A bank line or a line of credit (LOC) is a kind of financing that is extended to an individual, corporation, or government entity, by a bank or other| Corporate Finance Institute
Market-on-Close (MOC) order refers to a market order that is not subject to a limit. This is executed as close to the closing price of a stock as possible.| Corporate Finance Institute
Qualifying disposition is a tax term used in the U.S. that refers to a sale or other disposition of shares that receive favorable tax| Corporate Finance Institute
Net investment income (NII) is the total income before taxes that an investor receives on their portfolio of investment assets. Net investment income is| Corporate Finance Institute
Asymmetric information is, just as the term suggests, unequal, disproportionate, or lopsided information.| Corporate Finance Institute
Trade orders refer to the different types of orders that can be placed on trading exchanges for financial assets, such as stocks or futures contracts.| Corporate Finance Institute
Markets include brokers, dealers, and exchange markets. The different types of markets allow for different trading characteristics, as outlined in this guide.| Corporate Finance Institute
Securities are placed on a bank's restricted list when the bank is engaged with the company on non-public activity, such as mergers and acquisitions work| Corporate Finance Institute
Roy’s safety-first criterion is a risk management technique used by investors to compare and choose a portfolio based on the criterion that the probability| Corporate Finance Institute
In investing, risk and return are highly correlated. Increased potential returns on investment usually go hand-in-hand with increased risk.| Corporate Finance Institute
A high net worth individual (HNWI) refers to an individual with a net worth of a minimum of $1,000,000 in highly liquid assets, such as cash and cash equivalents.| Corporate Finance Institute
A credit union is a type of financial organization that is owned and governed by its members.| Corporate Finance Institute
A mutual fund is a pool of money collected from many investors for the purpose of investing in stocks, bonds, or other securities.| Corporate Finance Institute
A hedge fund, an alternative investment vehicle, is a partnership where investors (accredited investors or institutional investors) pool| Corporate Finance Institute
A trading floor refers to a literal floor in a building where equity, fixed income, futures, options, commodities, or foreign exchange traders buy and sell securities.| Corporate Finance Institute
Venture debt is a type of debt financing obtained by early stage companies and startups. It is typically used as a complementary method to equity financing.| Corporate Finance Institute
A fiduciary is an individual (or business) that pledges to prioritize the beneficiary’s interest by avoiding any conflicts of interest| Corporate Finance Institute
The stock market refers to public markets that exist for issuing, buying and selling stocks that trade on a stock exchange or over-the-counter.| Corporate Finance Institute
An Exchange Traded Fund (ETF) is a popular investment vehicle where portfolios can be more flexible and diversified across a broad range of all the available asset classes.| Corporate Finance Institute
A credit card is a simple yet no-ordinary card that allows the owner to make purchases without bringing out any amount of cash. Instead, by using a credit| Corporate Finance Institute
The primary market is the financial market where new securities are issued and become available for trading by individuals and institutions.| Corporate Finance Institute
A FICO score, more commonly known as a credit score, is a three-digit number that is used to assess how likely a person is to repay the credit.| Corporate Finance Institute
The Annual Equivalent Rate (AER) is the rate of interest after taking into account the effects of compounding to normalize the interest rate. The AER is the| Corporate Finance Institute
When investing in stocks and bonds, investors are paid either an accrued interest vs regular interest at an agreed period.| Corporate Finance Institute
Non-assessable stock is a class of stock ownership where the stock owner is limited in their liability to the amount paid for the stock. It means that in| Corporate Finance Institute
Explore CFI's free resource library of Excel templates, interview prep, and deep dives into the topics you need to know for a career in finance and banking.| Corporate Finance Institute
Capital gains yield (CGY) is the price appreciation on an investment or a security expressed as a percentage. See calculation and example here.| Corporate Finance Institute
Lehman Brothers’ stock was selling at $86 a share in February 2007, giving the company a market capitalization of nearly $60 billion. For the year, the company| Corporate Finance Institute
Trade order timing refers to the shelf-life of a specific trade order. The most common types of trade order timing are market orders, GTC orders,| Corporate Finance Institute
Over-the-counter (OTC) is the trading of securities between two counter-parties executed outside of formal exchanges and without the supervision of an exchange regulator.| Corporate Finance Institute
In investing, long and short positions represent directional bets by investors that a security will either go up (when long) or down (when short).| Corporate Finance Institute
Someone who is risk averse has the characteristic or trait of preferring avoiding loss over making a gain.| Corporate Finance Institute
An institutional investor is a legal entity that accumulates funds to invest in various financial instruments and profit from the process.| Corporate Finance Institute
Stock investment strategies pertain to the different types of stock investing. These strategies are namely value, growth and index investing.| Corporate Finance Institute
If you’re going to actively trade stocks as a stock market investor, then you need to know how to read stock charts.| Corporate Finance Institute
What is Fintech? Learn about the fintech industry, financial technology innovations, and how they are transforming banking, payments, lending, and investing.| Corporate Finance Institute
A credit score is a number representative of an individual's financial and credit standing and ability to obtain financial assistance from lenders.| Corporate Finance Institute
Trading mechanisms refer to the different methods by which assets are traded. The two main types are quote driven and order driven trading mechanisms.| Corporate Finance Institute
The Annual Percentage Rate (APR) is the yearly rate of interest that an individual must pay on a loan or that they receive on a deposit account.| Corporate Finance Institute
Public securities, or marketable securities, are investments that are openly or easily traded in a market. The securities are either equity or debt-based.| Corporate Finance Institute
A non-qualifying investment is a type of investment that can never be subject to any tax benefits. Tax benefits include deductions, exemptions, and credits| Corporate Finance Institute
CFI's Investing for Beginners guide will teach you the basics of investing and how to get started. Learn about different strategies and techniques for trading| Corporate Finance Institute
Speculation is the buying of an asset or financial instrument with the hope that the price of the asset or financial instrument will increase in the future.| Corporate Finance Institute
A security is a financial instrument, typically any financial asset that can be traded. The nature of what can and can’t be called a security generally depends on| Corporate Finance Institute
An asset class is a group of similar investment vehicles. They are typically traded in the same financial markets and subject to the same rules and regulations.| Corporate Finance Institute
Risk tolerance refers to the amount of loss an investor is prepared to handle while making an investment decision. Several factors determine the level of risk| Corporate Finance Institute
Investment horizon is a term used to identify the length of time an investor is aiming to maintain their portfolio before selling their securities for a profit.| Corporate Finance Institute