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Financial Dictionary of Finance Terms & Definition

Wall Street Oasis Finance Dictionary

Below you will find an extensive and ever-growing list of finance terms and definitions, as well as financial abbreviations, often found in the forums of Wall Street Oasis and in the finance community. Wall Street Oasis aims to provide succinct definitions and understandable explanations of each of these financial terms you will find repeatedly in the finance industry. If you feel a finance term is missing from our finance dictionary, or if you feel a definition should be updated or enhanced, please e-mail [email protected] and we will review your submission as soon as possible for consideration to add to our financial dictionary.

We hope to be one of the most comprehensive financial dictionaries on the web, with more than 400 terms and definitions, and constantly growing our list. This glossary of finance terms can help prepare you for conversations in the industry, job interviews and more by empowering you with the financial knowledge necessary to understand the basics of the finance interview. Turn to this glossary for definitions of the terms and abbreviations that really matter in this business. Consider the Wall Street Oasis Finance Dictionary your online reference for financial, trading and investment terminology. Thanks for visiting Wall Street Oasis, and enjoy our finance dictionary!

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Financial Terms and Definitions (Alphabetical List)

# | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

#
6-K
8-K
10-C
10-K
10-KSB
10-Q
10-QSB
13-D
13E-3
14D-9
20-F

A
Accounts Payable (AP)
Accounts Payable Days
Accounts Receivable (AR)
Accounts Receivable Days
Accretion
Accrued Expenses
Accrued Income
Acquisition
Additional Paid In Capital (APIC)
Algorithm (Algo)
Alpha
Alternative Investment Market (AIM)
Amortization
Analyst
Angel Investor
Annual Percentage Rate (APR)
Annuity
Arbitrage
Ask
Asset
Asset Backed Security (ABS)
Asset Management (AM)
Associate
Audit

B
Back Office (BO)
Backwardation
Balance Sheet (BS)
Bank
Bank of England (BoE)
Bank Run
Basel III
Basis Point (BPS)
Bear
Beta
Bid
Blue Chip
Bollinger Bands
Bond
Book Value (BV)
Boutique
Box Spread
Breakeven
Breakout
Bridge Loan
Broker
Bulge Bracket (BB)
Bull
Buyback
Buy-Side
BV / Share

C
C-Level
CAC
Calendarization
Call
Candlestick
Capital
Capital Asset Pricing Model (CAPM)
Capital Expenditure (CapEX)
Capital Leases
Capital Structure
Carry
Cash & Cash Equivalents (CCE)
Cash Flow Statement (CFS)
Central Bank
CFA
Chapter 11
Chief Executive Officer (CEO)
Chief Financial Officer (CFO)
Chief Operating Officer (COO)
Close
CNBC
Collateral
Collateral Value
Collateralized Debt Obligation (CDO)
Commercial Bank
Commodity
Common Stock
Comparable Analysis
Contagion
Contango
Convergence
Convertible Bond
Cost of Equity
Cost of Goods Sold (COGS)
Counterparty Risk
Coupon Rate
Covariance
Covenant
Crack Spread
Credit Default Swap (CDS)
Credit Rating

D
DAX
Day Trading
Debt
Debt / EBITDA
Debt Capital Markets (DCM)
Debt to Assets
Debt to Equity
Default
Deferred Income Tax
Deferred Revenue
Deferred Tax Asset
Deferred Tax Liability
Delta
Depreciation
Derivative
Dilution
Discount Rate
Discounted Cash Flow (DCF)
Distressed Asset
Divergence
Diversification
Dividend
Dodd-Frank Bill
Dow Jones Industrial Average (DJIA)
Downgrade
Due Diligence

E
Earnings Before Interest & Tax (EBIT)
EBIT / Interest
Earnings Before Interest, Taxation, Depreciation & Amortization (EBITDA)
Earnings Before Interest, Taxation, Depreciation, Amortization & Rent (EBITDAR)
Earnings Per Share (EPS)
Economies of Scale (EOS)
Efficient Market Hypothesis (EMH)
Enterprise Value (EV)
Equity
Equity Capital Markets (ECM)
Equity Research (ER)
Equity Value
Eurex
Euro
Eurobond
European Central Bank
European Interbank Offer Rate (EURIBOR)
Eurostoxx50
Eurozone
EV / EBITDA
EV / Revenue
Exchange Rate
Exchange Rate Risk
Exchange Traded Fund (ETF)
Execution
Exercise Date
Exit Multiple

F
Fallen Angel
Federal Deposit Insurance Corporation (FDIC)
Federal Reserve
Federal Reserve Bank
Fiat Money
Fibonacci
Financial Institutions Group (FIG)
Financial Statements
Fixed Costs
Fixed Income (FI)
Floating Interest Rate
Fly Spread
Football Field Graph
ForEx (FX)
Forward Spread
Fractional Banking
Free Cash Flow (FCF)
Front Office (FO)
FTSE100
Fund of Funds (FoF)
Fundamental Analysis
Future

G
Gamma
Generally Accepted Accounting Principles (GAAP)
Glass-Steagall Act
Goodwill
Gordon Growth Method
Gross Domestic Product (GDP)
Gross National Product (GNP)
Growth Stock

H
Haircut
Hang Seng (HSI)
Hedge
Hedge Fund (HF)
Herding
High Frequency Trading (HFT)
High Yield
Historical Value

I
In The Money
Income Statement (IS)
Index
Inflation
Inflation Risk
Initial Public Offering (IPO)
Insider Trading
Insolvent
Intangible Assets
Interest Expense
Interest Income
Interest Rate (IR)
Interest Rate Risk
Interest Rate Swap (IRS)
Internal Rate of Return (IRR)
International Monetary Fund (IMF)
Intrinsic Value (IV)
Inventory
Inventory Turnover
Investment Bank (IB)
Investment Banking Division (IBD)

J
Joint Venture (JV)
Junior Tranche
Junk Bond

K
Key Performance Indicator (KPI)

L
Large Cap
Lender of Last Resort
Letter Of Intent
Leverage
Leveraged Buyout (LBO)
Leveraged Finance (LevFin)
Liability
LIFFE
Limit
Limit Down
Limit Up
Liquidation
Liquidity
Liquidity Preference Theory (LPT)
Liquidity Ratio
Loan-To-Value (LTV)
Lock Limit
London Interbank Offer Rate (LIBOR)
London Stock Exchange (LSE)
Long
Loss Carryfoward

M
Macro
Management Buyout (MBO)
Managing Director (MD)
Margin
Marginal Cost
Mark-to-Market
Market
Market Capitalization
Market Maker
Market Risk
Market Share
Maturity
MBA
Megafund
Merger
Mergers & Acquisitions (M&A)
Mid Cap
Mid-Year Discount
Middle Market (MM)
Middle Office (MO)
Minority Interest
Minus Tick
Money Market
Monopoly
Mortgage Backed Security (MBS)
Moving Average (MA)
Moving Average Convergence Divergence (MACD)
Mutual Fund

N
NASDAQ
Net Income
Net Operating Loss (NOL)
Net Present Value
New York Mercantile Exchange (NYMEX)
Nikkei
Non Disclosure Agreement (NDA)

O
Oligopoly
Open
Operating Cash Flow (OCF)
Operating Expenses
Operating Income
Operating Margin
Opportunity Cost
Option
Out Of The Money
Over-Hedging
Over-Trading

P
P / BV
Pair
Paper
Par
Penny Stock
Perpetuity
Pink Sheet
Pitch
Pitch Book
Pivot Table
Plant, Property & Equipment (PP&E)
Ponzi Scheme
Position
Precedent Transactions
Preferred Stock
Premium
Premium Bond
Prepaid Expenses
Prepaid Income
Price to Earnings (P/E)
Principal
Private
Private Banking (PB)
Private Equity (PE)
Private Wealth Management (PWM)
Profit and Loss (PnL)
Proprietary Trading
Proxy Statement
Public
Public Comparable Companies
Put
Put-Call Parity

Q
Quant
Quantitative Easing (QE)
Quick Ratio

R
R-Squared
Rally
Rating
Ratings Agency
Real Estate Investment Trust (REIT)
Realized Gain
Realized Loss
Repo
Repo 105
Research & Development (R&D)
Resistance Line
Restructuring
Retained Earnings
Retainer
Retracement
Retreat
Return on Assets (ROA)
Return on Equity (ROE)
Return on Investment (ROI)
Revenue
Reverse Repo
Revolver
Risk Free Rate
Roadshow

S
S-1
S-4
S&P500
Sales
Scalping
Securities and Exchange Act of 1934
Securities & Exchange Commission (SEC)
Securitization
Security
Security Market Line (SML)
Selling, General & Administrative Costs (SG&A)
Sell-Side
Senior Tranche
Senior Vice President (SVP)
Sensitivity Table
Series Exams
Shareholders Equity (SE)
Shares Outstanding
Sharpe Ratio
Short
Short Term Interest Rate (STIR)
Short Term Investments
Small Cap
Special Investment Vehicle (SIV)
Special Purpose Vehicle (SPV)
Spread
Standard Deviation
Stock-Based Compensation
Stop
Straddle
Strike Price
Subordinated Debt
Subprime
Superday
Support Line
Summer Analyst (SA)

T
Takeover
Tangible Assets
Taxation
Technical Analysis
Technology, Media & Telecommunications (TMT)
Terminal Multiple
Terminal Value (TV)
Theta
Tick Size
Ticker
Time Value
Tombstone
Total Return Swap (TRS)
Trader
Trading
Trading Multiple
Tranche
Transaction Multiple
Treasury Stock
Trend
Troubled Asset Relief Program (TARP)
TO-I

U
Underlying Asset
Unemployment
Upgrade
Uptick

V
Valuation
Valued Added Tax (VAT)
Value At Risk (VAR)
Variable Costs
Vega
Venture Capital (VC)
Vice President (VP)
VIX
Volatility
Volcker Rule
Volume

W
Weighted Average Cost of Capital (WACC)

Y
Yield
Yield Curve

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