Asset Any item of economic value owned by an individual or corporation. Bond A debt instrument issued for the purpose of raising capital by borrowing. EBITDA Earnings before interest, taxes, depreciation and amortization is an approximate measure of a company's operating cash flow.
Asset Any item of economic value owned by an individual or corporation. Bond A debt instrument issued for the purpose of raising capital by borrowing. EBITDA Earnings before interest, taxes, depreciation and amortization is an approximate measure of a company's operating cash flow.
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Asset Any item of economic value owned by an individual or corporation. Bond A debt instrument issued for the purpose of raising capital by borrowing. EBITDA Earnings before interest, taxes, depreciation and amortization is an approximate measure of a company's operating cash flow.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
Any item of economic value owned by an individual or
corporation. Asset Allocation The process of dividing investments among different kinds of assets, such as stocks, bonds, real estate and cash, to optimize the tradeoff between risk and reward based on an individual’s or institution’s specific situation and goals. Bond A debt instrument issued for the purpose of raising capital by borrowing. A bond is generally a promise to pay a specified amount of interest for a specified amount of time, and to repay the principal at maturity. Broker An individual or firm that acts as an intermediary between a buyer and a seller, usually charging a commission. Capital Gain The amount by which an asset’s selling price exceeds its initial purchase price. Commodity A physical substance such as food, grains and metals that is interchangeable with other products of the same type. Derivative A financial instrument whose characteristics and value depend upon the characteristics and value of an underlying instrument or asset, typically a commodity, bond, equity or currency. Due Diligence The process of investigation, performed by investors, into the details of a potential investment. For example, an examination of operations and management and the verification of material facts. EBITDA Earnings before interest, taxes, depreciation and amortization is an approximate measure of a company’s operating cash flow based on data from the company’s income statement. E-Commerce The buying and selling of products and services by businesses and consumers over the Internet. Economics The study of how the forces of supply and demand affect the allocation of scarce resources. Equity Ownership interest in a corporation possessed by shareholders. Fixed Income Security A security that pays a specific interest rate, such as a bond or money market instrument. Forward Agreement An agreement to buy or sell a security at an agreed future price. Futures Contract An agreement to buy or sell a specific commodity or security at a specific price on a specific date. Greenshoe An over-allotment provision to enable an underwriter to issue more securities at the issue price in order to stabilize the transaction in the immediate aftermarket. Growth Stock The stock of a company which is growing earnings and/or revenue faster than its industry or the overall market. Hedging A strategy used to offset investment risk. Hedge Fund A pooled investment vehicle that uses advanced investment strategies such as leverage, long, short and/or derivative positions in both domestic and international markets, with the goal of generating high returns. Index A statistical measure of the changes in a portfolio representing a market. The Standard & Poor’s 500 is a well-known index that measures the overall changes in the value of 500 of the most widely held U.S. stocks. Initial Public Offering (IPO) The first sale of stock to the public by a company. Investment Bank An institution that acts as an underwriter or agent for corporations and municipalities issuing securities, but which does not accept deposits or make loans. Issue A stock or bond that has been offered for sale by a corporation or government entity, usually through an underwriter or in a private placement. Junk Bond Slang term for bonds that do not carry an investment-grade rating. Leverage The degree to which an investor or business is utilizing borrowed money for its investments. Leveraged Buyout (LBO) The use of a company’s cash flow to finance the debt incurred (the “leverage”) in acquiring a company. Margin The use of borrowed money to purchase securities. Mergers & Acquisitions (M&A) The practice of buying, selling, or merging assets, divisions or entire companies. NASDAQ National Association of Securities Dealers Automated Quotation system. NASDAQ is the largest electronic screen-based equity securities market in the United States. Option The right, but not the obligation, to buy or sell a specific amount of a given stock, commodity, currency, index or debt at a specified price during a specified period of time. Price Index Index that tracks inflation by measuring price changes. Private Equity An equity investment in a company that is not traded on a public stock market. Typically, references to private equity encompass both early stage (venture) and later stage (buyouts) investing. Qualitative Analysis The process of determining the value of an investment or security, especially a stock, by examining its non-numeric characteristics, such as management, employee morale, customer loyalty and brand value. Quantitative Analysis The process of determining the value of an investment or a security by examining its numerical, measurable characteristics such as revenues, earnings, margins and market share. Repurchase Agreement (or “Repo”) A contract in which the seller of debt securities, usually Treasury bills, agrees to buy them back at a specified time and price. Research Analyst An employee of a bank, brokerage, advisor or mutual fund who studies companies and makes buy, sell and hold recommendations, often specializing in a single sector or industry. Security An investment instrument, other than an insurance policy or fixed annuity, issued by a corporation, government or other organization which offers evidence of debt or equity. Spot Price 1) The price at which a currency is currently trading in the spot market. 2) The yield of a zero coupon bond. Stock An instrument that signifies an ownership position or equity in a corporation, and represents a claim on its proportionate share in the corporation’s assets and profits. Strike Price Also called the exercise price, it is the price at which an options holder can buy or sell the underlying instrument. Tracking Stock Shares issued by a company that track the performance of a specific portion of the whole company. A tracking stock differs from a spin-off in that it does not represent or require any change in business structure. Holders of a tracking stock are considered to hold equity in the parent company and not the specific entity represented by the tracking stock. Trade A transaction of a security or commodity. Underwriter An intermediary between an issuer of a security and the investing public, usually an investment bank. Value Stock A stock that typically trades at a lower price relative to its fundamentals and is therefore considered undervalued by a value investor. Value stocks tend to have a high dividend yield, low price-to-book ratio, and/or low price-to-earnings ratio. Venture Capital Funds made available for startup firms and small businesses with strong growth potential. Yield The rate of return on an investment, expressed as a percentage.