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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 X Y Z

ABS ADR ANAV
APE APT APV
Abandonment risk Accelerated book-building Accelerated depreciation
Accelerated share repurchase 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 Adjustable rate preference shares Adjustable-rate debt security
Adjusted Net Asset Value 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 Alpha
Also called order book. Alternative management American Depositary Receipt
American option Amortisation Amortisation of the loan
Annual Premium Equivalent 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 backed securities
Asset beta Asset contribution Asset coverage
Asset turnover Assets Associate
Associated undertaking Asymmetry - option Asymmetry - shareholder / creditor
Asymmetry – issuer/investor At the money Atypical silent partner
Auction Auction clause Average life of a bond
BIMBO Back-stop Back-up line
Backdoor equity hypothesis Backwardation 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
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 equity 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 CBO CD
CDO CDPC CFROI
CLO 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 Carried interest 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 bond obligation Collateralised debt obligation, CDO
Collateralised loan obligation Combined leverage Combined ratio
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
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
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
Cov-lite loan Covariance Covenant-lite loan
Covenants Covered warrant Credit default swap
Credit derivative Credit derivative product company 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
DAC 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 Derivative
Differed Acquisition Costs Dilution - EPS Dilution - shareholders
Dilution loss Dilution of control Dilution profit
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 recapitalisation Dividend tax credit
Dividend yield Documentary credit Domiciliation
Double-entry accounting Dual Track 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 EPOS
EPS ESOP ETF
EURIBOR, Euribor EVA EVA model
EXtensible Business Reporting Language 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
Embedded Value 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
Eurozone Public Offering of Securities 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 Floor plan loan 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 GWP
Gamma Gearing Global Depositary Receipt, GDR
Global coordinator Golden share Goodwill
Goodwill amortisation Gordon-Shapiro formula Greenshoe
Grey market Gross Written Premium Gross capital employed
Gross debt Gross dividend Gross margin
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 Ijara-wa-Iqtina
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 Islamic finance
Issue at a discount Issue at a premium Issue at par
Issue discount Issue price Issuers and holders prefer the term High yield bonds.
Istisna’a 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 Ratio Loss rate Ltv, see Loan to value
Ltv, see loan to value MBI MBO
MIRR MLA MOU
MTN MTN programme MVA
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
Microcredit Microfinance 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 Mudharaba
Multiple voting shares Multiple(s) Multiples method
Multiplier effect Murabaha Musharaka
NASDAQ NAV NBV
NOPAT NOPAT multiple NPV
NWP NYSE Natural disaster risks
Natural hedge Negative capital employed Negative covenant
Negative working capital Net Book Value Net Written Premium
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
Organic growth Organic growth 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 PE, see P/E ratio 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
Portable alpha Portfolio insurance 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 flex 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 Salam 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 Seed capital
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 Silent partner Size premium
Small cap Soft currency Soft rationing
Solvency Solvency II Solvency risk
Solvency-and-liquidity analysis Sovereign spread Sovereign-wealth fund
Special method 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 Squeeze-out
Stability principle Stakebuilding Stand-alone valuation
Standard deviation Start-up costs Statement of changes in financial position
Stewardship 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
Structured product Structurer Stub equity
Subordinated debt Subscription parity Subscription right
Subscription warrant Subsidiary Sukuk
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 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-off model
Trading profit Trailing ratio Transaction multiples
Transaction multiples method Transfer Transfer of assets
Translation Translation risk Treasury
Treasury method Treasury shares Treeing
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
Upward flex VAR VBI
VWAP Value Value added
Value and financial securities Value at risk Value creation
Value drivers Value of Business in Force Value stock
Variable costs Variance Variance Swap
Vega Venture capital Volatility
Volatility - bonds Volatility - dividends Volume growth
Volume-weighted average price Vulture fund WACC
Wait and see option Wakala 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 XBRL
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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