Category
Corporate Finance terms
Corporate finance is about how companies raise money, decide where to invest it and return it to their owners. These terms help you follow funding rounds, acquisitions and board-level decisions. 401 Corporate Finance terms are explained below, each with real-world examples.
- A Round Financing
- A Round Private Equity
- Abandonment Option
- Abandonment Value
- Accelerated Bookbuild
- Accelerated Share Repurchase
- Accepting Risk
- Accordion Feature
- Accounts Receivable Insurance
- Accredited in Business Valuation (ABV)
- Accretive
- Acquiree
- Additional Expense Coverage
- Adjusted Net Asset Method
- Adjusted Present Value (APV)
- Affirmative Covenant
- Against All Risks
- Aggregate Limit Liability
- Aggregate Risk
- All Stock Offer
- All-Inclusive Income Concept
- Allotment
- Allowance for Bad Debt
- Alphabet Rounds
- Angel Bond
- Announcement Date
- Annual
- Annual Turnover
- Annuity Method of Depreciation
- Annuity Table
- Anti-Greenmail Provision
- Anti-Takeover Measure
- Antidilutive
- APB Opinion
- Applied Cost
- Applied Overhead
- Appraisal Capital
- Appraisal Method of Depreciation
- Appropriation Account
- Asset Acquisition Strategy
- Asset Calibration Certificate Link Completeness
- Asset Disposal Approval Evidence Rate
- Asset Earning Power (AEP)
- Asset Financing
- Asset Impairment Indicator Escalation Rate
- Asset Sales
- Asset Substitution Problem
- Asset-Based Approach
- Asset-Conversion Loan
- Assignment of Accounts Receivable
- At Sight
- Authorized Share Capital
- Average Age of Inventory
- Average Margin Per User (AMPU)
- Back Door Listing
- Backflip Takeover
- Backstop
- Backstop Purchaser
- Ballot
- Bear Hug
- Belt and Suspenders
- Best Efforts
- Bifurcation
- Bird in Hand
- Black Knight
- Blackout Period
- Blank Check Company
- Blank Check Preferred Stock
- Blanket Lien
- Blind Trust
- Blockage Discount
- Blockholder
- Board of Governors
- Board of Trustees
- Book Runner
- Borrowed Capital
- Bought Deal
- Boutique
- Breaking the Syndicate
- Breakup Fee
- Build-Operate-Transfer Contract
- Bullet Repayment
- Business Recovery Risk
- Buyinmanagementbuyout
- Buyout Settlement Clause
- Capital Funding
- Capital Gearing
- Capital Investment Analysis
- Capital Investment Factors
- Capital Markets Group
- Capital Pool Company TSX Venture
- Capitalization Change
- Carrotequity
- Cash Available for Debt Service
- Cash Flow Plans
- Cash Value Added
- CBV
- Chartered Financial Risk Engineer (CFRE)
- Classified Board
- Closed Corporation
- Closely Held Corporation
- Closely Held Shares
- Closing
- Collar Agreement
- Comfort Letter
- Company Risk
- Comparable Transaction
- Complex Capital Structure
- Composite Cost of Capital
- Conglomeration
- Conlgomeratemerger
- Consolidation Phase
- Contingency
- Control Failure Severity Rating
- Corporate Capital
- Corporate Debt Restructuring
- Corporate Governance Quotient
- Corporate Refinancing
- Corrective Action Recurrence Rate
- Credit Hold Release Review
- Creeping Tender Offer
- Cross Holding
- Crown Jewels
- Crowncorporation
- Cumulative Voting
- Current Exposure Method
- Customer Credit Limit Utilization
- Customer Payment Mandate Expiry Exposure
- Customer Refund Method Mismatch Rate
- Deal Breaker
- Debt Rescheduling
- Defensive Acquisition
- Degearing
- Deleverage
- Diluted Founders
- Dilution Protection
- Directpublicoffering
- Discounts for Lack of Marketability
- Distress Price
- Distressale
- Distressed Sale
- Distribution Waterfall
- Diversification Acquisition
- Diversified Company
- Dividend Clientele
- Dividend Irrelevance Theory
- Dividend Recapitalization
- Dividend Signaling
- Dividendrecap
- Diworsification
- DLOM
- Doublegearing
- Downstream Guarantee
- Duallisting
- DWAC
- Economic Espionage
- Effective Debt
- EGM
- Employee Buyout
- Employee Share Ownership Trust
- Energy Risk Professional
- Entitlement Offer
- Entropy
- Environmental Impact Statement
- Equalizing Dividend
- Equity Capital Market
- Equity Commitment Note
- Equity Participation
- Equity Stripping
- Equity-Linked Security
- Escrowed Shares
- ESO
- ESPP
- Excess Loss Reinsurance
- Exit Option
- Expanded Share Buyback
- Expostrisk
- Exposure Netting
- Failure Mode Detection Effectiveness
- Financial Buyer
- Financial Exposure
- Financial Structure
- Financing
- Financing Entity
- Finite Reinsurance
- Fire Insurance
- Fishersseparationtheorem
- Fleet Driver Authorization Expiry Exposure
- Flip-In Poison Pill
- Flip-Over Poison Pill
- Flood Insurance
- Flotation
- Follow-On Offering
- Forced Initial Public Offering IPO
- Forced Liquidation
- Foreign Invested Enterprise
- Forfeited Share
- Forward Triangular Merger
- FPO
- Freeze Out
- Friends and Family Shares
- FRM
- Full Ratchet
- Fully Paid Shares
- Funding Operations
- Go-Shop Period
- Godfather Offer
- Golden Leash
- Golden Share
- Governance
- GRC
- Greenmail
- Greenshoe
- Greenshoe Option
- Hamadaequation
- Headline Risk
- Holdco
- Horizontal Acquisition
- Hostile Takeover Bid
- Hot IPO
- Identified Shares
- Identity Theft
- Idle Funds
- Inbound Cash Flow
- Incident Root Cause Verification
- Incremental Value at Risk (IVaR)
- Independent Outside Director
- Industrial Espionage
- Institutional Buyout
- Internal Capital Generation Rate
- IPO Advisor
- Ipolockup
- Irrelevance Proposition Theorem
- Issue
- Keepwellagreement
- Kicker
- Leads and Lags
- Leadunderwriter
- League Table
- LESOP
- Leveraged Buyback
- Lintnersmodel
- Liquidatingdividend
- Liquidation Value
- Lock-Up Agreement
- Lockup
- Management Buy-In
- Manditorily Redeemable Shares
- Marginal Value at Risk
- Market Value of Equity
- MEBO
- Mega Deal
- Mergersecurities
- Merton Model
- Micro-Hedge
- Minorityipo
- Mutuallyexclusive
- NCIB
- Negative Covenant
- Nominatedadvisor
- Noncumulative
- Noparvalue
- NPVGO
- Offering
- Offering Memorandum
- Offeringprice
- Opco
- Option Pool
- Outsidedirector
- Outstandingshares
- Overleveraged
- Oversubscribed
- Participating Convertible Preferred Share
- Performance Shares
- Perpetual Preferred Stock
- Phantomgain
- Piggybackregistration
- Piggybackrights
- PIPE Deal
- Pitchbook
- Placement Agent
- Predators Ball
- Preferred Dividend
- Preliminaryprospectus
- Price Talk
- Primary Distribution
- Primary Listing
- Primaryoffering
- Principal Shareholder
- Profitability Index Rule
- Project Warranty Obligation Register Completeness
- Promoter
- Property Dividend
- Proxy
- Proxy Statement
- Proxymaterials
- Public
- Publicoffering
- Publicofferingprice
- Purchaseacquisition
- QIP
- Raider
- Registrar
- Registration
- Renounceablerights
- Residual Dividend
- Restructuring
- Retender
- Reverse Forward Split
- Reverse Takeover
- Reversegreenshoe
- Reversesplit
- Rollup
- Sales and Purchase Agreement
- Salesandpurchase
- Sandbag
- Saturdaynightspecial
- Secondary Buyout (SBO)
- Sellinggroup
- Series A Financing
- Series B Financing
- Seriesa
- Service Maintenance Deferral Exposure
- Shareholderactivist
- Shareholdervalueadded
- Shareholdervaluetransfer
- Sharepurchaseright
- Sharkrepellent
- Sidecar Investment
- Sinking Fund Method
- Smart Traveler Enrollment Program (STEP)
- SPAN Margin
- Special Purpose Vehicle/Entity
- Specialfinance
- Speculativerisk
- Spin Out
- Split Up
- Sponsor
- Spring Loading
- SPV
- Stabilizingbid
- Standard of Value
- Standbyunderwriting
- Staplefinancing
- Startup
- Stock Swap
- Stockforstock
- Stockoption
- Strategic Buyer
- Strategic Joint Venture
- Structuredfinance
- Subordinate Financing
- Subscription Right
- Subscriptionagreement
- Suicidepill
- Sumofpartsvaluation
- Supplier Advance Payment Exposure
- Supplier Certificate Expiry Exposure
- Supplier Insurance Evidence Coverage
- Swapratio
- Synergy
- Syntheticlease
- Takeout
- Takeout Value
- Takeover Bid
- Takeunder
- Targetfirm
- Tender
- Termout
- TEV
- Theoretical Value of A Right
- Tombstone
- Total Enterprise Value
- Traditionalcapitalstructure
- Turnaround
- Underinvestment Problem
- Undersubscribed
- Underwriter Syndicate
- Underwriting Agreement
- Underwriting Group
- Unissuedstock
- Unlevered Free Cash Flow (UFCF)
- Unquoted Public Company
- Unsolicited Bid
- Value Risk VOR
- Venture Capital Backed IPO
- Venture Capitalist
- Virtual Data Room Vdr
- Votingtrust
- Votingtrustagreement
- Vulturecapitalist
- WACC
- WACE
- Warchest
- Warrantcoverage
- Washoutround
- Whitesquire
- Whitewashresolution
- Wholly Owned Subsidiary
- Working Control
- Yellowknight
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