Vernimmen.com : Glossary letter W

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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	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 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 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	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 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	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 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	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	Unlevered beta
Unlevered cost of equity	Unlimited liability	Unlisted
Unsecured	Unsolicited offer	Unwinding a position
Upgrade	Upward flex	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	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
YTM

LETTER Z

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