The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important.... include:
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The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important.... include:
The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important.... an overview
In economics and finance, arbitrage is the practice of taking advantage of a price differential between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices....
In economics, capital or capital goods or real capital refers to factors of production used to create goods or services that are not themselves significantly consumed in the production process....
In finance, the Capital Asset Pricing Model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well-diversified Portfolio , given that asset's non-Diversification risk....
Cash flow is the balance of the amounts of cash being received and paid by a business during a defined period of time, sometimes tied to a specific project....
Debt is that which is owed; usually referencing assets owed, but the term can cover other obligations. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned....
In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract....
Category:FinanceConsumer debt is consumer credit which is outstanding. In macroeconomics terms, it is debt which is used to fund consumption rather than investment....
Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan....
Debt settlement, also known as debt arbitration or debt negotiation, is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full....
Credit counseling is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education....
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor in an effort to recoup a portion of what they are owed or initiate a restructuring....
DefinitionProcedure whereby one who owes on more than one account pays off the accounts with smaller negative balances first, proceeding to the larger ones later....
In finance, the discounted cash flow approach describes a method of valuing a project, company, or financial asset using the concepts of the time value of money....
Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e....
Financial modeling is the task of building an abstract representation of a financial decision making situation. This is a mathematical model, such as a computer simulation, designed to represent the performance of a financial asset or a portfolio, of a business, a project, or any other form of financial investment....
An entrepreneur is a person who has possession of an organization, or venture, and assumes significant accountability for the inherent risks and the outcome....
Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities....
Fixed income analysis is the valuation of fixed income or debt securities, and the analysis of their interest rate risk, credit risk, and likely price behavior in hedge Portfolio ....
Gap Financing is a term mostly associated with mortgage loans or property loans. It is an interim loan given to finance the difference between the floor loan and the maximum permanent loan as committed....
In finance, a hedge is a position established in one market in an attempt to offset exposure to the price Risk#In_finance of an equal but opposite obligation or position in another market ? usually, but not always, in the context of one's commercial activity....
Basis risk in finance is the risk associated with imperfect Hedge using Futures contracts. It could arise because of the difference between the asset whose price is to be hedged and the asset underlying the Derivative , or because of a mismatch between the expiration date of the Futures contract and the actual selling date of the asset....
An interest rate is the price a borrower pays for the use of money they do not own, for instance a small company might borrow from a bank to kick start their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower....
In the context of interest rate derivative , a short rate model is a mathematical model that describes the future evolution of interest rates by describing the future evolution of the short rate....
Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money , or, money earned by deposited funds .Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft finance, and even entire factories in finance lease arrangements....
The effective interest rate, effective annual interest rate, Annual Equivalent Rate or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest....
In finance and economics nominal interest rate or nominal rate of interest refers to the rate of interest before adjustment for inflation ; or, for interest rates "as stated" without adjustment for the full effect of compound interest ....
The Fisher equation in financial mathematics and economics estimates the relationship between nominal and real interest rates under inflation.It is named after Irving Fisher who was famous for his works on the interest ....
In economics, crowding out is any reductions in private consumption or investment that occurs because of an increase in government spending. If the increase in government spending is financed by a tax increase, the tax increase would tend to reduce private consumption....
The terms annual percentage rate , nominal APR, and effective APR describe the interest rate for a whole year , rather than just a monthly fee/rate, as applied on a loan, mortgage, credit card, etc....
Investment or investing is a term with several closely-related meanings in business management, finance and economics, related to Saving or deferring Consumption ....
Foreign direct investment in its classic form is defined as a company from one country making a physical investment into building a factory in another country....
File:Reserves of foreign exchange and gold.PNGOf all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or safe haven against any economic, political, social, or currency-based crises....
Over-investing in finance, particularly personal finance, refers to the practice of Investment more into an asset than what that asset is worth on the open market....
In finance, a long position in a security , such as a stock or a Bond , or equivalently to be long in a security, means the holder of the position owns the security and will profit if the price of the security goes up....
In finance, a margin is collateral that the holder of a position in security , Option , or futures contracts has to deposit to cover the credit risk of his counterparty ....
Mark-to-market is an accountancy methodology of assigning a Present value to a position held in a financial instruments based on the current market price for the instrument or similar instruments....
In financial markets, market impact is the effect that a market participant has when it buys or sells an asset. It is the extent to which the buying or selling moves the price against the buyer or seller, i.e....
A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system.By contrast, as William Stanley Jevons argued, in a barter system there must be a coincidence of wants before two people can trade ? one must want exactly what the other has to offer, when and where it is offered, so that the exchange...
Microcredit is the extension of very small loans to the unemployed, to poor entrepreneurs and to others living in poverty. These individuals lack collateral , steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit ....
Money is anything that is generally accepted as payment for goods and services and repayment of debts. The main uses of money are as a medium of exchange, a unit of account, and a store of value....
A currency is a Medium of exchange, facilitating the trade of goods and/or Service s. It is coins and paper bills used as money. It is one form of money, where money is anything that serves as a medium of exchange, a store of value, and a standard of value....
A banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender....
A counterfeit is an imitation made usually with the intent to deceptively represent its content or origins, thus increasing sales appeal due to the reputation of the imitated product....
In finance, a portfolio is an appropriate mix of or collection of investments held by an institution or a private individual.Holding a portfolio is part of an investment and risk-limiting strategy called Diversification ....
Modern portfolio theory proposes how Homo economicuss will use Diversification to optimize their portfolio s, and how a risky asset should be priced....
A reference rate is a rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house price index or an unemployment rate....
Reset may refer to:* Ramsey RESET test , a general specification test for the linear regression model* Reset , to clear any pending errors or events and bring a system to normal condition or initial state...
The absolute return or simply return is a measure of the gain or loss on an investment portfolio expressed as a percentage of invested capital. The adjective absolute is used to stress the distinction with the relative return measures often used by long-only equity funds....
Investment performance is the returns on an investment portfolio. The investment portfolio can contain a single asset or multiple assets. The investment performance is measured over a specific period of time and in a specific currency....
Relative return is a measure of the return of an investment portfolio relative to a theoretical passive reference portfolio or benchmark.In active portfolio management, the aim is to maximize the relative return ....
The concept of right-financing was coined by English political economist Dr. Peter Middlebrook to highlight the importance of adopting the appropriate policy, institutional and financial support mechanisms to maximize sustainable returns on both public and private investments over time....
Risk is a concept that denotes the precise probability of specific eventualities. Technically, the notion of risk is independent from the notion of value and, as such, eventualities may have both beneficial and adverse consequences....
Financial institution, such as Bank or Insurance company are required to hold Cash Reserve as a cushion against default. A Risk measure is used to determine the amount of cash that is required to make the Risk acceptable to the Regulator....
In financial mathematics and financial risk management, Value at Risk is a widely used measure of the market risk on a specific Portfolio of financial assets....
Scenario analysis is a process of analyzing possible future events by considering alternative possible outcomes . The analysis is designed to allow improved decision-making by allowing consideration of outcomes and their implications....
Speculation is the assumption of the risk of loss, in return for the uncertain possibility of a reward. Only if one may safely say that a particular position involves no risk may one say, strictly speaking, that such a position represents an "investment." Financial speculation involves the trade, and short-selling of stocks, bond , commodity...
Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close of the trading day....
A standard of deferred payment is the accepted way, in a given market, to settle a debt. For example, while the gold standard reigned, gold or any currency convertible to gold at a fixed rate constituted such a standard....
To act as a store of value, a commodity, a form of money, or financial capital must be able to be reliably saved, stored, and retrieved - and be predictably useful when it is so retrieved....
A time horizon, also known as a planning horizon, is a fixed point of time in the future at which point certain processes will be evaluated or assumed to end....
The concepts of present and future value hinge upon the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal....
A "Discount" is a "Charge" that is paid to obtain the right to delay a payment. Essentially, the payer purchases the right to make a given payment in the future instead of in the Present.... ing
Present value is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk....
Future value measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function....
Net present value or net present worth is defined as the total present value of a time series of cash flows. It is a standard method for using the time value of money to appraise long-term projects....
The internal rate of return is a capital budgeting metric used by firms to decide whether they should make investments. It is also called discounted cash flow rate of return or rate of return ....
Modified Internal Rate of Return is a finance measure used to determine the attractiveness of an investment. It is generally used as part of a Capital budgeting process to rank various alternative choices....
Annuity may refer to:* Annuity , any recurring periodic series of payments.*Annuity a tax deferred savings vehicle.* Annuity , an insurance-like contract providing Monthly, Quarterly, Semi-Annual or Annual payments...
A perpetuity is an Annuity that has no definite end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence ....
A unit of account is a standard monetary unit of measurement of the market value/cost of goods, services, or assets. It is one of three well-known functions of money....
In finance, the yield curve is the relation between the interest rate and the time to Maturity of the debt for a given borrower in a given currency....
Accountancy or accounting is the system of recording, verifying, and reporting of the value of assets, liabilities, income, and expenses in the books of account to which debit and credit entries are chronologically posted to record changes in value ....
Differences between managerial accounting and financial accountingFinancial accountancy is the field of accountancy concerned with the preparation of financial statements for decision makers, such as Shareholders, vendor s, banks, employees, government agencies, owners, and other stakeholders....
Financial statements are formal records of a business' financial activities.In British English, including United Kingdom company law, financial statements are often referred to as accounts, although the term financial statements is also used, particularly by accountants....
In financial accounting, a balance sheet or statement of financial position is a summary of a person's or organization's balances. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year....
In financial accounting, a cash flow statement or statement of cash flows is a financial statements that shows a company's flow of cash. The money coming into the business is called cash inflow, and money going out from the business is called cash outflow....
Income statement, also called profit and loss statement , is a company's financial statement that indicates how the revenue is transformed into the net income ....
Differences between managerial accounting and financial accountingManagement accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functi...
Accounting software is application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance....
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries.... s
A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money....
This is a list of banks in Canada, including credit unions, trusts, and other financial services companies that offer banking services and may be popularly refered to as "banks"....
Hong Kong maintains a three-tier system of deposit-taking institutions, licensed banks, restricted-licence banks and deposit-taking companies. They are collectively known as authorised institutions by the Hong Kong Monetary Authority, which is responsible for regulations....
This is a list of banks with operations in Singapore. Location of incorporation is provided in brackets for foreign banks. There are, at present, 111 commercial banks, 49 merchant banks, and 45 banks with representative offices in Singapore....
An advising bank advises a beneficiary that a letter of credit opened by an letter of credit for an letter of credit is available and informs the beneficiary about the terms and conditions of the L/C....
A commercial bank is a type of financial intermediary and a type of bank. Commercial banking is also known as business banking. It is a bank that provides checking accounts, savings accounts, and money market accounts and that accepts time deposits....
In the United States, Community development banks are banks designed to serve residents and spur economic development in low- to moderate-income geographical areas....
A custodian bank, or simply custodian, is a financial institution responsible for safeguarding a firm's or individual's financial assets. The role of a custodian in such a case would be the following: to hold in safekeeping assets such as equities and Bond , arrange settlement of any purchases and sales of such securities, collect infor...
A depository bank is a bank organized in the United States which provides all the stock transfer and agency services in connection with a depository receipt program....
Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Sharia and its practical application through the development of Islamic economics....
In Bank, a merchant bank is a financial institution primarily engaged in offering financial services and advice to corporations and wealthy individuals on how to use their money....
Microcredit is the extension of very small loans to the unemployed, to poor entrepreneurs and to others living in poverty. These individuals lack collateral , steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit ....
A mutual savings bank is a financial institution chartered through a state or federal government to provide a safe place for individuals to save and to invest those savings in mortgages, loans, stocks, Bond s and other security ....
The term national bank has several meanings:* especially in developing countries, a bank owned by the state* an ordinary private bank which operates nationally ...
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides finance and legal advantages....
Private banks are banks that are not incorporation . A non-incorporated bank is owned by either an individual or a general partner with limited partner....
A savings bank is a financial institution whose primary purpose is accepting savings deposits. It may also perform some other functions.In Europe, savings banks originated in the 19th or sometimes even the 18th century....
A building society is a financial institution, Mutual organization, that offers Banking institution and other financial services, especially mortgage loan....
A clearing house is an institution that collects and distributes information. There are several domains in which they are used, and specific clearing houses of note:...
Whilst nearly all lenders offer loans on a commerce basis the term commercial lender has differed meanings around the world.* In much of the world and especially in the UK, the phrase commercial lender refers to a lender arranging commercial Loans especially commercial mortgages....
A Community Development Financial Institution, or CDFI, is a unique entity established to provide credit, financial services, and other services to underserved markets or populations....
A credit rating agency is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves....
A credit union is a Cooperative banking financial institution that is owned and controlled by its members, and operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other financial services to its members....
The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products , insurance, and securities and investment products....
An Edge Act Corporation is a corporation chartered by the Federal Reserve of the United States under the Edge Act to engage in international banking operations....
Export credit agencies, known in trade finance as ECAs, are private or quasi-governmental institutions that act as intermediaries between national governments and exporters to issue export financing....
A financial advisor is a professional who renders investment adviser and financial planning services to individuals and businesses. Ideally, the financial advisor helps the client maintain the desired balance of investment income, capital gains, and acceptable level of risk by using proper asset allocation....
A financial planner or personal financial planner is a practicing professional who helps people deal with various personal financial issues through proper planning, which includes but is not limited to these major areas: cash flow management, education planning, retirement planning, investment planning, risk management and insurance pla...
A futures exchange is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with Delivery set at a specified time in the future....
This is a list of futures exchanges. Those stock exchanges that also offer trading in futures contracts besides trading in security are listed both here and the list of stock exchanges....
Hard money lenders are lending companies offering a specialized type of real-estate backed loan. Hard money lenders provide short-term loans that provide funding based on the value of real estate that has been collateralized for the loan....
Independent Financial Advisers or IFAs are professionals who offer independent financial advice on financial matters to their clients and recommend suitable financial products from the whole of the market....
An industrial loan company or industrial bank is a financial institution in the United States that lends money, and may be owned by non-financial institutions....
An investment company is a company whose main business is holding security of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses....
Investment trusts are companies that invest in the share of other companies for the purpose of acting as a collective investment.Investors' money is pooled together from the sale of a fixed number of shares a trust issues when it launches....
Large and Complex Financial Institutions, or LCFI, is a polite term for the bulge bracket banks. The context is that of systemic risk, a topic of particular concern to central banks, financial regulators and the Bank for International Settlements....
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, Bond , short-term money market instruments, and/or other security ....
Non-bank financial companies are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license....
Prime brokerage is the generic name for a bundled package of services offered by investment banks and securities firms to hedge funds and other professional investors needing the ability to borrow securities and cash to be able to invest on a leveraged basis and achieve an absolute return....
A retail broker is a stock broker firm that caters to the average investor or, in other words, the retail sector of investors - as opposed to the institutional sector of investors....
A savings and loan association, also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage loans....
A stock broker or stockbroker is a regulated professional who buys and sells share s and other security through market makers or Agency Only Firms on behalf of investors....
A stock exchange, securities exchange or bourse is a corporation or mutual organization which provides "trading" facilities for stock brokers and trader s, to trade stocks and other security ....
This is an active list of stock exchanges. Those futures exchanges that also offer trading in security besides trading in futures contracts are listed both here and the list of futures exchanges....
A deposit account is a Current account at a banking institution that allows money to be deposited and withdrawn by the account holder, with the transactions and resulting balance being recorded on the bank's books....
A loan is a type of debt. This article focuses exclusively on monetary loans, although, in practice, any material object might be lent. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the wiktionary:lender and the wiktionary:borrower....
Personal FinanceEvaluating a set of standardized borrower and property risk based pricing factors. Utilized to assess and mitigate risk for loan approval and underlying terms, or to decline the file....
In lending, pre-approval has two meanings:1. The first is that a lender, via public or proprietary information, feels that a potential borrower is completely credit worthy enough for a certain credit product, and approaches the potential customer with a guarantee that should they want that product, they would be guaranteed to get it....
Withdrawal, also known as withdrawal/abstinence syndrome, refers to the characteristic signs and symptoms that appear when a drug that causes physical dependence is regularly used for a long time and then suddenly discontinued or decreased in dosage....
Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation is directed, administered or controlled....
Financial regulations are a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system....
Under most jurisdictions, a banking license is a prerequisite for a financial institution that wants to provide banking services, such as taking Deposit accounts from the general public....
The Certified Financial Planner designation is a certification mark for financial planners conferred by the Certified Financial Planner Board of Standards in the United States, Financial Planners Standards Council in Canada and 18 other organizations affiliated with Financial Planning Standards Board , the international owner of the CFP mark...
Chartered Financial Analyst is an international professional certification offered by the CFA Institute of USA to financial analysts who complete a series of three examinations....
The CFA Institute is headquartered in the United States of America at Charlottesville, Virginia with offices in Hong Kong and London. Formerly known as the Association for Investment Management and Research , the Institute awards the Chartered Financial Analyst designation....
CSI Global Education Inc. , formerly known as the Canadian Securities Institute, was started as the educational body of the Investment Dealers Association of Canada ....
Independent Financial Advisers or IFAs are professionals who offer independent financial advice on financial matters to their clients and recommend suitable financial products from the whole of the market....
The Chartered Insurance Institute is a United Kingdom based professional organisation for those working in the insurance and financial services industry....
Chartered Accountant is the title used by members of certain professional accountancy associations in the British Commonwealth of Nations countries and Republic of Ireland....
A forex scam is any trading scheme used to defraud individual traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market....
Insider trading is the trading of a corporation's stock or other security by individuals with potential access to non-public information about the company....
In economics, the legal origins theory states that many aspects of a country's economic state of development are the result of their legal system, most of all where a particular country received its law from....
A petition mill is a fraud in which the perpetrator poses as a financial advisor, sometimes as a credit counseling or paralegal, filing hastily-prepared bankruptcy documents in the name of victims who come to the advisor as clients....
A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from profit....
The International Swaps and Derivatives Association is a trade organization of participants in the market for derivative #Over-the-counter derivatives....
The Bank for International Settlements is an international organization of central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks." The BIS carries out its work through subcommittees, the secretariats it hosts, and through its annual General Meeting of all members....
Canadian Security regulation is managed through laws and agencies established by Canada's 13 provincial and territorial governments. Each province and territory has a securities commission or equivalent authority....
The Financial Services Authority is an independent non-governmental body, quasi-judicial body and a company limited by guarantee that regulates the financial services industry in the United Kingdom.... (UK
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom , the UK or Britain,is a sovereign state located off the northwestern coast of continental Europe.... )
The European Securities Committee advises the European Commission in the field of securities.The ESC held its first meeting in September 2001.... (EU
European Union
The European Union is an economic and political union of 27 European Union member state, located primarily in Europe. It was established by the Treaty of Maastricht on 1 November 1993 upon the foundations of the pre-existing European Economic Community.... )
The European Union is an economic and political union of 27 European Union member state, located primarily in Europe. It was established by the Treaty of Maastricht on 1 November 1993 upon the foundations of the pre-existing European Economic Community.... )
The Commodity Futures Trading Commission is an Independent agencies of the United States government.The Commodity Exchange Act , et seq., prohibits fraudulent conduct in the trading of futures contracts.... (U.S.
United States
The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U... )
The Municipal Securities Rulemaking Board, often referred to simply asthe MSRB, makes rules regulating broker-dealers and banks that deal in municipal bonds, municipal notes, and other municipal securities in the United States.... (US)
The Office of the Comptroller of the Currency is a US federal agency established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States.... (US)
The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation in the United States and included banking reforms, some of which were designed to control speculation.... (US)
The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, , is an Act of Congress of the United States Congress which repealed part of the Glass-Steagall Act of 1933, opening up competition among banks, security companies and insurance companies.... (US)
The Sarbanes-Oxley Act of 2002 , also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called Sarbanes-Oxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002 in response to a number of major accounting scandals including those affecting Enron, Tyco... (US)
.Congress enacted the Securities Act of 1933 , in the aftermath of the stock market crash of 1929 and during the ensuing Great Depression. It is often referred to as the 1933 Act, the '33 Act, or the Securities Act.... (US)
The Securities Exchange Act of 1934 is a law governing the secondary market of securities . The Act, 48 Stat. 881 , codified at et seq., was a sweeping piece of legislation.... (US)
The Investment Advisers Act of 1940, codified at through , is a United States federal law that was created to regulate the actions of Investment advisor as defined by the law.... (US)
The capital market is the market for security , where Corporation and governments can raise longterm funds. It is a market in which money is lent for periods longer than a year.... s
A security is a fungible, negotiable instrument representing financial value. Securities are broadly categorized into debt securities , and stock securities; e.g., common stocks....
The primary market is that part of the capital markets that deals with the issuance of new security . Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue....
Initial public offering , also referred to simply as a "public offering" or "flotation," is when a company issues common stock or Share to the public for the first time....
* Aftermarket , the addition of non-factory parts, accessories and upgrades to a motor vehicle.* After-market , any market where customers who buy one product or service are likely to buy a related, follow-on product....
A free market is a market that is free of government intervention and regulation, besides the minimal function of maintaining the legal system and protecting property rights, and is also free of private force and fraud....
A market maker is a business organizations that quotes both a buy and a sell price in a financial instrument or commodity, hoping to make a profit on the bid/offer spread, or turn ....
The Dow Jones Industrial Average is one of several stock market index, created by nineteenth-century The Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow....
This is an active list of stock exchanges. Those futures exchanges that also offer trading in security besides trading in futures contracts are listed both here and the list of futures exchanges....
The following is a list of Public company having the greatest market capitalization. Market capitalization is calculated from the share price multiplied by the number of shares issued....
A stock market, or equity market, is a private or public Market system for the trade of Corporation stock and Derivative s of company stock at an agreed price; these are security listed on a stock exchange as well as those only traded privately....
Software for fixed assets management and stock control developed in 2004. Stocktaking process is carried using a hand-held mobile terminal equipped with barcode reader or RFID technology....
Common stock is a form of corporation equity ownership represented in the Security . It is a stock whose dividends are based on market fluctuations....
Preferred stock, also called preferred shares or preference shares, is typically a 'higher ranking' stock than voting shares, and its terms are negotiated between the corporation and the investor....
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 ....
Equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises....
In finance, private equity is an asset class consisting of Stock securities in operating companies that are not publicly traded on a stock exchange....
Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets....
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be paid to the shareholders as a dividend....
The dividend yield on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share divided by the price per share....
A stock split or stock divide increases the number of stock in a public company. The price is adjusted such that the before and after market capitalization of the company remains the same and Stock dilution does not occur....
Dow Theory is a heterodox economics theory on stock price movements that is used as the basis for technical analysis. The theory was derived from 255 Wall Street Journal editorials written by Charles H....
In corporate finance, Economic Value Added or EVA is an estimate of true economic profit after making corrective adjustments to GAAP accounting, including deducting the opportunity cost of equity capital....
The Gordon growth model is a variant of the Discounted cash flow model, a method for valuing a stock or business. Often used to provide difficult-to-resolve valuation issues for litigation, tax planning, and business transactions that are currently off market....
In finance, Growth Stocks are stocks that appreciate in value and yield a high return on equity . Analysts compute ROE by taking the company's net income and dividing it by the company's equity....
The phrase mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different corporation that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity....
A leveraged buyout occurs when a financial sponsor acquires a controlling interest in a company's ownership equity and where a significant percentage of the purchase price is financed through leverage ....
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the mergers and acquisitions of a private company....
A corporate raid is a business term for buying a large interest in a corporation and then using voting rights to enact measures directed at increasing the share value....
Market capitalization/capitalisation is a measurement of corporate or economic wealth equal to the share price times the number of shares outstanding of a public company....
There are several methods used to value companies and their stocks. They attempt to give an estimate of their fair value, by using fundamental economic criteria....
Technical analysis is a security analysis technique that claims the ability to forecast the future direction of prices through the study of past market data, primarily price and volume....
A chart pattern is a pattern that is formed within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis....
Investment theory encompasses the body of knowledge used to support the decision-making process of choosing investments for various purposes. It includes portfolio theory, the Capital Asset Pricing Model, Arbitrage Pricing Theory, and the Efficient market hypothesis....
Behavioral economics and behavioral finance are closely related fields that have evolved to be a separate branch of economic and financial analysis which applies scientific research on human and social, cognitive bias and emotional factors to better understand economic decision making by consumers, borrowers, investors, and how they aff...
A dead cat bounce is a Literal_and_figurative_language term used by Trader in the finance industry to describe a pattern wherein a spectacular decline in the price of a stock is immediately followed by a moderate and temporary rise before resuming its downward movement, with the connotation that the rise was not an indication of improving ci...
In finance, the efficient-market hypothesis asserts that financial markets are "informationally efficient", or that prices on traded assets, e.g., stocks, bonds, or property, already reflect all known information....
Market Microstructure is a branch of finance concerned with the details of how exchange occurs in markets. While the theory of market microstructure applies to the exchange of real or financial assets, more evidence is available on the microstructure of financial markets due to the availability of transactions data from financial markets....
A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market. Crashes are driven by panic as much as by underlying economic factors....
A stock market bubble is a type of economic bubble taking place in stock markets when price of stocks rise and become overvalued by any measure of stock valuation....
In some stock markets, the Mark Twain effect is the phenomenon of stock returns in October being lower than in other months. The name comes from the following quotation in Mark Twain's Pudd'nhead Wilson: "October....
Quantitative behavioral finance is a new discipline that uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation ....
A quantitative analyst is a person who works in finance using numerical or quantitative techniques. Similar work is done in most other modern industries, but the work is not called quantitative analysis....
In the world of finance and investments statistical arbitrage is used in two related but distinct ways:* In academic literature, statistical arbitrage is opposed to arbitrage....
The bond market is a financial market where participants buy and sell debt security , usually in the form of bond . As of 2006, the size of the international bond market is an estimated $45 trillion, of which the size of the outstanding U.S....
In finance, a bond is a debt security , in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or to repay the principal at a later date, termed Maturity ....
A zero-coupon bond is a Bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or so-called "coupons," hence the term zero-coupon bond....
In finance, a convertible bond is a type of bond that can be converted into shares of stock in the issuing types of companies, usually at some pre-announced ratio....
An accrual bond is a fixed-interest bond that is issued at its face value and repaid at the end of the maturity period together with the accrued interest....
In the United States, a municipal bond is a Bond issued by a city or other local government, or their agencies. Potential issuers of municipal bonds include cities, counties, redevelopment agencies, school districts, publicly owned airports and seaports, and any other governmental entity below the state level....
A sovereign bond is a Bond issued by a national government. Bonds issued by national governments in the country's own currency are also referred to as government bonds....
Bond valuation is the process of determining the fair price of a Bond . As with any security or capital investment, the fair value of a bond is the present value of the stream of cash flows it is expected to generate....
The Yield to maturity or redemption yield is the Yield promised to the bondholder on the assumption that the Bond or other security such as gilts will be held to Maturity , that all Coupon and principal payments will be made and coupon payments are reinvested at the bond's promised yield at the same rate as the original principal i...
In finance, the duration of a financial asset measures the sensitivity of the asset's price to interest rate movements, expressed as a number of years....
Fixed income refers to any type of investment that yield s a regular return.For example, if you lend money to a borrower and the borrower has to pay interest once a month, you have been issued a fixed-income security ....
In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term market liquidity funding for the global financial system....
A Repurchase agreement allows a borrower to use a security as collateral for a cash loan at a fixed rate of interest. In a repo, the borrower agrees to immediately sell a security to a lender and also agrees to buy the same security from the lender at a fixed price at some later date....
A currency is a Medium of exchange, facilitating the trade of goods and/or Service s. It is coins and paper bills used as money. It is one form of money, where money is anything that serves as a medium of exchange, a store of value, and a standard of value....
In finance, the exchange rates between two currency specifies how much one currency is worth in terms of the other. It is the value of a foreign nation?s currency in terms of the home nation?s currency....
ISO 4217 is the international standard describing three-letter codes to define the names of currency established by the International Organization for Standardization ....
Listed below is a table of historical exchange rates relative to the U.S. Dollar, at present the most widely traded currency in the world. An exchange rate represents the value of one currency in another....
A commodity is anything for which there is demand, but which is supplied without qualitative product differentiation across a market. It is a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk....
In business and accounting, assets are everything of value that is owned by a person or company. It is a claim on the property your income of a borrower....
The Commodity Futures Trading Commission is an Independent agencies of the United States government.The Commodity Exchange Act , et seq., prohibits fraudulent conduct in the trading of futures contracts....
Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close of the trading day....
In trade finance, forfaiting involves the purchasing of receivables from exporters. The forfaiter will take on all the risks involved with the receivables....
Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets....
In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity of standardized quality at a certain date in the future, at a price determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders...
Fungibility is the property of a Good or a commodity whose individual units are capable of mutual substitution. Examples of highly fungible commodities are crude oil, wheat, precious metals, and currencies....
File:Reserves of foreign exchange and gold.PNGOf all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or safe haven against any economic, political, social, or currency-based crises....
In finance, a hedge is a position established in one market in an attempt to offset exposure to the price Risk#In_finance of an equal but opposite obligation or position in another market ? usually, but not always, in the context of one's commercial activity....
Jesse Lauriston Livermore , also known as Boy Plunger, was an early 20th century stock trader. He was famed for making and losing several multi-million dollar fortunes and short selling during the stock market crashes in Panic of 1907 and Wall Street Crash of 1929....
In accounting terms, after all liability are paid, ownership equity is the remaining interest in assets. If valuations placed on assets do not exceed liabilities, negative equity exists....
Seasonal spread traders are spread traders that take advantage of seasonal patterns by holding Long and Short positions in futures contracts simultaneously in the same or a related commodity markets....
Speculation is the assumption of the risk of loss, in return for the uncertain possibility of a reward. Only if one may safely say that a particular position involves no risk may one say, strictly speaking, that such a position represents an "investment." Financial speculation involves the trade, and short-selling of stocks, bond , commodity...
Technical analysis is a security analysis technique that claims the ability to forecast the future direction of prices through the study of past market data, primarily price and volume....
A bottom is an event in technical analysis, where prices reach a low, then a lower low, and then a higher low.The first low signifies the pressure from selling was greater than the pressure from buying....
Open interest is the number of "open" contracts of derivatives like futures and option s that have a time limit after which they expire. Open interest in a derivative is the sum of all contracts that have not expired, been exercised or physically delivered....
In the field of technical analysis, Parabolic SAR is a method devised by J. Welles Wilder, Jr, to find trends in market prices or security . It may be used as a Stop loss order based on prices tending to stay within a parabola curve during a strong trend....
The Relative Strength Index is a financial technical analysis oscillator showing price strength by comparing upward and downward close-to-close movements....
The stochastic oscillator is a momentum Trading Indicator used in technical analysis, introduced by George Lane in the 1950s, to compare the closing price of a commodity to its price range over a given time span....
Support and resistance is a concept in technical analysis that the movement of the price of a security will tend to stop and reverse at certain predetermined price levels....
A top is an event in technical analysis, where a security 's market price reach a high, then a higher high, and then a lower high.The first high signifies the pressure from buying was greater than the pressure from selling....
Tradeis the willing exchange of goods, Service , or both. Trade is also called commerce. A mechanism that allows trade is called a market. The original form of trade was barter , the direct exchange of goods and services....
The derivatives markets are the financial markets for derivative s. The market can be divided into two, that for derivative #Exchange traded derivatives and that for derivative #Over-the-counter derivatives....
Derivatives are financial contracts, or financial instruments, whose values are derived from the value of something else . The underlying on which a derivative is based can be an asset , an index , or other items ....
The forward market is the over-the-counter financial market in contracts for future delivery, so called forward contracts. Forward contracts are personalized between parties.... s and contracts
A forward contract is an agreement between two parties to buy or sell an asset at a specified point of time in the future. The price of the underlying instrument, in whatever form, is paid before control of the instrument changes....
Backwardation is a futures market term describing a situation where the amount of money required for future delivery of an item is lower than the amount required for immediate delivery of that item....
In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity of standardized quality at a certain date in the future, at a price determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders...
A currency future, also FX future or foreign exchange future, is a futures contract to exchange one currency for another at a specified date in the future at a price that is fixed on the purchase date....
A financial future is a futures contract on a short term interest rate . Contracts vary, but are often defined on an interest rate index such as 3-month sterling or US dollar LIBOR....
An Interest Rate Future is a futures contract with an interest-bearing instrument as the underlying asset.Examples include Treasury-bill futures, Treasury-bond futures and Eurodollars futures....
A futures exchange is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with Delivery set at a specified time in the future....
In finance, an option is a contract between a buyer and a seller that gives the buyer the right?but not the obligation?to buy or to sell a particular asset at a later time at an agreed price.... s
In option trading, a box spread is a combination of positions that has a certain payoff, considered to be simply "delta neutral interest rate position"....
A call option is a financial contract between two parties, the buyer and the seller of this type of Option . It is the option to buy shares of stock at a specified time in the future.Often it is simply labeled a "call"....
A put option is a finance contract between two parties, the seller and the buyer of the option . The buyer acquires a long position offering the right, but not obligation, to sell the underlying instrument at an agreed-upon price ....
In option , the strike price, or exercise price, is a key variable in a derivative contract between two parties. Where the contract requires delivery of the underlying instrument, the trade will be at the strike price, regardless of the spot price of the underlying instrument at that time....
The Black model is a variant of the Black-Scholes option pricing model. Its primary applications are for pricing bond options, interest rate caps / floors, and swaptions....
In financial mathematics, the implied volatility of an option contract is the Volatility implied by the market price of the option based on an Valuation of options model....
In finance, the value of an option consists of two components, its intrinsic value and its time value. Time value is simply the difference between option value and intrinsic value....
In finance, moneyness is a measure of the degree to which a derivative is likely to have positive monetary value at its expiration, in the risk-neutral measure....
In finance, a straddle is an investment strategy involving the purchase or sale of particular option derivative that allows the holder to profit based on how much the price of the underlying security moves, regardless of the direction of price movement....
In finance, the style or family of an option is a general term denoting the class into which the option falls, usually defined by the dates on which the option may be Exercise ....
In finance, an exotic option is a derivative which has features making it more complex than commonly traded products . These products are usually traded over-the-counter , or are embedded in structured notes....
In finance, a binary option is a type of Option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option....
An Asian option is a special type of option contract. For Asian options the payoff is determined by the average underlying price over some pre-set period of time....
An employee stock option is a call option on the common stock of a company, issued as a form of non-cash Remuneration. Restrictions on the option attempt to align the holder's interest with those of the business' shareholders....
In finance, a warrant is a security that entitles the holder to buy stock of the company that issued it at a specified price, which is usually higher than the stock price at time of issue....
In finance, a foreign exchange option is a derivative financial instrument where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date....
Interest rate option is a derivative financial instrument.The global market for exchange-traded interest rate options is notionally valued by the Bank for International Settlements at $3,075,400 million in 2005.... s
In finance, a bond option is an OTC-traded financial instrument that facilitates an option to buy or sell a particular bond at a certain date for a particular price.... s
In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity of standardized quality at a certain date in the future, at a price determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders...
In finance, a swap is a derivative in which two counterparty agree to trade one stream of cash flows against another stream. These streams are called the legs of the swap....
An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedge to manage their fixed asset or floating capital assets and liabilities....
A basis swap is an interest rate swap which involves the exchange of two floating rate financial instruments. A floating-floating interest rate swap under which the floating rate payments is referenced to different bases....
An asset swap is an exchange of tangible assets for intangible assets or vice versa. Since it is a swap of assets, the procedure takes place on the active side of the balance sheet and has no impact on the latter in regards to volume....
A stock swap, also known as a share swap, is a business takeover or acquisition in which the acquiring company uses its own stock to pay for the acquired company....
A currency swap is a foreign exchange agreement between two parties to exchange principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal loan in another currency....
A variance swap is an over-the-counter financial derivative that allows one to speculate on or hedge risks associated with the magnitude of movement, i.e....
In finance, a swap is a derivative in which two counterparty agree to trade one stream of cash flows against another stream. These streams are called the legs of the swap....
In finance, an equity derivative is a class of financial instruments whose value is at least partly derived from one or more underlying Stock securities.... s
A closed-end fund, or closed-ended fund is a collective investment scheme with a limited number of Share .New shares are rarely issued after the fund is launched; shares are not normally redeemable for cash or Security until the fund liquidates....
Commodity-Indexed Preferred Securities (ComPS)
Common-Linked Higher Income Participation Securities (CHIPS)
Common stock is a form of corporation equity ownership represented in the Security . It is a stock whose dividends are based on market fluctuations....
An exchange-traded fund is an collective investment scheme traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.... (ETF)
An inverse exchange-traded fund is an exchange-traded fund , traded on a public stock market, which is designed to perform as the inverse of whatever index or benchmark it is designed to track....
Preferred stock, also called preferred shares or preference shares, is typically a 'higher ranking' stock than voting shares, and its terms are negotiated between the corporation and the investor....
A Real Estate Investment Trust or REIT is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes.... (REIT)
In finance, a warrant is a security that entitles the holder to buy stock of the company that issued it at a specified price, which is usually higher than the stock price at time of issue....
Warrants & Income Redeemable Equity Securities (WIRES)
A financial future is a futures contract on a short term interest rate . Contracts vary, but are often defined on an interest rate index such as 3-month sterling or US dollar LIBOR....
In finance, a forward rate agreement is a forward contract in which one party pays a fixed interest rate, and receives a floating interest rate equal to a reference rate ....
An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedge to manage their fixed asset or floating capital assets and liabilities....
An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedge to manage their fixed asset or floating capital assets and liabilities....
A swaption is an option granting its owner the right but not the obligation to enter into an underlying swap . Although options can be traded on a variety of swaps, the term "swaption" typically refers to options on interest rate swaps....
In finance, a credit derivative is a derivative whose value derives from the credit risk on an underlying bond, loan or other financial asset. In this way, the credit risk is on an entity other than the counterparties to the transaction itself.... s
A credit default swap is a credit derivative contract between two counterparty. The buyer makes periodic payments to the seller, and in return receives a payoff if an underlying financial instrument default ....
Collateralized debt obligations are a type of structured finance asset-backed security whose value and payments are derived from a portfolio of fixed-income underlying assets....
In finance, a default option, credit default swaption or credit default option is an option to buy protection or sell protection as a credit default swap on a specific reference credit with a specific maturity....
Total return swap, or TRS , or total rate of return swap, or TRORS, is a financial contract which transfers both the credit risk and market risk of an underlying asset....
Securitization is a structured finance process, which involves Pooling and Security #Repackaging of cash flow producing financial assets into Security that are then sold to investors....
The economic value of a good or service has puzzled economists since the beginning of the discipline. First, economists tried to estimate the value of a good to an individual alone, and extend that definition to goods which can be exchanged....
Fair value, also called fair price , is a concept used in finance and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or asset, taking into account such objective factors as:...
In finance, the discounted cash flow approach describes a method of valuing a project, company, or financial asset using the concepts of the time value of money.... valuation
Cash flow is the balance of the amounts of cash being received and paid by a business during a defined period of time, sometimes tied to a specific project....
* Operating cash flow
Operating cash flow
In financial accounting, operating cash flow , cash flow provided by operations or cash flow from operating activities, refers to the amount of cash a company generates from the revenue it brings in, excluding cost associated with long-term investment on Financial capital items or investment in securities.... Time value of money
Time value of money
The concepts of present and future value hinge upon the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal....
* Present value
Present value
Present value is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk....
* Future value
Future value
Future value measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function....
* Actualization
* Discount
Discount
A "Discount" is a "Charge" that is paid to obtain the right to delay a payment. Essentially, the payer purchases the right to make a given payment in the future instead of in the Present.... ing
Bond valuation
Bond valuation
Bond valuation is the process of determining the fair price of a Bond . As with any security or capital investment, the fair value of a bond is the present value of the stream of cash flows it is expected to generate....
*Yield to maturity
Yield to maturity
The Yield to maturity or redemption yield is the Yield promised to the bondholder on the assumption that the Bond or other security such as gilts will be held to Maturity , that all Coupon and principal payments will be made and coupon payments are reinvested at the bond's promised yield at the same rate as the original principal i...
*Duration
Bond duration
In finance, the duration of a financial asset measures the sensitivity of the asset's price to interest rate movements, expressed as a number of years....
*Convexity
Bond convexity
In finance, convexity is a measure of the sensitivity of the Bond duration of a Bond to changes in interest rates.... Equity
STOCK
Software for fixed assets management and stock control developed in 2004. Stocktaking process is carried using a hand-held mobile terminal equipped with barcode reader or RFID technology.... valuation
* Equivalent Annual Cost
Equivalent Annual Cost
In finance the equivalent annual cost is the cost per year of owning and operating an asset over its entire lifespan.EAC is often used as a decision making tool in capital budgeting when comparing investment projects of unequal lifespans....
* Net present value
Net present value
Net present value or net present worth is defined as the total present value of a time series of cash flows. It is a standard method for using the time value of money to appraise long-term projects....
* Discount rate
Discount
A "Discount" is a "Charge" that is paid to obtain the right to delay a payment. Essentially, the payer purchases the right to make a given payment in the future instead of in the Present....
**Capital Asset Pricing Model
Capital asset pricing model
In finance, the Capital Asset Pricing Model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well-diversified Portfolio , given that asset's non-Diversification risk....
**Arbitrage pricing theory
Arbitrage pricing theory
Arbitrage pricing theory , in finance, is a general theory of asset pricing, that has become influential in the pricing of stock.APT holds that the expected return of a financial asset can be modeled as a linear function of various macro-economic factors or theoretical market indices, where sensitivity to changes in each factor is represent...
**Cost of capital
Cost of capital
The cost of capital is an expected return that the provider of capital plans to earn on their investment....
**Weighted average cost of capital
Weighted average cost of capital
The weighted average cost of capital is the rate that a company is expected to pay to finance its assets. WACC is the minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital....
* Fundamental analysis
Fundamental analysis
Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets....
* Stock valuation
Stock valuation
There are several methods used to value companies and their stocks. They attempt to give an estimate of their fair value, by using fundamental economic criteria....
* Business valuation
Business valuation
Business valuation is a process and a set of procedures used to estimate the valuation of an owner?s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to consummate a sale of a business....
* The investment decision
Corporate finance
Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions....
The dividend yield on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share divided by the price per share.... Financial ratio
Financial ratio
In finance, a financial ratio or accounting ratio is a ratio of two selected numerical values taken from an enterprise's financial statements.... Market-based valuation
Market-based valuation
Market-based valuation is a form of stock valuation that refers to market indicators, also called "extrinsic" criteria ....
PE ratio
Relative valuation
Relative valuation
Relative valuation is a generic term that refers to the notion of comparing the price of an asset to the market value of similar assets. In the field of securities investment, the idea has led to important practical tools, which could presumably spot pricing anomalies.... Stock image
Stock image
Stock image can mean the following:* A stock image in publishing is an image that is commercially available .* A stock image in finance is a stock valuation coefficient based on the "stock profile" , as it is really or as investors perceive it ....
Stock profile
Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions....
In finance, a financial ratio or accounting ratio is a ratio of two selected numerical values taken from an enterprise's financial statements.... Business plan
Business plan
A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals.... Capital budgeting
Capital budgeting
Capital budgeting is the planning process used to determine whether a firm's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing....
* Capital investment decisions
Corporate finance
Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions....
* The investment decision
Corporate finance
Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions....
** Business valuation
Business valuation
Business valuation is a process and a set of procedures used to estimate the valuation of an owner?s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to consummate a sale of a business....
** Stock valuation
Stock valuation
There are several methods used to value companies and their stocks. They attempt to give an estimate of their fair value, by using fundamental economic criteria....
** Fundamental analysis
Fundamental analysis
Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets....
** Real option
Real option
In corporate finance, real options analysis or ROA applies put option and call option valuation techniques to capital budgeting decisions.... s
** Valuation topics
In economics, the Fisher separation theorem asserts that the objective of a wiktionary:firm will be the maximization of its present value, regardless of the preferences of its owners....
* The financing decision
Corporate finance
Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions....
** Capital structure
Capital structure
In finance, capital structure refers to the way a corporation finances its assets through some combination of stock, debt, or hybrid security. A firm's capital structure is then the composition or 'structure' of its liabilities....
** Cost of capital
Cost of capital
The cost of capital is an expected return that the provider of capital plans to earn on their investment....
** Weighted average cost of capital
Weighted average cost of capital
The weighted average cost of capital is the rate that a company is expected to pay to finance its assets. WACC is the minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital....
** Modigliani-Miller theorem
Modigliani-Miller theorem
The Modigliani-Miller theorem forms the basis for modern thinking on capital structure. The basic theorem states that, in the absence of taxes, bankruptcy costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by how that firm is financed....
* The Dividend Decision
The Dividend Decision
The Dividend Decision, in Corporate finance, is a decision made by the board of directors of a company. It relates to the amount and timing of any cash payments made to the company's stockholders....
**Dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be paid to the shareholders as a dividend....
** Dividend tax
Dividend tax
A dividend tax is an income tax on dividends to the stockholders of a company....
** Dividend yield
Dividend yield
The dividend yield on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share divided by the price per share....
**Modigliani-Miller theorem
Modigliani-Miller theorem
The Modigliani-Miller theorem forms the basis for modern thinking on capital structure. The basic theorem states that, in the absence of taxes, bankruptcy costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by how that firm is financed.... Corporate action
Corporate action
A corporate action is an event initiated by a public company that affects the securities issued by the company. Some corporate actions such as a dividend or coupon payment may have a direct financial impact on the shareholders or bondholders; another example is a call of a debt security.... Managerial finance
Managerial finance
Managerial finance is the branch of finance that concerns itself with the managerial significance of finance techniques. It is focused on assessment rather than technique....
*Management accounting
Management accounting
Differences between managerial accounting and financial accountingManagement accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functi... Mergers and acquisitions
Mergers and acquisitions
The phrase mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different corporation that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity....
* leveraged buyout
Leveraged buyout
A leveraged buyout occurs when a financial sponsor acquires a controlling interest in a company's ownership equity and where a significant percentage of the purchase price is financed through leverage ....
* takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the mergers and acquisitions of a private company....
* corporate raid
Corporate raid
A corporate raid is a business term for buying a large interest in a corporation and then using voting rights to enact measures directed at increasing the share value.... Real option
Real option
In corporate finance, real options analysis or ROA applies put option and call option valuation techniques to capital budgeting decisions.... s
Return on investment
* Return on assets
Return on assets
The return on assets percentage shows how profitable a company's assets are in generating revenue.ROA can be computed as:This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control....
* Return on equity
Return on equity
Return on Equity measures the rate of return on the ownership interest of the common stock owners. It measures a firm's efficiency at generating profits from every dollar of shareholders' equity ....
* Return on capital
Return on capital
Return on invested capital is a financial measure that quantifies how well a company generates cash flow relative to the capital it has invested in its business.... Working capital management
Corporate finance
Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions....
*cash conversion cycle
Cash conversion cycle
Cash conversion cycle or CCC is the time duration in which a firm is able to convert its resources into cash. It is actually the total time period required to first convert resources into inventories, then inventories into finished goods, then goods into sales, sales into accounts receivable and then receivables into cash....
*Return on capital
Return on capital
Return on invested capital is a financial measure that quantifies how well a company generates cash flow relative to the capital it has invested in its business....
*Economic value added
Economic value added
In corporate finance, Economic Value Added or EVA is an estimate of true economic profit after making corrective adjustments to GAAP accounting, including deducting the opportunity cost of equity capital....
*Just In Time
*Economic order quantity
Economic order quantity
Economic order quantity is the level of inventory that minimizes the total inventory holding costs and ordering costs. The framework used to determine this order quantity is also known as Wilson EOQ Model....
*Discounts and allowances
Discounts and allowances
Discounts and allowances are reductions to a basic price of goods or services. They can occur anywhere in the distribution channel, modifying either the manufacturer's list price , the retail price , or the list price ....
*Factoring (trade)
Active management refers to a investment management strategy wherein the manager makes specific investments with the goal of outperforming an investment benchmark index....
* Efficient market hypothesis
Efficient market hypothesis
In finance, the efficient-market hypothesis asserts that financial markets are "informationally efficient", or that prices on traded assets, e.g., stocks, bonds, or property, already reflect all known information....
* Portfolio
Portfolio (finance)
In finance, a portfolio is an appropriate mix of or collection of investments held by an institution or a private individual.Holding a portfolio is part of an investment and risk-limiting strategy called Diversification ....
* Modern portfolio theory
Modern portfolio theory
Modern portfolio theory proposes how Homo economicuss will use Diversification to optimize their portfolio s, and how a risky asset should be priced....
** Capital asset pricing model
Capital asset pricing model
In finance, the Capital Asset Pricing Model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well-diversified Portfolio , given that asset's non-Diversification risk....
* Arbitrage pricing theory
Arbitrage pricing theory
Arbitrage pricing theory , in finance, is a general theory of asset pricing, that has become influential in the pricing of stock.APT holds that the expected return of a financial asset can be modeled as a linear function of various macro-economic factors or theoretical market indices, where sensitivity to changes in each factor is represent...
* Passive management
Passive management
Passive management is a finance strategy in which a fund manager makes as few Portfolio decisions as possible, in order to minimize transaction costs, including the incidence of capital gains tax....
** Index fund
Index fund
An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an stock market index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions....
* Activist shareholder
Activist shareholder
An activist shareholder uses an equity stake in a corporation to put public pressure on its management. The goals of activist shareholders range from financial to non-financial ....
* Mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, Bond , short-term money market instruments, and/or other security ....
** Open-end fund
Open-end fund
An open-end fund is a Collective investment scheme which can issue and redeem shares at any time. An investor can purchase shares in such funds directly from the mutual fund company, or through a stock broker house....
** Closed-end fund
Closed-end fund
A closed-end fund, or closed-ended fund is a collective investment scheme with a limited number of Share .New shares are rarely issued after the fund is launched; shares are not normally redeemable for cash or Security until the fund liquidates....
** List of mutual-fund families
List of mutual-fund families
The following is a limited list of mutual-fund families in the United States. A family of mutual funds is a group of funds that are marketed under one or more brand names, usually having the same distributor , and investment advisor ....
* Financial engineering
Financial engineering
Financial engineering can refer to:* Computational finance* Financial reinsurance...
** Long-Term Capital Management
Long-Term Capital Management
Long-Term Capital Management was a U.S. hedge fund which used trading strategies such as fixed income arbitrage, statistical arbitrage, and Pairs trade, combined with high leverage ....
*Hedge fund
Hedge fund
A hedge fund is an investment fund open to a limited range of investors that is permitted by regulators to undertake a wider range of activities than other investment funds and also pays a performance fee to its investment management....
* Hedge
Hedge (finance)
In finance, a hedge is a position established in one market in an attempt to offset exposure to the price Risk#In_finance of an equal but opposite obligation or position in another market ? usually, but not always, in the context of one's commercial activity....
Visualization of Financial Implications
Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, personal budget, save, and spend monetary resources over time, taking into account various financial risks and future life events....
A 529 plan is a Tax advantage investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary.... (college savings)
Budget
Budget
Budget generally refers to a list of all planned expenses and revenues. It is a plan for saving and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more good .... Coverdell Education Savings Account
Coverdell Education Savings Account
A Coverdell Education Savings Account , is a tax advantage investment account in the United States designed to encourage savings to cover future education expenses , such as tuition, books, uniform, etc.... (Coverdell ESAs, formerly known as Education IRAs)
Credit & Debt
* Credit card
Credit card
A credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holders promise to pay for these goods and services....
* Debt consolidation
Debt consolidation
Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan....
* Mortgage loan
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which security interest the loan.... Debit card
Debit card
A debit card is a plastic card which provides an alternative payment method to cash when making purchases. Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account , or from the remaining balance on the card.... Direct deposit
Direct deposit
Direct deposit is a banking term used to refer to certain systems used to transfer money, namely:* In Europe, the giro system* In the United States, the Automated Clearing House... Employment contract
Employment contract
A contract of employment is a category of contract used in labour law to attribute right and responsibilities between parties to a bargain. On the one end stands an "employee" who is "employed" by an "employer"....
* Commission
Commission (remuneration)
The payment of commission as remuneration for services rendered or products sold is a common way to reward sales. Payments often will be calculated on the basis of a percentage of the goods sold....
* Employee stock option
Employee stock option
An employee stock option is a call option on the common stock of a company, issued as a form of non-cash Remuneration. Restrictions on the option attempt to align the holder's interest with those of the business' shareholders....
* Employee or fringe benefit
Employee benefit
Employee benefits and benefits in kind are various non-wage compensations provided to employees in addition to their normal wages or salary....
* Health insurance
Health insurance
The term health insurance is generally used to describe a form of insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering Disability insurance or Long term care insurance needs....
* Paycheck
Payroll
In a company, payroll is the sum of all financial records of salaries, wages, bonuses and deductions....
* Salary
Salary
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis....
* Wage
Wage
A wage is a compensation, usually financial, received by a worker Coincidence of wants for their Labor .Compensation in terms of wages is given to worker and compensation in terms of salary is given to employees.... Financial literacy
Financial literacy
Financial literacy is the ability to understand finance. Raising interest in personal finance is now a focus of state-run programs in countries including Australia, Japan, the United States and the UK.... Insurance
Insurance
Insurance, in law and economics, is a form of risk management primarily used to Hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating los... Predatory lending
Predatory lending
Predatory lending is a pejorative term used to describe unfair, deceptive, or fraudulent practices of some lenders during the loan origination process....
Retirement plan
* 401(a)
* 401(k)
401(k)
In the United States of America, a 401 plan allows a worker to save for retirement and have the savings invested while deferring income taxes on the saved money and earnings until withdrawal....
* 403(b)
403(b)
A 403 plan is a tax-advantaged retirement savings plan available for public education organizations, some Non-profit organization employers , and self-employed minister of religion in the United States....
* 457 plan
457 plan
The 457 plan is a type of tax advantaged defined contribution retirement plan that is available for governmental and certain non-governmental employers in the United States....
* Keogh plan
* Individual Retirement Account
Individual Retirement Account
An Individual Retirement Arrangement is a retirement plan account that provides some tax advantages for retirement savings in the United States....
** Roth IRA
Roth IRA
A Roth IRA is an Individual Retirement Arrangement allowed under the tax law of the United States. Named for its chief legislative sponsor, the late Senator William V....
** Traditional IRA
Traditional IRA
Established by the Tax Reform Act of 1986, . A Traditional IRA is an individual retirement account in the United States. The IRA is held at a custodian institution such as a bank or brokerage, and may be invested in anything that the custodian allows ....
** SEP IRA
SEP IRA
A Simplified Employee Pension Individual Retirement Account is a variation of the Individual Retirement Account used in the United States. SEP IRAs are adopted by business owners to provide retirement benefits for the business owners and their employees....
** SIMPLE IRA
SIMPLE IRA
A SIMPLE IRA is a type of employer-provided retirement plan in the United States. Specifically, it is a type of Individual Retirement Account that is set up to be an employer-provided plan....
** Conduit IRA
* Pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment.The terms retirement plan or superannuation refer to a pension granted upon retirement .... Social security
Social security
Social security primarily refers to a social insurance program providing social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others.... Tax advantage
Tax advantage
Public finance}}Tax advantage refers to the economic bonus which applies to certain accounts or investments that are, by statute, tax-reduced, tax-deferred, or tax-free.... Wealth
Wealth
Wealth is an abundance of valuable material possessions or resources. The word is derived from the old English wela, which is from an Indo-European word stem.... Comparison of accounting software
Comparison of accounting software
The following comparison of accounting software documents the various features and differences between different professional accounting software and personal finance packages.... Personal financial management
Personal financial management
Personal Financial Management websites enable consumers to track and manage their money in multiple institutions and, oftentimes, to compare notes and information with other users of the service....
*Comparison of personal financial management online tools
Investment club
Investment club
An investment club is a group of individuals who meet on a regular basis for the purpose of investing money.The invested sums can be as little as $10 a month.... Collective investment scheme
Collective investment scheme
A collective investment scheme is a way of investment money with other people to participate in a wider range of investments than those feasible for most individual investors, and to share the costs of doing so....
Car financing
Public finance is a field of economics concerned with paying for collective or governmental activities, and with the administration and design of those activities....
A central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country or of a group of member states....
Federal Reserve
Fractional-reserve banking
Fractional-reserve banking
Fractional-reserve banking is the banking practice in which banks keep only a fraction of their deposits in bank reserves and lend out the remainder, while maintaining the simultaneous obligation to redeem all deposits immediately upon demand....
* Deposit creation multiplier
Tax
Tax
To tax is to impose a financial charge or other levy upon an individual or Legal person by a state or the functional equivalent of a state.Taxes are also imposed by many subnational entity....
* Income tax
Income tax
An income tax is a tax levied on the financial income of people, corporations, or other legal entities. Various income tax systems exist, with varying degrees of tax incidence....
* Payroll tax
Payroll tax
Payroll tax generally refers to two kinds of taxes: Taxes which employers are required to withhold from employees' pay, also known as withholding, PAYE or PAYG tax; and taxes which are paid from the employer's own funds and which are directly related to employing a worker, which may be either fixed charges or proportionally linked to an emp...
* Sales tax
Sales tax
A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax is usually set as a percentage by the government charging the tax....
* Tax advantage
Tax advantage
Public finance}}Tax advantage refers to the economic bonus which applies to certain accounts or investments that are, by statute, tax-reduced, tax-deferred, or tax-free....
* Tax, tariff and trade
Tax, tariff and trade
The tax, tariff and trade laws of a political region, state or trade bloc determine which forms of Consumption and Economic production tend to be encouraged or discouraged.... crowding out
Crowding out (economics)
In economics, crowding out is any reductions in private consumption or investment that occurs because of an increase in government spending. If the increase in government spending is financed by a tax increase, the tax increase would tend to reduce private consumption.... Industrial policy
Industrial policy
An industrial policy is any government regulation or law that encourages the ongoing operation of, or investment in, a particular industry.An active intervention in industrial development is the policy of most if not all countries in the world.... Agricultural policy
Agricultural policy
Agricultural policy describes a set of laws relating to domestic agriculture and imports of foreign agricultural products. Governments usually implement agricultural policies with the goal of achieving a specific outcome in the domestic agricultural product markets....
Currency union
Monetary reform
Monetary reform
Monetary reform describes any movement or theory that proposes a different system of supplying money and financing the economy than the current system....
Insurance, in law and economics, is a form of risk management primarily used to Hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating los...
Actuarial science is the discipline that applies mathematics and statistics methods to Risk assessment in the insurance and finance industries. Actuary are professionals who are qualified in this field through education and experience.... Annuities
Annuity (financial contracts)
An annuity contract is a financial product, typically offered by a financial institution, that may accumulate value and take a current value and pay it out over a period of years.... Catastrophe modeling
Catastrophe modeling
Catastrophe modeling is the process of using computer-assisted calculations to estimate the losses that could be sustained by a portfolio of properties due to a catastrophic event such as a hurricane or earthquake.... Earthquake loss
Earthquake loss
Earthquake loss estimation is usually performed in terms of a Damage Ratio which is a ratio of the earthquake damage dollar amount to total value of a building.... Extended coverage
Extended coverage
Extended coverage is a term used in the property insurance business. All insurance policies have exclusions - specific causes of loss that are not covered by the insurance company.... Insurable interest
Insurable interest
A person has an insurable interest in something when loss or damage to it would cause that person to suffer a financial loss or certain other kinds of losses.... Insurable risk
Insurable risk
An insurable risk is a risk that meets the ideal criteria for efficient insurance. The concept of insurable risk underlies nearly all insurance decisions.... Insurance
Insurance
Insurance, in law and economics, is a form of risk management primarily used to Hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating los...
* Health insurance
Health insurance
The term health insurance is generally used to describe a form of insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering Disability insurance or Long term care insurance needs....
** Injury cover
Injury cover
Injury cover may refer to the act of receiving or claiming compensation for work related injuries.It also may be used in conjunction with:Health Insurance - A form of group insurance, where individuals pay premiums or taxes in order to help protect themselves from high or unexpected healthcare expenses....
** Disability insurance
Disability insurance
Disability insurance, often called disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that disability will make working impossible....
** Flexible spending account
Flexible spending account
A flexible spending arrangement , or Flexible Spending Account, as they are commonly called, is one of a number of tax-advantaged financial accounts that can be set up through a cafeteria plan of an employer in the United States....
** Health savings account
Health savings account
A health savings account , is a Tax advantage medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan ....
** Long term care insurance
Long term care insurance
Long-term care insurance , an insurance product sold in the United States and United Kingdom, helps provide for the cost of long-term care beyond a predetermined period....
** Medical savings account
Medical savings account
Medical savings account refers to an account in which tax-deferred deposits can be made for medical expenses....
* Life insurance
Life insurance
Life insurance or life assurance is a contract between the policy owner and the insurance, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness....
** Life insurance tax shelter
Life insurance tax shelter
A life insurance tax shelter uses investments in life insurance to protect income or assets from tax liabilities. Life insurance proceeds are not taxable in many jurisdictions....
** Permanent life insurance
Permanent life insurance
Permanent life insurance is a form of life insurance such as whole life or Endowment policy, where the policy is for the life of the insured, the payout is assured at the end of the policy and the policy accrues cash value....
** Term life insurance
Term life insurance
Term life insurance or term assurance is life insurance which provides coverage for a limited period of time, the relevant term. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage....
** Universal life insurance
Universal life insurance
Universal Life is a type of permanent life insurance based on a cash value. That is, the policy is established with the insurer where premium payments above the cost of insurance are credited to the cash value....
** Variable universal life insurance
Variable universal life insurance
Variable Universal Life Insurance is a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts to use is entirely up to the contract owner....
** Whole life insurance
Whole life insurance
Whole Life Insurance, or Whole of Life Assurance , is a life insurance policy that remains in force for the insured's whole life and requires premiums to be paid every year into the policy....
* Property insurance
Property insurance
Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance or boiler insurance....
** Auto insurance
** Boiler insurance
Boiler insurance
Boiler Insurance is a type of insurance that covers repairs and in some cases the replacement of your home boiler. It can also cover other parts of your central heating system and even your plumbing and electrics....
** Earthquake insurance
Earthquake insurance
Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property....
** Home insurance
Home insurance
Home insurance, also commonly called hazard insurance or homeowners insurance , is the type of property insurance that covers private homes....
** Title insurance
Title insurance
Title insurance in the United States is indemnity insurance against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens....
** Pet insurance
Pet insurance
Pet Insurance pays the veterinary costs if one's pet becomes ill or is injured in an accident. Some policies will also pay out when the pet dies, or if it's lost or stolen....
* Casualty insurance
Casualty insurance
Casualty insurance is a problematically defined term loosely used to describe an area of insurance not particularly or directly concerned with life insurance, health insurance, or property insurance....
** Business continuation insurance
** Fidelity bond
Fidelity bond
A fidelity bond is a form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals....
** Liability insurance
Liability insurance
Liability insurance is a part of the general insurance system of risk financing. Originally, individuals or companies that faced a common peril, formed a group and created a self-help fund out of which to pay compensation should any member incur loss....
*** Personal umbrella liability policy
*** Commercial general liability policy
** Political risk insurance
Political risk insurance
Political risk insurance is a type of insurance that can be taken out by businesses, of any size, against political risk?the risk that revolution or other political conditions will result in a loss....
** Surety bond
Surety bond
A surety bond is a contract among at least three parties:* The principal - the primary party who will be performing a contractual obligation* The obligee - the party who is the recipient of the obligation, and...
** Terrorism insurance
Terrorism insurance
Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorism activities....
* Credit insurance
Credit insurance
Credit insurance is a term used to describe both trade credit insurance and credit life insurance.Credit life insurance is a consumer purchase, often sold with a big ticket purchase such as an automobile....
* Reinsurance
Reinsurance
Reinsurance is a means by which an insurance company can protect itself with other insurance companies against the risk of losses. Individuals and corporations obtain insurance policies to provide protection for various risks ....
* Self insurance
Self insurance
Self insurance is a risk management method in which a calculated amount of money is set aside to compensate for the potential future loss.If self insurance is approached as a serious risk management technique, money is set aside using actuarial and insurance information and the law of large numbers so that the amount set aside is enough to...
* Travel insurance
Travel insurance
Travel insurance is insurance that is intended to cover medical expenses and financial and other losses incurred while traveling, either within one's own country, or internationally.... Insurance contract
Insurance contract
An insurance contract determines the law framework under which the features of an insurance policy are enforced. Insurance contracts are designed to meet very specific needs and thus have many features not found in many other types of contracts....
Economic growth is the increase in the amount of the goods and services produced by an economics over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.... Financial economics
Financial economics
Financial economics is the branch of economics concerned with "the allocation and deployment of economic resources, both spatially and across time, in an uncertain environment" .... Mathematical economics
Mathematical economics
Mathematical economics refers to the application of mathematical methods to represent economic theories and analyze problems posed in economics.... Managerial economics
Managerial economics
Managerial economics , is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units....
Utility theory
The concepts of present and future value hinge upon the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal....
Present value is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk.... Future value
Future value
Future value measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function.... Discount
Discount
A "Discount" is a "Charge" that is paid to obtain the right to delay a payment. Essentially, the payer purchases the right to make a given payment in the future instead of in the Present.... ing
Net present value
Net present value
Net present value or net present worth is defined as the total present value of a time series of cash flows. It is a standard method for using the time value of money to appraise long-term projects.... Internal rate of return
Internal rate of return
The internal rate of return is a capital budgeting metric used by firms to decide whether they should make investments. It is also called discounted cash flow rate of return or rate of return .... Annuity
Annuity (finance theory)
The term annuity is used in finance theory to refer to any terminating stream of fixed payments over a specified period of time. This usage is most commonly seen in academic discussions of finance, usually in connection with the valuation of the stream of payments, taking into account time value of money concepts such as interest rate and fut... Perpetuity
Perpetuity
A perpetuity is an Annuity that has no definite end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence ....
Mathematics is the study of quantity, structure, space, change, and related topics of pattern and form. Mathematicians seek out patterns whether found in numbers, space, natural science, computers, imaginary abstractions, or elsewhere....
Probability, or wikt:chance, is a way of expressing knowledge or belief that an Event will occur or has occurred. In mathematics the concept has been given an exact meaning in probability theory, that is used extensively in such areas of study as mathematics, statistics, finance, gambling, science, and philosophy to draw conclusions about t... Probability distribution
Probability distribution
In probability theory and statistics, a probability distribution identifies either the probability of each value of an unidentified random variable , or the probability of the value falling within a particular interval ....
*Binomial distribution
Binomial distribution
In probability theory and statistics, the binomial distribution is the discrete probability distribution of the number of successes in a sequence of n statistical independence yes/no experiments, each of which yields success with probability p....
*Log-normal distribution
Log-normal distribution
In probability and statistics, the log-normal distribution is the single-tailed probability distribution of any random variable whose logarithm is normal distribution.... Expected value
Expected value
In probability theory and statistics, the expected value of a random variable is the Lebesgue integral of the random variable with respect to its probability measure.... Value at risk
Value at risk
In financial mathematics and financial risk management, Value at Risk is a widely used measure of the market risk on a specific Portfolio of financial assets.... Risk-neutral measure
Risk-neutral measure
In mathematical finance, a risk-neutral measure is a probability measure that results when one assumes that the current value of all financial assets is equal to the expected value of the future payoff of the asset discounted at the risk-free rate.... Stochastic calculus
Stochastic calculus
Stochastic calculus is a branch of mathematics that operates on stochastic processes. It allows a consistent theory of integration to be defined for integrals of stochastic processes with respect to stochastic processes.... Brownian motion
Brownian motion
Brownian motion is the seemingly random movement of particles suspended in a liquid or gas or the mathematical model used to describe such random movements, often called a particle theory.... Itô's lemma
Ito's lemma
In mathematics, Kiyoshi Ito's Lemma is used in Ito calculus to find the differential of a function of a particular type of stochastic process....
Girsanov's theorem
Radon-Nikodym derivative
Monte Carlo methods in finance
Monte Carlo methods in finance
In finance and mathematical finance, Monte Carlo methods are used to value and analyze financial instruments, portfolio s and investments by simulation the various sources of uncertainty affecting their value, and then determining their average value over the range of resultant outcomes .... Partial differential equation
Partial differential equation
In mathematics, partial differential equations are a type of differential equation, i.e., a Relation involving an unknown Function of several independent variables and its partial derivatives with respect to those variables.... s
*Heat equation
Heat equation
The heat equation is an important partial differential equation which describes the distribution of heat in a given region over time. For a function u of three spatial variables and the time variable t, the heat equation is... Martingale representation theorem
Martingale representation theorem
In probability theory, the martingale representation theorem states that a random variable which is measurable with respect to the Filtration #Measure theory generated by a Brownian motion can be written in terms of an It? integral with respect to this Brownian motion.... Feynman-Kac formula
Feynman-Kac formula
The Feynman-Kac formula, named after Richard Feynman and Mark Kac, establishes a link between partial differential equations and stochastic processes.... Dynkin's formula
Dynkin's formula
In mathematics — specifically, in stochastic processes — Dynkin's formula is a theorem giving the expected value of any suitably smooth statistic of an Ito diffusion at a stopping time....
Stochastic differential equations
Volatility
Volatility
Volatility is the measure of the state of instability.*For volatility in chemistry, see Volatility .*For volatility in finance, see Volatility ....
*ARCH model
Autoregressive conditional heteroskedasticity
In econometrics,an autoregressive conditional heteroscedasticity model considers the variance of the current error term to be a function of the variances of the previous time period's error terms....
*GARCH model
Autoregressive conditional heteroskedasticity
In econometrics,an autoregressive conditional heteroscedasticity model considers the variance of the current error term to be a function of the variances of the previous time period's error terms....
Rational pricing is the assumption in financial economics that asset prices will reflect the arbitrage-free price of the asset as any deviation from this price will be "arbitraged away".... assumptions
*Risk neutral valuation
Risk-neutral measure
In mathematical finance, a risk-neutral measure is a probability measure that results when one assumes that the current value of all financial assets is equal to the expected value of the future payoff of the asset discounted at the risk-free rate....
*Arbitrage free pricing
In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity of standardized quality at a certain date in the future, at a price determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders...
*Futures contract pricing
Futures contract
In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity of standardized quality at a certain date in the future, at a price determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders...
In finance, an option is a contract between a buyer and a seller that gives the buyer the right?but not the obligation?to buy or to sell a particular asset at a later time at an agreed price.... (and Real option
Real option
In corporate finance, real options analysis or ROA applies put option and call option valuation techniques to capital budgeting decisions.... s)
* Black-Scholes formula
* Black model
Black model
The Black model is a variant of the Black-Scholes option pricing model. Its primary applications are for pricing bond options, interest rate caps / floors, and swaptions....
* Binomial options model
* Monte Carlo methods for option pricing
* The Greeks
* Volatility
Volatility (finance)
Volatility most frequently refers to the standard deviation of the continuously compounded returns of a financial instrument with a specific time horizon....
** Implied volatility
Implied volatility
In financial mathematics, the implied volatility of an option contract is the Volatility implied by the market price of the option based on an Valuation of options model....
** Historical volatility
** Volatility smile
Volatility Smile
In finance, the volatility smile is a long-observed pattern in which at-the-money option tend to have lower Implied volatility than in- or out-of-the-money options....
***Volatility surface
Volatility Smile
In finance, the volatility smile is a long-observed pattern in which at-the-money option tend to have lower Implied volatility than in- or out-of-the-money options....
***SABR Volatility Model
SABR Volatility Model
In mathematical finance, the SABR model is a stochastic volatility model, which attempts to capture the volatility smile in derivatives markets....
In finance, a swap is a derivative in which two counterparty agree to trade one stream of cash flows against another stream. These streams are called the legs of the swap....
*Swap Valuation
Swap (finance)
In finance, a swap is a derivative in which two counterparty agree to trade one stream of cash flows against another stream. These streams are called the legs of the swap....
An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a amount of money at a given interest rate.... s
*Short-rate models (used in pricing bond option
Bond option
In finance, a bond option is an OTC-traded financial instrument that facilitates an option to buy or sell a particular bond at a certain date for a particular price.... s, swaption
Swaption
A swaption is an option granting its owner the right but not the obligation to enter into an underlying swap . Although options can be traded on a variety of swaps, the term "swaption" typically refers to options on interest rate swaps.... s and other interest rate derivatives)
**Rendleman-Bartter model
Rendleman-Bartter model
The Rendleman-Bartter model in Mathematical finance is a short rate model describing the evolution of interest rates. It is a type of "one factor model" as describes interest rate movements as driven by only one source of market risk....
**Vasicek model
Vasicek model
In Mathematical finance, the Vasicek model is a mathematical model describing the evolution of interest rates. It is a type of "one-factor model" as it describes interest rate movements as driven by only one source of market risk....
**Ho-Lee model
Ho-Lee model
In financial mathematics, the Ho-Lee model is a short rate model to predict future interest rates. It is the simplest model that can be calibrated to market data, by implying the form of from market prices....
**Hull-White model
Hull-White model
In financial mathematics, the Hull-White model is a mathematical model of future interest rates. In its most generic formulation, it belongs to the class of no-arbitrage models that are able to fit today's term structure of interest rates....
**Cox-Ingersoll-Ross model
Cox-Ingersoll-Ross model
The Cox-Ingersoll-Ross model in Mathematical finance is a mathematical model describing the evolution of interest rates. It is a type of "one factor model" as describes interest rate movements as driven by only one source of market risk....
**Black-Karasinski model
**Black-Derman-Toy model
**Longstaff-Schwartz model
**Chen model
Chen model
In finance, the Chen model is a mathematical model describing the evolution of interest rates. It is a type of "one-factor model" as it describes interest rate movements as driven by only one source of market risk....
The field of environmental finance, part of both environmental economics and the conservation movement, exploits various financial instruments to protect biodiversity.... Feminist economics
Feminist economics
Feminist economics broadly refers to a developing branch of economics that applies feminist lenses to economics. Research under this heading is often interdisciplinary or heterodox....
Green economics
Islamic economics
Islamic economics
Islamic economics is economics in accordance with Sharia. Islamic economics can refer to the application of Islamic law to economic activity either where Islamic rule is in force or where it is not; i.e.... Uneconomic growth
Uneconomic growth
Uneconomic growth, in human development theory, welfare economics , and some forms of ecological economics, is economic growth that reflects or creates a decline in the quality of life.... Value of Earth
Value of Earth
In green economics, value of Earth is the ultimate in ecosystem valuation, and important to value of life calculations. It begins with the simple problem that if the Earth ceases to support life, and human life does not continue elsewhere, all economic activity will also cease.... Value of life
Value of life
The value of life is an economic Value theory assigned to life in general, or to specific living organisms. In social science and political sciences, it is the marginal cost of death prevention in a certain class of circumstances....
Virtual finance is a branch of game design theory which is concerned with monetary aspects of virtual worlds, such as massively parallel multi-user games....
Tulip mania or tulipomania was a period in the Dutch Golden Age during which contract prices for bulbs of the newly-introduced tulip reached extraordinarily high levels and then suddenly collapsed.... 1620s/1630s
South Sea Bubble & Mississipi Company 1710s; see also Stock market bubble
Stock market bubble
A stock market bubble is a type of economic bubble taking place in stock markets when price of stocks rise and become overvalued by any measure of stock valuation.... Panic of 1837
Panic of 1837
The Panic of 1837 was a financial crisis in the United States built on a speculative fever. The bubble burst on May 10, 1837 in New York City, when every bank stopped payment in currency .... Railway mania
Railway Mania
Railway Mania is the term given to the Stock market bubble in United Kingdom in the 1840s. It followed a common pattern: as the price of railway shares increased, more and more money was poured in by speculators, until the inevitable collapse.... 1840s
Erie War
Erie War
The Erie War was a 19th century conflict between American financiers for control of the Erie Railroad, which operated in several American states and connected New York to Chicago.... 1860s
Long Depression
Long Depression
The Long Depression was a depression that affected much of the world and was contemporary with the Second Industrial Revolution. At the time it was regarded as the Great Depression, remaining so until the Great Depression of the 1930s.... 1873 to 1896
Post-WWI hyperinflation; see Hyperinflation
Hyperinflation
File:Bundesarchiv Bild 102-00104, Inflation, Tapezieren mit Geldscheinen.jpgIn economics, hyperinflation is inflation that is very high or "out of control", a condition in which prices increase rapidly as a currency loses its value.... and Inflation in the Weimar Republic
Inflation in the Weimar Republic
The inflation in the Weimar Republic was a period of hyperinflation in Germany during 1921-1923.The hyperinflation episode in the Weimar Republic in the 1920s was not the first hyperinflation, nor was it the only one in early 1920s Europe....
Wall Street Crash 1929
Great Depression
Great Depression
File:International depression.pngThe Great Depression was a worldwide economic Recession starting in most places in 1929 and ending at different times in the 1930s or early 1940s for different countries.... 1930s
Oil Shock 1973
1979 energy crisis
1979 energy crisis
The 1979oil crisis in the United States occurred in the wake of the Iranian Revolution. Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979, allowing Ayatollah Khomeini to gain control....
Notable Bankrupts
Savings and Loan Crisis
Savings and Loan crisis
The savings and loan crisis of the 1980s and 1990s was the failure of 747 savings and loan associations in the United States. The ultimate cost of the crisis is estimated to have totaled around United States dollar160.1 billion, about $124.6 billion of which was directly paid for by the U.S.... 1980s
Black Monday
Black Monday (1987)
In financial markets, Black Monday refers to Monday, October 19, 1987, when stock markets around the world Stock market crash, shedding a huge value in a very short time.... 1987
Asian financial crisis 1990s
Dot-com bubble
Dot-com bubble
The "dot-com bubble" was a economic bubble covering roughly 1995?2001 during which stock markets in Western world saw their value increase rapidly from growth in the new quaternary sector of industry and related fields.... 1995-2001
Stock market downturn of 2002
Stock market downturn of 2002
The stock market downturn of 2002 is the sharp drop in stock prices during 2002 in stock exchanges across the United States, Canada, Asia, and Europe.... United States housing bubble
United States housing bubble
The United States housing bubble is an economic bubble affecting many parts of the United States real estate, including areas of California, Florida, Nevada, Arizona, Oregon, Colorado, Michigan, the BosWash, and the Southwestern United States markets.... 2001-
Straight Through Processing enables the entire trade process for capital markets and payment transactions to be conducted electronically without the need for re-keying or manual intervention, subject to legal and regulatory restrictions.... Software
Technical Analysis Software
Algorithmic trading
Algorithmic trading
In electronic trading, algorithmic trading or automated trading, also known as algo trading, black-box trading, or robo trading, is the use of computer programs for entering trading order with the computer algorithm deciding on certain aspects of the order such as the timing, price, or even the final quantity of the o... List of numerical analysis software
List of numerical analysis software
Listed here are a number of computer programs used for performing numerical analysis calculations:* ADMB is a software suite for non-linear statistical modeling based on C++ which uses automatic differentiation.... Comparison of numerical analysis software
Comparison of numerical analysis software
The following tables provide a comparison of numerical analysis software....
This page is a list of accounting topics.AAccounting Ethics- Accounting for risk- Accounting information system- Accounting methods... List of management topics
List of management topics
This is a list of articles on general management and strategic management topics. For articles on specific areas of management, such as marketing management, production management, human resource management, information technology management, and international trade, see the list of related topics at the bottom of this page.... List of marketing topics
This is a list of international trade topics.* Absolute advantage* Agreement on Trade-Related Aspects of Intellectual Property Rights * Asia-Pacific Economic Cooperation ... List of information technology management topics
List of information technology management topics
* Management information systems an overview* Electronic business** Intranet strategies** Database management system*** Data warehousing... List of production topics
List of production topics
* Manufacturing and manufacturing systems** Manufacturing** Factory** Craft production** English system of manufacturing** American system of manufacturing... List of business law topics
List of business ethics, political economy, and philosophy of business topics
See business ethics, political economy and Philosophy of business for an overview.*Accounting reform*Bait and switch*Black market... List of business theorists
List of business theorists
This is an annotated list of important business theorists. It is in alphabetical order based on last name. To facilitate reading, only names are hyperlinked.... List of economists
List of economists
This is an alphabetical list of notable economists, that is, experts in the social science of economics. There is also a separate list of politicians with economics training....
List of corporate leaders
Actuarial topics
Actuarial topics
This page represents a collection of topics which relate to Actuarial Science....
