Important terms relating to mergers and acquisitions world. Assets resources with economic value owned by a company, fund, or individual. Acquisition the purchase of one company by another business entity. A merger is an agreement that unites two existing companies into one new company. Thus, one should weigh the costs of complying with another accounting principle against the extra accuracy gained. Glossary of finance words and investment terms factorpad. Financial accounting a term usually applied to external reporting by a. In order to get a better understanding of what you read, well briefly explore the terms you commonly encounter in market news specifically when a company announces its earnings.
Go through the glossary of financial terms and know the meaning of all financial terms through their definitions here at the economic times. A nongaap financial measure used to assess each of the banks businesses and to measure the banks overall performance. Glossary of business terms adjective adj headwords for adjectives followed by information in square brackets only before a noun and not before a noun show any restrictions on where they can be used. In the world of business and finance there is a lot of jargon, or normal everyday words but with different meanings. Having launched it originally in 2004 we have now updated it with modern terminology to meet with the increasing demand for the book. Basic investment terms annuity a financial product sold by financial institutions pay out a stream of payments to the individual at a later point. Fais public utility finance and accounting seminars seminars for professionals concerned with electric, gas and water companies financial accounting institute p. Important terms relating to mergers and acquisitions are vital to the understanding of the entire process of mergers and acquisitions. Important terms relating to mergers and acquisitions. Glossary of financial terms and definitions alphabetically. Acquisition an acquisition is defined as a corporate transaction where one company purchases a portion or all of another companys shares or assets.
To accommodate new topics such as real options that are only just emerging into the literature. The cash flow on the financial statements is the cash from operating activities. A bond that is rated below investment grade, involving greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or having a questionable credit history. Dec19 bond a debt obligation backed by collateral or simply by the proven creditworthiness of the borrower. Financial advisers and other finance professionals will some time use financial language that is hard to understand. Turn to this glossary for definitions of the terms and abbreviations that really matter in this business. Jun 28, 2016 a different take on a glossary of financial terms, including. Financial terms and definitions page 3 the economic times. The a to z of financial terms plain english campaign. Operating cash flow earnings before depreciation minus taxes. It also lists creditors who have been owed money for the longest period. Basic accounting concepts n matching n revenues and expenses shown on the income statement must be matched for the period. 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. Pepperdine university purchase order standard terms and conditions applicable law.
Bail if someone is given bail, they are let out of prison until their court case. Glossary of aviation finance terms airbusiness academy. Common finance terms, glossary faqs openroad lending. Consider the wall street oasis finance dictionary your online reference for financial, trading and investment terminology. There are many important terms relating to mergers and acquisitions. Acquisition of stock an acquirer purchases the capital stock of the target company. Paul sticht, professor of international business at duke university. Wall street oasis aims to provide succinct definitions and understandable explanations of each of these financial terms you will find repeatedly in the.
By the adoption of this merger agreement by the shareholders of the merging credit union, it is understood that the filling of the certificate of final approval and dissolution by the credit. Glossary financial and banking terms adjusted results. This article is an attempt to create a glossary of financial terms, which is both compact as well as comprehensive. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. Merger two organisations agree to work together in a situation where. An amount of money, shown on a persons statement, that they have in their account or that they owe at any time.
Here are some business finance terms and definitions that will help you. We have written this a to z guide to help you to understand some of the terms you will come across when you buy a house, go into business, take out insurance, invest your money and do all the other things you might have to do in your lifetime. Junk bonds are used to help finance the purchase of companies, especially by leveraged buyouts. When cash transactions are recorded, it is called accounting on the. Phone 2015680249 glossary of utility finance and accounting terms used in our seminars.
Financy glossary the online dictionary of financial terms. This excellent guide will help ordinary people understand financial, tax and legal documents. Some loan and finance agreements have lower repayments than normal in return for a high final payment. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references.
Ruto said on friday that plans were underway to merge the agricultural finance corporation afc. I know this little glossary has helped countless clients, i hope it helps you. Simply put, net income is the difference calculated when subtracting all expenses including. A bacs payment happens when money is sent electronically from one bank account to another. It first came into existence in 2000 following the merger of amsterdam. Glossary of terms credit union notforprofit cooperatives of members with some type of common bond e. Usually someone has to pay, or promise to pay, an amount of money as a condition of bail being granted. Most comprehensive financial dictionary with over popular financial terms. In accounting, the terms sales and revenue can be, and often are, used interchangeably, to mean the same thing.
Glossary of utility finance and accounting terms used in our seminars letters in parenthesis, preceding the definition, identify the sources used in compiling the glossary. A merger is a financial activity that is undertaken in a large variety of industries. This list includes the most common and frequent interview questions and answers for finance jobs and careers. This is usually due to them being so used to the language that they forget that their clients sometimes have a hard time understanding the terms they are using. The most important financial terms everyone should know. This financial glossary gives better, more precise, and simpletounderstand meanings of financial terminology. Noun n the codes c and u show whether a noun, or a particular sense of a noun, is countable an agenda, two agendas or uncountable. A congeneric merger is also known as a product extension merger. View all finance glossary merger reserve when two companies merge, there is usually a reserve, or advance charge, taken for expected firings, buyouts of contracts, and other duplicate efforts of the combined companies. Learn and know the meaning of these finance terms by their definitions here at the economic times.
These terms may appear to be completely unrelated to mergers and acquisitions but nevertheless, these terms may indicate a very important process in mergers and acquisitions. Important terms and phrases in mergers and acquisitions dummies. Below you will find an extensive and evergrowing 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. These are generally broken down into six different types of assets.
Knight nevada shall merge with and into its wholly owned subsidiary, knight maryland, effective as of the date of the later to occur of the filing of articles of merger, in the form attached to and made a part of this agreement as exhibit a, with the secretary of state of nevada in accordance with the nevada code and of the date of filing. It provides concise definitions of 8,000 terms with 18,000 useful links. In a broad sense, assets include everything your company owns that has some economic value. This document defines terminology related to financial statements and disaster. Certified public accountant cpa accountants who meet specific educational requirements and pass a national examination auditor professional whose work involves checking on the accuracy of work completed by bookkeepers and accountants bank teller bank employee who handles deposits. Par value stated value of a share of stock usually a minimal value perquisites personal benefits such as a company car, expense account, office decor, etc. Offering memorandum a document that outlines the terms of securities to be offered in a private placement. Financial glossary business terms and definitions market. Dictionary of finance and investment terms barrons business. Investopedias comprehensive financial terms dictionary with over 00 finance and investment definitions. Glossary of business financial terms small business administration. The great recession and the years following it have brought business and financial terms more frequently to the pages of nonspecialist newspapers.
An actuary is an expert on pension scheme assets and liabilities, life expectancy and. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. The glossary of financial and investing terms allows you search by term or browse by letter more than 8,000 terms and definitions related to the stock market. An alphabetical glossary of financial and business terms, plus their definitions. Acquisition of assets an acquirer purchases the selling companys assets. Glossary of financial terms and definitions wealth how. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Pdf account payable an amount due for payment to a supplier of goods or. Find out what is the most common shorthand of merger on. The guide is an important resource that will help to create a much greater understanding of. Horizontal mergers occur when two businesses in the same industry combine into.
Acquisitions are typically made in order to take control of, and build on, the target companys strengths and capture synergies. Glossary of aviation finance terms william gibson, airbusiness academy 3 rev. Clear and concise article style description with practical examples. First on the list of financial terms, assets are the economic resources a business has.
Merger 1 acquisition in which all assets and liabilities are absorbed by the buyer. It does not take into account when the cash is paid out or received. A laymans guide to financial terms utsc university of toronto. A horizontal merger occurs between or among competitors,and a vertical merger occurs when suppliers, shippers, retailers, and such in a common industry join together. Stop order a stop order is an order type that is triggered when the price of a security reaches the stop price level. This is the standard form of accounting where transactions are recorded as they occur e. The webs largest and most authoritative acronyms and abbreviations resource.
We have written this a to z guide to help you to understand some of the terms you will come across when you. Aged debtors report an aged debtors report lists amounts owed to a business by trade debtors and analyses how long the amounts have been due. There are several types of mergers and also several reasons why companies complete mergers. One of the main sources of financial dictionary is the financial glossary by campbell r. Learn about a wide range of topics for financial analysts performing financial modeling and valuation work. This guide provides easytounderstand definition and explanation of financial. There are two main categories are behavioral and technical. The financial position of an agent can be defined as the difference between its. Finance careers financial manager top level professional who may have final responsibility for aspects of a business financial activity accountant professional who produces and examines financial records, prepares financial reports and tax returns. Finding an integrated list of financial terms and definitions is only comprehensively possible with the aid of a financial dictionary. Basic investment terms creative capital management. Useful definitions, terms and ratios accrual accounting.
More than 5,000 terms related to stocks, bonds, mutual funds, banking, tax laws, and transactions in the various financial markets are presented alphabetically with descriptions. Additional paidin capital amount paid for stock over and above its par value amortization recognition as an expense of part of an intangible asset. It is a process that lets you combine multiple loans into a single loan. Unlike traditional bank loans, bonds pay interest only until maturity, when the company pays back the principal amount. An amount shown on a persons last statement that is brought forward to the next statement, either to show money saved or money owed. Jul 19, 2019 these terms may come up in meetings with potential investors, partners, and clients, so its important to be aware of them and to understand how they might affect your business.
The company repaid 400 eur shortterm loan and 20 eur interest. These terms will give you quick answers to your most common questions. The contract resulting from this order shall be governed by the laws of the state of california and the uniform commercial code. Finance terms definitions of important finance terms. More than 5,000 terms defined and explained barrons business dictionaries out of printlimited availability. In its most basic definition, net income refers to a companys total earnings or profit. Know the glossary of financial terms and definitions alphabetically, which are most commonly use in indian finance. Here are 10 essential finance terms every entrepreneur needs to know.303 153 1429 703 916 626 147 1039 151 1300 989 846 1095 170 755 1231 1153 650 79 619 678 45 324 937 1521 83 756 524 737 811 1443 142 304 1414 150 795 849 72 289 182 1277