The methods used by credit rating agencies to evaluate the creditworthiness of a company or security.
The practice of seeking out the most favorable credit rating from multiple rating agencies.
Real estate investing
Investing in properties for the purpose of generating income or profit through rental income, appreciation, or resale.
The process of restructuring a company’s debt and equity to improve its financial position.
A document filed with the Securities and Exchange Commission (SEC) that discloses information about a company’s securities offering.
Regular Trading Hours (RTH)
The standard hours during which a securities exchange is open for trading.
The process of obtaining approval from government agencies for investment banking activities.
The process of ensuring that investment banks comply with legal and ethical standards.
Regulatory Compliance Standards
Guidelines and regulations that investment banks must follow to comply with legal and ethical standards.
The supervision of financial institutions by regulatory bodies.
Regulatory oversight of credit rating agencies
The monitoring and regulation of credit rating agencies by government agencies.
The process of establishing and nurturing relationships with clients and stakeholders.
The process of building and maintaining relationships with clients and stakeholders.
Relevant market definition
The definition of the market in which a company operates, used to assess competition and market power.
Actions taken to address and resolve issues or problems in investment banking.
Replacement Cost Method
A valuation method that calculates the cost of replacing an asset rather than its market value.
The process of maintaining and improving an investment bank’s reputation.
The potential harm to an investment bank’s reputation due to negative publicity or actions.
Restricted stock units (RSUs)
A form of equity compensation where employees receive shares of company stock that vest over time.
The process of reorganizing a company’s operations, often to improve efficiency or profitability.
Banking services offered to individual consumers rather than businesses or corporations.
Return on investment (ROI)
The amount of profit or loss generated by an investment relative to the amount of money invested.
A way for a company to raise capital by offering existing shareholders the right to buy additional shares.
Risk-Adjusted Discount Rate Approach
A method used to calculate the present value of future cash flows by adjusting for risk.
The level of risk that an investment bank is willing to take on.
Risk appetite framework
A set of guidelines that outlines an investment bank’s risk tolerance and appetite.
The process of evaluating potential risks in investment banking.
Risk assessment of a borrower’s ability to repay its debts
An evaluation of a borrower’s creditworthiness.
The maximum amount of risk that an investment bank is willing to take on.
The process of identifying, assessing, and mitigating potential risks in investment banking.
Risk management policies and procedures
Guidelines for managing risk in an organization.
Risk management strategies
Plans put in place to manage and minimize potential risks in investment banking.
Risk Management Techniques
Methods used to identify, assess, and mitigate potential risks in investment banking.
Risk management tools
Techniques used to identify and mitigate risks.
The relationship between the potential return of an investment and the risk involved.
The level of risk an investor is willing to take on in their investments.
A series of presentations given by a company to potential investors before a public offering.