Bank Line - Secured or Unsecured Line of Credit from a Bank
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
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
Definitions for the most common bond and fixed income terms. Annuity, perpetuity, coupon rate, covariance, current yield, par value, yield to maturity. etc.| Corporate Finance Institute
Forward points are basis points that are added or subtracted to the spot rate, which is the market price quote of a commodity.| Corporate Finance Institute
Interested in gaining the necessary knowledge to thrive in a career on the buy side? Explore CFI's interactive Career Map to find your perfect role.| Corporate Finance Institute
Invested capital is the investment made by both shareholders and debtholders in a company. When a company needs capital to expand,| Corporate Finance Institute
EPS is a financial ratio, which divides net earnings available to common shareholders by the average outstanding shares over a certain period of time.| Corporate Finance Institute
The treasury stock method computes the number of additional shares that can possibly be created by un-exercised, in-the-money warrants and stock options.| Corporate Finance Institute
The IPO Process is where a private company issues new and/or existing securities to the public for the first time. The 5 steps discussed in detail| Corporate Finance Institute
A stock option is a contract between two parties that gives the buyer the right to buy or sell underlying stocks at a predetermined price and within a specified time period.| Corporate Finance Institute
Net Income is a key line item, not only in the income statement, but in all three core financial statements. While it is arrived at through| Corporate Finance Institute
The beta (β) of an investment security (i.e., a stock) is a measurement of its volatility of returns relative to the entire market. It is used as a measure of risk and| Corporate Finance Institute
Cost of Equity is the rate of return a shareholder requires for investing in a business. The rate of return required is based on the level of risk associated with the investment| Corporate Finance Institute
Net interest income is defined as the the difference between interest revenues and interest expenses.For financial institutions, interest revenues represent| Corporate Finance Institute
Capital structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its assets. A firm's capital structure| 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
An Employee Stock Ownership Plan (ESOP) refers to an employee benefit plan that gives the employees an ownership stake in the company.| Corporate Finance Institute
A commercial insurance broker is an individual tasked with acting as an intermediary between insurance providers and customers.| 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
A progressive tax is a tax rate that increases as the taxable value goes up. It is usually segmented into tax brackets that progress to| Corporate Finance Institute
The Annualized Income Installment Method (AIIM) is a method used to calculate the amount of taxes payable by a business during a tax year| Corporate Finance Institute
Asymmetric information is, just as the term suggests, unequal, disproportionate, or lopsided information.| Corporate Finance Institute
Relative valuation models are used to value companies by comparing them to other businesses based on certain metrics such as EV/Revenue, EV/EBITDA, and P/E| Corporate Finance Institute
A forced sale value is the estimate of the amount that a business would receive if it sold off its assets one piece at a time during an unforeseen or uncontrollable event.| Corporate Finance Institute
The discount for lack of marketability (DLOM) is applied to private companies when valuing them. It relates to the company not being publicly traded| Corporate Finance Institute
Treasury Bills ("T-Bills") are a short-dated financial instrument issued by the US Treasury that mature in a few days up to 52 weeks.| Corporate Finance Institute
Lower of cost or market (LCM) is an inventory valuation method required for companies that follow U.S. GAAP. In the lower of cost or market| Corporate Finance Institute
In accounting and finance, it is important to understand the differences between book value vs fair value. Both concepts are used in the| Corporate Finance Institute
Forex trading allows users to capitalize on appreciation and depreciation of different currencies. Forex trading involves buying and selling currency pairs based on| Corporate Finance Institute
Triangle patterns are important because they help indicate the continuation of a bullish or bearish market. They can also assist a trader in spotting a market reversal.| 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
Technical analysis is a form of investment valuation that analyses past prices to predict future price action.| Corporate Finance Institute
ADX stands for average directional movement index. The ADX indicator is an indicator of trend strength, commonly used in futures trading.| 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
Monetary assets carry a fixed value in terms of currency units (e.g., dollars, euros, yen). They are stated as a fixed value in dollar terms.| Corporate Finance Institute
The European Central Bank (ECB) is one of the seven institutions of the EU and the central bank for the entire Eurozone.| Corporate Finance Institute
Quantitative easing (QE) is a monetary policy of printing money, that is implemented by the Central Bank to energize the economy. The Central Bank creates| Corporate Finance Institute
A Fed Hike is one of the key monetary policy levers that the Central Bank has to apply the brakes in an overheating economy. Learn more!| Corporate Finance Institute
A business cycle is a cycle of fluctuations in the Gross Domestic Product (GDP) around its long-term natural growth rate. It explains the| Corporate Finance Institute
Treasury stock, or reacquired stock, is a portion of previously issued, outstanding shares of stock that a company repurchased from shareholders.| Corporate Finance Institute
Risk management helps organizations minimize risk while identifying unique opportunities. Prepare for the future of finance with CFI's risk management courses.| 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
Systemic risk can be defined as the risk associated with the collapse or failure of a company, industry, financial institution, or an entire economy.| Corporate Finance Institute
Systematic risk is that part of the total risk that is caused by factors beyond the control of a specific company or individual.| 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
Residential properties REITs are REITs that own and manage residential units for renting out to tenants. They may be either single-family or multi-family structures| 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
Many corporate finance books are available nowadays, covering various topics from beginner to advanced levels. Finance professionals can access a wide range| 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
A high-low index is an index that tracks the new 52-week highs and new 52-week lows between stocks in a prevailing index.| Corporate Finance Institute
Opportunity cost is one of the key concepts in the study of economics and is prevalent throughout various decision-making processes. The| Corporate Finance Institute
Private money loans is a term used to describe a loan that is given to an individual or company by a private organization or even a wealthy individual.| Corporate Finance Institute
A debt schedule lays out all of the debt a business has in a schedule based on its maturity and interest rate. In financial modeling, interest expense flows| 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
Find your ideal career path in sell-side banking by exploring CFI's interactive Career Map and get started pursuing your dream job in finance today!| Corporate Finance Institute
Senior term debt is a loan with a priority repayment status in case of bankruptcy, and typically carries lower interest rates and lower risk.| Corporate Finance Institute
Explore key profitability ratios—learn how to assess a company's ability to generate income relative to revenue, assets, and equity for financial analysis.| Corporate Finance Institute
A leverage ratio indicates the level of debt incurred by a business entity against several other accounts in its balance sheet, income statement, or cash flow statement.| Corporate Finance Institute
Equity value can be defined as the total value of the company that is attributable to shareholders. To calculate equity value, follow this guide from CFI.| Corporate Finance Institute
The term market price refers to the amount of money for what an asset can be sold in a market. The market price of a given good is a point of convergence| Corporate Finance Institute
An Initial Public Offering (IPO) is the first sale of stocks issued by a company to the public. Prior to an IPO, a company is considered a private company, Learn what an IPO is| Corporate Finance Institute
Learn what a fairly valued security is, how to assess it using discounted cash flow (DCF) models, and why investor beliefs impact valuation.| Corporate Finance Institute
Contributed surplus is an account in the shareholders’ equity section of the balance sheet that reflects excess amounts collected from the| Corporate Finance Institute
The key difference between additional paid-in capital vs. contributed capital is that the latter is referred to as the total value of cash| 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
A staggered board of directors, also known as a classified board, refers to a board that consists of different classes of directors. In a staggered board of| Corporate Finance Institute
Whether you’re an aspiring or senior people leader in banking and finance, we invite you to join us for an in-depth discussion on leading high-performance teams.| Corporate Finance Institute
Find out what it takes to become a successful IR professional, from the skills you'll use to the typical day and compensation you can expect.| Corporate Finance Institute
Anna is an experienced operator and former COO. She loves building high-performing teams with a focus on GTM, people development, and culture.| Corporate Finance Institute
Prepare for the Future of Finance with CFI's Commercial Lending courses. Learn vital skills for a successful career in commercial credit and related fields.| Corporate Finance Institute
To qualify as a tax-free reorganization, a transaction must meet certain requirements, which vary greatly depending on the form of the transaction.| Corporate Finance Institute
Section 368(A)(1) outlines a format for US tax treatment of corporate reorganizations, as described in the Internal Revenue Code of 1986.| Corporate Finance Institute
The Market Value of Debt refers to the market price investors would be willing to buy a company's debt at, which differs from the book value on the balance sheet.| Corporate Finance Institute
A bail-In clause is used in times of bankruptcy or financial distress and forces the borrower’s creditors to write-off some of their debt in order to| Corporate Finance Institute
Understand insolvency—when individuals or firms can't meet financial obligations. Learn about cash-flow vs. balance-sheet insolvency and recovery options.| Corporate Finance Institute
Deleveraging is a process undertaken by a company to reduce its amount of total debt and avoid risks like defaulting on payments or going into bankruptcy.| Corporate Finance Institute
Current liabilities are financial obligations of a business entity that are due and payable within a year. A company shows these on the| Corporate Finance Institute
Public company filings are an important source of data and information for financial analysts. This guide will outline the most common sources of public company filings.| Corporate Finance Institute
A platform company refers to the initial acquisition made by a Private Equity Group in a specific industry or marketplace. The acquisition acts as the starting| Corporate Finance Institute
Affiliated companies are companies that are related through ownership, either with one owning the other as a minority shareholder or multiple companies| Corporate Finance Institute
A junior company can be defined as a small entity or firm whose sole business activities include the development, exploration, and research| Corporate Finance Institute
Registration rights let investors compel a company to register shares with the SEC, enhancing liquidity and providing a potential exit strategy. Learn more.| Corporate Finance Institute
Share capital (shareholders' capital, equity capital, contributed capital, or paid-in capital) is the amount invested by a company’s| Corporate Finance Institute
The balance sheet is one of the three fundamental financial statements. The financial statements are key to both financial modeling and accounting.| Corporate Finance Institute
Advance your career with expert-led finance courses and certifications. Gain real-world skills in financial modeling, M&A, and valuation. Start learning today!| Corporate Finance Institute
A vendor take-back mortgage refers to a type of mortgage in which the buyer of a property obtains a loan from the seller to secure the sale of the property.| Corporate Finance Institute
Credit risk is the risk that a lender will extend credit to a borrower but will not be paid back. Learn more!| Corporate Finance Institute
Debt capacity refers to the total amount of debt a business can incur and repay according to the terms of the debt agreement.| Corporate Finance Institute
Portfolio managers manage investment portfolios using a six-step portfolio management process. Learn exactly what does a portfolio manager do in this guide.| Corporate Finance Institute
A Financial Advisor is a finance professional who provides consulting and advice about an individual’s or entity’s finances.| 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 financial intermediary refers to an institution that acts as a middleman between two parties in order to facilitate a financial transaction.| Corporate Finance Institute
A covenant is a specific term in a credit agreement that requires or restricts certain circumstances or behaviors by a borrower. Learn more!| Corporate Finance Institute
Arrears refers to payments that are overdue and that are supposed to be made at the end of a given period after missing out on the required payments.| Corporate Finance Institute
