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A B C D E F G H I J K L M N O P Q R S T U V W Y Z

ADR APT APV
Abandonment risk Accelerated book-building Accelerated depreciation
Account balancing Accounting criteria of value creation Accounting currency risk
Accounting procedures with an impact on earnings Accounts payable Accounts receivable
Accretion Accruals Accrued expense
Accrued income Acid test ratio Acquisitions
Acquisitions Acquisitions Adjustable rate preference shares
Adjustable-rate debt security Adjusted present value, APV Administrative synergy
Advance dividend Affirmative covenant Agency costs
Agency theory Agent bank Agent fee
Agreement in principle All-in cost All-share transaction
Alliance Allocative efficiency Also called order book.
Alternative management American Depositary Receipt American option
Amortisation Amortisation of the loan Annual effective interest rate
Annuity Annuity factor Apparent dilution
Appraisal clause Arbitrage Arbitrage pricing theory, APT
Arranger Arranging the deal Asset backed commercial paper
Asset beta Asset contribution Asset coverage
Asset turnover Assets Associate
Associated undertaking Asymmetry - option Asymmetry - shareholder / creditor
Asymmetry – issuer/investor At the money Auction
Auction clause Average life of a bond BIMBO
Back-stop Back-up line Backdoor equity hypothesis
Balance sheet Bank guarantee Bank-based economy
Bankruptcy Bankruptcy costs Barrier currency option
Barrier interest rate option Barrier option Base
Basis point Bear market Bearer bond
Bearer shares Behavio(u)ral finance Below investment grade
Benchmark switching Benchmarking Best efforts basis
Beta Beta coefficient Beta is also called beta coefficient.
Beta of assets Bid-ask spread Bid-ask spread is also called spread.
Bill of exchange Binomial method Black & Scholes Model
Black-out period Block Block ownership
Blocking minority Bolt-on projects Bond
Bond redeemable in shares Bond redemption premium Bond value of the convertible bond
Book Book profitability Book value
Book value of shareholders’ equity Book-building Bookrunner
Bootstrap game Bootstrapping model Bottom-up approach
Bought deal Brands and market share Breakeven
Bridge loan Bull market Bullet bond
Bullet repayment Business cycle Business loan
Buy and hold Buy-in Buy-sell provision
Buyer’s credit By-category income statement format By-destination income statement format
By-function income statement format By-nature income statement format CAPM
CD CDO CFROI
CSR CVA CVR
Call option Call provision Callable instrument
Cap Capital Asset Pricing Model, CAPM Capital adequacy ratio
Capital decrease Capital employed Capital expenditures
Capital gain/loss Capital increase Capital intensity
Capital invested Capital lease Capital market economy
Capital market line Capital rationing Capital reduction
Capital structure Capital turn Capital-employed analysis
Capitalisation Capitalisation factor Captive insurance company
Carrybacks Carryforwards Carveout
Cash (and cash equivalents) Cash Value Added Cash budget
Cash certificate 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
Certificate of deposit, CD Characteristic line Charges
Chart analysis Chartist Chirographic creditor
Claw-back clause Claw-back commitment Claw-back provision
Clearing house, clearinghouse Clientele effect Closing rate method
Club deal Co-lead managers Co-leads
Co-managers Collar Collateralised debt obligation, CDO
Combined leverage Commercial currency risk Commercial interest rate risk
Commercial loan Commercial paper Commercial synergy
Commitment fee Committed facility Common equity
Common stock Company-friendly bankruptcy process Comparables model
Comparative analysis Competitive bidding Completed contract method
Compound interest Concentration bank Confirmed credit line
Conglomerate Conglomerate discount Consolidated accounts
Consolidation Consolidation methods Constant amortisation
Construction contracts 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
Corporate governance Corporate social responsibility Cost
Cost of capital Cost of debt Cost of equity
Cost of refunding Cost of shareholders’ equity Counterparty risk
Coupon payment Coupon rate Coupon reinvestment risk
Covariance Covenants Covered warrant
Credit default swap Credit derivative Credit facility
Credit insurance Credit line Credit ratings
Credit risk Credit scoring Credit spread
Credit-based economy Creditor-friendly bankruptcy process Creditors (U.K.)
Cross default covenant Currency at (forward) premium/at discount Currency option
Currency risk Currency swap (with principal) Currency swap without principal
Currency translation Current assets Current liabilities
Current rate method Current ratio Customer credit
DCF model DDM DPS
DR Data room Dated date
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
De-rating Debit Debt
Debt capital Debt cycle Debt financing
Debt securitisation fund Debt security Debt service
Debt service Debt service ratio Debt warrant
Debtor-friendly bankruptcy process Decapitalisation Default risk
Defeasance Deferred income Deferred redemption period
Deferred tax assets Deferred tax assets and liabilities Deferred tax liabilities
Deferred taxation Defined benefit plans Defined contribution plans
Delisting Delta Demerger
Depositary receipt, DR Depreciation Depreciation and amortisation
Depreciation ratio Depreciation ratio Derivative
Dilution loss Dilution of control Dilution profit
Dilution – EPS Dilution – shareholders 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 Disintermediation
Distribution system Diversification Divestiture
Dividend Dividend discount model, DDM Dividend per share, DPS
Dividend tax credit Dividend yield Documentary credit
Domiciliation Double-entry accounting Dual class shares
Due diligence Duration Dutch auction
Dutch clause EASDAQ EBIT multiple
EBIT, Earnings Before Interest and Tax EBIT, Earnings Before Interest and Taxes EBITDA margin
EBITDA multiple EBITDA, Earnings before interest, tax, depreciation and amortisation EBITDAR
EBITDAR, Earnings before interest, taxes, depreciation, amortisation and rent EGM EMTN, Euro MTN
ENPV EONIA, Euro Overnight Index Average EPS
ESOP ETF EURIBOR, Euribor
EVA EVA model 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
Economic analysis 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 Electronic bill of exchange
Electronic promissory note Employee stock ownership program, ESOP Employee-shareholders
Enhancement Enterprise value Enterprise value multiples
Equalisation tax Equilibrium value 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 Escrow account
Eurimean Euro MTN Euro Overnight Index Average
Euro-NM Eurobond Euronext
European Interbank Offered Rate European option European-style option
Event-study analysis Exceptional items 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
Expected return on assets – pensions Expenses Expert systems
Explicit forecast period Export credit Expropriation effect
Extended trade-off model External capital External projects
Extraordinary general meeting of shareholders, EGM Extraordinary items FCFF
FFO FIFO, First in, first out FRA
Face value Facility fee Factor
Factoring Fairness opinion Fallen angels
Fama-French model Family-owned company Finance lease
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 structure Financial sweetener
Financial synergy Financial system Financing cycle
Firm underwriting Firm value First in, first out
First mover advantage Fisher formula Fixed assets
Fixed costs Fixed income securities Fixed-price offering
Fixed-rate debt security Floating-rate debt security Floor
Flow-back Foreign bond Foreign currency advances
Foreign currency hedging Foreign exchange gains and losses Foreign exchange risk
Forward currency transaction Forward exchange rate Forward rate agreement, FRA
Forward transaction Forward-forward rate Free cash flow
Free cash flow Free cash flow to the firm, FCFF Free float
Free float factor Free rider Free share
Friendly offer Full commitment Full consolidation
Fully-diluted EPS Fundamental analysis Fundamental valuation method
Funds from operation ( FFO) Fungibility Future
GAAP GARP GDR
Gamma Gearing Global Depositary Receipt, GDR
Global coordinator Golden share Goodwill
Goodwill amortisation Gordon-Shapiro formula Greenshoe
Grey market Gross capital employed Gross debt
Gross dividend Gross operating profit Gross trading profit
Gross yield to maturity Growth at a reasonable price Growth potential
Growth stock Hard capital rationing Hard currency
Hedge fund Hedging Hedging principle
Herding instinct, herding behavior Hidden assets Hidden option
High-yield bonds Historical equity risk premium Historical value
Holdback Holding company Holding company discount
Holding-period return Hostile offer Hurdle rate
Hybrid securities Hyperinflationary country IAS
IASB IFRS IPO
IPO discount IRR IRS
IRS rate Identified purchase cost Idiosyncratic risk
Immunisation Impairment losses Impairment test
Implicit rating In the money Incentive contracting
Income Income statement Income stock
Incoterms Incremental project Indenture
Index management Index trackers Index-linked securities
Indirect finance Indirect method Indirect valuation method
Industrial synergy Industry risk Inflation
Inflation risk Information cascade Informational efficiency
Informational mimicry Initial public offering, IPO Inside shareholders
Institutional investors Insurance Intangible asset
Intangible capital Intangible fixed asset Interchangeability
Interest Interest charge Interest cost – pensions
Interest cover Interest expense Interest rate
Interest rate option Interest rate risk Interest rate swap rate, IRS rate
Interest rate swap, IRS Interest-bearing current account Interim interest payments
Intermediated debt Intermediation Internal capital
Internal financing Internal growth model Internal rate of return, IRR
International bond Intra-annual dividend Intra-group transactions
Intrinsic risk Intrinsic value Intrinsic value – option
Intrinsic value – share Inventories Inventories valuation methods
Inverse floaters Invested capital Investment
Investment banking Investment cycle Investment decision principles
Investment grade Investment of funds method Investment outflows
Investment outlay Investors Issue at a discount
Issue at a premium Issue at par Issue discount
Issue price Issuers and holders prefer the term High yield bonds. January effect
Joint lead manager Joint venture Joint-lead
Junior bond Junior debt Junk bonds
KPI Key performance indicators Kicker
Knock-in/out L/C LBO
LBU LIBOR, London Interbank Offered Rate LIFFE, Liffe
LIFO, Last in, first out LMBO LOI
LSP LYON, Liquid Yield Option Notes Large cap
Last in, first out Lead Lead arranger
Lead bank Lead manager Lease
Leasing Legal merger 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
Life of the bond Life of the loan Lifecycle of financing sources
Limited share partnerships, LSP Liquid Yield Option Notes Liquidity
Liquidity - assets Liquidity - investments Liquidity - liabilities
Liquidity discount Liquidity preference theory Liquidity premium
Liquidity ratios Liquidity risk - market Liquidity risk – company
Liquidity – balance sheet Liquidity – security Listed security
Listing Lock up period Lockbox system
Locking in future prices or rates London Interbank Offered Rate Long (position)
Lookback option Loss rate MBI
MBO MIRR MLA
MOU MTN MTN programme
MVA Majority value Management buy-in
Management buy-out, MBO Management fee Manager, managing bank
Managing bank Mandated lead arranger, MLA Mandatory convertible bonds
Mandatory convertible preferred stock Mandatory offer Margin
Margin analysis Margin call Marginal rate of return
Market Market capitalisation Market expansion
Market financing Market growth Market in equilibrium
Market indicators of value creation Market maker Market multiples
Market plane Market portfolio Market premium
Market return Market risk Market risk premium
Market risk – strategic positioning of the company Market share Market value
Market value added, MVA Market-based economy Marketable securities
Mass production Master credit agreement Matching hypothesis
Matching principle Material adverse change clause Maturity
Maturity mismatch McDonough ratios Medium term note, MTN
Memorandum of understanding, MOU Merger Mezzanine debt
Mezzaniner Micro-Cap Mid-Cap
Mimicry Minimum-price offering Minority discount
Minority interests Minority shareholder Minority value
Model risk Modified IRR Modified duration
Modified internal rate of return, Modified IRR, MIRR Modigliani-Miller theorem Momentum
Monetary items Money market funds Money-market funds
Monte Carlo simulation Moral hazard Multiple voting shares
Multiple(s) Multiples method Multiplier effect
NASDAQ NAV NOPAT
NOPAT multiple NPV NYSE
Natural disaster risks Natural hedge Negative capital employed
Negative covenant Negative working capital Net asset value
Net asset value of a fund, NAV Net assets Net assets per share
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 worth test Netting New equity puzzle
Nominal rate Nominal value Nominee agreement
Non core-assets Non investment grade, non-investment grade Non recurrent items
Non recurring items Non-monetary items Non-operating assets
Non-operating working capital Non-recourse discounting Non-voting shares
Normalised cash flow Normalised earnings Normative analysis
Normative cash flow Normative margin Notes to the accounts
Notional amount Notional pooling OGM
OTC OTC market Off-balance sheet commitments
Off-balance sheet financing Off-balance sheet financing techniques Offering
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 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 Organised market
Other operating expenses Other operating income Out of the money
Outside shareholders Outsourcing Over the counter
Over-the-counter market, Over the counter, OTC, OTC market Overall dilution Overhang
Overlay bank P/E ratio, PER, Price-to-earnings ratio PBR
PDS PER POW
PV PVI Paper
Paper bill of exchange Paper promissory note Par value
Parent company regime Pari passu covenant Partial commitment
Participant Participating preference shares Path of wealth, POW
Pay-in-kind securities (PIK securities) Payables Payback period
Payback ratio Payment method Payout ratio
Pecking order theory Peer comparison method Percentage control
Percentage interest Percentage of completion method Perfect market
Perfect markets theory of capital structure Permanent financing Perpetual subordinated loans and notes
Perpetuals Perpetuity Pitch
Plain vanilla Poison pill Political risk
Pooling of interest method Pooling on demand Position
Positive covenant Pragmatic valuation approach 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
Prepaid expenses Prepaid income Present Value Index, PVI
Present value Price adjustment Price-To-Book ratio, PBR
Price-to-earnings ratio Principal Principle of prudence
Priority dividend shares (non-voting) (PDS) Private negotiation Private placement
Privileged share Pro forma, pro forma statements Process-oriented production
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
Profitability Program trading Project financing
Projected benefit obligation, PBO Promissory note Proportional rate
Proportionate consolidation Prospectus Provision
Provision for employee benefits and pensions Præcipium Public offer
Public offering Public-to-Private, P to P Purchase method
Purchase warrant Purchases Put on the seller
Put option Put provision Put warrant
Put-call parity Putable instrument Q ratio
QIB Qualified Institutional Buyers, QIB Qualified majority
Queuing Quick ratio R&D
RCF RNAV ROCE
ROE Range note Ratchet effect
Rate of discount Rate of return Rate tunnel
Rating Rating agency Rating outlook
Raw material prices risk Re-rating Real dilution
Real interest rate Real options Realised rate
Recapitalisation Receivables Recommended offer
Recoverable value Recurrent items Recurring items
Redemption Reference rate Registered bond
Regulatory changes Regulatory risk Relative value ratio
Rendez-vous clause Repayment by equal instalments Repayment by tranches (or series)
Repayment in fine Replacement cost Replicating portfolio
Repo, repurchase agreement Representations and warranties, Reps & warranties Reps & warranties
Repurchase agreement Required rate of return Requirements in working capital
Research and development costs, R&D Reserved capital increase Residual pool
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 Return Return on capital employed, ROCE
Return on equity, ROE Return on investment Revenues
Reverse repo Revolving credit 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 Roadshow Rule 144A
SEC SEO SPA
SPAC SPV STEP
Sale-leaseback Sales Salvage value
Samurai bond Scale problem Scenario analysis
Scissors effect Scope of consolidation Seasoned equity offering, SEO
Second proposition of the Modigliani-Miller theorem Secondary market Secondary share offering
Securities lending Securitisation Securitisation buy-out
Securitisation vehicle Security Security market line
Self-control Self-hedging Self-mimicry
Selling group Semi-strong efficient market Senior debt
Sensitivity analysis Separation theorem Service cost
Settlement date Shadow rating Share
Share buyback Share cum debt warrant Share exchange offer
Share purchase agreement, SPA Shareholder return Shareholder structure
Shareholders Shareholders’ agreement Shareholders’ equity
Shares with multiple voting rights Short (position) Short Term European Paper
Shotgun clause Signal Signalling theory
Significant influence Size premium Small cap
Soft currency Soft rationing Solvency
Solvency risk Solvency-and-liquidity analysis Sovereign spread
Special method Special purpose acquisition vehicles Special-purpose vehicle, SPV
Specific risk Speculation Speculative grade
Spin-off Split rating Split-off
Split-up Spot date Spot price
Spread Squeeze-out Stability principle
Stakebuilding Stand-alone valuation Standard deviation
Start-up costs Statement of changes in financial position Stock
Stock options Stock-picking approach Straight bond
Straight line depreciation Strategic assets (poison pills) Strategic value
Strike price Strip financing Strong-efficient market
Structural basis of debt Stub equity Subordinated debt
Subscription parity Subscription right Subscription warrant
Subsidiary Sum-of-the-parts method Supplier credit
Supply chain Support level Survivorship bias
Swap Swap point Swap-driven Eurobond
Swaption Sweetener Syndicated loan
Synergy Synthetic lease Synthetic rating
Systematic risk TMT TSR
Take and pay contract Take or pay contract Takeover
Takeover bid Tangible fixed asset Tapping the reserves
Tax loss carrybacks Tax loss carryforwards 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 Time deposit Time diversification
Time value Time value of money Timing differences
Timing problem Tobin’s Q Top-down approach
Total breakeven Total debt service Total return swap
Total shareholder return, TSR Tracking stock Trade buyer
Trade payables Trade receivables Trade-off model
Trading profit Trailing ratio Transaction multiples
Transaction multiples method Transfer Transfer of assets
Translation Translation risk Treasury
Treasury method Treasury shares Trend analysis
Trust preference shares Turnover – assets Turnover – liabilities
US GAAP US-style option Underlying asset
Underwriting Underwriting fee Underwritten deal
Undiversifiable risk Unit credit method Unlevered beta
Unlevered cost of equity Unsolicited offer VAR
VWAP Value Value added
Value and financial securities Value at risk Value creation
Value drivers Value stock Variable costs
Variance Vega Venture capital
Volatility Volatility - bonds Volatility - dividends
Volume growth Volume-weighted average price Vulture fund
WACC Wait and see option Warehousing agreement
Warm up Warrant Warrant kicker
Weak currency Weak-form efficient market Wealth
Weekend effect Weighted Average Cost of Capital, WACC Weighted average cost
White knight Window dressing Winners’ curse
Working capital Working capital needs Working capital requirements
Working capital turnover ratios Write-downs YTM
Yankee bond Yield Yield curve
Yield spread Yield stock Yield to maturity, YTM
Z-score ZBA Zero balance account, ZBA
Zero coupon Zero-coupon bond

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