Glossary D
Dark Pools
Private electronic trading platforms that allow investors to trade securities anonymously.
Primary Vs. Secondary Markets: Investment Banking (Defined)
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Data analytics and insights
Using data to gain insights and inform decision-making.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Data mining techniques
Analyzing large datasets to identify patterns and relationships using statistical and machine learning methods.
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Data room management
Secure online platform for sharing confidential documents during a financial transaction.
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Data visualization
Presenting data in a visual format such as charts or graphs to aid in analysis and decision-making.
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Deal structure
The specific terms and conditions of a financial transaction.
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Deal structuring
Designing the terms and conditions of a financial transaction to meet the needs of all parties involved.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Deal Types
Different types of financial transactions such as mergers and acquisitions, IPOs, and debt offerings.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Debt assumption clause
Provision in a contract that allows one party to assume the debt obligations of another party.
Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
Debt financing
Raising capital by issuing debt securities such as bonds or loans.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
Equity Vs. Debt Financing: Investment Banking (Explained)
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Primary Vs. Secondary Markets: Investment Banking (Defined)
Debt restructuring
Process of renegotiating the terms of a company’s outstanding debt to improve its financial position.
Private Equity Vs. Venture Capital: Investment (Comparison)
Debt-to-equity ratio
A measure of a company’s financial leverage.
Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Default risk
Probability that a borrower will fail to repay a loan or meet other financial obligations.
Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
Equity Vs. Debt Financing: Investment Banking (Explained)
Default risk assessment
The evaluation of the likelihood that a borrower will default on their debt.
Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
Demystifying
Simplifying complex financial concepts to make them more accessible to a wider audience.
Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
Deposit Mobilization Function
Process of collecting deposits from customers and using them to fund loans and other investments.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Derivatives
Financial contracts whose value is derived from an underlying asset.
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Structured Products Vs. Derivatives: Complex Investments (Demystified)
Derivatives hedging
Using derivatives to offset potential losses from adverse price movements in an underlying asset.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Derivatives trading
Buying and selling of financial contracts whose value is derived from an underlying asset.
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Dilution
Reduction in the value of an asset due to the increase in its supply.
IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
Dilution of ownership
Decrease in the value of an individual’s ownership stake in a company due to the issuance of new shares.
Private Equity Vs. Venture Capital: Investment (Comparison)
Dilution of Shares
Reduction in the percentage ownership of existing shareholders due to the issuance of new shares.
IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
Direct listing
A process in which a company goes public without raising additional capital through an initial public offering.
IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
Distinct strategies
Unique approaches to investing or managing a business.
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Diversification
Spreading investments across different asset classes to reduce risk.
Asset Management Vs. Investment Banking: Roles (Distinct)
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Divestiture
The sale or disposal of a business unit or asset by a company.
Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
Dividend Discount Model
A financial model used to value a company based on its future dividend payments.
Private Equity Vs. Venture Capital: Investment (Comparison)
Dividend payments
Payments made to shareholders as a portion of a company’s profits.
Equity Vs. Debt Financing: Investment Banking (Explained)
Dividend recapitalization
A financial strategy in which a company takes on debt to pay out dividends to shareholders.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Private Equity Vs. Venture Capital: Investment (Comparison)
Dodd-Frank Wall Street Reform and Consumer Protection Act
A US law passed in 2010 to regulate the financial industry and protect consumers.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Due diligence
The process of conducting a thorough investigation and analysis of a company or investment opportunity.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
Primary Vs. Secondary Markets: Investment Banking (Defined)
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Equity Vs. Debt Financing: Investment Banking (Explained)
Private Equity Vs. Venture Capital: Investment (Comparison)
Commercial Vs. Investment Banking: Functions and Features (Discussed)
IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
Due diligence process
Investigation and analysis of a company or investment opportunity before making a decision.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Private Equity Vs. Venture Capital: Investment (Comparison)