The process of identifying potential customers or clients for a business.
The investment bank that takes the lead role in managing an initial public offering (IPO).
The process of planning for the transfer of wealth and assets to future generations.
The process of ensuring that a company is following all applicable laws and regulations.
The process of reviewing legal documents to ensure compliance with applicable laws and regulations.
Letter of intent (LOI)
A document outlining the terms of a proposed transaction.
The use of borrowed money to invest or finance a business.
The amplification of returns or losses due to the use of borrowed funds.
A measure of a company’s debt relative to its equity.
Investors in a partnership who have limited liability and are not involved in the day-to-day operations of the business.
The process of selling off a company’s assets to pay off its debts.
A provision in a contract that gives certain investors priority in receiving payment in the event of a liquidation.
Liquidation Valuation Method
A method of valuing a company based on the value of its assets in a liquidation scenario.
The ability to convert assets into cash quickly and easily.
An event that causes a sudden need for liquidity, such as a market crash or a sudden increase in demand for cash.
The process of managing a company’s cash and other liquid assets to ensure that it can meet its financial obligations.
Financial institutions that provide liquidity to the market.
The act of providing liquidity to the market.
Liquidity Provision Services
Services provided by financial institutions to ensure that there is sufficient liquidity in the market.
Financial ratios that measure a company’s ability to meet its short-term obligations.
The risk of not being able to meet financial obligations due to a lack of available funds.
Liquidity risk management
The process of identifying, assessing, and managing the risk of not being able to meet financial obligations.
Loan-to-deposit ratio (LDR)
A measure of a bank’s liquidity that compares its loans to its deposits.
A period of time after an initial public offering during which insiders are prohibited from selling their shares.
Long/short equity strategy
An investment strategy that involves buying stocks that are expected to increase in value and shorting stocks that are expected to decrease in value.
Programs that reward customers for their loyalty to a company or brand.