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Practice // Glossary letter W

GLOSSARY LETTER
  • FIND A WORD
  • 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

FIND A WORD

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 Activités post-marché
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 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 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 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 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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