SettingsCorporate finance
Accord and satisfaction
Accord and satisfaction is a contract law concept about the purchase of the release from a debt obligation.
Accord and satisfaction is a contract law concept about the purchase of the release from a debt obligation.
Accretion/dilution analysis
Accretion/dilution analysis is a type of M&A financial modelling performed in the pre-deal phase to evaluate the effect of the transaction on shareholder value and to check whether EPS for buyin...
Accretion/dilution analysis is a type of M&A financial modelling performed in the pre-deal phase to evaluate the effect of the transaction on shareholder value and to check whether EPS for buyin...
Administration (law)
Administration, as a legal concept, is a procedure under the insolvency laws of a number of common law jurisdictions.
Administration, as a legal concept, is a procedure under the insolvency laws of a number of common law jurisdictions.
American Depositary Share
An American Depositary Share ("ADS") is a vehicle for foreign corporations to list their ordinary equity on an American stock exchange, such as the New York Stock Exchange or the NASDAQ.
An American Depositary Share ("ADS") is a vehicle for foreign corporations to list their ordinary equity on an American stock exchange, such as the New York Stock Exchange or the NASDAQ.
American depositary share
An American depositary share is a vehicle for foreign corporations to list their ordinary equity on an American stock exchange, such as the New York Stock Exchange or the NASDAQ.
An American depositary share is a vehicle for foreign corporations to list their ordinary equity on an American stock exchange, such as the New York Stock Exchange or the NASDAQ.
Asset-backed commercial paper
Asset-backed commercial paper (ABCP) is a form of commercial paper that is collateralised by other financial assets.
Asset-backed commercial paper (ABCP) is a form of commercial paper that is collateralised by other financial assets.
Asset-based lending
In the simplest meaning, asset-based lending is any kind of lending secured by an asset.
In the simplest meaning, asset-based lending is any kind of lending secured by an asset.
Avellum Partners
Avellum Partners is a leading boutique law firm in Ukraine, specializing in corporate finance.
Avellum Partners is a leading boutique law firm in Ukraine, specializing in corporate finance.
Bankers' acceptance
A banker's acceptance, or BA, is a promised future payment, or time draft, which is accepted and guaranteed by a bank and drawn on a deposit at the bank.
A banker's acceptance, or BA, is a promised future payment, or time draft, which is accepted and guaranteed by a bank and drawn on a deposit at the bank.
Bankmail
In a bankmail engagement, the bank of a target firm refuses financing options to firms with takeover bids.
In a bankmail engagement, the bank of a target firm refuses financing options to firms with takeover bids.
Bankruptcy costs of debt
Within the theory of corporate finance, bankruptcy costs of debt are the increased costs of financing with debt instead of equity that result from a higher probability of bankruptcy.
Within the theory of corporate finance, bankruptcy costs of debt are the increased costs of financing with debt instead of equity that result from a higher probability of bankruptcy.
Book building
Book building refers to the process of generating, capturing, and recording investor demand for shares during an IPO (or other securities during their issuance process) in order to support effic...
Book building refers to the process of generating, capturing, and recording investor demand for shares during an IPO (or other securities during their issuance process) in order to support effic...
Bookrunner
In investment banking, a bookrunner is usually the main underwriter or lead-manager/arranger/coordinator in equity, debt, or hybrid securities issuances.
In investment banking, a bookrunner is usually the main underwriter or lead-manager/arranger/coordinator in equity, debt, or hybrid securities issuances.
Boutique investment bank
A Boutique investment bank is a small investment bank that specializes in primarily investment banking.
A Boutique investment bank is a small investment bank that specializes in primarily investment banking.
Boyd Model
The Boyd Model is a comprehensive multi factor, reverse engineered, closed end solution to fair value any illiquid security where no transparent market data exists.
The Boyd Model is a comprehensive multi factor, reverse engineered, closed end solution to fair value any illiquid security where no transparent market data exists.
Boyd model
The Boyd model is a comprehensive multi factor, reverse engineered, closed end solution to fair value any illiquid security where no transparent market data exists.
The Boyd model is a comprehensive multi factor, reverse engineered, closed end solution to fair value any illiquid security where no transparent market data exists.
Breakup fee
A breakup fee is a penalty set in takeover agreements, to be paid if the target backs out of a deal.
A breakup fee is a penalty set in takeover agreements, to be paid if the target backs out of a deal.
Bridge financing
Bridge financing is a method of financing, used to maintain liquidity while waiting for an anticipated and reasonably expected inflow of cash.
Bridge financing is a method of financing, used to maintain liquidity while waiting for an anticipated and reasonably expected inflow of cash.
Bridge loan
A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing.
A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing.
Business Development Asia
Business Development Asia LLC, or BDA, is an investment banking firm that advises on crossborder M&A (mergers and acquisitions), distressed situations, private placements, capital raising,...
Business Development Asia LLC, or BDA, is an investment banking firm that advises on crossborder M&A (mergers and acquisitions), distressed situations, private placements, capital raising,...
Buyout
A buyout, in finance, is an investment transaction by which the ownership equity of a company, or a majority share of the stock of the company is acquired.
A buyout, in finance, is an investment transaction by which the ownership equity of a company, or a majority share of the stock of the company is acquired.
Capital budgeting
Capital budgeting (or investment appraisal) is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, ne...
Capital budgeting (or investment appraisal) is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, ne...
Capital structure
In finance, capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities.
In finance, capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities.
Cash flow
Cash flow is the movement of money into or out of a business, project, or financial product.
Cash flow is the movement of money into or out of a business, project, or financial product.
Cash is king
"Cash is king" is an expression sometimes used in analyzing businesses or investment portfolios.
"Cash is king" is an expression sometimes used in analyzing businesses or investment portfolios.
Cashflow matching
Cashflow matching is a process of hedging in which a company or other entity matches its cash outflows (i.e.
Cashflow matching is a process of hedging in which a company or other entity matches its cash outflows (i.e.
Cashier balancing
Cashier balancing is a process usually conducted in businesses such as grocery stores, restaurants and banks that takes place at the closing of the business day or at the end of a cashier's shift.
Cashier balancing is a process usually conducted in businesses such as grocery stores, restaurants and banks that takes place at the closing of the business day or at the end of a cashier's shift.
Clawbacks in economic development
In finance economics, a clawback is when an organization (typically a financial firm) that is attempting to recover from a catastrophic shift and/or collapse (e.g., the current worldwide financi...
In finance economics, a clawback is when an organization (typically a financial firm) that is attempting to recover from a catastrophic shift and/or collapse (e.g., the current worldwide financi...
Commercial finance
In the United States, commercial finance is the function of offering loans to businesses.
In the United States, commercial finance is the function of offering loans to businesses.
Commercial mortgage
A commercial mortgage is a mortgage loan made using commercial real estate as collateral to secure repayment.
A commercial mortgage is a mortgage loan made using commercial real estate as collateral to secure repayment.
Commercial paper
In the global money market, commercial paper is an unsecured promissory note with a fixed maturity of 1 to 270 days.
In the global money market, commercial paper is an unsecured promissory note with a fixed maturity of 1 to 270 days.
Common stock
Common stock is a form of corporate equity ownership, a type of security.
Common stock is a form of corporate equity ownership, a type of security.
Comparable transactions
Comparable transactions is one of the conventional methods to value a company for sale.
Comparable transactions is one of the conventional methods to value a company for sale.
Conditional budgeting
Conditional budgeting is a budgeting approach designed for companies with fluctuating income, high fixed costs, or income depending on sunk costs, as well as NPOs and NGOs. The approach builds o...
Conditional budgeting is a budgeting approach designed for companies with fluctuating income, high fixed costs, or income depending on sunk costs, as well as NPOs and NGOs. The approach builds o...
Control premium
Control premium is an amount that a buyer is usually willing to pay over the current market price of a publicly traded company.
Control premium is an amount that a buyer is usually willing to pay over the current market price of a publicly traded company.
Convertible bond
In finance, a convertible note (or, if it has a maturity of greater than 10 years, a convertible debenture) is a type of bond that the holder can convert into shares of common stock in the...
In finance, a convertible note (or, if it has a maturity of greater than 10 years, a convertible debenture) is a type of bond that the holder can convert into shares of common stock in the...
Corporate finance
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions.
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions.
Corporate promoter
A corporate promoter (also "projector") is a person who solicits people to invest money into a corporation, usually when it is being formed.
A corporate promoter (also "projector") is a person who solicits people to invest money into a corporation, usually when it is being formed.
Corporate synergy
Corporate synergy refers to a financial benefit that a corporation expects to realize when it merges with or acquires another corporation.
Corporate synergy refers to a financial benefit that a corporation expects to realize when it merges with or acquires another corporation.
Credit-linked note
A credit linked note (CLN) is a form of funded credit derivative.
A credit linked note (CLN) is a form of funded credit derivative.
Critical accounting policy
In public corporate finance, a critical accounting policy is a policy for a firm/company or an industry which is considered to have a notably high subjective element, and that has a material imp...
In public corporate finance, a critical accounting policy is a policy for a firm/company or an industry which is considered to have a notably high subjective element, and that has a material imp...
Debtor-in-possession financing
Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process.
Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process.
Demerger
Demerger is a form of corporate restructuring in which the an entity's business operations are segregated into one or more components.
Demerger is a form of corporate restructuring in which the an entity's business operations are segregated into one or more components.
Demutualization
Demutualization is the process by which a customer-owned mutual organization or co-operative changes legal form to a joint stock company.
Demutualization is the process by which a customer-owned mutual organization or co-operative changes legal form to a joint stock company.
Discounted cash flow
In finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts of the time value of money.
In finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts of the time value of money.
Divestment
In finance and economics, divestment or divestiture is the reduction of some kind of asset for either financial or ethical objectives or sale of an existing business by a firm.
In finance and economics, divestment or divestiture is the reduction of some kind of asset for either financial or ethical objectives or sale of an existing business by a firm.
Divisional buyout
A divisional buyout or carveout, in finance, is a transaction in which a corporate division, business unit or subsidiary is acquired using the same financial structuring as a leveraged buyout.
A divisional buyout or carveout, in finance, is a transaction in which a corporate division, business unit or subsidiary is acquired using the same financial structuring as a leveraged buyout.
Earnings call
Earnings Calls are a teleconference in which a public company discusses the financial results of a reporting period.
Earnings Calls are a teleconference in which a public company discusses the financial results of a reporting period.
Earnings per share
Earnings per share (EPS) is the amount of earnings per each outstanding share of a company's stock.
Earnings per share (EPS) is the amount of earnings per each outstanding share of a company's stock.
Employee stock option
An employee stock option is a call option on the common stock of a company, issued as a form of cash compensation.
An employee stock option is a call option on the common stock of a company, issued as a form of cash compensation.
Equity carve-out
Equity carve-out (ECO or a partial spin-off) is a sort of corporate reorganization, in which a company creates a new subsidiary and IPOs it later, while retaining control.
Equity carve-out (ECO or a partial spin-off) is a sort of corporate reorganization, in which a company creates a new subsidiary and IPOs it later, while retaining control.
Equity issuance
In financial markets, an equity issuance is the sale of new equity or stock by a firm to investors.
In financial markets, an equity issuance is the sale of new equity or stock by a firm to investors.
Examinership
Examinership is a process in Irish law whereby the protection of the Court is obtained to assist the survival of a company.
Examinership is a process in Irish law whereby the protection of the Court is obtained to assist the survival of a company.
Exchange offer
An exchange offer, in finance, is a form of tender offer, in which securities are offered as consideration instead of cash.
An exchange offer, in finance, is a form of tender offer, in which securities are offered as consideration instead of cash.
Fairness opinion
A fairness opinion is a professional evaluation by an investment bank or other third party as to whether the terms of a merger, acquisition, buyback, spin-off, or going private are fair.
A fairness opinion is a professional evaluation by an investment bank or other third party as to whether the terms of a merger, acquisition, buyback, spin-off, or going private are fair.
Financial accelerator
The financial accelerator in macroeconomics refers to the idea that adverse shocks to the economy may be amplified by worsening financial market conditions.
The financial accelerator in macroeconomics refers to the idea that adverse shocks to the economy may be amplified by worsening financial market conditions.
Financial distress
Financial distress is a term in Corporate Finance used to indicate a condition when promises to creditors of a company are broken or honored with difficulty.
Financial distress is a term in Corporate Finance used to indicate a condition when promises to creditors of a company are broken or honored with difficulty.
Financial modeling
Financial modeling is the task of building an abstract representation of a financial decision making situation.
Financial modeling is the task of building an abstract representation of a financial decision making situation.
Flow-through entity
A flow-through entity is a legal entity where income "flows through" to investors or owners; that is, the income of the entity is treated as the income of the investors or owners.
A flow-through entity is a legal entity where income "flows through" to investors or owners; that is, the income of the entity is treated as the income of the investors or owners.
Follow-on offering
A follow-on offering (often called secondary offering) is an issuance of stock subsequent to the company's initial public offering.
A follow-on offering (often called secondary offering) is an issuance of stock subsequent to the company's initial public offering.
Fraudulent conveyance
A fraudulent conveyance, or fraudulent transfer, is a civil cause of action.
A fraudulent conveyance, or fraudulent transfer, is a civil cause of action.
French auction
A French auction (Offre à Prix Minimal, formerly Mise en Vente) is a multiple-price auction used for pricing initial public offerings in France.
A French auction (Offre à Prix Minimal, formerly Mise en Vente) is a multiple-price auction used for pricing initial public offerings in France.
Golden share
A Golden Share is a nominal share which is able to outvote all other shares in certain specified circumstances, often held by a government organization, in a government company undergoing the pr...
A Golden Share is a nominal share which is able to outvote all other shares in certain specified circumstances, often held by a government organization, in a government company undergoing the pr...
Green Sheet (Investment Term)
A Green Sheet accompanies a prospectus or preliminary prospectus for most Initial Public Offerings.
A Green Sheet accompanies a prospectus or preliminary prospectus for most Initial Public Offerings.
Green sheet (investment term)
A green sheet accompanies a prospectus or preliminary prospectus for most initial public offerings.
A green sheet accompanies a prospectus or preliminary prospectus for most initial public offerings.
Greenshoe
A greenshoe option allows underwriters to sell additional shares in a registered securities offering at the offering price, if demand for the securities exceeds the original amount offered.
A greenshoe option allows underwriters to sell additional shares in a registered securities offering at the offering price, if demand for the securities exceeds the original amount offered.
Gross income
Gross income in United States tax law is receipts and gains from all sources less cost of goods sold.
Gross income in United States tax law is receipts and gains from all sources less cost of goods sold.
Gross margin
Gross margin, gross profit margin or gross profit rate is the difference between the production costs excluding overhead, payroll, taxation, and interest payments and sales revenue.
Gross margin, gross profit margin or gross profit rate is the difference between the production costs excluding overhead, payroll, taxation, and interest payments and sales revenue.
Gross profit
In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and int...
In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and int...
Gross sales
Gross sales is defined to be the total invoice value of sales, before deducting customers' discounts, returns, or allowances.
Gross sales is defined to be the total invoice value of sales, before deducting customers' discounts, returns, or allowances.
Hedge relationship (finance)
Hedge relationship describes the criteria for including the fair value of derivatives on balance sheet.
Hedge relationship describes the criteria for including the fair value of derivatives on balance sheet.
High yield stocks
A high yield stock is a stock whose dividend yield is higher than the yield of any benchmark average such as the 10-Year US Treasury Note.
A high yield stock is a stock whose dividend yield is higher than the yield of any benchmark average such as the 10-Year US Treasury Note.
High-yield stocks
A high-yield stock is a stock whose dividend yield is higher than the yield of any benchmark average such as the ten-year US Treasury note.
A high-yield stock is a stock whose dividend yield is higher than the yield of any benchmark average such as the ten-year US Treasury note.
Hot debt periods
In the theory of corporate finance, the name of Hot debt period is given to periods of time when new debt issues by corporations are very common, and generally coincide with periods in which the...
In the theory of corporate finance, the name of Hot debt period is given to periods of time when new debt issues by corporations are very common, and generally coincide with periods in which the...
Hot equity periods
In the study of financial markets Hot equity periods or Hot Issue Periods are periods of time in which many firms perform initial public offering of their equity.
In the study of financial markets Hot equity periods or Hot Issue Periods are periods of time in which many firms perform initial public offering of their equity.
Income trust
An income trust is an investment that may hold equities, debt instruments, royalty interests or real properties.
An income trust is an investment that may hold equities, debt instruments, royalty interests or real properties.
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a company to the public.
An initial public offering or stock market launch, is the first sale of stock by a company to the public.
Internal financing
In the theory of capital structure, internal financing is the name for a firm using its profits as a source of capital for new investment, rather than a) distributing them to firm's owners or ot...
In the theory of capital structure, internal financing is the name for a firm using its profits as a source of capital for new investment, rather than a) distributing them to firm's owners or ot...
Internal rate of return
The internal rate of return (IRR) is a rate of return used in capital budgeting to measure and compare the profitability of investments.
The internal rate of return (IRR) is a rate of return used in capital budgeting to measure and compare the profitability of investments.
Investor relations
Investor Relations (IR) is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communicatio...
Investor Relations (IR) is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communicatio...
IPO underpricing algorithm
IPO underpricing, is the increase in stock value from the initial offering price to the first-day closing price.
IPO underpricing, is the increase in stock value from the initial offering price to the first-day closing price.
IPO Underpricing Algorithms
IPO underpricing, is the increase in stock value from the initial offering price to the first-day closing price.
IPO underpricing, is the increase in stock value from the initial offering price to the first-day closing price.
Issued shares
Issued shares is a term of law and finance for the quantity of shares of a corporation, which have been allocated and are subsequently held by shareholders.
Issued shares is a term of law and finance for the quantity of shares of a corporation, which have been allocated and are subsequently held by shareholders.
Liquidity event
In corporate finance, a liquidity event is an umbrella term that describes one of several events, typically a purchase of a corporation or an initial public offering.
In corporate finance, a liquidity event is an umbrella term that describes one of several events, typically a purchase of a corporation or an initial public offering.
Liquidity forecast
A liquidity forecast is an estimate of a company's cash flows (payables and receivables) at some future time.
A liquidity forecast is an estimate of a company's cash flows (payables and receivables) at some future time.
Lobster trap (finance)
A lobster trap, in corporate finance, is an anti-takeover strategy used by target firms.
A lobster trap, in corporate finance, is an anti-takeover strategy used by target firms.
Management buy-in
A management buy-in occurs when a manager or a management team from outside the company raises the necessary finance, buys it, and becomes the company's new management.
A management buy-in occurs when a manager or a management team from outside the company raises the necessary finance, buys it, and becomes the company's new management.
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.
Managerial finance
Managerial finance is the branch of the finance that concerns itself with the managerial significance of finance techniques.
Managerial finance is the branch of the finance that concerns itself with the managerial significance of finance techniques.
Market for corporate control
The market for corporate control is a description of the role of equity markets in facilitating corporate takeovers first put forward in an article by HG Manne, ‘Mergers and the Market for Corpo...
The market for corporate control is a description of the role of equity markets in facilitating corporate takeovers first put forward in an article by HG Manne, ‘Mergers and the Market for Corpo...
Market timing hypothesis
The market timing hypothesis is a theory of how firms and corporations in the economy decide whether to finance their investment with equity or with debt instruments.
The market timing hypothesis is a theory of how firms and corporations in the economy decide whether to finance their investment with equity or with debt instruments.
Master limited partnership
Master limited partnership is a limited partnership that is publicly traded on a securities exchange.
Master limited partnership is a limited partnership that is publicly traded on a securities exchange.
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar ...
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar ...
Mezzanine capital
`Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares.
`Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares.
Mini-tender offer
A mini-tender offer is an offer to acquire a company's shares directly from current investors in an amount less than 5% of issued stock.
A mini-tender offer is an offer to acquire a company's shares directly from current investors in an amount less than 5% of issued stock.
Minimum acceptable rate of return
In business and engineering, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing ...
In business and engineering, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing ...
Monthly income preferred stock
Monthly income preferred stock or MIPS is a hybrid security created by Eli Jacobson, a tax partner at Sullivan & Cromwell, and introduced to the market by Goldman Sachs in 1993.
Monthly income preferred stock or MIPS is a hybrid security created by Eli Jacobson, a tax partner at Sullivan & Cromwell, and introduced to the market by Goldman Sachs in 1993.
Mutualization
Mutualization or mutualisation is the process by which a joint stock company changes legal form to a mutual organization or a cooperative.
Mutualization or mutualisation is the process by which a joint stock company changes legal form to a mutual organization or a cooperative.
National Association of Credit Management
The National Association of Credit Management is a non-profit organization based in Columbia, Maryland that promotes standards for the business-to-business credit profession.
The National Association of Credit Management is a non-profit organization based in Columbia, Maryland that promotes standards for the business-to-business credit profession.
National Investor Relations Institute
The National Investor Relations Institute, known as "NIRI," is the largest professional association for investor relations (IR) professionals in the world.
The National Investor Relations Institute, known as "NIRI," is the largest professional association for investor relations (IR) professionals in the world.
No-par stock
No-par stock is stock issued with no par or face value.
No-par stock is stock issued with no par or face value.
NOPLAT
NOPLAT = Net Operating Profit Less Adjusted Taxes.
NOPLAT = Net Operating Profit Less Adjusted Taxes.
Official Committee of Equity Security Holders
An Official Committee of Equity Security Holders is a group of shareholders (usually the seven largest held positions) formed to represent a larger group of shareholders' interests in a company'...
An Official Committee of Equity Security Holders is a group of shareholders (usually the seven largest held positions) formed to represent a larger group of shareholders' interests in a company'...
One-dollar salary
Several top executives in large businesses receive a salary of one United States dollar.
Several top executives in large businesses receive a salary of one United States dollar.
OpenIPO
OpenIPO is an innovative auction process pioneered by the investment bank WR Hambrecht + Co for distributing stock in an initial public offering to individuals and institutions through an effici...
OpenIPO is an innovative auction process pioneered by the investment bank WR Hambrecht + Co for distributing stock in an initial public offering to individuals and institutions through an effici...
Operating ratio
The operating ratio is a financial term defined as a company's operating expenses as a percentage of revenue.
The operating ratio is a financial term defined as a company's operating expenses as a percentage of revenue.
Participating preferred stock
Participating preferred stock is preferred stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common sto...
Participating preferred stock is preferred stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common sto...
Payback period
Payback period in capital budgeting refers to the period of time required for the return on an investment to "repay" the sum of the original investment.
Payback period in capital budgeting refers to the period of time required for the return on an investment to "repay" the sum of the original investment.
Performance-based budgeting
Adopting public sector’s performance-based budgeting to the private sector using the Corporate Performance Management framework.
Adopting public sector’s performance-based budgeting to the private sector using the Corporate Performance Management framework.
Permanent interest bearing shares
In finance, permanent interest bearing shares, or PIBS, are fixed-interest securities issued by building societies.
In finance, permanent interest bearing shares, or PIBS, are fixed-interest securities issued by building societies.
Perpetual subordinated debt
Perpetual subordinated debt is debt (bonds) with no maturity date for the return of principal, never needs to be redeemed by the issuer, and thus pay coupon interest continually until bought bac...
Perpetual subordinated debt is debt (bonds) with no maturity date for the return of principal, never needs to be redeemed by the issuer, and thus pay coupon interest continually until bought bac...
Preferred stock
Preferred stock, also called preferred shares, preference shares, or simply preferred , is a special equity security that has properties of both an equity and a debt instrument...
Preferred stock, also called preferred shares, preference shares, or simply preferred , is a special equity security that has properties of both an equity and a debt instrument...
Primary shares
In an equity offering, primary shares, in contrast to secondary shares, refer to newly issued shares of common stock that are sold to investors.
In an equity offering, primary shares, in contrast to secondary shares, refer to newly issued shares of common stock that are sold to investors.
Private equity
In finance, private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange.
In finance, private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange.
Public float
The float of a company whose stock is publicly traded has different meanings depending on the presumed context.
The float of a company whose stock is publicly traded has different meanings depending on the presumed context.
Public offering without listing
A public offering without listing, often called a POWL deal or a POWL, is a form of public equity offering by non-Japanese firms in the Japanese market, without the previously requir...
A public offering without listing, often called a POWL deal or a POWL, is a form of public equity offering by non-Japanese firms in the Japanese market, without the previously requir...
Real options valuation
Real options valuation, also often termed real options analysis, applies option valuation techniques to capital budgeting decisions.
Real options valuation, also often termed real options analysis, applies option valuation techniques to capital budgeting decisions.
Rediscount
Rediscount is a way of providing financing to a bank or other financial institution.
Rediscount is a way of providing financing to a bank or other financial institution.
Registered share
A Registered share is a stock that is registered on the name of the exact owner.
A Registered share is a stock that is registered on the name of the exact owner.
Restricted stock
Restricted stock, also known as letter stock or restricted securities, refers to stock of a company that is not fully transferable until certain conditions have been met.
Restricted stock, also known as letter stock or restricted securities, refers to stock of a company that is not fully transferable until certain conditions have been met.
Reverse Greenshoe
A Reverse Greenshoe is a special provision in an IPO prospectus, which allows underwriters to sell shares back to the issuer.
A Reverse Greenshoe is a special provision in an IPO prospectus, which allows underwriters to sell shares back to the issuer.
Reverse greenshoe
A Reverse Greenshoe is a special provision in an IPO prospectus, which allows underwriters to sell shares back to the issuer.
A Reverse Greenshoe is a special provision in an IPO prospectus, which allows underwriters to sell shares back to the issuer.
Rights issue
A rights issue is an issue of additional shares by a company to raise capital under a seasoned equity offering.
A rights issue is an issue of additional shares by a company to raise capital under a seasoned equity offering.
Seasoned equity offering
A Seasoned equity offering or secondary equity offering (SEO) is a new equity issue by an already publicly-traded company.
A Seasoned equity offering or secondary equity offering (SEO) is a new equity issue by an already publicly-traded company.
Second lien loan
Second lien loan (or last-out participation) is a form of loan with a security interest in the assets of a company that are second in ranking behind a traditional senior credit facility.
Second lien loan (or last-out participation) is a form of loan with a security interest in the assets of a company that are second in ranking behind a traditional senior credit facility.
Secondary shares
In an IPO, secondary shares (in contrast to primary shares) refer to existing shares of common stock that are sold to investors in an offering (see Secondary Market Offering).
In an IPO, secondary shares (in contrast to primary shares) refer to existing shares of common stock that are sold to investors in an offering (see Secondary Market Offering).
Securities offering
A securities offering (or funding round or investment round) is a discrete round of investment, by which a business or other enterprise raises money to fund operations, expansion, a ...
A securities offering (or funding round or investment round) is a discrete round of investment, by which a business or other enterprise raises money to fund operations, expansion, a ...
Seed money
Seed money, sometimes known as seed funding, friends and family funding or angel funding is a securities offering whereby one or more parties that have some connection to a new...
Seed money, sometimes known as seed funding, friends and family funding or angel funding is a securities offering whereby one or more parties that have some connection to a new...
Seniority (financial)
In finance, seniority refers to the order of repayment in the event of bankruptcy.
In finance, seniority refers to the order of repayment in the event of bankruptcy.
Shareholder loan
Shareholder loan is a debt-like form of financing provided by shareholders.
Shareholder loan is a debt-like form of financing provided by shareholders.
Shareholder value
Shareholder value is a business buzz term, which implies that the ultimate measure of a company's success is the extent to which it enriches shareholders.
Shareholder value is a business buzz term, which implies that the ultimate measure of a company's success is the extent to which it enriches shareholders.
Shares outstanding
Shares outstanding are shares that have been authorized, issued, and purchased by investors and are held by them.
Shares outstanding are shares that have been authorized, issued, and purchased by investors and are held by them.
Sinking fund
A sinking fund is a fund established by a government agency or business for the purpose of reducing debt by repaying or purchasing outstanding loans and securities held against the entity.
A sinking fund is a fund established by a government agency or business for the purpose of reducing debt by repaying or purchasing outstanding loans and securities held against the entity.
Special purpose company (Japan)
A special purpose company is a type of corporation which can be formed under Japanese law.
A special purpose company is a type of corporation which can be formed under Japanese law.
Special purpose entity
A special purpose entity is a legal entity created to fulfill narrow, specific or temporary objectives.
A special purpose entity is a legal entity created to fulfill narrow, specific or temporary objectives.
Special-purpose acquisition company
A special-purpose acquisition company is a collective investment scheme that allows public stock market investors to invest in private equity type transactions, particularly leveraged buyouts.
A special-purpose acquisition company is a collective investment scheme that allows public stock market investors to invest in private equity type transactions, particularly leveraged buyouts.
Spin out
A spin-out, also known as a spin-off or a starburst, refers to a type of corporate action where a company "splits off" sections of itself as a separate business.
A spin-out, also known as a spin-off or a starburst, refers to a type of corporate action where a company "splits off" sections of itself as a separate business.
Spinning (IPO)
Spinning (IPO) is the act or practice of an investment bank offering under-priced shares of a company's initial public offerings to the senior executives of a third party company in exchange for...
Spinning (IPO) is the act or practice of an investment bank offering under-priced shares of a company's initial public offerings to the senior executives of a third party company in exchange for...
Stakeholder (corporate)
A corporate stakeholder is a party that can affect or be affected by the actions of the business as a whole.
A corporate stakeholder is a party that can affect or be affected by the actions of the business as a whole.
Stakeholder theory
The stakeholder theory is a theory of organizational management and business ethics that addresses morals and values in managing an organization.
The stakeholder theory is a theory of organizational management and business ethics that addresses morals and values in managing an organization.
Stakeholdership
Stakeholdership refers to the office of or state of holding and controlling a stake in an undertaking.
Stakeholdership refers to the office of or state of holding and controlling a stake in an undertaking.
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders.
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders.
Stock split
A stock split or stock divide increases the number of shares in a public company.
A stock split or stock divide increases the number of shares in a public company.
Strategic financial management
Strategic financial management refers to study of finance with a long term view considering the strategic goals of the enterprise.
Strategic financial management refers to study of finance with a long term view considering the strategic goals of the enterprise.
Strip financing
Strip financing is the repackaging of different types of obligations—debt, preferred stock, common stock etc.—into one security.
Strip financing is the repackaging of different types of obligations—debt, preferred stock, common stock etc.—into one security.
Structural subordination
Structural subordination refers to the concept that a lender to a company will not have access to the assets of the company's subsidiary until after all of the subsidiary's creditors have been p...
Structural subordination refers to the concept that a lender to a company will not have access to the assets of the company's subsidiary until after all of the subsidiary's creditors have been p...
Stub (stock)
A stub is the stock representing the remaining equity in a corporation left over after a major cash or security distribution from a buyout, a spin-out, a demerger or some other form of restructu...
A stub is the stock representing the remaining equity in a corporation left over after a major cash or security distribution from a buyout, a spin-out, a demerger or some other form of restructu...
Surplus note
A Surplus note is a bond-like instrument issued by an insurance company.
A Surplus note is a bond-like instrument issued by an insurance company.
Sweat equity
Sweat equity is a term that refers to a party's contribution to a project in the form of effort --- as opposed to financial equity, which is a contribution in the form of capital.
Sweat equity is a term that refers to a party's contribution to a project in the form of effort --- as opposed to financial equity, which is a contribution in the form of capital.
SWORD-financing
SWORD-financing (Stock and Warrant Off-Balance Sheet Research & Development) is a special form of financing invented to help young biotech companies access capital to finance their R&D via estab...
SWORD-financing (Stock and Warrant Off-Balance Sheet Research & Development) is a special form of financing invented to help young biotech companies access capital to finance their R&D via estab...
Takeover
In business, a takeover is the purchase of one company (the target) by another (the acquirer, or bidder).
In business, a takeover is the purchase of one company (the target) by another (the acquirer, or bidder).
Targeted repurchase
A targeted repurchase is a technique used to thwart a hostile takeover in which the target firm purchases back its own stock from an unfriendly bidder, usually at a price well above market value.
A targeted repurchase is a technique used to thwart a hostile takeover in which the target firm purchases back its own stock from an unfriendly bidder, usually at a price well above market value.
Tax benefits of debt
In the context of corporate finance, the tax benefits of debt or tax advantage of debt refers to the fact that from a tax perspective it is cheaper for firms and investors to finance with ...
In the context of corporate finance, the tax benefits of debt or tax advantage of debt refers to the fact that from a tax perspective it is cheaper for firms and investors to finance with ...
Tender offer
Tender offer is a corporate finance term denoting a type of takeover bid.
Tender offer is a corporate finance term denoting a type of takeover bid.
Thin capitalisation rules
Thin capitalisation rules determine how much of the interest paid on corporate debt is deductible for tax purposes.
Thin capitalisation rules determine how much of the interest paid on corporate debt is deductible for tax purposes.
Third Frontier
The Third Frontier Project is a type of economic development initiative by the State of Ohio to expand research and technology economic development in the state.
The Third Frontier Project is a type of economic development initiative by the State of Ohio to expand research and technology economic development in the state.
Trade in services statistics
Trade in services statistics are economic statistics which detail international trade in services.
Trade in services statistics are economic statistics which detail international trade in services.
Trade-Off Theory of Capital Structure
The Trade-Off Theory of Capital Structure refers to the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits.
The Trade-Off Theory of Capital Structure refers to the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits.
Trade-off theory of capital structure
The trade-off theory of capital structure refers to the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits.
The trade-off theory of capital structure refers to the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits.
Trapped equity theory
Trapped Equity Theory The Trapped Equity Theory explains the application of cash flows that is freed up and in excess of the company's requirements arising from the over subscription of its sha...
Trapped Equity Theory The Trapped Equity Theory explains the application of cash flows that is freed up and in excess of the company's requirements arising from the over subscription of its sha...
Treasury stock
A treasury stock or reacquired stock is stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ("open market" including insiders' ho...
A treasury stock or reacquired stock is stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ("open market" including insiders' ho...
Tulane Corporate Law Institute
The Tulane Corporate Law Institute is an annual two-day M&A and corporate law conference that takes place in downtown New Orleans every spring.
The Tulane Corporate Law Institute is an annual two-day M&A and corporate law conference that takes place in downtown New Orleans every spring.
Tunneling (fraud)
Tunnelling, or tunneling, is a colloquial term for a specific kind of financial fraud.
Tunnelling, or tunneling, is a colloquial term for a specific kind of financial fraud.
Two-tier tender offer
A two-tier tender offer is an offer to purchase a sufficient number of stockholders' shares so as to gain effective control of a firm at a certain price per share, followed by a lower offer at a...
A two-tier tender offer is an offer to purchase a sufficient number of stockholders' shares so as to gain effective control of a firm at a certain price per share, followed by a lower offer at a...
Underwriting contract
In investment banking, an underwriting contract is a contract between an underwriter and an issuer of securities.
In investment banking, an underwriting contract is a contract between an underwriter and an issuer of securities.
Valuation using multiples
Valuation using multiples is a method for determining the current value of a company by examining and comparing the financial ratios of relevant peer groups, also often described as comparabl...
Valuation using multiples is a method for determining the current value of a company by examining and comparing the financial ratios of relevant peer groups, also often described as comparabl...
Voting interest
Voting interest (or voting power) in business and accounting means the total number of votes entitled to be cast on the issue at the time the determination of voting power is made, excluding a v...
Voting interest (or voting power) in business and accounting means the total number of votes entitled to be cast on the issue at the time the determination of voting power is made, excluding a v...
Warrant (finance)
In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date.
In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date.