Outline of finance
The following outline is provided as an overview of and topical guide to finance:
Finance – addresses the ways in which individuals and organizations raise and allocate monetary resources over time, taking into account the risks entailed in their projects.
Overview[]
The term finance may incorporate any of the following:
- The study of money and other assets
- The management and control of those assets
- Profiling and managing project risks
Fundamental financial concepts[]
- Finance
- Arbitrage
- Capital (economics)
- Capital asset pricing model
- Cash flow
- Cash flow matching
- Debt
- Default
- Consumer debt
- Debt consolidation
- Debt settlement
- Credit counseling
- Bankruptcy
- Debt diet
- Debt-snowball method
- Debt of developing countries
- Asset types
- Real Estate
- Securities
- Commodities
- Futures
- Cash
- Discounted cash flow
- Financial capital
- Funding
- Financial modeling
- Entrepreneur
- Entrepreneurship
- Fixed income analysis
- Gap financing
- Global financial system
- Hedge
- Basis risk
- Interest rate
- Risk-free interest rate
- Term structure of interest rates
- Short-rate model
- Vasicek model
- Cox–Ingersoll–Ross model
- Hull–White model
- Chen model
- Black–Derman–Toy model
- Interest
- Effective interest rate
- Nominal interest rate
- Interest rate basis
- Fisher equation
- Crowding out
- Annual percentage rate
- Interest coverage ratio
- Investment
- Foreign direct investment
- Gold as an investment
- Over-investing
- Leverage
- Long (finance)
- Liquidity
- Margin (finance)
- Mark to market
- Market impact
- Medium of exchange
- Microcredit
- Money
- Money creation
- Currency
- Coin
- Banknote
- Counterfeit
- History of money
- Monetary reform
- Portfolio
- Modern portfolio theory
- Mutual fund separation theorem
- Post-modern portfolio theory
- Reference rate
- Return
- Absolute return
- Investment performance
- Relative return
- Risk
- Financial risk
- Risk management
- Financial risk management
- Uncompensated risk
- Risk measure
- Coherent risk measure
- Deviation risk measure
- Distortion risk measure
- Spectral risk measure
- Value at risk
- Expected shortfall
- Entropic value at risk
- Scenario analysis
- Short (finance)
- Speculation
- Day trading
- Position trader
- Spread trade
- Standard of deferred payment
- Store of value
- Time horizon
- Time value of money
- Discounting
- Present value
- Future value
- Net present value
- Internal rate of return
- Modified internal rate of return
- Annuity
- Perpetuity
- Unit of account
- Volatility
- Yield
- Yield curve
History[]
- History of banking
- History of insurance
- Tulip mania (Dutch Republic), 1620s/1630s
- South Sea Bubble (UK) & Mississippi Company (France), 1710s; see also Stock market bubble
- Vix pervenit 1745, on usury and other dishonest profit
- Panic of 1837 (US)
- Railway Mania (UK), 1840s
- Erie War (US), 1860s
- Long Depression, 1873–1896 (mainly US and Europe, though other parts of the world were affected)
- Post-World War I hyperinflation; see Hyperinflation and Inflation in the Weimar Republic
- Wall Street Crash of 1929
- Great Depression 1930s
- Bretton Woods Accord 1944
- 1973 oil crisis
- 1979 energy crisis
- Savings and Loan Crisis 1980s
- Black Monday 1987
- Asian financial crisis 1990s
- Dot-com bubble 1995-2001
- Stock market downturn of 2002
- United States housing bubble
- Financial crisis of 2007–08, followed by the Great Recession
Finance terms by field[]
Accounting (financial record keeping)[]
- Auditing
- Accounting software
- Book keeping
- FASB
- Financial accountancy
- Financial statements
- Balance sheet
- Cash flow statement
- Income statement
- Financial statements
- Management accounting
- Philosophy of Accounting
- Working capital
Banking[]
- See articles listed under: Bank § See also
Corporate finance[]
- Balance sheet analysis
- Financial ratio
- Business plan
- Capital budgeting
- Investment policy
- Business valuation
- Stock valuation
- Fundamental analysis
- Real options
- Valuation topics
- Fisher separation theorem
- Sources of financing
- Securities
- Debt
- Initial public offering
- Capital structure
- Cost of capital
- Weighted average cost of capital
- Modigliani–Miller theorem
- Hamada's equation
- Dividend policy
- Dividend
- Dividend tax
- Dividend yield
- Modigliani–Miller theorem
- Investment policy
- Corporate action
- (Strategic) Financial management
- Managerial finance
- Management accounting
- Mergers and acquisitions
- leveraged buyout
- takeover
- corporate raid
- Contingent value rights
- Real options
- Working capital management
- Working capital
- Current assets
- Current liabilities
- Return on investment
- loan covenant
- cash conversion cycle
- Cash management
- Strategic financial management § Cash management
- Inventory optimization
- Supply chain management
- Just In Time (JIT)
- Economic order quantity (EOQ)
- Economic production quantity (EPQ)
- Economic batch quantity
- Credit (finance)
- Credit scoring
- Default risk
- Discounts and allowances
- Factoring (trade) & Supply chain finance
- Working capital
Investment management[]
- Active management
- Efficient market hypothesis
- Portfolio
- Modern portfolio theory
- Capital asset pricing model
- Arbitrage pricing theory
- Passive management
- Index fund
- Activist shareholder
- Mutual fund
- Open-end fund
- Closed-end fund
- List of mutual-fund families
- Financial engineering
- Long-Term Capital Management
- Hedge fund
- Hedge
- #Quantitative investing, below
Personal finance[]
- 529 plan (US college savings)
- ABLE account (US plan for benefit of individuals with disabilities)
- Asset allocation
- Asset location
- Budget
- Coverdell Education Savings Account (Coverdell ESAs, formerly known as Education IRAs)
- Credit and debt
- Credit card
- Debt consolidation
- Mortgage loan
- Debit card
- Direct deposit
- Employment contract
- Commission
- Employee stock option
- Employee or fringe benefit
- Health insurance
- Paycheck
- Salary
- Wage
- Financial literacy
- Insurance
- Predatory lending
- Retirement plan
- Australia – Superannuation in Australia
- Canada
- Registered retirement savings plan
- Tax-free savings account
- Japan – Nippon individual savings account
- New Zealand – KiwiSaver
- United Kingdom
- Individual savings account
- Self-invested personal pension
- United States
- 401(a)
- 401(k)
- 403(b)
- 457 plan
- Keogh plan
- Individual retirement account
- Roth IRA
- Traditional IRA
- SEP IRA
- SIMPLE IRA
- Pension
- Simple living
- Social security
- Tax advantage
- Wealth
- Comparison of accounting software
- Personal financial management
- Investment club
- Collective investment scheme
Public finance[]
- Central bank
- Federal Reserve
- Fractional-reserve banking
- Deposit creation multiplier
- Tax
- Capital gains tax
- Estate tax (and inheritance tax)
- Gift tax
- Income tax
- Inheritance tax
- Payroll tax
- Property tax (including land value tax)
- Sales tax (including value added tax, excise tax, and use tax)
- Transfer tax (including stamp duty)
- Tax advantage
- Tax, tariff and trade
- Tax amortization benefit
- Crowding out
- Industrial policy
- Agricultural policy
- Currency union
- Monetary reform
Constraint finance[]
- Environmental finance
- Feminist economics
- Green economics
- Islamic economics
- Uneconomic growth
- Value of Earth
- Value of life
Insurance[]
- Actuarial science
- Annuities
- Catastrophe modeling
- Earthquake loss
- Extended coverage
- Insurable interest
- Insurable risk
- Insurance
- Health insurance
- Disability insurance
- Accident insurance
- Flexible spending account
- Health savings account
- Long term care insurance
- Medical savings account
- Life insurance
- Life insurance tax shelter
- Permanent life insurance
- Term life insurance
- Universal life insurance
- Variable universal life insurance
- Whole life insurance
- Property insurance
- Auto insurance
- Boiler insurance
- Business interruption insurance
- Condo insurance
- Earthquake insurance
- Home insurance
- Title insurance
- Pet insurance
- Renters' insurance
- Casualty insurance
- Fidelity bond
- Liability insurance
- Political risk insurance
- Surety bond
- Terrorism insurance
- Credit insurance
- Trade credit insurance
- Payment protection insurance
- Credit derivative
- Mid-term adjustment
- Reinsurance
- Self insurance
- Travel insurance
- Niche insurance
- Health insurance
- Insurance contract
- Loss payee clause
- Risk Retention Group
Economics and finance[]
- Finance-related areas of economics
- Financial economics
- Monetary economics
- Mathematical economics
- Managerial economics
- Economic growth theory
- Decision theory
- Game theory
- Experimental economics
- Behavioral economics
- Corporate finance theory:
- Financial economics § Corporate finance theory
- Fisher separation theorem
- Modigliani–Miller theorem
- The Theory of Investment Value
- recent developments:
- Agency theory
- Clean surplus accounting
- Contingent claim valuation
- Real options
- Monte Carlo methods
- Asset pricing theory:
- Financial economics § Underlying economics
- Value (economics)
- Fair value
- Intrinsic value
- Market price
- Expected value
- Opportunity cost
- Risk premium
- Equilibrium price
- market efficiency
- economic equilibrium
- rational expectations
- Risk factor (finance)
- General equilibrium theory
- Supply and demand
- Competitive equilibrium
- Economic equilibrium
- Partial equilibrium
- Arbitrage-free price
- Rational pricing
- § Arbitrage free pricing
- § Risk neutral valuation
- Contingent claim analysis
- Brownian model of financial markets
- Complete market & Incomplete markets
- Rational pricing
- Utility
- Risk aversion
- Expected utility hypothesis
- Utility maximization problem
- Marginal utility
- Generalized expected utility
- Economic efficiency
- Efficient-market hypothesis
- efficient frontier
- Production–possibility frontier
- Allocative efficiency
- Pareto efficiency
- Productive efficiency
- State prices
- Arrow–Debreu model
- Stochastic discount factor
- Pricing kernel
- Fundamental theorem of asset pricing
- Rational pricing
- Arbitrage-free
- No free lunch with vanishing risk
- Self-financing portfolio
- Stochastic dominance
- Marginal conditional stochastic dominance
- Martingale pricing
- Brownian model of financial markets
- Random walk hypothesis
- Risk-neutral measure
- Martingale (probability theory)
- Sigma-martingale
- Semimartingale
- Asset pricing models:
- Equilibrium pricing
- Equities; foreign exchange and commodities
- Capital asset pricing model
- Consumption-based CAPM
- Intertemporal CAPM
- Single-index model
- Multiple factor models
- Fama–French three-factor model
- Carhart four-factor model
- Arbitrage pricing theory
- Bonds; other interest rate instruments
- Vasicek
- Rendleman–Bartter
- Cox–Ingersoll–Ross
- Equities; foreign exchange and commodities
- Risk neutral pricing
- Equities; foreign exchange and commodities; interest rates
- Black–Scholes
- Black
- Garman–Kohlhagen
- Heston
- CEV
- SABR
- Bonds; other interest rate instruments
- Equities; foreign exchange and commodities; interest rates
- Equilibrium pricing
Mathematics and finance[]
Time value of money[]
- Present value
- Future value
- Discounting
- Net present value
- Internal rate of return
- Annuity
- Perpetuity
Financial mathematics[]
Mathematical tools[]
- Probability
- Probability distribution
- Binomial distribution
- Log-normal distribution
- Poisson distribution
- Probability distribution
- Stochastic calculus
- Brownian motion
- Geometric Brownian motion
- Cameron–Martin theorem
- Feynman–Kac formula
- Girsanov's theorem
- Itô's lemma
- Martingale representation theorem
- Radon–Nikodym derivative
- Stochastic differential equations
- Stochastic process
- Jump process
- Lévy process
- Markov process
- Ornstein–Uhlenbeck process
- Wiener process
- Brownian motion
- Monte Carlo methods
- Low-discrepancy sequence
- Monte Carlo integration
- Quasi-Monte Carlo method
- Random number generation
- Partial differential equations
- Finite difference method
- Heat equation
- Numerical partial differential equations
- Crank–Nicolson method
- Finite difference method: Numerical analysis
- Volatility
- ARCH model
- GARCH model
- Stochastic volatility
- Stochastic volatility jump
Derivatives pricing[]
- Underlying logic (see also #Economics and finance above)
- Rational pricing
- Risk-neutral measure
- Arbitrage-free pricing
- Brownian model of financial markets
- Martingale pricing
- Rational pricing
- Forward contract
- Forward contract pricing
- Futures
- Futures contract pricing
- Options (incl. Real options and ESOs)
- Valuation of options
- Black–Scholes formula
- Approximations for American options
- Barone-Adesi and Whaley
- Bjerksund and Stensland
- Black's approximation
- Optimal stopping
- Roll–Geske–Whaley
- Approximations for American options
- Black model
- Binomial options model
- Finite difference methods for option pricing
- Garman–Kohlhagen model
- The Greeks
- Lattice model (finance)
- Margrabe's formula
- Monte Carlo methods for option pricing
- Monte Carlo methods in finance
- Quasi-Monte Carlo methods in finance
- Least Square Monte Carlo for American options
- Trinomial tree
- Volatility
- Implied volatility
- Historical volatility
- Volatility smile (& Volatility surface)
- Stochastic volatility
- Constant elasticity of variance model
- Heston model
- SABR volatility model
- Local volatility
- Implied binomial tree
- Implied trinomial tree
- Edgeworth binomial tree
- Johnson binomial tree
- Swaps
- Swap valuation
- Asset swap § Computing the asset swap spread
- Credit default swap § Pricing and valuation
- Currency swap § Valuation and pricing
- Interest rate swap § Valuation and pricing
- Multi-curve framework
- Variance swap § Pricing and valuation
- Swap valuation
- Interest rate derivatives (bond options, swaptions, caps and floors, and others)
- Black model
- caps and floors
- swaptions
- Bond options
- Short-rate models (generally applied via lattice based- and specialized simulation-models, although "Black like" formulae exist in some cases.)
- Forward rate / Forward curve -based models (Application as per short-rate models)
- LIBOR market model (also called: Brace–Gatarek–Musiela Model, BGM)
- Heath–Jarrow–Morton Model (HJM)
- Cheyette model
- Black model
- Valuation adjustments
Portfolio mathematics[]
- #Mathematical techniques below
- #Quantitative investing below
- Modern portfolio theory § Mathematical model
- Portfolio optimization
- § Optimization methods
- § Mathematical tools
- Merton's portfolio problem
- Kelly criterion
- Roy's safety-first criterion
- Specific applications:
- Black–Litterman model
- Universal portfolio algorithm
- Markowitz model
- Treynor–Black model
Financial markets[]
Market and instruments[]
- Capital markets
- Securities
- Financial markets
- Primary market
- Initial public offering
- Aftermarket
- Free market
- Bull market
- Bear market
- Bear market rally
- Market maker
- Dow Jones Industrial Average
- Nasdaq
- List of stock exchanges
- List of stock market indices
- List of corporations by market capitalization
- Value Line Composite Index
Equity market[]
- Stock market
- Stock
- Common stock
- Preferred stock
- Treasury stock
- Equity investment
- Index investing
- Private Equity
- Financial reports and statements
- Fundamental analysis
- Dividend
- Dividend yield
- Stock split
Equity valuation[]
- Dow theory
- Elliott wave principle
- Economic value added
- Fibonacci retracement
- Gordon model
- Growth stock
- PEG ratio
- PVGO
- Mergers and acquisitions
- Leveraged buyout
- Takeover
- Corporate raid
- PE ratio
- Market capitalization
- Income per share
- Stock valuation
- Technical analysis
- Chart patterns
- Paper valuation
Investment theory[]
- Behavioral finance
- Dead cat bounce
- Efficient market hypothesis
- Market microstructure
- Stock market crash
- Stock market bubble
- January effect
- Mark Twain effect
- Quantitative behavioral finance
- Quantitative analysis (finance)
- Statistical arbitrage
Bond market[]
- Bond (finance)
- Zero-coupon bond
- Junk bonds
- Convertible bond
- Accrual bond
- Municipal bond
- Sovereign bond
- Bond valuation
- Yield to maturity
- Bond duration
- Bond convexity
- Fixed income
Money market[]
- Repurchase agreement
- International Money Market
- Currency
- Exchange rate
- International currency codes
- Table of historical exchange rates
Commodity market[]
- Commodity
- Asset
- Commodity Futures Trading Commission
- Commodity trade
- Drawdowns
- Forfaiting
- Fundamental analysis
- Futures contract
- Fungibility
- Gold as an investment
- Hedging
- Jesse Lauriston Livermore
- List of traded commodities
- Ownership equity
- Position trader
- Risk (Futures)
- Seasonal traders
- Seasonal spread trading
- Slippage
- Speculation
- Spread trade
- Technical analysis
- Breakout
- Bear market
- Bottom (technical analysis)
- Bull market
- MACD
- Moving average
- Open Interest
- Parabolic SAR
- Point and figure charts
- Resistance
- RSI
- Stochastic oscillator
- Stop loss
- Support
- Top (technical analysis)
- Trade
- Trend
Derivatives market[]
- Derivative (finance)
- (see also Financial mathematics topics; Derivatives pricing)
- Underlying instrument
Forward markets and contracts[]
- Forward contract
Futures markets and contracts[]
- Backwardation
- Contango
- Futures contract
- Financial future
- Currency future
- Interest rate future
- Single-stock futures
- Stock market index future
- Financial future
- Futures exchange
Option markets and contracts[]
- Options
- Stock option
- Box spread
- Call option
- Put option
- Strike price
- Put–call parity
- The Greeks
- Black–Scholes formula
- Black model
- Binomial options model
- Implied volatility
- Option time value
- Moneyness
- At-the-money
- In-the-money
- Out-of-the-money
- Straddle
- Option style
- Vanilla option
- Exotic option
- Binary option
- European option
- Interest rate floor
- Interest rate cap
- Bermudan option
- American option
- Quanto option
- Asian option
- Employee stock option
- Warrants
- Foreign exchange option
- Interest rate options
- Bond options
- Real options
- Options on futures
- Stock option
Swap markets and contracts[]
- Swap (finance)
- Interest rate swap
- Basis swap
- Asset swap
- Forex swap
- Stock swap
- Equity swaps
- Currency swap
- Variance swap
Derivative markets by underlyings[]
Equity derivatives[]
- Contract for difference (CFD)
- Exchange-traded fund (ETF)
- Closed-end fund
- Inverse exchange-traded fund
- Equity options
- Equity swap
- Real estate investment trust (REIT)
- Warrants
- Covered warrant
Interest rate derivatives[]
- LIBOR
- Forward rate agreement
- Interest rate swap
- Interest rate cap
- Exotic interest rate option
- Bond option
- Interest rate future
- Money market instruments
- Range accrual Swaps/Notes/Bonds
- Swap
- Constant maturity swap (CMS) or Constant Treasury Swap (CTS) derivatives (swaps, caps, floors)
- Interest rate Swaption
- Bermudan swaptions
- Cross currency swaptions
- Power Reverse Dual Currency note (PRDC or Turbo)
- (TARN)
- CMS steepener
- Snowball
- Inverse floater
- Strips of Collateralized mortgage obligation
- Ratchet caps and floors
Credit derivatives[]
- Credit default swap
- Collateralized debt obligation
- Credit default option
- Total return swap
- Securitization
Foreign exchange derivative[]
- Basis swap
- Currency future
- Currency swap
- Foreign exchange binary option
- Foreign exchange forward
- Foreign exchange option
- Forward exchange rate
- Foreign exchange swap
- Foreign exchange hedge
- Non-deliverable forward
- Power reverse dual-currency note
Financial regulation[]
- Corporate governance
- Financial regulation
- Bank regulation
- Banking license
- Bank regulation
- License
Designations and accreditation[]
- Certified Financial Planner
- Chartered Financial Analyst
- CFA Institute
- Chartered Alternative Investment Analyst
- Professional risk manager
- Chartered Financial Consultant
- Canadian Securities Institute
- Independent financial adviser
- Chartered Insurance Institute
- Financial risk manager
- Chartered Market Technician
- Certified Financial Technician
Litigation[]
- Liabilities Subject to Compromise
Fraud[]
- Forex scam
- Insider trading
- Legal origins theory
- Petition mill
- Ponzi scheme
Industry bodies[]
- International Swaps and Derivatives Association
- National Association of Securities Dealers
Regulatory bodies[]
International[]
- Bank for International Settlements
- International Organization of Securities Commissions
- Security Commission
- Basel Committee on Banking Supervision
- Basel Accords – Basel I, Basel II, Basel III
- International Association of Insurance Supervisors
- International Accounting Standards Board
European Union[]
- European Securities Committee (EU)
- Committee of European Securities Regulators (EU)
Regulatory bodies by country[]
United Kingdom[]
- Financial Conduct Authority
- Prudential Regulation Authority (United Kingdom)
United States[]
- Commodity Futures Trading Commission
- Federal Reserve
- Federal Trade Commission
- Municipal Securities Rulemaking Board
- Office of the Comptroller of the Currency
- Securities and Exchange Commission
United States legislation[]
- Glass–Steagall Act (US)
- Gramm–Leach–Bliley Act (US)
- Sarbanes–Oxley Act (US)
- Securities Act of 1933 (US)
- Securities Exchange Act of 1934 (US)
- Investment Advisers Act of 1940 (US)
- USA PATRIOT Act
Actuarial topics[]
- Actuarial topics
Valuation[]
- Note that this section is corporate-finance-focused; for the valuation of derivatives and interest rate / fixed income instruments see § Derivatives pricing above; for the economic theory see § Economics and finance above.
Underlying theory[]
- Value (economics)
- Valuation (finance) and specifically § Valuation overview
- "The Theory of Investment Value"
- Financial economics § Corporate finance theory
- Valuation risk
- Real versus nominal value (economics)
- Real prices and ideal prices
- Fair value
- Fair value accounting
- Intrinsic value
- Market price
- Value in use
- Fairness opinion
- Asset pricing (see also #Economics and finance above)
- Equilibrium price
- market efficiency
- economic equilibrium
- rational expectations
- Arbitrage-free price
- Rational pricing § Arbitrage free pricing
- Rational pricing § Risk neutral valuation
- Equilibrium price
Context[]
- (Corporate) Bonds
- Bond valuation
- Bond (finance) § Bond valuation
- Corporate bond § Valuation
- Equity valuation
- #Equity valuation above
- Fundamental analysis
- Stock valuation
- Business valuation
- Equity (finance) § Valuation
- Intrinsic value (finance) § Equity
- Capital budgeting and Corporate finance § Investment and project valuation
- The Theory of Investment Value
- Real estate valuation
- Real estate appraisal
- Real estate economics
Considerations[]
- Bonds
- covenants and indentures
- secured / unsecured debt
- senior / subordinated debt
- embedded options
- Equity
- Minimum acceptable rate of return
- Margin of safety (financial)
- Enterprise value
- Sum-of-the-parts analysis
- Minority discount
- Control premium
- Accretion/dilution analysis
- Certainty equivalent
- Haircut (finance)
- Paper valuation
Discounted cash flow valuation[]
- Bond valuation
- Modelling
- Present value § PV of a bond
- Bond valuation § Present value approach
- Bond valuation § Arbitrage-free pricing approach
- embedded options:
- Pull to par
- Lattice model (finance) § Hybrid securities
- #Contingent claim valuation below
- Results
- Clean price
- Dirty price
- Yield to maturity
- Coupon yield
- Current yield
- Duration
- Convexity
- embedded options:
- Option-adjusted spread
- effective duration
- effective convexity
- Cash flows
- Principal (finance)
- Coupon (bond)
- Floating rate note
- Zero-coupon bond
- Accrual bond
- sinking fund provisions
- Modelling
- Real estate valuation
- Intrinsic value (finance) § Real estate
- Income approach
- Net Operating Income
- Real estate appraisal § The income approach
- German income approach
- Equity valuation
- Results
- Net present value
- Adjusted present value
- Equivalent Annual Cost
- Payback period
- Discounted payback period
- Internal rate of return
- Modified Internal Rate of Return
- Return on investment
- Profitability index
- Specific models and approaches
- Dividend discount model
- Gordon growth model
- Market value added / Economic value added
- Residual income valuation
- First Chicago Method
- rNPV
- Fed model
- Chepakovich valuation model
- Sum of perpetuities method
- Benjamin Graham formula
- LBO valuation model
- Goldman Sachs asset management factor model
- Modelling
- Cash flow
- Cash flow forecasting
- Cash flow statement
- Operating cash flow
- EBIDTA
- Depreciation § Effect on cash
- NOPAT
- Free cash flow
- Free cash flow to firm
- Free cash flow to equity
- Dividends
- Cash is king
- Mid-year adjustment
- Owner earnings
- Required return (i.e. discount rate)
- Cost of capital
- Weighted average cost of capital
- Cost of equity
- Cost of debt
- Capital Asset Pricing Model
- Beta (finance) § Empirical estimation
- Hamada's equation
- Pure play method
- Arbitrage pricing theory
- Business valuation § Build-Up Method
- Total Beta
- T-model
- cash-flow T-model
- Terminal value
- Forecast period (finance)
- long term growth rate
- Sustainable growth rate § From a financial perspective
- Stock valuation § Growth rate
- Forecasted financial statements
- Financial forecast
- Financial modeling § Accounting
- Pro forma § Financial statements
- Revenue
- Revenue model
- Revenue § Financial statement analysis
- Revenue management § Forecasting
- Net sales
- Costs
- Profit margin
- Gross margin
- Net margin
- Cost of goods sold
- Operating expenses
- Cost driver
- Fixed cost
- Variable cost
- Overhead cost
- Value chain
- activity based costing
- common-size analysis
- Profit model
- Profit margin
- Capital
- Capital structure
- common-size analysis
- Equity (finance)
- Shareholders' equity
- Book_value
- Retained earnings
- Financial capital
- Long term asset / Fixed asset
- Long-term liabilities
- Debt-to-equity ratio
- Debt-to-capital ratio
- Working capital
- Current asset
- Current liability
- Inventory turnover / Days in inventory, Cost of goods sold
- Debtor & Creditor days
- Days sales outstanding / Days payable outstanding
- Cash flow
- Results
Relative valuation[]
- Bonds
- Bond valuation § Relative price approach
- Yield spread
- I-spread
- Option-adjusted spread
- Z-spread
- Asset swap spread
- Credit spread (bond)
- Bond credit rating
- Altman Z-score
- Ohlson O-score
- Book value
- Debt-to-equity ratio
- Debt-to-capital ratio
- Current ratio
- Quick ratio
- Debt ratio
- Real estate
- Capitalization rate
- Gross rent multiplier
- Sales comparison approach
- Real estate appraisal § The sales comparison approach
- Cash on cash return
- Equity
- Financial ratio
- Market-based valuation
- Comparable company analysis
- Dividend yield
- Return on equity
- DuPont analysis
- PE ratio
- PEG ratio
- Cyclically adjusted price-to-earnings ratio
- PVGO
- P/B ratio
- Price to cash based earnings
- Price to Sales
- EV/EBITDA
- EV/Sales
- Stock image
- Valuation using the Market Penetration Model
- Graham number
- Tobin's q
Contingent claim valuation[]
- Valuation techniques
- general
- Valuation of options
- Option (finance) § Valuation
- #Derivatives pricing above
- as typically employed
- Real options valuation
- Rational pricing § The replicating portfolio
- Financial economics § Corporate finance theory
- Lattice model (finance) § Hybrid securities
- Monte Carlo methods in finance
- general
- Applications
- Corporate investments and projects
- Real options
- Corporate finance § Valuing flexibility
- Contingent value rights
- Business valuation § Option pricing approaches
- Balance sheet assets and liabilities
- warrants and other convertible securities
- securities with embedded options such as callable bonds
- employee stock options
- structured finance investments (funding dependent)
- special purpose entities (funding dependent)
- Corporate investments and projects
Other approaches[]
- "Fundamentals"-based (relying on accounting information)
- T-model
- Residual income valuation
- Clean surplus accounting
- Net asset value method
- Excess earnings method
- Historical earnings valuation
- Future maintainable earnings valuation
- Graham number
Portfolio theory[]
General concepts[]
- Portfolio (finance)
- Portfolio manager
- Investment management
- Active management
- Passive management (Buy and hold)
- Index fund
- Core & Satellite
- Smart beta
- Expense ratio
- Investment style
- Value investing
- Contrarian investing
- Growth investing
- Index investing
- Magic formula investing
- Momentum investing
- Quality investing
- Style investing
- Factor investing
- Investment strategy
- Benchmark-driven investment strategy
- Liability-driven investment strategy
- Investor profile
- Rate of return on a portfolio / Investment performance
- Risk return ratio
- Risk factor (finance)
- Portfolio optimization
- Diversification (finance)
- Asset classes
- Asset allocation
- Tactical asset allocation
- Global tactical asset allocation
- Strategic asset allocation
- Dynamic asset allocation
- Tactical asset allocation
- Sector rotation
- Correlation & covariance
- Covariance matrix
- Correlation matrix
- Risk-free interest rate
- Leverage (finance)
- Utility function
- Intertemporal portfolio choice
- Portfolio insurance
- Constant proportion portfolio insurance
- Mathematical finance § Risk and portfolio management: the P world
- Quantitative investment / Quantitative fund (see below)
Modern portfolio theory[]
- Portfolio optimization
- Risk return ratio
- Risk–return spectrum
- Economic efficiency
- Efficient-market hypothesis
- Random walk hypothesis
- Utility maximization problem
- Markowitz model
- Merton's portfolio problem
- Kelly criterion
- Roy's safety-first criterion
- Theory and results (derivation of the CAPM)
- Equilibrium price
- Market price
- Systematic risk
- Idiosyncratic risk / Specific risk
- Mean-variance analysis (Two-moment decision model)
- Efficient frontier (Mean variance efficiency)
- Feasible set
- Mutual fund separation theorem
- Separation property (finance)
- Tangent portfolio
- Market portfolio
- Beta (finance)
- Fama–MacBeth regression
- Hamada's equation
- Capital structure substitution theory § Beta
- Capital allocation line
- Capital market line
- Security characteristic line
- Capital asset pricing model
- Security market line
- Roll's critique
- Related measures
- Alpha (finance)
- Sharpe ratio
- Treynor ratio
- Jensen's alpha
- Optimization models
- Markowitz model
- Treynor–Black model
- Equilibrium pricing models (CAPM and extensions)
- Capital asset pricing model (CAPM)
- Consumption-based capital asset pricing model (CCAPM)
- Intertemporal CAPM (ICAPM)
- Single-index model
- Multiple factor models (see Risk factor (finance))
- Fama–French three-factor model
- Carhart four-factor model
- Arbitrage pricing theory (APT)
Post-modern portfolio theory[]
- Approaches
- Behavioral portfolio theory
- Stochastic portfolio theory
- Maslowian portfolio theory
- Dedicated portfolio theory (fixed income specific)
- Optimization considerations
- Pareto efficiency
- Bayesian efficiency
- Multiple-criteria decision analysis
- Multi-objective optimization
- Stochastic dominance
- Second-order Stochastic dominance
- Marginal conditional stochastic dominance
- Downside risk
- Risk parity
- Tail risk parity
- Volatility skewness
- Semivariance
- Expected shortfall (ES; also called conditional value at risk (CVaR), average value at risk (AVaR), expected tail loss (ETL))
- Tail value at risk
- Statistical dispersion
- Discounted maximum loss
- Indifference price
- Measures
- Dual-beta
- Upside potential ratio
- Upside risk
- Downside risk
- Sortino ratio
- Omega ratio
- Bias ratio
- Information ratio
- Active return
- Active risk
- Deviation risk measure
- Distortion risk measure
- Spectral risk measure
- Optimization models
Performance measurement[]
- Performance attribution
- Market timing
- Stock selection
- Fixed-income attribution
- Benchmark
- Lipper average
- Returns-based style analysis
- Rate of return on a portfolio
- Holding period return
- Tracking error
- Alpha (finance)
- Beta (finance)
- Simple Dietz method
- Modified Dietz method
- Modigliani risk-adjusted performance
- Upside potential ratio
- Maximum Downside Exposure
- Maximum drawdown
- Sterling ratio
- Sharpe ratio
- Treynor ratio
- Jensen's alpha
- Bias ratio
- V2 ratio
- Calmar ratio (hedge fund specific)
Mathematical techniques[]
- Modern portfolio theory § Mathematical model
- Quadratic programming
- Critical line method
- Nonlinear programming
- Mixed integer programming
- Stochastic programming (§ Multistage portfolio optimization)
- Copula (probability theory) (§ Quantitative finance)
- Principal component analysis (§ Quantitative finance)
- Deterministic global optimization
- Genetic algorithm (List of genetic algorithm applications § Finance and Economics)
- Machine learning (§ Applications)
- Artificial neural network
Quantitative investing[]
- Quantitative investing
- Quantitative fund
- Quantitative analysis (finance) § Quantitative investment management and § Algorithmic trading quantitative analyst
- Trading:
- Automated trading
- High-frequency trading
- Algorithmic trading
- Program trading
- Systematic trading
- Technical analysis § Systematic trading
- Trading strategy
- Mirror trading
- Copy trading
- Social trading
- VWAP
- TWAP
- Portfolio optimization:
- Portfolio optimization § Optimization methods
- Portfolio optimization § Mathematical tools
- Black–Litterman model
- Universal portfolio algorithm
- Markowitz model
- Treynor–Black model
- others
- Risks:
- Best execution
- Implementation shortfall
- Trading curb
- Market impact
- Market depth
- Slippage (finance)
- Transaction costs
- Discussion:
- Automated trading system § Market disruption and manipulation
- High-frequency trading § Risks and controversy
- Algorithmic trading § Issues and developments
- Positive feedback § Systemic risk
- 2010 flash crash
- Black Monday (1987) § Possible causes
- Statistical arbitrage § StatArb and systemic risk: events of summer 2007
Financial software tools[]
- Straight Through Processing Software
- Technical Analysis Software
- Fundamental Analysis Software
- Algorithmic trading
- Electronic trading platform
- List of numerical analysis software
- Comparison of numerical analysis software
Financial institutions[]
Financial institutions
- Bank
- List of banks
- List of banks in the Arab World
- List of banks in Africa
- List of banks in the Americas
- List of banks in Asia
- List of banks in Europe
- List of banks in Oceania
- List of international banking institutions
- Advising bank
- Central bank
- List of central banks
- Commercial bank
- Community development bank
- Cooperative bank
- Custodian bank
- Depository bank
- Ethical bank
- Investment bank
- Islamic banking
- Merchant bank
- Microcredit
- Mutual savings bank
- National bank
- Offshore bank
- Private bank
- Savings bank
- Swiss bank
- Bank holding company
- List of banks
- Building society
- Broker
- Broker-dealer
- Brokerage firm
- Commodity broker
- Insurance broker
- Prime brokerage
- Retail broker
- Stockbroker
- Clearing house
- Commercial lender
- Community development financial institution
- Credit rating agency
- Credit union
- Diversified financial
- Export Credit Agencies
- Financial adviser
- Financial intermediary
- Financial planner
- Futures exchange
- Government sponsored enterprise
- Hard money lender
- Independent financial adviser
- Industrial loan company
- Insurance company
- Investment adviser
- Investment company
- Investment trust
- Large and Complex Financial Institutions
- Mutual fund
- Non-banking financial company
- Savings and loan association
- Stock exchange
- List of stock exchanges
- Trust company
Education[]
- For the typical finance career path and corresponding education requirements see:
- Financial analyst generally, and esp. § Qualification, discussing various investment, banking, and corporate roles (i.e. financial management, corporate finance, investment banking, securities analysis & valuation, portfolio & investment management, credit analysis, working capital & treasury management; see Financial modeling § Accounting)
- Quantitative analyst, Quantitative analysis (finance) § Education and Financial engineering § Education, specifically re roles in quantitative finance (i.e. derivative pricing & hedging, interest rate modeling, financial risk management, financial engineering, computational finance; also, the mathematically-intensive variant on the banking roles; see Financial modeling § Quantitative finance)
- Business education lists undergraduate degrees in business, commerce, accounting and economics; "finance" may be taken as a major in most of these, whereas "quantitative finance" is almost invariably postgraduate, following a math-focused Bachelors; the most common degrees for (entry level) investment, banking, and corporate roles are:
- Bachelor of Business Administration (BBA)
- Bachelor of Commerce (BCom)
- Bachelor of Accountancy (B.Acc)
- Bachelor of Economics (B.Econ)
- The “tagged” BS / BA in Finance (the undergraduate version of the MSF below), or less common, in Investment Management or in Personal Finance
- At the postgraduate level, the MBA, MCom and MSM (and often the Master of Applied Economics) similarly offer training in finance generally; at this level there are also the following specifically focused masters degrees - see Master of Finance § Comparison with other qualifications for their focus and inter-relation:
- Master of Applied Finance (M.App.Fin)
- Master of Computational Finance
- Masters in Corporate Finance
- Master of Finance (M.Fin, MIF)
- Masters in Financial Analysis
- Master of Financial Economics
- Master of Financial Engineering (MFE)
- Master of Financial Planning
- Masters in Financial Management
- Master of Financial Mathematics
- Masters in Financial Risk Management
- Masters in Investment Management
- Master of Mathematical Finance
- Master of Quantitative Finance (MQF)
- Master of Science in Finance (MSF, MSc Finance)
- Master of Science in Global Finance
- Doctoral-training in finance is usually a requirement for academia, but not relevant to industry
- quants often enter the profession with PhDs in disciplines such as physics, mathematics, engineering, and computer science, and learn finance "on the job”
- as an academic field, finance theory is studied and developed within the disciplines of management, (financial) economics, accountancy, and applied / financial mathematics.
- For specialized roles, there are various Professional Certifications in financial services (see #Designations and accreditation above); the best recognized are arguably:
- Association of Corporate Treasurers (MCT / FCT)
- Certificate in Quantitative Finance (CQF)
- Certified Financial Planner (CFP)
- Certified International Investment Analyst (CIIA)
- Certified Treasury Professional (CTP)
- Chartered Alternative Investment Analyst (CAIA)
- Chartered Financial Analyst (CFA)
- Chartered Wealth Manager (CWM)
- CISI Diploma in Capital Markets (MCSI)
- Financial Risk Manager (FRM)
- Professional Risk Manager (PRM)
- Various organizations offer executive education, CPD, or other focused training programs, including:
- Amsterdam Institute of Finance
- Canadian Securities Institute
- Chartered Institute for Securities & Investment
- GARP
- ICMA Centre
- The London Institute of Banking & Finance
- New York Institute of Finance
- PRMIA
- South African Institute of Financial Markets
- Swiss Finance Institute
- See also qualifications in related fields:
- Accounting § Education, training and qualifications
- Actuarial credentialing and exams
- Business education
- Credit analyst § Education
- Economics education
- Investment management § Education or certification
- Management § Training
Related lists[]
- Index of accounting articles
- Outline of business management
- Outline of marketing
- Outline of economics
- Outline of production
- List of international trade topics
- List of business law topics
- List of business theorists
- Actuarial topics
External links[]
- Wharton Finance Knowledge Project – finance knowledge for students, teachers, and self-learners.
- Prof. Aswath Damodaran - financial theory, with a focus in Corporate Finance, Valuation and Investments. Updated Data, Excel Spreadsheets.
- Web Sites for Discerning Finance Students (Prof. John M. Wachowicz) -Links to finance web sites, grouped by topic
- studyfinance.com - introductory finance web site at the University of Arizona
- BF gallery - introductory articles, full glossary and links to resources on behavioral finance
- SECLaw.com - law of the financial markets
- TheStreet.com Glossary - stock market related definitions
Categories:
- Outlines of economics
- Wikipedia outlines
- Finance lists
- Business terms