Words Used in… Corporate Finance

© iStockphoto
andrearoad

Immerse yourself in the world of finance.

Take a quick look at the financial pages of any major newspaper. You'll see all sorts of terms and phrases that have a very specific meaning to those who work in the world of corporate finance. For others, however, these terms can seem confusing – or even intimidating!

This Mind Tools "Words" page is designed to help you navigate your way through the language of finance. We provide a quick-reference glossary of many words and phrases commonly used when discussing publicly traded companies. This "Words" page covers the following terms:

Financial Analysis Terms

• Acid-Test Ratio/Quick Ratio.
• Break-Even (BE).
• Cost Accounting.
• Current Ratio.
• Gearing Ratio/Financial Leverage.
• Insolvent.
• Management Accounting.
• Net Present Value (NPV).
• Opportunity Cost.
• Present Value (PV).
• Ratio Analysis.
• Return on Investment (ROI).
• Zero-Based Budgeting (ZBB).

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).
• P/E (Price to Earnings) Ratio.
• Preferred Stock.
• Retained Earnings.
• Yield.

Financial Analysis Terms

...

Access the Full Article

This article is only available in full within the Mind Tools Club.

Learn More and Join Today

Already a Club member? Log in to finish this article.