Glossary F
Fair market value
The price at which an asset would sell in a competitive market.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Fair value pricing
The process of determining the value of an asset based on market conditions.
Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
Family offices
Private wealth management firms that manage the financial affairs of wealthy families.
Private Equity Vs. Venture Capital: Investment (Comparison)
Federal Reserve System
The central banking system of the United States.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Financial advisor
A professional who provides financial advice to clients.
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Primary Vs. Secondary Markets: Investment Banking (Defined)
Financial advisory
A professional who provides financial advice to clients.
Primary Vs. Secondary Markets: Investment Banking (Defined)
Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
Financial advisory services
Professional advice on financial matters, such as investment strategies and financial planning.
Asset Management Vs. Investment Banking: Roles (Distinct)
Primary Vs. Secondary Markets: Investment Banking (Defined)
Financial Analysis
The process of evaluating a company’s financial performance and health.
Asset Management Vs. Investment Banking: Roles (Distinct)
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
Financial buyer
An investor who acquires a company for financial gain.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Private Equity Vs. Venture Capital: Investment (Comparison)
Financial Crimes Enforcement Network (FinCEN)
A bureau of the U.S. Treasury Department that combats financial crimes.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Financial engineering
The use of mathematical models and computer programs to create financial products and strategies.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Structured Products Vs. Derivatives: Complex Investments (Demystified)
Financial institutions
Organizations that provide financial services, such as banks, insurance companies, and investment firms.
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Financial instruments
Contracts that represent a financial asset or liability, such as stocks, bonds, and derivatives.
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Structured Products Vs. Derivatives: Complex Investments (Demystified)
Financial intermediation
The process of connecting borrowers and lenders through financial institutions.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Financial Intermediation Function
The role of financial institutions in connecting borrowers and lenders.
Primary Vs. Secondary Markets: Investment Banking (Defined)
Financial leverage
The use of debt to finance a company’s operations.
Equity Vs. Debt Financing: Investment Banking (Explained)
Financial leverage risks
The potential risks associated with using debt to finance a company’s operations.
Private Equity Vs. Venture Capital: Investment (Comparison)
Financial modeling
The process of creating a mathematical representation of a company’s financial situation.
Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Equity Vs. Debt Financing: Investment Banking (Explained)
Primary Vs. Secondary Markets: Investment Banking (Defined)
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Financial planning
The process of creating a roadmap for achieving financial goals.
Asset Management Vs. Investment Banking: Roles (Distinct)
Financial reporting
The process of preparing and presenting financial information to stakeholders.
Asset Management Vs. Investment Banking: Roles (Distinct)
Financial reporting standards
Guidelines for how financial information should be presented in a company’s financial statements.
Primary Vs. Secondary Markets: Investment Banking (Defined)
Financial statement audit
An independent examination of a company’s financial statements to ensure accuracy and compliance with accounting standards.
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Financial statements
Technology that improves financial services and operations.
Equity Vs. Debt Financing: Investment Banking (Explained)
Financing options
Reports that show a company’s financial performance and position.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Fixed deposits
Methods of raising capital for a business or investment.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Fixed income investments
Investments that provide a fixed rate of return, such as bonds.
Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
Fixed income securities
Investment products that pay a fixed rate of interest.
Asset Management Vs. Investment Banking: Roles (Distinct)
Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
Flow trading
Securities that pay a fixed rate of return.
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Foundations
Trading strategy that involves buying and selling securities quickly.
Private Equity Vs. Venture Capital: Investment (Comparison)
Free Cash Flow to Equity (FCFE)
Non-profit organizations that provide funding for charitable causes.
Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
Free Cash Flow to Firm (FCFF)
Measure of a company’s cash flow available to equity investors.
Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
Fund Administration
Measure of a company’s cash flow available to all investors.
Asset Management Vs. Investment Banking: Roles (Distinct)
Fundamental analysis
Investment fund that invests in other funds.
Primary Vs. Secondary Markets: Investment Banking (Defined)
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Fund of funds
Management of administrative tasks for investment funds.
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Private Equity Vs. Venture Capital: Investment (Comparison)
Futures contracts
Agreements to buy or sell an asset at a predetermined price and date in the future.
Structured Products Vs. Derivatives: Complex Investments (Demystified)