Corporate finance jargon? (2024)

Corporate finance jargon?

All of corporate finance is built on three principles, which we will call, rather unimaginatively, the investment principle, the financing principle, and the dividend principle.

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What are the three 3 principles of corporate finance?

All of corporate finance is built on three principles, which we will call, rather unimaginatively, the investment principle, the financing principle, and the dividend principle.

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What is financial terminology?

Liability – any financial expense or amount owed. Line of credit – an agreement allowing a borrower to withdraw money from an account up to an approved limit. Liquidate – to quickly sell all the assets of a company and convert them into cash. Liquidation – the process of winding up an insolvent company.

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Which words relate to corporate financial decisions?

General Corporate Finance Terms
  • Bond.
  • Common Stock.
  • Debt Financing.
  • Dividends.
  • Equity Financing.
  • GAAP (Generally Accepted Accounting Principles/Practices).
  • IPO (Initial Public Offering).
  • Mergers and Acquisitions (M&A).

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What are the five basic corporate finance functions?

The five basic corporate functions are financing (or capital raising), capital budgeting, financial management, corporate governance, and risk management. These functions are all related, for example, a company needs financing to fund its capital budgeting choices.

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Is FP&A part of corporate finance?

Corporate Finance Career Path #1: Financial Planning & Analysis (FP&A) FP&A stands for “Financial Planning & Analysis,” and some companies also refer to it as Management Accounting.

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Is M&A part of corporate finance?

Types of corporate finance activity. Mergers and acquisitions (M&A), and demergers involving private companies. Mergers, demergers and takeovers of public companies, including public-to-private deals. Management buy-outs, buy-ins or similar of companies, divisions or subsidiaries – typically backed by private equity.

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What does 6 6 mean in finance?

Often known as “3+9,” “6+6,” and “9+3,” the first number represents months of actual results completed while the second number represents the months remaining until the accounting year-end.

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What are the four letter financial words?

To feel financially prepared, focus on the good four-letter words: work, save, 401k, Roth, give, and plan.

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Why does finance have so much jargon?

But the problem with that is it's in a financial advisor's best interest to keep the world of finance in a black box. Using complex jargon allows them to: maintain credibility and that “confident, authoritative sounding source”.

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What is corporate finance in one word?

Corporate finance refers to activities and transactions related to raising capital to create, develop and acquire a business. It is directly related to company decisions that have a financial or monetary impact. It can be considered as a liaison between the capital market and the organisation.

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What is the bottom line slang?

It was the most important part. From there, this became a figure of speech for the most important part of anything. If someone is talking a long time explaining something, you might ask "What's the bottom line?" That's asking them to get to the point.

Corporate finance jargon? (2024)
What is corporate finance in simple words?

Corporate finance is a branch of finance that focuses on how corporations approach capital structuring, funding sources, investments, and accounting decisions. 1. Its primary goal is to maximize shareholder value while striking a balance between risk and profitability.

What is corporate finance theory?

Corporate Finance theory encompasses the activities and methodical aspects of a company's finances and capital. In the area of Investment banking, the transactions in which capital is raised for the organization include: Seed capital, startup. Mergers and Demergers of the companies.

What are the two distinct functions of corporate finance?

Observation or Understanding of the money management. 2. Control of Money: It studies the principles and the method of obtaining Control of Money.

What is the difference between commercial finance and corporate finance?

As you can see, commercial finance focuses on providing the funding at an operational and growth level, whereas corporate finance typically involves higher level deals and transactions such as business sales and acquisitions.

Is CFA for corporate finance?

The CFA credential, by contrast, is great if you want to work at a bank and, in particular, in investment management or equity research. Both offer good opportunities for people looking to break into corporate finance.

Is Deloitte a corporate finance?

Deloitte Corporate Finance LLC provides strategic M&A advisory services that help clients create opportunities for liquidity, growth and long term advantage.

Is corporate finance prestigious?

Corporate Finance Jobs & Hierarchy

Corporate finance may not be as “prestigious” as investment banking, and it doesn't give you as many exit opportunities…

Is corporate finance hard?

Finance degrees are generally considered to be challenging. In a program like this, students gain exposure to new concepts, from financial lingo to mathematical problems, so there can be a learning curve.

Is corporate banking the same as corporate finance?

Similarities exist as the two divisions often work alongside each other as part of the broader capital markets platform. However, corporate banking is primarily focused on recurring relationship management via credit while investment bankers are more focused on idea generation and corporate finance advisory.

Can you go from corporate finance to investment banking?

Some students graduate, accept a role that's related to IB, such as a Big 4 valuation job, corporate banking, or corporate finance, and then move into IB from there. The probability of making this move depends heavily on market conditions and the nature of your full-time job.

What does 69 mean in business?

The rule of 69 is a method widely used to calculate how long it will take for the invested amount to get doubled in value. The calculation does not give an accurate answer, but rather just an estimate of time.

What is a 3 9 forecast?

For example, a “3+9” RF, uses 3 months' actual data and 9 months' forecasted data. Any rolling forecast planning process requires revisions to accommodate the latest strategy decisions from a top-down approach. The rolling forecast is prepared regularly throughout the year to reflect changes in the industry or economy.

What is a 3 way budget?

What is a 3-way budget? A 3-way budget is a strategic financial plan that aligns three essential financial statements: the P&L, the Balance Sheet, and the Cash Flow Statement. It is typically set once a year.

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