
Hire Purchase Historical equity risk premium Historical value
Holdback Holding company Holding company discount
Holding-period return Holt model Home bias
Hostile offer Hurdle rate Hurricane bond
Hybrid securities Hyperinflation Hyperinflationary country

LETTER I

IADB IAS IAS Foundation
IASB IBR IBRD
ICE ICO ICO
ICR Identified purchase cost Idiosyncratic risk
IFC IFRIC IFRS
IFRS Foundation IFRS Interpretation Committee IFRS S
Ijara Ijara-wa-Iqtina Illiquidity
IMF Immune portfolio Immunisation
Impact Fund Impaired debt Impairment losses
Impairment of current assets Impairment of non-current assets Impairment test
Implicit rating Implied volatility In the money
Incentive contracting Income Income statement
Income stock Incoterms Incremental project
Incubator Incumbrance Indenture
Independent Business Review (IBR) Independent director Index floater
Index management Index trackers Index-linked securities
Indication of Interest Indicative offer or non binding offer Indirect approach
Indirect finance Indirect method Indirect valuation method
Industrial strategy Industrial synergy Industry risk
Ineligible Inertia Inflation
Inflation - financial structure Inflation profit Inflation rate
Inflation risk Inflation-linked bond Info memo
Information - financial markets Information asymmetry Information cascade
Information memorandum Informational efficiency Infrastructure Fund
Initial Coin Offering Initial Coin Offering Initial margin
Initial public offering, IPO Insider Insider trading
Insolvent Instalment Instant payment
Institutional investors Insurance Intangible asset
Intangible capital Intangible fixed asset Integrated reporting
Inter-American Development Bank Inter-company credit Interchangeability
Interest Interest charge Interest cost
Interest cover Interest coverage ratio Interest expense
Interest margin 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 facilty agreement Interim interest
Interim interest payments Intermediary Intermediated debt
Intermediation Internal capital Internal capital gain
Internal financing Internal growth model Internal growth potential
Internal profits Internal rate of return, IRR Internal shareholder
International Accounting Standard International Accounting Standards Board 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 Inventories - weighted average cost method
Inventory turnover ratio Inventory valuation methods Inverse floaters
Invested capital Investing Investment
Investment banking Investment choices Investment club
Investment cycle Investment decision principles Investment grade
Investment grant Investment horizon Investment of funds method
Investment outflows Investment outlay Investment policy
Investment property 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 Issue price of a bond 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 KMW
Knock-in/out Know Your Customer KPI
KYC

LETTER L

L/C Laddering Land
Large cap Last in, first out Last trading day
Late Delivery indemnity LBO LBU
Lead Lead arranger Lead bank
Lead director Lead independant director Lead manager
League table 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 - futures contract Leverage effect Leverage recap
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
Limit order Limitation of voting rights Limited partner
Limited share partnerships, LSP Liquid Liquidated damages
Liquidation Liquidator Liquidity - assets
Liquidity - balance sheet Liquidity - investments Liquidity - liabilities
Liquidity - market Liquidity - security Liquidity contract
Liquidity discount Liquidity event Liquidity facility
Liquidity line Liquidity preference theory Liquidity premium
Liquidity ratios Liquidity risk - company Liquidity risk - market
Listed company Listed security Listing
Listing partner Listing sponsor LMA
LMBO Loan Loan cancellation
Loan guarantees Loan market association Loan to value
Lock box Lock up period Lock-up clause
Lockbox system Locking in future prices or rates LOI
London Interbank Offered Rate Long (position) Long-form report
Longevity swap Lookback option Loss rate
Loss Ratio Love money Low Volatility Net Asset Value
LPs LSP Ltv
LVNAV LYON, Liquid Yield Option Notes

LETTER M

MAC clause Macro-hedging Magic chain effect
Majority interest Make whole Management buy-in
Management buy-out, MBO Management control Management fee
Management incentive package Management mandate Management presentation
Manager, managing bank Managers Managing bank
Mandate Mandated lead arranger, MLA Mandatory convertible bonds
Mandatory convertible preferred stock Mandatory offer Margin
Margin analysis Margin call Margin deposit
Margin grid Margin payment Marginal cost
Marginal rate of return Mark-to-market Mark-to-model
Market Market capitalisation Market efficiency
Market expansion Market financing Market flex
Market growth Market in equilibrium Market indicators of value creation
Market maker Market multiples Market operator
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 sounding Market value Market value added, MVA
Market window Market-based economy Market-takers
Marketable securities Marketing Markets in Financial Instruments Directive (MiFID)
Martingale Mass production Master agreement
Master credit agreement Master trust Matching hypothesis
Matching principle Material adverse change clause Materiality principle
Maturity Maturity mismatch MBI
MBO MBS McDonough ratios
Means of payment Medium term note, MTN Meme stock
Memorandum of understanding, MOU Merchant bank Merger
Merger accounting Merger premium Mergers and acquisitions
Mezzanine debt Mezzaniner Micro-Cap
Micro-hedging Micro-structure of financial markets Microcredit
Microfinance Mid-Cap Middle-office
MiFID (Markets in Financial Instruments) Milestone Mimicry
Minimum price offer Minimum-price offering Mining
Minority block Minority discount Minority interests
Minority ownerships Minority shareholder Minority shareholder premium
Minority value Minsky moment MIRR
Mirror share Mix & match offer Mixed offering
MLA Model risk Modified actuarial rate of return
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 Monoline insurer Monte Carlo simulation
Moody's Moral hazard Moratorium
Mortality swap Mortgage Mortgage loan
Mortgage loan Mortgage-Backed Securites Most favoured nation
MOU MTN MTN programme
Mudharaba Multi-criteria analysis (merger) Multilateral Development Bank (MDB)
Multinational company Multinational company - cost of capital Multiple voting rights
Multiple voting shares Multiple(s) Multiples - valuation
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 goodwill
Negative net debt Negative pledge Negative working capital
Negotiable European commercial paper Negotiable European Medium Term Notes Negotiation tactics
Net asset value Net asset value of a fund, NAV Net assets
Net assets per share Net banking income Net Book Value
Net debt Net debt / EBITDA Net debt / Market capitalisation
Net debt reduction Net debt value Net dividend
Net financial debt Net financial expense/income Net fixed assets
Net income Net margin Net pension costs
Net present value Net profit Net profit, Group share
Net worth Net Written Premium Netting
NEU CP NEU MTN Neural networks
New equity puzzle New Issue Premium New Money
New money privilege NewCo NIP
No-petition Nominal Nominal rate
Nominal value Nominalism - principle 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-biding offer Non-conforming
Non-consolidated investments Non-controlling interests Non-conversion premium
Non-Disclosure Agreement Non-group interests Non-monetary items
Non-operating assets Non-operating working capital Non-performing
Non-performing debt Non-petition Non-recourse debt
Non-recourse discounting Non-recurring expenses Non-recurring income
Non-utilisation fee Non-voting shares NOPAT
NOPAT multiple NOPLAT Norm-based screening
Normalised cash flow Normalised earnings Normative
Normative analysis Normative cash flow Normative margin
Normative operating working capital requirement Normative WC Notch
Notching Note issuance facilities (NIF) Notes to the accounts
Notice of Default Notional amount Notional interest
Notional pooling Novation NPV
NWP NYMEX NYSE

LETTER O

O/N OBO OCI
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 One-stop shopping
Opco Open price offer Open price placement
Operating assets Operating balance Operating breakeven
Operating cash flow Operating charges Operating cycle
Operating expenses Operating income Operating inflows
Operating lease Operating leverage Operating liabilities
Operating liabilities Operating loan Operating margin
Operating outflows Operating outlay Operating payments
Operating profit Operating receipts Operating result
Operating revenues Operating risk Operating working capital
Operational efficiency Opportunity cost Opportunity cost of capital
Optimal capital structure Optimal financial structure Option
Option model Option on option Option premium
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
Option valuation method Options theory Order book
Ordinary general meeting of shareholders, OGM Organic growth Organic/internal growth
Organic/internal growth - rate Organised market Organization for Economic Co-operation and development
Orphan company Orthodoxy OTC
OTC market Other comprehensive income Other liabilities
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
Overproduction Oversubscribed Owner Buy Out

LETTER P

P/E ratio, PER, Price-to-earnings ratio Pac-Man Paid-up capital
Paper Paper bill of exchange Paper promissory note
Par value Parent company Parent Company Guarantee (PCG)
Parent company regime Parent group Pari passu covenant
Parity Partial commitment Participant
Participating preference shares Participation Participation certificates
Participation fee Partnership Pass through
Passive management Passthrough certificates Patents
Path of wealth, POW Pay through Pay-in-kind securities
Pay-off -option Pay-out Pay-to-play
Payables Payback period Payback period
Payback ratio Payment factory Payment method
Payment term Payout ratio Payout ratio
PBR PDS PE
Pecking order theory Peer comparison method Pension expenses
Pension funds PER Percentage control
Percentage interest Percentage of completion method Percentage of voting rights
Perfect market Performance bond Performance guarantee
Performance share Performing Permanent financing
Permanent working capital Perpetual bond Perpetual subordinated loans and notes
Perpetuals Perpetuity PES
Petro-dollars Pierce the corporate veil PIK securities
Pilot fishing PIPE PIPE (for a SPAC)
PIPO Pitch Placement discount
Plain vanilla Ploughed back Poison pill
Political risk Political risk insurance Ponzi scheme
Pooling of interest method Pooling on demand POP
Portable alpha Portable debt Portfolio
Portfolio - risk of a Portfolio insurance Portfolio management style
Portfolio manager Portfolio theory Position
Positive carry Positive covenant Post-money
POW PPP Praecipium
Pragmatic valuation approach Prcess-oriented production Pre-emption (right of)
Pre-emptive action Pre-emptive right Pre-emptive subscription rights
Pre-marketing Pre-money Pre-pack
Preference clause Preference for liquidity Preference share
Preference shares Preferential dividend Preferred habitat theory
Preferred securities Preferred share Premium
Premium bond Prepaid expenses Prepaid income
Prepaid interest Prepayment Prepayment penalty
Present value Present Value Index, PVI Price
Price adjustment Price to cash flow Price-To-Book ratio, PBR
Price-to-earnings ratio Pricing grid Pricing of bank services
Primary dealers Primary market Primary tranche
Primary transaction Prime broker Principal
Principal-protected notes Principle of prudence Priority dividend shares (non-voting) (PDS)
Priority share Private banking Private equity
Private equity firm Private equity sponsors Private Initial Public Offering
Private Investment in Public Equity Private negotiation Private placement
Private workouts Privileged share Pro forma, pro forma statements
Product life cycle Production Production models
Production system 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
Profitability index Program trading Project bond
Project financing Projected benefit obligation, PBO Promissory note
Propco Property leasing Property right
Property tax Proportional rate Proportionate consolidation
Prospectus Provision Provision for employee benefits and pensions
Proxy Public offer Public offering
Public Offering price Public to Private Public-to-Private, P to P
Purchase method Purchase warrant Purchases
Purchasing Power Parity Purchasing power parity theory Pure play
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 Quantitative easing Queuing
Quick ratio Quorum

LETTER R

R&D Rally Rally - stock market
Random walk Random walk Range note
RAROC Ratchet effect Rate
Rate of discount Rate of return Rate structure
Rate tunnel Rating Rating agency
Rating grid Rating outlook Ratio
Ratios method Raw material prices risk Raw materials
RCF Re-characterisation Re-rating
Re-regulation Real dilution Real Estate Investment Trust
Real interest rate Real options Real rate
Real-time payments Realised gain Realised loss
Realised rate Recapitalisation Receivables
Receiver Receivership Recession
Recession and Working Capital Recommended offer Recourse
Recourse debt Recoverable value Recovery period
Recurrent items Recurring items Red Herring
Redemption Reevaluation Reference rate
Reference shareholder Refinancing Refinancing deadlock
Registered bond Regression Regularity
Regulated market Regulation Regulatory changes
Regulatory risk Reinsurance company REIT
Relationship Manager Relative value ratio Relative weight -merger
Rendez-vous clause Repayable advance Repayment
Repayment by equal instalments Repayment by tranches (or series) Repayment capacity ratio
Repayment in fine Repayment of a bullet loan Repayment of a loan - constant annuities
Repayment of a zero coupon loan Replacement cost Replenishment
Replicating portfolio Repo, repurchase agreement Representations
Representations and warranties Reps and warranties Repurchase agreement
Request For Proposal Required rate of return Requirements in working capital
Rerating Rescheduling Research and development costs, R&D
Research and development expenses Reserve stock split Reserved capital increase
Residential Mortgage-Backed Securities Residual risk Residual value
Resistance level Resources Restated net asset value, RNAV
Restatement Restrictive covenant Restructuring
Restructuring charges Restructuring plan Restructuring provisions
Retail investor Retail public offering Retained Cash Flow
Retained earnings Retained earnings Retainer
Return Return on capital employed, ROCE Return on investment
Revaluation Revenue bonds Revenues
Reverse enquiry Reverse flex Reverse repo
Reverse takeover Revolver Revolving credit
RFP Right of approval Right of first refusal
Rights issue Risk Risk Adjusted Return On Capital
Risk aversion Risk manager Risk of a fraud
Risk of default Risk of disaster Risk of illiquidity
Risk premium Risk-free assets Risk-free rate
Risk/return ratio RM RMBS
RNAV ROA Roadshow
ROCE ROE ROIC (Return On Invested Capital)
Rule 144A Rump Run-rate

LETTER S

Salam Sale-leaseback Sales
Sales margin Sales multiple Salvage value
Samurai bond Sarbanes Oxley SARON
Saving SBLC SBP
Scale problem Scenario analysis Scheme of arrangement
Schuldschein Scissors effect Scope of consolidation
Scoring - method Scoring function Scrip issue
SE Seasonal activity Seasoned equity offering, SEO
SEC Second proposition of the Modigliani-Miller theorem Secondary LBO
Secondary market Secondary share offering Secondary tranche
Secondary transaction Securities lending Securities placement
Securities-backed loan Securitisation Securitisation buy-out
Securitisation vehicle Securitization Buy-Out Security
Security Security market line Seed capital
Segmentation theory Self-control Self-financing/internal financing
Self-fulfilling prophecy Self-hedging Self-mimicry
Sell-side Selling group Semi-strong efficient market
Senior Banker Senior debt Seniority
Sensitivity SEO SEPA
SEPAmail Separation theorem Sequential pay
Series A Series B Series C
Service cost Setoff Settlement date
SFOR Shadow rating Share
Share buyback Share cum debt warrant Share exchange offer
Share purchase agreement, SPA Share subscription warrant Shareholder advisory board
Shareholder return Shareholder structure Shareholder value creation
Shareholders Shareholders' agreement Shareholders' equity
Shares with double voting rights Shares with multiple voting rights Sharpe Ratio
Shell Shogun bond Short (position)
Short List Short Term European Paper Short Term Note Issuance Facilities (SNIF)
Shotgun clause Side business Sight draft
Signal Signalling theory Significant influence
Signing Signing fee Silent partner
Simple majority Single coupon Single Euro Payment Area
Single-coupon bond Sinking fund SIV
Size premium Sleeping partner Small and Medium-sized companies
Small cap Smart beta Smartpool
SME Smile (volatility) Social Bonds Principles
Socially responsible investment Soft call provision Soft currency
Soft loan Soft rationing Software
Solvency Solvency II Solvency opinion
Solvency risk Solvency-and-liquidity analysis SONIA
SOP or SOTP Sovereign spread Sovereign-wealth fund
SPA SPAC Special method of translation
Special purpose acquisition vehicles Special purpose vehicle Special-purpose vehicle, SPV
Specific risk Speculation Speculative bubble
Speculative grade Speculative market Spin-off
Split Split rating Split-off
Split-up Spot Spot date
Spot market Spot price Spread
SPV Squeeze-out SRI
SRI fund Stability principle Stakebuilding
Stakeholders Stand-alone valuation Stand-by credit
Stand-by letter of credit Standard & Poor's Standard deviation
Standstill Standstill agreement Staple financing
Start-up Start-up costs Start-up costs
Statement of changes in financial position Statutory Auditors STEP
Step up bond Stewardship Stochastic
Stochastic process Stock Stock dividends
Stock Exchange Stock market index Stock market information
Stock options Stock-picking approach Straight bond
Straight line depreciation Strategic analysis Strategic assets (poison pills)
Strategic value Strike price Strip financing
Strong-efficient market Structural subordination Structured Investment Vehicles
Structured product Structurer Structurer
Stub equity Sub-participation Sub-prime
Subordinated Subordinated creditors Subordinated debt
Subordination Subrogation Subscription parity
Subscription right Subscription warrant Subscription warrant
Subsidiary Substitute Servicer Sukuk
Sum-of-the-parts method Sunset provision Super dividends
Super holding Super profit Supervisory Board
Supplier credit Supply chain Support level
Survivorship bias Sustainability Bond Guidelines Swap
Swap point Swap-driven Eurobond Swaption
Sweetener SWIFT Syndicate
Syndicated financing Syndicated loan Synergies -sharing
Synergy Synthetic bond Synthetic lease
Synthetic rating Systematic internaliser Systematic risk

LETTER T

Tag along Take and pay contract Take or pay contract
Takeover Takeover bid Tangible fixed asset
Tap issue Tapping the reserves Tax base
Tax loss carrybacks Tax loss carryforwards Tax proof
Tax rate Tax savings Tax shield
Teaser Technical analysis Technical dilution
Temporal method Temporary differences Tender offer
Term Term loan Term loan B
Term of a loan Term out Term sheet
Term structure of interest rates Terminal value Terminal value
TERP Texan clause The bottom-up approach is also called the stock-picking approach.
Theoretical ex-rights price 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 Token
Toll revenue bond Too big to fail Toogle notes
Top-down approach Total breakeven Total debt service
Total return swap Total shareholder return, TSR Tracking stock
Tracking stock Trade buyer Trade confirmation
Trade finance Trade payables Trade receivables
Trade sale Trade-off model Tradegate
Trading Trading profit Trailing ratio
Tranche A Tranche B Tranche C
Transaction costs Transaction multiples Transaction multiples method
Transaction, the management fee is a front-end, flat percentage fee, Transfer Transfer of assets
Transfer pricing Transformation Transformation risk
Transition bond Translation Translation risk
Transmutation Treasurer Treasury
Treasury method Treasury shares Treasury shares
Treasury shares Treeing Trend analysis
Triple net lease Triple net rent Triple track
True sale True sale Trust
Trust preference shares TSR Turnaround capital
Turnaround capital fund Turnover – assets Turnover – liabilities
Turquoise

LETTER U

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

LETTER V

Valuation Value Value added
Value and corporate governance Value and financial securities Value at risk
Value chain Value creation Value Date
Value destruction Value drivers Value of Business in Force
Value of economic assets Value of tax savings Value stock
Value transfer Value-added tax (VAT) VAR
Variable costs Variable depreciation Variable Net Asset Value
Variable rate Variable remuneration Variance
Variance Swap VBI VDD
Vega Vehicle Venture capital
Venture capital method Venture capitalist Vesting
Vesting period Veto Virtual stock exchange
VIX VNAV Volatility
Volatility - bonds Volatility - dividends Volatility risk
Volume growth Volume-weighted average price Volumes
Voting rights Vulture fund VWAP

LETTER W

WACC Wait and see option Waiver
Waiver fee Wakala WAL
WAP method Warehousing agreement Warehousing certificate
Warm up Warm-up Warrant
Warrant kicker Warranties Warranty bond
Warranty for defects Watch Weak currency
Weak-form efficient market Wealth Weather derivative
Weekend effect Weighted average cost Weighted Average Cost of Capital, WACC
Weighted Average Life Weighted average price method Whistle blower
White knight White paper White paper
Wholly-owned subsidiary Wilson formula 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
Zero balance account, ZBA Zero cash Zero coupon
Zero-coupon bond Zero-coupon bond Zero-coupon bond
ZOPA

LETTER Â

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