Acquisition

The definition of an acquisition is the act of getting or receiving something, or the item that was
received. An example of an acquisition is the purchase of a house.

Active investment strategy

Active investing refers to an investment strategy that involves ongoing buying and selling activity by the
investor. Active investors purchase investments and continuously monitor their activity to exploit
profitable conditions.

Actuary

An actuary is a person who evaluates the likelihood of certain events and creates plans to deal with
those events. For example, an actuary may determine the insurance premium that a driver should be
charged for vehicle insurance that pays $5,000 if the driver gets into a car accident.

Agency cost

Agency costs include any fees associated with managing the needs of conflicting parties, in the process
of evaluating and resolving disputes. For example, paying bonuses to management if/when share prices
increase making management’s salaries partial shares in the company.
Agency problem
The agency problem is a conflict of interest that occurs when agents don't fully represent the best
interests of principals. For example-conflict between company and shareholders.
American option
An American option is a style of options contract that allows holders to exercise their rights at any time
before and including the expiration date. An American-style option allows investors to capture profit as
soon as the stock price moves favorably.
Amortization
Amortization is the practice of spreading an intangible asset's cost over that asset's useful life. ...
Examples of intangible assets that are expensed through amortization might include: Patents and
trademarks. Franchise agreements
Analyst
The definition of an analyst is a person who studies the elements of something, often breaking it down
into smaller parts, to learn how the parts work together and what the nature is of the thing being
studied. A psychotherapist is an example of an analyst.
Angel investor
An angel investor is a person who invests in highly risky companies, typically before those companies
have any revenue or profits.
 AGM
An Annual General Meeting, also known as an AGM’s are a yearly get-together of a company’s owners,
stakeholders and directors. For example-At an AGM, there is often a time set aside for shareholders to
ask questions to the directors of the company.
Annuity
An annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits to
a savings account, monthly home mortgage payments, monthly insurance payments and pension
payments
Arbitrage
Arbitrage occurs when an investor can make a profit from simultaneously buying and selling a
commodity in two different markets. For example, gold may be traded on both New York and Tokyo
stock exchanges.
Arbitrageur
An arbitrageur is a type of investor who attempts to profit from market inefficiencies. ... For example, a
takeover arbitrageur may use information about an impending takeover to buy up a company's stock
and profit from the subsequent price appreciation.
Arithmetic mean
The arithmetic mean is the simplest and most widely used measure of a mean, or average. For example,
take the numbers 34, 44, 56, and 78. ... The arithmetic mean is 212 divided by four, or 53.
Ask price
The ask price is the price that an investor is willing to sell the security for. For example, if an investor
wants to buy a stock, they need to determine how much someone is willing to sell it for.
Asset
An asset is something containing economic value and/or future benefit. An asset can often generate
cash flows in the future, such as a piece of machinery, a financial security, or a patent. Personal assets
may include a house, car, investments, artwork, or home goods.
ATM
An ATM, which stands for automated teller machine, is a specialized computer that makes it convenient
to manage a bank account holder's funds. For example- ATM BOOTH.
Auction market
An auction market is a place in which buyers compete for an asset by placing bids. ... Examples of
auctions include livestock markets where farmers buy and sell animals, car auctions, or an auction room
at Sotheby's or Christie's where collectors bid on works of art.
 Audit
Audit is the examination or inspection of various books of accounts by an auditor followed by physical
checking of inventory to make sure that all departments are following documented system of recording
transactions. An example of an audit is a dean analyzing your credits to determine your eligibility for
graduation.
Accounts payable
Accounts payable are short-term liabilities relating to the purchases of goods and services incurred by a
business. ... Examples of accounts payable include accounting services, legal services, supplies, and
utilities.
Accounts receivable
Accounts Receivable (AR) is the proceeds or payment which the company will receive from its customers
who have purchased its goods & services on credit. For example, a distributor may buy a washing
machine from a manufacturer, which creates an account payable to the manufacturer.
Accruals
Accrual represents revenues and expense, which are not recorded on a firm’s balance sheet; however,
they have an impact on the firm’s income and assets that are based on accrual accounting, such as
accounts receivable, accounts payable and interest expenses.
Bad debt
A bad debt is a receivable that a customer will not pay. Bad debts are possible whenever credit is
extended to customers. Example. The customer takes the inventory, charges the store credit card, and
doesn't actually pay for goods when he leaves the store.
Balance of trade
Balance of trade (BOT) is the difference between the value of a country's imports and exports for a given
period and is the largest component of a country's balance of payments (BOP). For the balance of trade
examples, if the USA imported $1.8 trillion in 2016, but exported $1.2 trillion to other countries, then
the USA had a trade balance of -$600 billion, or a $600 billion trade deficit.
Balance of payment
The balance of payments (BOP) is an accounting of a country's international transactions for a particular
time period. Any transaction that causes money to flow into a country is a credit to its BOP account, and
any transaction that causes money to flow out is a debit.
Balance sheet
Balance Sheet is the financial statement of a company which includes assets, liabilities, equity capital,
total debt, etc. at a point in time. Balance sheet includes assets on one side, and liabilities on the
other. ... Assets are those resources or things which the company owns.
 Balloon payment method
Balloon payment is the lump sum payment which is attached to a loan, mortgage, or a commercial loan.
This payment is usually made towards the end of the loan period. ... For example, person ABC takes a
loan for 10 years.
Bank Run
A bank run occurs when many clients withdraw their money from a bank, because they believe the bank
may cease to function in the near future. Jonathan has deposited $100,000 in Bank ABC. Over the last
two days, he hears rumors that the Bank is not solvent anymore, and that it may go bankrupt. So,
worried about his money, Jonathan withdraws all $100,000 from his savings and checking accounts and
transfers them to another bank.
Bank reconciliation
A bank reconciliation statement is a document that compares the cash balance on a company's balance
sheet to the corresponding amount on its. For example- A cheque of $300 was deposited, but not
collected by the bank.
Bankruptcy risk
Bankruptcy risk, or insolvency risk, is the likelihood that a company will be unable to meet its debt
obligations. Example- It is the probability of a firm becoming insolvent due to its inability to service its
debt.
Barter trade
Barter is an alternative method of trading where goods and services are exchanged directly for one
another without using money as an intermediary. For instance, a farmer may exchange a bushel of
wheat for a pair of shoes from a shoemaker.
Basis point
In the bond market, basis points are used to refer to the yields that fixed income instruments pay
investors. For example, if a bond yield spikes from 7.45% to 7.65%, it is said to have risen 20 basis
points.
Bear market
A bear market is a market in which the prices of stocks or bonds are falling. In fact, a bear market could
describe any market, including oil or real estate, if the prices are declining.
Behavioral finance
Behavioral finance is an area of study focused on how psychological influences can affect market
outcomes. Behavioral finance can be analyzed to understand different outcomes across a variety of
sectors and industries.
BO account
BO Account refers to the Beneficiary Owners Account. ... All the shares issued in the stock exchange are
preserved in electronic form and the investor owns a BO account that can keep the shares in their
account. BO accounts have a sixteen-digit identification number called BO ID (Beneficiary owner
identification number)
 Beta co-efficient
Beta coefficient is a systematic risk measure that compares the volatility of return of a given security
with market return volatility. For example, Apple Inc's (AAPL) beta is 1.44, meaning its stocks are more
volatile and is 44% more likely to respond to a movement in the market.
Bid price
The bid price is the price that an investor is willing to pay for the security. For example, if an investor
wanted to sell a stock, he or she would need to determine how much someone is willing to pay for it.
Bill of exchange
Bill of exchange means a bill drawn by a person directing another person to pay the specified sum of
money to another person. ... For example, X orders Y to pay ₹ 50,000 for 90 days after date and Y
accepts this order by signing his name, then it will be a bill of exchange.
Bill of lading
A bill of lading is a written document where detailed characteristics of a shipment and its destination are
described. It is mainly related to maritime transportation and used as a legal receipt of the shipment and
even a kind of contract for the transportation service.
Black-Scholes option pricing model
Definition: Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call
or a put option based on six variables such as volatility, type of option, underlying stock price, time,
strike price, and risk-free rate.
Blue chip company
A blue-chip stock is a huge company with an excellent reputation. These are typically large, well-
established and financially sound companies that have operated for many years and that have
dependable earnings, often paying dividends to investors. ... Some examples of blue-chip stocks are IBM
Corp., Coca-Cola Co.
Bond
In simple terms, a bond is loan from an investor to a borrower such as a company or government.
Examples of bonds include treasuries (the safest bonds, but with a low interest - they are usually sold at
auction), treasury bills, treasury notes, savings bonds, agency bonds, municipal bonds, and corporate
bonds (which can be among the riskiest, depending on the company).
Bond indenture
A bond indenture is a legal document or contract between the bond issuer and the bondholder that
records the obligations of the bond issuer and benefits owed to the bondholder. For example, the
indenture gives bondholders exact instruction about whom to contact if the bonds are called and
describes the procedures for tendering.
 Bonus share
Bonus shares are additional shares given to the current shareholders without any additional cost, based
upon the number of shares that a shareholder owns. ... For instance, if Investor A holds 200 shares of a
company and a company declares 4:1 bonus, that is for every one share, he gets 4 shares for free.
Bootstrapping
An entrepreneur who risks their own money as an initial source of venture capital is bootstrapping. For
example, someone who starts a business using $100,000 of their own money is bootstrapping. In a
highly-leveraged transaction, an investor obtains a loan to buy an interest in the company.
Break even analysis
The break-even point is the point at which total revenue and total cost are equal. Break-even analysis
determines the number of units or amount of revenue that’s needed to cover your business’s total
costs. For example, a company with $0 of fixed costs will automatically have broken even upon the sale
of the first product assuming variable costs do not exceed sales revenue.
Bridge loan
A bridge loan is a short-term loan used until a person or company secures permanent financing or
removes an existing obligation. example, imagine a company is doing a round of equity financing
expected to close in six months. It may opt to use a bridge loan to provide working.
Broker
A broker is an individual or firm that acts as an intermediary between an investor and a securities
exchange. For example – Olymp Trade.
Budget
A budget is defined as a plan or estimate of the amount of money needed for cost of living or to be used
for a specific purpose. An example of budget is how much a family spends on all expenses in a month.
Budget deficit
A budget deficit occurs when a government spends more in a given year than it collects in revenues,
such as taxes. As a simple example, if a government takes in $10 billion in revenue in a particular year,
and its expenditures for the same year are $12 billion, it is running a deficit of $2 billion.
Bull market
A bull market is the condition of a financial market in which prices are rising or are expected to rise. The
term "bull market" is most often used to refer to the stock market but can be applied to anything that is
traded, such as bonds, real estate, currencies, and commodities.
Bullet loan
A bullet loan is a type of loan in which the principal that is borrowed is paid back at the end of the loan
term. In some cases, the interest expense is. Examples of Bullet Loan in a sentence. Each Loan Tranche
may be a Bullet Loan Tranche, a Scheduled Amortization Loan Tranche, a Pass-Through Loan Tranche.
 Business cycle
Business Cycle is a series of repetitive upward and downward growth cycles in the pace of the company
or economic activities of a country and guides the policymakers in the decision-making process.
Business plan
A business plan is a written document that describes in detail how a business—usually a startup—
defines its objectives and how it is to go about achieving its goals. A business plan lays out a written
roadmap for the firm from marketing, financial, and operational standpoints.
Business risk
A business risk is a company's vulnerability to factors that could decrease its profits or cause the
company to fail. A business can experience internal and external risks. For example, a lack of data
security could be an internal risk, as it opens an opportunity for employees to leak data.
Buy limit order
Buy limit orders provide investors and traders with a means of precisely entering a position. For
example, a buy limit order could be placed at $2.40 when a stock is trading at $2.45. If the price dips to
$2.40, the order is automatically executed. It will not be executed until the price drops to $2.40 or
below.
Call option
Call option is a derivative contract between two parties. The buyer of the call option earns a right (it is
not an obligation) to exercise his option to buy a particular asset from the call option seller for a
stipulated period of time.
Call money rate
The call money rate is the benchmark interest rate that banks charge brokers who are borrowing the
money to fund margin loans. The current call money rate is 2% as of April 2020.
Capital asset pricing model (CAPM)
The capital asset pricing model (CAPM) is an idealized portrayal of how financial markets price securities
and thereby determine expected returns on capital investments. The model provides a methodology for
quantifying risk and translating that risk into estimates of expected return on equity.
Capital budgeting
Capital budgeting is the process a business undertakes to evaluate potential major projects or
investments. Construction of a new plant or a big investment in an outside venture are examples of
projects that would require capital budgeting before they are approved or rejected.
Capital gain
Capital gain is the profit one earns on the sale of an asset like stocks, bonds or real estate. It results in
capital gain when the selling price of an asset exceeds its purchase price. It is the difference between the
selling price (higher) and cost price (lower) of the asset. Capital loss arises when the cost price is higher
than the selling price.
 Capital market
Capital market is a market where buyers and sellers engage in trade of financial securities like bonds,
stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions. ...
Generally, this market trades mostly in long-term securities.
Covariance
In probability theory and statistics, covariance is a measure of the joint variability of two random
variables. The sign of the covariance therefore shows the tendency in the linear relationship between
the variables.
Credit crunch
A credit crunch refers to a decline in lending activity by financial institutions brought on by a sudden
shortage of funds.
Credit rating
A credit rating is an opinion of a particular credit agency regarding the ability and willingness an entity
(government, business, or individual) to fulfill its financial obligations in completeness and within the
established due dates.
Credit risk
Credit risk is the possibility of a loss resulting from a borrower's failure to repay a loan or meet
contractual obligations.
Current asset
Current assets are all the assets of a company that are expected to be sold or used as a result of
standard business operations over the next year. Current assets include cash, cash equivalents, accounts
receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.
Current liabilities
Current liabilities are a company's debts or obligations that are due to be paid to creditors within one
year.
Current yield
Current yield is an investment's annual income (interest or dividends) divided by the current price of the
security.
Dealers
Dealers are people or firms who buy and sell securities for their own account, whether through a broker
or otherwise.
Depreciation
In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed asset in a
systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets
are buildings, furniture, office equipment, machinery etc.
 Dividend
A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a
profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders.
EPS
Earnings per share (EPS) is a company's net profit divided by the number of common shares it has
outstanding.
Equity
Equity represents the value that would be returned to a company's shareholders if all of the assets were
liquidated and all of the company's debts were paid off.
Ex-ante
The term ex ante is a Latin word which means based on assumption and prediction. It also means
beforehand or before the event.
Ex-post
Ex post definition is - based on knowledge and retrospection and being essentially objective and factual
—opposed to ex ante.
Real interest rate
A real interest rate is one that has been adjusted for inflation, reflecting the real cost of funds to the
borrower and the real yield to the lender.
Factoring
Factoring implies a financial arrangement between the factor and client, in which the firm (client) gets
advances in return for receivables.
financial asset
A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash,
stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets.
Financial markets
A financial market is a market in which people trade financial securities and derivatives at low
transaction costs. Some of the securities include stocks.
Financial statements
Financial statements are reports prepared by a company's management to present the financial
performance and position at a point in time.
Floor brokers
A floor broker is an independent member of an exchange who can act as a broker for other members
who become overloaded with orders, as an agent on the floor.
 Forward contract
A forward contract is a customized contract between two parties to buy or sell an asset at a specified
price on a future date.
Forward rate
The forward rate, in simple terms, is the calculated expectation of the yield on a bond that, theoretically,
will occur in the immediate future.
Future value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth.
present value
Present value (PV) is the current value of a future sum of money or stream of cash flows given a
specified rate of return.
Hedging
A hedge is an investment that is made with the intention of reducing the risk of adverse price
movements in an asset.
Hybrid security
A hybrid security is a single financial security that combines two or more different financial instruments.
IPO
Initial public offering is the process by which a private company can go public by sale of its stocks to
general public.
IRR
The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of
potential investments.
Investment bank
An investment bank is a financial services company that acts as an intermediary in large and complex
financial transactions.
Investment
An investment is an asset or item acquired with the goal of generating income or appreciation.
Appreciation refers to an increase in the value of an asset.
Junk bond
A junk bond is debt that has been given a low credit rating by a ratings agency, below investment grade.
Keynesian theory
Keynesian Theory asserts that governments must intervene in the economy to make it stable and to
achieve full employment.
 Laissez faire market
Laissez-faire is an economic philosophy of free-market capitalism that opposes government
intervention.
Lockbox system
Lockbox banking is a service provided by banks to companies for the receipt of payment from
customers.
Long position
Long positions in a stock portfolio refer to stocks that have been bought and are owned, whereas short
positions are those that are owed, but not owned.
Marketable securities
Marketable securities are investments that can easily be bought, sold, or traded on public exchanges.
Lump sum amount
An amount of money that is paid at one time: a single sum of money. How to use lump sum in a
sentence.
Merchant bank
A merchant bank conducts underwriting, loan services, financial advising, and fundraising services for
large corporations and high-net-worth individuals.
Monopoly
A monopoly is the domination of an industry by a single company, to the point of excluding all other
viable competitors.
Money market
The money market refers to trading in very short-term debt investments. At the wholesale level, it
involves large-volume trades between institutions and traders.
Net present value
Net Present Value (NPV) is the difference between the present value of cash inflows and the present
value of cash outflows over a period of time.
Noise trading
A noise trader is an individual who trades based on incomplete or inaccurate data, often trading
irrationally.
Opportunity cost
Opportunity costs represent the potential benefits an individual, investor, or business misses out on
when choosing one alternative over another.
OTC market
An over-the-counter (OTC) market is a decentralized market in which market participants trade stocks,
commodities, currencies, or other instruments directly.

Portfolio
A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash
equivalents, including closed-end funds and exchange traded funds (ETFs).
Preemptive right
Preemptive rights give a shareholder the opportunity to buy additional shares in any future issue of a
company's common stock before the shares are made available to the general public.
PE ratio
The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income
earned by the firm per share.
Primary market
A primary market is a source of new securities. Often on an exchange, it's where companies,
governments, and other groups go to obtain.
Secondary market
A secondary market is a market were investors purchase securities or assets from other investors, rather
than from issuing companies themselves.
CRR
CRR or cash reserve ratio is the minimum proportion / percentage of a bank's deposits to be held in the
form of cash.
SLR
SLR or statutory liquidity ratio is the minimum percentage of deposits that a bank has to maintain in
form of gold, cash or other approved securities.
Bank rate
A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in
the form of very short-term loans.
Private placement
A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather
than on the open market.
Public placement
A public placement is where a security is offered to the whole market rather than to selected investors.
It is usually listed on a stock exchange in relatively small denominations.
Put option
In finance, a put or put option is a financial market derivative instrument that gives the holder the right
to sell an asset (the underlying),

Poison pills
A poison pill is a defense tactic utilized by a target company to prevent or discourage hostile takeover
attempts.
Reinsurance
Reinsurance is also known as insurance for insurers or stop-loss insurance.
Repurchase agreement
Repurchase agreements allow the sale of a security to another party with the promise that it'll be
purchased again later at a higher price.
Retained earnings
Retained earnings (RE) is the amount of net income left over for the business after it has paid out
dividends to its shareholders.
ROI
Return on investment (ROI) is a metric used to understand the profitability of an investment.
ROE
Return on equity (ROE) is a measure of a company's financial performance, calculated by dividing net
income by shareholders' equity.
Revenue bond
Revenue bonds are a class of municipal bonds issued to fund public projects which then repay investors
from the income created by that project.
Reverse repo
Reverse repo", is the purchase of securities with the agreement to sell them at a higher price.
Rights offering
A rights offering is a notification by a company to its shareholders, giving them the right to buy more
shares.
Seasoned offering
A seasoned equity offering is when additional shares or bonds are offered for sale by an existing publicly
traded company.
Securitization
Securitization is the procedure where an issuer designs a marketable financial instrument by merging or
pooling various financial assets.
 Security
A security is a financial instrument, typically any financial asset that can be traded. The nature of what
can and can't be called a security generally.
Sinking Fund
A sinking fund is an account that is used to deposit and save money to repay a debt or replace a wasting
asset in the future.
Annuity
A sum of money payable yearly or at other regular intervals ·
Annuity due
Annuity due is an annuity with payment due at the beginning of a period instead of at the end. See how
to calculate the value of an annuity due.
Stock dividend
A stock dividend is a dividend paid to shareholders in the form of additional shares in the company,
rather than as cash.
Striking price
The strike price is the price at which the holder of the option can exercise the option to buy or sell an
underlying security, depending on.
Swap
Swap refers to an exchange of one financial instrument for another between the parties concerned.
T-bills
Treasury Bill is a short-term investment issued through auctions conducted by the Central Bank of
Bangladesh on behalf of the Government.
Underwriting
Underwriting is the process through which an individual or institution takes on financial risk for a fee.
Venture capital
Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup
companies and small businesses.
Warrant
Warrants are a derivative that give the right, but not the obligation, to buy or sell a security—most
commonly an equity—at a certain price before expiration.
White knight
White knight definition is - one that comes to the rescue of another; especially : a corporation invited to
buy out a second corporation in order to prevent.
 Working capital
Working capital, also known as net working capital (NWC), is the difference between a company's
current assets.
Zero-coupon Bond
A zero-coupon bond, also known as an accrual bond, is a debt security that does not pay interest but
instead trades at a deep discount, rendering a profit.
Margin call
A margin call is usually an indicator that one or more of the securities held in the margin account has
decreased in value.
Stock index
A stock index is a group of shares that are used to give an indication of a sector, exchange or economy.
Usually, a stock index is made up of a set number.
Market risk
Market risk is the possibility that an individual or other entity will experience losses due to factors that
affect the overall performance.
Mutual fund
A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to
invest in securities like stocks, bonds.
Goodwill
Goodwill is an intangible asset that is associated with the purchase of one company by another.
Specifically, goodwill is the portion of the purchase price.
Asymmetric information
Asymmetric information, also known as "information failure," occurs when one party to an economic
transaction possesses greater material.
Interest rate parity
Interest rate parity (IRP)A condition in which the rates of return on comparable assets in two countries
are equal.
Interest cap-ceiling
Interest rate caps can give borrowers protection against dramatic rate increases and also provide a
ceiling for maximum interest rate costs.
NASDAQ
Nasdaq is a global electronic marketplace for buying and selling securities. Nasdaq was created by the
National Association of Securities Dealers (NASD),
Operating lease
An operating lease is a contract that permits the use of an asset without transferring the ownership
rights of said asset.

Financial lease
A financial lease is a method used by a business for acquisition of equipment with payment structured
over time.
NPV profile
NPV profile shows the sensitivity of a project's NPV for different discount rates.
Open-end mutual fund
An open-end fund is a mutual fund that can issue unlimited new shares, priced daily on their net asset
value.
Close-end mutual fund
A closed ended fund is an equity or debt fund in which the fund house issues a fixed number of units at
launch.
Public private partnership (PPP)
Public-private partnership (PPP), partnership between an agency of the government and the private
sector in the delivery of goods or services to the public.
Cost of capital
Cost of capital is the required return necessary to make a capital budgeting project, such as building a
new factory, worthwhile.
Corporate tax
A corporate tax is a tax on the profits of a corporation. The taxes are paid on a company's taxable
income, which includes revenue minus cost of goods sold.
Cost of goods sold
Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This
amount includes the cost of the materials and labor.
Coupon rate
A bond's coupon rate can be calculated by dividing the sum of the security's annual coupon payments
and dividing them by the bond's par value.
Proxy fight
A proxy fight, also known as a proxy contest or proxy battle, refers to a situation in which a group of
shareholders in a company joins forces in an attempt.
Real estate
Real estate is the land along with any permanent improvements attached to the land, whether natural
or man-made—including water, trees,

Residual value
The residual value, also known as salvage value, is the estimated value of a fixed asset at the end of its
lease term or useful life.
Retail banking
Retail banking, also known as consumer banking or personal banking, is banking that provides financial
services to individual consumers rather than businesses.
E-commerce
Ecommerce is the buying and selling of goods and services over the Internet.
E-banking
E-banking is a secure, fast and convenient electronic banking facility that allows its customers to
undertake online banking services anytime during the day.
Share premium
Share premium is a method of raising additional funds for the company without diluting the voting rights
of shareholders.
Spin off
Spin-off definition is - the distribution by a business to its stockholders of particular assets and especially
of stock of another company;
Stock option
A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon
price and date.
Treasury bond
Treasury bonds are government securities that have a 30-year term. They earn interest until maturity
and the owner is also paid a paramount, or the principal, when the Treasury bond matures.
WACC
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to
all its security holders to finance its assets.
Wealth maximization
Wealth Maximization Definition and Meaning: Shareholder’s wealth maximization means maximization
the net present value of a course of action to shareholders.
Profitability
Profitability is a measurement of efficiency – and ultimately its success or failure. A further definition of
profitability is a business's ability to produce a return on an investment based on its resources in
comparison with an alternative investment.