Account Payable

money owed by a company to its creditors.

EBITDA

Earnings Before Interest, Taxes, Depreciation and Amortization. An approximate measure

of a company's operating cash flow based on data from the company's income statement.
Calculated by looking at earnings before the deduction of interest
expenses, taxes, depreciation, and amortization. The formula is: EBITDA = Revenue
Expenses (excluding interest, taxes, depreciation and amortization)

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money owed to a company by its debtors.

Inflation

It is the rise in the general level of prices of goods and services in an economy over a period of
time.

IRR

Internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability
of potential investments. The Internal Rate of Return is the interest rate that makes the Net
Present Value zero.

Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing
business. Goodwill represents assets that are not separately identifiable.

Junk bond is a high-yield, high-risk security, typically issued by a company seeking to raise
capital quickly in order to finance a takeover.

Hedging

A risk management strategy used in limiting or offsetting probability of loss from fluctuations in
the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk
without buying insurance policies.

An initial public offering (IPO) is the first sale of stock by a private company to the public.

The NASDAQ Stock Market ( /nzdk/), commonly known as theNASDAQ (currently stylized
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as Nasdaq), is an American stock exchange. It is the second-largest exchange in the world

by market capitalization, behind only the New York Stock Exchange.
A joint venture (JV) is a business arrangement in which two or more parties agree to pool their
resources for the purpose of accomplishing a specific task. This task can be a new project or
any other business activity.

An index fund is a type of mutual fund with a portfolio constructed to match or track the
components of a market index, such as the Standard & Poor's 500 Index (S&P 500).
Anindex mutual fund is said to provide broad market exposure, low operating expenses and
low portfolio turnover.

Insider trading is the trading of a public company's stock or other securities (such as bonds or stock
options) by individuals with access to nonpublic information about the company. In various countries,
some kinds of trading based on insider information is illegal. This is because it is seen as unfair to
other investors who do not have access to the information, as the investor with insider information
could potentially make far larger profits that a typical investor could not make.

A derivative is a financial instrument whose value changes in relation to changes in a variable, such as
an interest rate, commodity price, credit rating, or foreign exchange rate. It requires either a small or
no initial investment, and is settled at a future date. A derivative allows an entity to speculate on or
hedge against future changes in market factors at minimal initial cost. Examples of derivatives are call
options, put options, forwards, futures, and swaps. Derivatives may be traded over the counter or on
a formal exchange.

liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their
debts as and when they fall due.

Liquidation preference is a term used in venture capital contracts to specify which

investors get paid first and how much they get paid in the event of a liquidation event
such as the sale of the company.

Securities underwriting refers to the process by which investment banks raise

investment capital from investors on behalf of corporations and governments that are
issuing securities (both equity and debt capital). The services of an underwriter are
typically used during a public offering.

liquidation is the process by which acompany (or part of a company) is brought to an end, and the
assets and property of the company are redistributed. Liquidation is also sometimes referred to
as winding-up

Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without any
supervision of an exchange. It is contrasted withexchange trading, which occurs via exchanges.

A zero-coupon bond (also discount bond or deep discount bond) is a bond bought at a
price lower than its face value, with the face value repaid at the time of maturity.
insolvent- total liabilities exceed total assets

variable cost- a cost that varies with the level of output.

valuation- an estimation of something's worth, especially one carried out by a

professional appraiser.

A warrant is a derivative that confers the right, but not the obligation, to buy or sell
a security normally an equity at a certain price before expiration.

Stagflation- persistent high inflation combined with high unemployment and stagnant
demand in a country's economy.

Bear market- A market condition in which the prices of securities are falling, and
widespread pessimism causes the negative sentiment to be self-sustaining. As
investors anticipate losses in a bear market and selling continues, pessimism only
grows.

Bull market- A bull market is a financial market of a group of securities in which prices
are rising or are expected to rise. The term "bull market" is most often used to refer to
the stockmarket, but can be applied to anything that is traded, such as bonds,
currencies and commodities.

*If a person is optimistic and believes that stocks will go up, he or she is called a "bull"
and is said to have a "bullish outlook". A bear marketis when the economy is bad,
recession is looming and stock prices are falling. Bear markets make it tough for
investors to pick profitable stocks.

According to the New York Stock Exchange, a blue chip is stock in a corporation with a
national reputation for quality, reliability, and the ability to operate profitably in good
times and bad. The most popular index that follows U.S. blue chips is the Dow Jones
Industrial Average.

In business, amortization refers to spreading payments over multiple periods. The term
is used for two separate processes: amortization of loans and assets.