100 Investment Banking Terms
100 Investment Banking Terms
100 Investment Banking Terms
7. Underwriting:
The process of assessing risk and pricing securities
before offering them to investors.
8. Due Diligence:
Thorough research and analysis conducted before a
financial transaction to assess its risks and benefits.
10. Valuation:
Determining the fair market value of a company,
often using various financial models.
16. Arbitrage:
Taking advantage of price differences in different
markets to make a profit.
17. Diversification:
Spreading investments across various assets or asset
classes to reduce risk.
24. Liquidity:
The ease with which an asset can be bought or sold
without affecting its price.
33. 401(k):
A retirement savings plan in the United States,
often with employer contributions.
34. Volatility:
The degree of variation in the price of an asset over
time, indicating risk.
47. Pitchbook:
A marketing document created by investment
bankers to pitch their services to potential clients.
48. Recapitalization:
The restructuring of a company's capital structure,
often involving changes in debt and equity.
49. Covenant:
A legally binding agreement in a loan or bond
contract that specifies certain conditions or
restrictions.
75. Divestiture:
The sale or disposal of assets or business units by a
company.
76. Cross-Border Transaction:
A financial deal involving parties from different
countries.