Words Used in… Corporate 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.
- 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
- Common Stock.
- Debt Financing.
- 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.