Glossary R
Rating methodologies
The methods used by credit rating agencies to evaluate the creditworthiness of a company or security.
Equity Vs. Debt Financing: Investment Banking (Explained)
Rating shopping
The practice of seeking out the most favorable credit rating from multiple rating agencies.
Equity Vs. Debt Financing: Investment Banking (Explained)
Real estate investing
Investing in properties for the purpose of generating income or profit through rental income, appreciation, or resale.
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Recapitalization
The process of restructuring a company’s debt and equity to improve its financial position.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Private Equity Vs. Venture Capital: Investment (Comparison)
Registration statement
A document filed with the Securities and Exchange Commission (SEC) that discloses information about a company’s securities offering.
Equity Vs. Debt Financing: Investment Banking (Explained)
IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
Regular Trading Hours (RTH)
The standard hours during which a securities exchange is open for trading.
Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
Regulatory approvals
The process of obtaining approval from government agencies for investment banking activities.
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Regulatory compliance
The process of ensuring that investment banks comply with legal and ethical standards.
Asset Management Vs. Investment Banking: Roles (Distinct)
Primary Vs. Secondary Markets: Investment Banking (Defined)
Equity Vs. Debt Financing: Investment Banking (Explained)
Private Equity Vs. Venture Capital: Investment (Comparison)
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Regulatory Compliance Standards
Guidelines and regulations that investment banks must follow to comply with legal and ethical standards.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Regulatory oversight
The supervision of financial institutions by regulatory bodies.
Structured Products Vs. Derivatives: Complex Investments (Demystified)
Regulatory oversight of credit rating agencies
The monitoring and regulation of credit rating agencies by government agencies.
Equity Vs. Debt Financing: Investment Banking (Explained)
Relationship building
The process of establishing and nurturing relationships with clients and stakeholders.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Relationship management
The process of building and maintaining relationships with clients and stakeholders.
Asset Management Vs. Investment Banking: Roles (Distinct)
Relevant market definition
The definition of the market in which a company operates, used to assess competition and market power.
Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
Remedies
Actions taken to address and resolve issues or problems in investment banking.
Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
Replacement Cost Method
A valuation method that calculates the cost of replacing an asset rather than its market value.
Private Equity Vs. Venture Capital: Investment (Comparison)
Reputation management
The process of maintaining and improving an investment bank’s reputation.
Asset Management Vs. Investment Banking: Roles (Distinct)
Reputation risk
The potential harm to an investment bank’s reputation due to negative publicity or actions.
Private Equity Vs. Venture Capital: Investment (Comparison)
Restricted stock units (RSUs)
A form of equity compensation where employees receive shares of company stock that vest over time.
IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
Restructuring
The process of reorganizing a company’s operations, often to improve efficiency or profitability.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Retail banking
Banking services offered to individual consumers rather than businesses or corporations.
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Return on investment (ROI)
The amount of profit or loss generated by an investment relative to the amount of money invested.
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Rights issue
A way for a company to raise capital by offering existing shareholders the right to buy additional shares.
Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
Risk-Adjusted Discount Rate Approach
A method used to calculate the present value of future cash flows by adjusting for risk.
Private Equity Vs. Venture Capital: Investment (Comparison)
Risk appetite
The level of risk that an investment bank is willing to take on.
Asset Management Vs. Investment Banking: Roles (Distinct)
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Risk appetite framework
A set of guidelines that outlines an investment bank’s risk tolerance and appetite.
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Risk Assessment
The process of evaluating potential risks in investment banking.
Asset Management Vs. Investment Banking: Roles (Distinct)
Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Risk assessment of a borrower’s ability to repay its debts
An evaluation of a borrower’s creditworthiness.
Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
Risk Limits
The maximum amount of risk that an investment bank is willing to take on.
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Risk management
The process of identifying, assessing, and mitigating potential risks in investment banking.
Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Asset Management Vs. Investment Banking: Roles (Distinct)
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Structured Products Vs. Derivatives: Complex Investments (Demystified)
Equity Vs. Debt Financing: Investment Banking (Explained)
Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
Primary Vs. Secondary Markets: Investment Banking (Defined)
Private Equity Vs. Venture Capital: Investment (Comparison)
Buy Side Vs. Sell Side: Investment Banking (Clarified)
Risk management policies and procedures
Guidelines for managing risk in an organization.
Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
Risk management strategies
Plans put in place to manage and minimize potential risks in investment banking.
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Risk Management Techniques
Methods used to identify, assess, and mitigate potential risks in investment banking.
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Commercial Vs. Investment Banking: Functions and Features (Discussed)
Risk management tools
Techniques used to identify and mitigate risks.
Structured Products Vs. Derivatives: Complex Investments (Demystified)
Risk-return tradeoff
The relationship between the potential return of an investment and the risk involved.
Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
Risk tolerance
The level of risk an investor is willing to take on in their investments.
Structured Products Vs. Derivatives: Complex Investments (Demystified)
Asset Management Vs. Investment Banking: Roles (Distinct)
Equity Vs. Debt Financing: Investment Banking (Explained)
Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
Roadshow
A series of presentations given by a company to potential investors before a public offering.
IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
Primary Vs. Secondary Markets: Investment Banking (Defined)
Underwriting Vs. Advisory: Investment Banking Services (Unpacked)