September 19, 2017
Collateral Value:
The estimated fair market value of an asset that is being used as loan collateral.
September 20, 2017
Payback Period:
The length of time required to recover the cost of an investment.
September 21, 2017
Blue Chip:
A nationally recognized, well-established and financially sound company.
September 22, 2017
Private Equity:
Capital that is not noted on a public exchange.
September 23, 2017
Border Adjustment Tax:
Tax levied on goods based on where they are sold. Exported goods are exempt from tax, imported are subject to tax.
September 24, 2017
Budget:
An estimation of the revenue and expenses over a specified future period of time.
September 25, 2017
GBP:
Abbreviation for the British Pound sterling; official currency of the United Kingdom.
September 26, 2017
Collateral:
A property or other asset that a borrower offers to a lender to secure a loan.
September 27, 2017
Capital Structure:
How a firm finances its overall operations and growth by using different sources of funds.
September 28, 2017
Racketeering:
The act of offering of a dishonest service to solve a problem that wouldn't otherwise exist without the enterprise offering the service.
September 29, 2017
Deferred Revenue:
Advance payments for products or services that are to be delivered in the future.
September 30, 2017
Share Capital:
Consists of all funds raised by a company in exchange for shares of either common or preferred shares of stock.
October 1, 2017
Law of Supply:
The microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.
October 2, 2017
Opportunity Cost:
A benefit that a person could have received, but gave up, to take another course of action.
October 3, 2017
Ratio Analysis:
A quantitative analysis of information contained in a company's financial statements.
October 4, 2017
Stock Split:
A corporate action in which a company divides its existing shares into multiple shares.
October 5, 2017
Straddle:
An options strategy in which the investor holds a position in both a call and put with the same strike price and expiration date, paying both premiums.
October 6, 2017
Fiscal Policy:
Government spending policies that influence macroeconomic conditions.
October 7, 2017
Free Market:
A summary description of all voluntary exchanges that take place in a given economic environment.
October 8, 2017
Preference Shares:
Are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued.
October 9, 2017
Cross Culture:
A company's initiatives to increase understanding of different groups, develop effective communication or marketing efforts to reach out to customers and clients outside its traditional market.
October 10, 2017
In the Money:
A call option's strike price is below the market price of the underlying asset or that the strike price of a put option is above the market price of the underlying asset.
October 11, 2017
Supply Chain:
A network between a company and its suppliers to produce and distribute a specific product.
October 12, 2017
Custodian:
A financial institution that holds customers' securities for safekeeping to minimize risk of their theft or loss.
October 13, 2017
Interest Rate Swap:
An agreement between two counterparties in which one stream of future interest payments is exchanged for another based on a specific principal amount.
October 14, 2017
Pari-passu:
Latin phrase meaning "equal footing" that describes the situation where two or more securities, assets, or creditors are equally managed without any display of preference.
October 15, 2017
Backward Integration:
A form of vertical integration that involves the purchase of suppliers up the supply chain.
October 29, 2017
Reverse Stock Split:
A corporate action in which a company reduces the total number of its outstanding shares.
November 2, 2017
Trailing Stop:
A stop order that can be set at a defined percentage away from a security's current market price.
November 5, 2017
Spot Rate:
The price quoted for immediate settlement on a commodity, a security, or a currency.
November 13, 2017
Socially Responsible Investment:
An investment that is considered socially responsible because of the nature of the business the company conducts.
November 19, 2017
Absolute Advantage:
The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that same good or service.
November 26, 2017
Current Yield:
An investment's annual income divided by the current price of the security.
December 4, 2017
Residual Value:
An estimate of how much a fixed asset will be worth at the end of its lease or at the end of its useful life.
December 10, 2017
Redemption:
The return of an investor's principal in a fixed-income security.
December 17, 2017
Nostro Account:
An account that a bank holds in a foreign currency in another bank.
December 25, 2017
Purchasing Power:
The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.
January 2, 2018
Market Index:
An aggregate value produced by combining several stocks or other investment vehicles together and expressing their total values against a base value from a specific date.
January 11, 2018
Business Cycle:
The fluctuation in economic activity that an economy experiences over a period of time.
January 17, 2018
Return on Equity:
The amount of net income returned as a percentage of shareholders equity.
January 21, 2018
Trustee:
A person or firm that holds and administers property or assets for the benefit of a third party.
January 29, 2018
Profit Margin:
A profitability ratio calculated as net income divided by revenue.
February 5, 2018
Financial Plan:
A comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values, and withdrawal plans.
February 12, 2018
Correction:
A reverse movement, usually negative, of at least 10% in a stock, bond, commodity, or index to adjust for an overvaluation.
February 19, 2018
Donchian Channels:
A moving average indicator that plots the highest high and lowest low over the last period time intervals.
February 25, 2018
Bubble:
An economic cycle characterized by rapid escalation of asset prices followed by a contraction.
March 4, 2018
Tariff:
A tax imposed on imported goods and services.
March 11, 2018
Monero:
A digital currency that offers a high level of anonymity for users and their transaction.
March 18, 2018
Perfect Competition:
A theoretical market structure which the following criteria are met: all firms sell an identical product, all firms are price takers, and market share has no influence on price.
March 25, 2018
Standard Deviation:
A measure of the dispersion of a set of data from its mean.
March 31, 2018
Free Cash Flow:
A measure of a company's financial performance, calculated as operating cash flow minus capital expenditures.
April 8, 2018
Cost of Capital:
The required return necessary to make a capital budgeting project.
April 15, 2018
Discounted Cash Flow:
A valuation method used to estimate the attractiveness of an investment opportunity.
April 22, 2018
Fibonacci Retracement:
Use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before the trend continues in the original direction.
April 29, 2018
Treasury Yield:
The return on investment on the US government's debt obligations.
May 6, 2018
Pip:
The smallest price move that a given exchange rate makes based on market convention.
May 13, 2018
Dividend Yield:
A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.
May 20, 2018
Debt Ratio:
A financial ratio that measures the extent of a company's leverage.
May 27, 2018
Inverted Yield Curve:
An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality.
June 3, 2018
Debt/Equity Ratio:
Calculated by dividing a company’s total liabilities by its stockholders' equity. It is a debt ratio used to measure a company's financial leverage. The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders’ equity.
June 10, 2018
Market Risk:
The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved.
June 17, 2018
Relative Strength Index:
A momentum indicator developed to compare the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security.
June 24, 2018
Financial Risk:
The possibility that shareholders or other financial stakeholders will lose money when they invest in a company that has debt if the company's cash flow proves inadequate to meet its financial obligations.
July 1, 2018
Investment Policy Statement:
A document drafted between a portfolio manager and a client that outlines general rules for the manager.
July 8, 2018
Forex:
The market in which currencies are traded.
July 15, 2018
Currency Pair:
The quotation and pricing structure of the currencies traded in the forex market.
July 22, 2018
Socially Responsible Investment:
An investment that is considered socially responsible because of the nature of the business the company conducts.
July 29, 2018
Indicator:
Statistics used to measure current conditions as well as to forecast financial or economic trends.
August 5, 2018
Endowment:
A donation of money or property to a non-profit organization which uses resulting investment income for a specific purpose.
August 12, 2018
Restricted Stock Unit:
Are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employer for a particular length of time.
August 19, 2018
Sensitivity Analysis:
A technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.
August 26, 2018
Internal Rate of Return:
A metric used in capital budgeting measuring the profitability of potential investments.
September 2, 2018
Capital Asset Pricing Model:
Describes the relationship between risk and expected return.
September 9, 2018
Equity:
The value of an asset less the amount of all liabilities on that asset.
September 16, 2018
Certified Financial Planner:
Individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
September 23, 2018
Hedge:
An investment to reduce the risk of adverse price movements in an asset. Insurance / Diversification.
September 30, 2018
Discount Rate:
The interest charged to commercial banks and other institutions for loans received from the Federal Reserve or the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.
October 7, 2018
Inflation:
The rate at which the general levels of prices of goods and services is rising and the purchasing power of currency is falling.
October 14, 2018
Blind Trust:
A trust in which the trustees have full discretion over the assets, and the trust beneficiaries theoretically have no knowledge of the holdings.
October 21, 2018
Keynesian Economics:
An economic theory of total spending in the economy and its efforts on output and inflation.
October 28, 2018
Common Fixed Good:
Fixed costs that cannot be traced directly to a particular product or business segment and are common to all.
November 4, 2018
Taxable Income:
The amount of income used to calculate an individual's or a company's income tax due.
November 11, 2018
Periodic Interest Rate:
Interest rate charged on a loan or realized on an investment over a specific period of time. Annual Interest Rate / # of Compounding Periods
November 18, 2018
Efficient Frontier:
Set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.
November 25, 2018
Capitulation:
When investors give up any previous gains in stock prices by selling equities.
December 2, 2018
Deep Learning:
An artificial intelligence function that imitates the workings of the human brain in processing data and creating patterns for use in decision making.
December 9, 2018
Two and Twenty:
A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance-based.
December 16, 2018
Forward Rate Agreement:
An over-the-counter contract between parties that determines the rate of interest to be paid or received on an obligation beginning at a future start date.
December 23, 2018
Bear Market:
A condition in which securities prices fall and widespread pessimism causes the stock market's downward spiral to be self-sustaining.
December 30, 2018
Treasury Bill (T-Bill):
A short term debt obligation backed by the US government with a maturity of less than one year, $1,000-$1,000,000.
January 6, 2019
Five C's of Credit:
System used by lenders to gauge the creditworthiness of potential borrowers. Character, capacity, capital, collateral, conditions.
January 13, 2019
Capital Gains:
Tax levied on capital gains; sale of non-operating asset at greater than book value.
January 20, 2019
Demonetization:
Act of stripping a currency unit of its status as legal tender.
January 27, 2019
Hurdle Rate:
The minimum rate of return on a project or investment required by a manager or investor.
February 3, 2019
Impact Investing:
Investing that aims to generate specific beneficial social or environmental effects in addition to financial gain.
February 10, 2019
Green Field Investing:
A form of foreign direct investment where a parent company builds its operations in a foreign country from the ground up.
February 17, 2019
AAA:
The highest possible rating assigned to an issuer's bonds by credit rating agencies.
February 24, 2019
Accrual Accounting:
An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur.
March 3, 2019
Pip:
The smallest price move that a given exchange rate makes based on market convention.
March 10, 2019
How to get Free Cash Flow:
On the Income Statement, start with revenue and complete the statement until you calculate net income. Then find cash flow from operations.
- Cash Flow from Operations: Net Income - Change in Working Capital
Using cash flow from operations, find free cash flow by either subtracting capital expenditure from cash flow from operations or by using the formula below.- Free Cash Flow: Cash Flow from Operations - Capital Ex
- Capital Expenditure: is the money invested by a company in acquiring, maintaining, or improving fixed assets such as property, buildings, factories, equipment, and technology. Found on Statement of Cash Flows (Investing)
- PP&E (Current) - PP&E (Prior) + Depreciation
- Free Cash Flow: [EBIT(1-t) + depreciation) - (Cap. Ex + NOWC)
- NOWC: Cash + A/R + Inventory - (A/P + Accrued Expenses)
March 17, 2019
Traceable Fixed Costs:
Fixed costs that can be traced to a particular product or business segment.
March 24, 2019
Indirect Tax:
A tax that is paid to the government by one entity in the supply chain, but it is passed on to the consumer as part of the price of a good or service.
March 31, 2019
Job Cost:
Trace to specific job/product.
April 8, 2019
Nonfarm Payroll:
Used in the US to refer to any job with the exception of farm work and unincorporated self-employment.
April 14, 2019
Margin Accounts:
An account offered by brokerages that allows investors to borrow money for securities.
April 21, 2019
Dumping:
The export by a country or company of a product at a price that is lower in the foreign market than the price charged in the domestic market.
April 28, 2019
Quarter:
A three-month period on a company's financial calendar that acts as a basis for periodic financial reports and the paying of dividends.
May 5, 2019
Just In Time:
Trade off of reduced inventory levels versus stock out and additional costs of expedited delivery.
May 12, 2019
Debenture:
A type of debt instrument that is not secured by physical assets or collateral.
May 19, 2019
Hard Fork:
A radical change to the protocol that makes previously invalid transactions valid, and it requires all users to upgrade to latest version of the protocol software.
taxMay 26, 2019
Rollover:
Occurs when reinvesting funds from a mature security into a new issue of the same one or a similar security.
June 2, 2019
Dumping:
The export by a country or company of a product at a price that is lower in the foreign market than the price charged in the domestic market.
June 9, 2019
Trumponomics:
Economic policies of US President Donald Trump that include cutting personal and corporate taxes, restructuring US trade deals, and introducing large fiscal stimulus measures focused on infrastructure.
June 16, 2019
Non-Performing Asset:
A classification for loans on the books of financial institutions that are in default.
June 22, 2019
Tax Refund:
A refund on taxes to an individual or household when the actual tax liability is less than the amount paid.
June 30, 2019
Central Limit Theorem:
Is a statistical theory that states that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.
July 7, 2019
Porter Diamond:
A model that is designed to help understand the competitive advantage nations or groups possess due to certain factors available to them.
July 14, 2019
Deferred Annuity:
A type of annuity contract that delays income, installment or lump-sum payments until the investor elects to receive them.
July 21, 2019
Put Option:
Contract giving the owner the right to sell a specified amount of security at a specified price within a specified time.
July 28, 2019
Required Return:
Risk-free Rate + (Market Return - RF Rate) * Beta
August 4, 2019
Price-Weighted Index:
Adding the prices of each of the stocks in the index and dividing them by the total number of stocks.
August 11, 2019
Buyback:
The purchase by a company of its outstanding shares that reduces the number of its shares on the open market.
August 18, 2019
Below the Line Advertising:
A strategy in which a product is promoted in mediums other than radio, television, billboards, print, and film. Direct mail campaigns, trade shows and catalogs, and targeted search engine market.
August 25, 2019
Employee Stock Option:
A stock option granted to specified employees of a company.
September 1, 2019
Vintage Year:
The year in which the first influx of investment capital is delivered to a project or company.
September 8, 2019
Chicken Tax:
A tariff on light trucks made outside the US.
September 22, 2019
VaR:
A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specified time frame.
September 29, 2019
Agency Theory:
A supposition that explains the relationship between principals and agents in business.
October 6, 2019
Monero:
A digital currency that offers a high level of anonymity for users and their transactions.
October 13, 2019
Ex-Dividend:
A classification of trading shares when a declared dividend belongs to the seller rather than the buyer.
October 20, 2019
Fiscal Deficit:
When government's total expenditures exceed the revenue that it generates, excluding money from borrowings.
October 27, 2019
Gearing Ratio:
A general classification describing a financial ratio that compares some form of owner's equity to funds borrowed by the company.
November 3, 2019
Job Openings and Labor Turnover Survey:
A survey done by the United States Bureau of Labor Statistics to help measure job vacancies.
November 16, 2019
Price Target:
The projected price level of a financial security stated by an investment analyst or advisor.
November 24, 2019
Utility:
The total satisfaction received from consuming a good or service.
December 1, 2019
Tender Offer:
An offer to purchase some or all of shareholders' shares in a corporation.
December 8, 2019
Free Carrier-FCA:
A trade term designating the location the seller is to deliver goods.
December 15, 2019
Portfolio Index:
An index that attempts to identify the relationship between the costs and benefits of a proposed project through the use of a ratio.
PV Future Cash Flows / Initial Investment
January 12, 2020
Merchandising:
Promotion of goods and/or services that are available for retail sale.
January 19, 2020
Under Applied:
Actual Overhead > Applied Overhead, increases cost of goods sold and lowers gross profit.
January 26, 2020
Money Manager:
A person or financial firm that manages the securities portfolio of an individual or institutional investor.
February 2, 2020
Davos World Economic Forum:
Best known platforms which brings together business leaders, investors, politicians, and journalists from across the globe to discuss current global economic and social issues.
March 1, 2020
Over-the-Counter:
A security traded in some context other than on a formal exchange such as the New York Stock Exchange.
April 9, 2020
Refinancing:
A loan used to pay off an existing debt obligation or to take equity out of your house in the form of cash.
April 19, 2020
Consumer Cyclical:
Refers to a stock or group of stocks that rely heavily on the business cycle. Consumer cyclical industries such as automotive, housing, entertainment, and retail.
May 3, 2020
Earnings Estimate:
An analyst's estimate for a company's future quarterly or annual earnings per share.