Glossary E

Glossary E

Early-stage companies

Companies in the early stages of development, typically before they have generated significant revenue.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) multiple

    A financial metric used to evaluate a company’s profitability.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Earn-out agreement

    A contract that outlines the terms of an earn-out provision.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Earn-out clause

    A provision in a contract that allows for additional payments to be made based on future performance.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Earnout provisions

    Contractual agreements that allow for additional payments to be made to a seller based on future performance of a business.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Economic indicators

    Statistics that provide insight into the health of the economy.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Electronic Communication Networks (ECNs)

    Electronic systems that facilitate trading of securities outside of traditional exchanges.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Employee retention plan

    Strategies and programs designed to retain valuable employees within a company.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Endowments

    Funds or assets donated to a non-profit organization or institution to support its mission.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Enterprise Value (EV)

    The total value of a company, including debt and equity.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Enterprise Value-to-Sales Ratio

    A financial metric used to evaluate a company’s overall value relative to its revenue.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Environmental impact assessment

    Evaluation of the potential environmental effects of a proposed project or development.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Equity financing

    Raising capital by selling shares of ownership in a company.

  • Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Equity indices

    Benchmarks that track the performance of a group of stocks.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Equity Research

    Analysis of a company’s financial performance and prospects to determine its investment potential.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Equity Value

    The value of a company’s assets minus its liabilities, divided by the number of outstanding shares.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Estate planning

    The process of arranging for the transfer of an individual’s assets after their death.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Exchange-Traded Funds (ETFs)

    Investment funds that trade on stock exchanges and track the performance of a specific index or asset class.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Execution

    The process of carrying out a plan or strategy.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Executive summary

    A brief overview of a business plan or investment proposal.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Exit Strategy

    A plan for how an investor will exit an investment.

  • Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
  • Private Equity Vs. Venture Capital: Investment (Comparison)