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Glossary Terms

Discover the surprising differences between mergers and acquisitions in this ultimate guide to corporate actions.

Glossary Terms

Discover the surprising differences between IPOs and direct listings in this demystifying guide to public offerings.

Glossary Z

Zero-coupon bond Equity Capital Markets Vs. Debt Capital Markets: Divisions (Defined) ZOPA (Zone of Possible Agreement) Equity Vs. Debt Negotiations: Investment Banking (Unpacked)

Glossary Y

Yield curve Fixed Income Vs. Equities: Investment Banking (Simplified) How to Understand Bonds Without a Broker (Investment Banking Hints) Spot Rate Vs. Forward Rate: Understanding… Read More »Glossary Y

Glossary W

WACC (Weighted Average Cost of Capital) estimation How to Perform Valuations Without a Calculator (Investment Banking Tips) Mezzanine Financing Vs. Bridge Financing: Capital Structure (Decoded)… Read More »Glossary W

Glossary V

Valuation The process of determining the value of a company or asset. Financial Modeling Vs. Valuation: Investment Banking Tasks (Unveiled) How to Perform Valuations Without… Read More »Glossary V

Glossary U

Unconditional approval Hard Underwriting Vs. Soft Underwriting: Commitments (Decoded) Uncontrollable external factors Material Adverse Change Vs. Force Majeure: Contract Clauses (Defined) Underlying asset The asset… Read More »Glossary U

Glossary T

Tactical asset allocation Fixed Income Vs. Equities: Investment Banking (Simplified) How to Evaluate Investments Without Risking Capital (Investment Banking Strategies) Trading Vs. Research: Roles in… Read More »Glossary T

Glossary S

Sale closing Stalking Horse Bid Vs. Reserve Price: Auction (Basics) Sale of company Tag-Along Vs. Drag-Along: Shareholder Rights (Demystified) Sales and trading Equity Research Vs.… Read More »Glossary S

Glossary R

Rapid response system How to Stay Updated on Markets Without Information Overload (Investment Banking Secrets) Rapport building How to Develop Negotiation Skills Without a Negotiation… Read More »Glossary R

Glossary Q

Qualified dividends How to Understand Stocks Without a Finance Degree (Investment Banking Insights) Qualitative risk assessment methods How to Understand Stocks Without a Finance Degree… Read More »Glossary Q

Glossary P

Pac-man defense White Knight Vs. White Squire: Takeover Defense (Defined) Pair trading Equity Research Vs. Sales and Trading: Roles (Clarified) Pandemics or epidemics Material Adverse… Read More »Glossary P

Glossary O

Object-oriented programming How to Master Excel Modeling Without Prior Experience (Investment Banking Shortcuts) Obligations Term Sheet Vs. Letter of Intent: Negotiations (Decoded) Subscription Agreement Vs.… Read More »Glossary O

Glossary N

National Credit Union Administration directives Risk Management Vs. Compliance: Banking Departments (Defined) Natural disasters How to Understand Stocks Without a Finance Degree (Investment Banking Insights)… Read More »Glossary N

Glossary M

MAC clauses MAC Clauses Vs. Reps and Warranties: Deal Protections (Defined) Breakup Fee Vs. Reverse Breakup Fee: M&A Terms (Explained) Asset Purchase Vs. Stock Purchase:… Read More »Glossary M

Glossary L

Labor law compliance audit How to Handle Due Diligence Without Errors (Investment Banking Strategies) Labor strikes Material Adverse Change Vs. Force Majeure: Contract Clauses (Defined)… Read More »Glossary L

Glossary J

Jensen’s alpha How to Build a Portfolio Without a Financial Planner (Investment Banking Tactics) Job mobility Golden Parachute Vs. Golden Handcuff: Executive Compensations (Decoded) Job… Read More »Glossary J

Glossary I

IF statements How to Master Excel Modeling Without Prior Experience (Investment Banking Shortcuts) Illiquidity premium Additional return investors demand for investing in illiquid assets. Public… Read More »Glossary I

Glossary H

Haircut rates Repo Vs. Reverse Repo: Money Market Instruments (Demystified) Hammer time Stalking Horse Bid Vs. Reserve Price: Auction (Basics) Hard commitment Hard Underwriting Vs.… Read More »Glossary H

Glossary G

Gamma hedging A strategy used to manage risk in options trading. Naked Option Vs. Covered Option: Risk Mitigation (Unpacked) Gamma scalping A trading strategy that… Read More »Glossary G

Glossary F

Face value Equity Capital Markets Vs. Debt Capital Markets: Divisions (Defined) Common Stock Vs. Preferred Stock: Equity (Unveiled) Convertible Bonds Vs. Warrants: Hybrid Securities (Clarified)… Read More »Glossary F

Glossary E

Early neutral evaluation (ENE) Standstill Agreement Vs. Confidentiality Agreement: Negotiation (Basics) Early redemption risk Common Stock Vs. Preferred Stock: Equity (Unveiled) Early retirement considerations How… Read More »Glossary E

Glossary D

Damages Risk Management Vs. Compliance: Banking Departments (Defined) How to Foster Client Relationships Without Crossing Lines (Investment Banking Techniques) Front Office Vs. Back Office: Banking… Read More »Glossary D

Glossary C

Calendar optimization How to Pursue Client Prospecting Without Rejection (Investment Banking Secrets) Callable bonds How to Understand Bonds Without a Broker (Investment Banking Hints) Equity… Read More »Glossary C

Glossary B

Background checks Verification of an individual’s personal and professional history, often conducted by employers or financial institutions. Buy Side Vs. Sell Side: Investment Banking (Clarified)… Read More »Glossary B

Glossary A

Ability to handle pressure How to Draft Pitch Books Without a Designer (Investment Banking Hacks) Absentee bidding Stalking Horse Bid Vs. Reserve Price: Auction (Basics)… Read More »Glossary A