Why does this forum use acronyms so much? Is it how the industry communicates, really? I searched!

Fe''s picture
Rank: Chimp | -4

Currently entering junior year in college for finance, and I see the emails from this forum, just wondering, why all the acronyms? They seem extremely annoying, it reminds me of old police dept's using 10- codes. Every time I see an email that says "stresses of working at an HF as a PM" I think of 10-4 10-5 to the 10-20/21.

Fe'

Comments (32)

Funniest
Apr 5, 2019

Bro your username is an abbreviation

    • 13
Apr 5, 2019

No, you're an abbreviation.

    • 11
Apr 5, 2019

You'll pick up on the lingo, stay awhile

    • 1
Apr 5, 2019

I just feel like, I could use the time spent decoding the acronyms, reading through text and learning without 'hold on let me look this one up". And you cant ask, you literally get set on internet fire if you ask, lol.

    • 6
Apr 5, 2019

Every professional industry has jargon

    • 1
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Apr 5, 2019

That's my point exactly, the Financial system is largely dependent on creative power, in order to forecast, innovate, delegate, regulate, & ect. The mental cost of entry into this environment is extremely taxing as it is on its fundamental 101's finance, accounting, economics, banking & so on. On top of that when you look to dabble a bit outside of the classroom you have to navigate the 'not so inviting attitude of some /not all/ but some' and if you just dont automatically know the lingo/jargon/acronyms you are reluctant to engage in the conversations, at least I am most of the times.

For further reference Emergency Communications Departments around the nation have eliminated 10- codes in favor of 'plain language'. I know that it may not seem apples/finance to oranges/police but hear me out.

Lets say you have one police dept from the town of springfield and he hears over the radio that an officer from cleveland said "10-4, 10-5 to the 10-20/21". The springfield cop responds lights and sirens because 10-4 means received, 10-5 means enroute and 10-20/21 means assault with firearm, so he's scrambling to go help him. while enroute gets into an accident and injures himself. It just so happens that in cleveland 10-4 means received, 10-5 means enroute, but 10-20/21 means accident with injuries.

So although the above is an extreme example, we can see why there is a national push to standardize communication in plain language among public safety emergency communications departments, for inter-operability purposes.

In finance, I see a large disconnect among different backgrounds, weather it is a person that natively speaks a different language, or just a reserved person who may a bit introverted. The flow of ideas are limited by the cost of entry weather it is financial (tuition), or mental (minutia/acronyms/attitudes).

Obviously I am not saying that I have a great new idea, but I am saying that a person in my position may possibly have a great new idea, but the person may not have an avenue to openly communicate their idea to explore validity or viability.

For me, it is just annoying.

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Apr 5, 2019

To outsiders it can be annoying. Once you spend some time in the water and it all starts to click, I think you will find it beneficial. To use your analogy, if 10-20/21 means assault with a firearm, it is a lot easier for the responding officer to simply say 10-20/21 vs fully explain the situation. In just three words, whoever is receiving the message can fully comprehend the severity of the situation. In my eyes, that is a powerful tool. Sure it might not make sense to everybody, but it serves the purpose it was intended to. Not to relate a gun fight to finance... at all.. but I think there are parallels in terms of the utility of jargon

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Apr 8, 2019

You are over-weighting your importance and representation within the readership. Language is shortened for speed/concision, usually for the benefit of the author. Authors have an audience they wish to interact with, and whilst they don't explicitly exclude certain readers, it is not reasonable to expect they change their dialogue for the sole benefit of those outside their audience.

Your argument is that those outside the audience might have a valuable contribution. This is statistically unlikely and becomes a cost/benefit decision. I'd rather write in a manner convenient to me, minimising my constraints (time and effort), and take the risk that for a very small portion of my content, someone reading it, who might have had a valuable insight, may have been alienated.

Your police analogy is grossly illogical. I don't think that requires an explanation.

    • 3
Apr 8, 2019
Fe':

Obviously I am not saying that I have a great new idea, but I am saying that a person in my position may possibly have a great new idea, but the person may not have an avenue to openly communicate their idea to explore validity or viability.

For me, it is just annoying.

If someone doesn't even know the basics to an incredibly complex system, their ideas will likely not be unique, interesting or relevant. You need to quit whining. Ideas are a dime a dozen and are meaningless without execution.

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Apr 5, 2019

Which acronyms give you trouble? HF and PM should be pretty clear after like ten minutes on this website tbh.

Dayman?

    • 1
Apr 5, 2019

I want to know all of them, is there a list? And if there isn't can we update a collective cloud doc with them? I have noticed that the site has a mouse hover/preview feature that translates some but not all. Is the rest of the industry like this internally as well? Do members of the industry go around using the acronyms in plain speech as well?

    • 2
Apr 5, 2019

@AndyLouis @WallStreetOasis.com is this something we have? This guy is right that a ton of acronyms that people might not get at first and have trouble looking up (idk maybe how people abbreviate healthcare "HC"--not the most intuitive thing i guess). Just thought it could be good to tag you guys in this. Thanks.

Dayman?

Apr 5, 2019

GOLD

Thank you.

    • 2
Most Helpful
Apr 8, 2019

HYPSW -> "FO BB TMT IBD -> MF PE -> M7 MBA -> L/S HC HF PM." LOL

    • 5
Apr 8, 2019
Spare1017:

"FO BB IBD -> MF PE -> M7 MBA -> L/S HF PM." LOL

Could add TMT or HC focused

    • 1
Apr 10, 2019

H/S/W*

Apr 8, 2019

Buddy, if you have enough time to complain as much as you did in this thread, you have enough time to look up what a couple of letters mean

    • 4
Apr 8, 2019

It is easier I guess

Apr 8, 2019

if you think the jargon used in the finance industry is "too annoying to handle" then the finance industry is probably not for you.

also, if you can't figure out that
HF = hedge fund
IB = investment banking
RE = real estate
PE = private equity
PM = portfolio manager
S&T = sales and trading
DCF = discounted cash flow
MM = multi manager (or mid market, depending on circumstance)
SM = single manager
FO = front office
BO = back office
MF = mega fund
L/S = long/short

etc..

then you probably don't belong...

just google it...you're welcome

Apr 8, 2019

tl, dr?

Apr 8, 2019

we use abbreviation because nobody wants to hear Earning Before Interest Taxes Depreciation and Amortization (EBITDA) 30 times in a presentation.

Cash and cash equivalents: $7,286
Financial instruments and other inventory positions owned: $313,129

    • 1
Apr 16, 2019

and its hilarious when someone has a non-approved way of saying eh-bit-dee-aw

    • 1
Apr 5, 2019

"E - bit - Dee - AYY" my newest favorite, best read in a southern drawl.

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Apr 8, 2019

Weirdo

Apr 8, 2019

You seem like a poster child for r/iamverysmart

    • 1
Apr 8, 2019

Engineers actually use way more abbreviations than finance. Like was said above, every industry has abbreviations.

Apr 8, 2019
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