Glossary R

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)