Glossary F

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)