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178 Cards in this Set

  • Front
  • Back
acquisition
When one company purchases a majority interest in another company.
adverse opinion
An opinion made by an auditor indicating that a company’s financial statements are misrepresented, misstated and do not accurately reflect its financial performance and health.
American Stock Exchange
The third-largest stock exchange in the United States. The AMEX is located in New York and handles approximately 10 percent of all securities traded in the States. The exchange is primarily for smaller companies and derivatives.
annual meeting
meeting held once a year by public companies where shareholders are invited to attend and vote on matters. Company executives typically give presentations about the performance of the company at the meeting and answer questions from shareholders in the audience.
arbitration
A smaller version of a trial held in an attempt to avoid a court trial. In some contract cases, arbitration may be binding for both parties.
assessed value:
The property value as determined by the county tax assessor for tax purposes.
assets:
Anything owned that has economic value. Asset is also a balance sheet item showing what a company owns. Assets are bought to increase the value of a firm or benefit the firm’s operations. They can be anything from real estate to products.
auditor
An outside firm that conducts an examination and opinion of the financial statements of a business.
auditor’s report
Recorded in the annual report, it tests to see that corporation's financial statements comply with generally accepted accounting practices, or GAAP. This is sometimes referred to as the “clean opinion.”
balance sheet
A company’s financial statement. It reports assets, liabilities and net worth at a specific time, typically the end of a quarter.
bankruptcy:
When a person or company is unable to repay debts. In corporate cases, ownership of the firm’s assets are often transferred from stockholders to the bondholders.
board of directors
People selected to sit on an authoritative standing committee, or governing body, taking responsibility for the management of an organization. Board members are chosen by shareholders, but in practice they are usually selected by the current board’s recommendations. The board usually includes major shareholders as well as directors of the company.
bond
A bond is considered a debt investment -- you are loaning money to an entity (company or government) that needs funds for a defined period of time at a specified interest rate. In exchange for your money, the entity will issue you a certificate, or bond, that states the interest rate you are to be paid and when your loaned funds are to be returned, otherwise known as the maturity date.
bonus:
A financial incentive given to employees in addition to their base pay in the form of a one-time payment.
breach of contract
Failing to live up to the stipulations set forth in a written or verbal contract, such as not completing a job by a deadline or failing to pay for services rendered.
break-up fee
A fee paid by a target company to bidders during an acquisition if the pending deal is terminated for any reason. Some companies being acquired may also require a break-up fee clause from the company acquiring it as part of the deal.
broker
A Realtor who puts together a buyer and a seller for a real estate transaction. Brokers often specialize in commercial real estate transactions.
buy-side analyst:
A term used to describe the analysts at investing institutions like mutual funds, pension funds and insurance firms, who tend to buy large portions of securities. These analysts provide research for the firm’s money managers.
cash flow
he amount of cash a company generates and uses during a period, calculated by adding non-cash charges (such as depreciation) to the net income after taxes. Cash flow can be used as an indication of a company’s financial strength.
chairman of the board
The most senior executive in an organization. The chair is responsible for running the annual meeting and meetings of the board of directors. He or she may be a figurehead, appointed for prestige or power, and may have no role in the day-to-day running of the organization. Sometimes the roles of chair and chief executive are combined, and the chair then has more control over daily operations. Sometimes the chair is a retired chief executive.
Chapter 7
A bankruptcy court filing done by businesses and individuals where the assets are liquidated.
Chapter 11
A bankruptcy court filing for businesses and individuals where the debt is reorganized and some debt is forgiven as part of a plan to rehabilitate the company or person.
Chapter 13
A bankruptcy court filing where a person agrees to repay their debts.
charge
A one-time expense by a company that negatively affects earnings.
chief executive officer
The person with overall responsibility for ensuring that the daily operations of a company run efficiently, and for carrying out strategic plans. The chief executive normally sits on the board.
chief financial officer
The officer responsible for handling funds, signing checks, the keeping of financial records and financial planning for the company.
civil litigation
Laws that encompasses business, contracts, estates, accidents and negligence that is not criminal law. In a few areas, civil and criminal law may overlap or coincide.
class action
A lawsuit filed by one or more people on behalf of other people who may be in a similar situation. Class action lawsuits may be difficult and are expensive, but allow people who may not have been able to file a lawsuit individually to band together.
conference call:
An event in which investors can call into a special phone number and hear the management of their company comment on the financial results of the recently completed quarter, or another important corporate event.
consensus analyst estimate
The average earnings estimate for a company based on the predictions of all of the analysts covering the business. The estimate could be for a quarter or for a year.
Consumer Confidence Index:
A measurement by the Conference Board on whether consumers are feeling optimistic or pessimistic about the economy.
Consumer Price Index
A measure of the price change of consumer goods such as gasoline, food and automobiles.
Consumer Product Safety Commission
A federal agency that protects consumers against faulty products. Its jurisdiction covers product safety for more than 15,000 products, and it can force a recall of a product.
conversion
he process where a company changes its ownership structure, typically from one where the business is owned by customers to one where the business is owned by stockholders.
corporation
The most common form of business organization. The organization is ongoing, and the owners face limited liability.
coupon
The interest rate stated on a bond when it’s issued. The coupon is typically paid semiannually.
creditor:
A person or company owed money from a debtor. The debt occurred before the filing of bankruptcy court protection.
damages
The amount of money a plaintiff may be seeking or awarded in a lawsuit. Punitive damages may be awarded in some cases to set an example against the defendant.
debt
An amount of money owed by a person or a company to another person or company.
debt-to-equity ratio
A company’s total long-term debt expressed as a percentage of shareholders’ equity.
debtor
A person or company seeking protection in bankruptcy court from loans and other debts owed.
deed
A legal document conveying title to a piece of property. It transfers ownership from one owner to another.
defamation
Making untrue statements about a person that damages that person’s reputation. If printed, the statements can be considered libel.
default
When the owner of a piece of property falls behind in making payments on the loan used to acquire the property, or stops making payments altogether.
defendant
The individual or business sued in a civil lawsuit, or charged with a crime in a criminal case.
deflation
The opposite of inflation. This is the rate at which the price of goods and services in the economy is falling.
deposition
Taking or recording of testimony by a witness away from the courtroom before a trial. Deposition statements may be used by the plaintiff or defendant to prepare their case. Depositions can be made available in the public court file.
depression
A severe and prolonged recession in the economy marked by lower productivity, higher unemployment and falling prices.
dilutive
An acquisition that will decrease the acquiring company’s EPS. As a general rule, a dilutive merger or acquisition occurs when the P/E ratio of the acquiring firm is less than that of the target firm.
dividend
A cash payment using profits that’s announced by a company’s board of directors to be distributed among stockholders. Dividends may be in the form of cash, stock or property. All dividends are declared by the board of directors.
Dow Jones Industrial Average
A price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896. It is the oldest and single-most watched index in the world.
durable good orders
Measures spending on products consumers purchase that they don’t necessarily need, such as dishwashers, sports equipment, jewelry and lawn and garden equipment.
earnings guidance
A report by a company that its earnings may vary considerably, either positively or negatively, from expectations, or that earnings will still be in line with expectations.A report by a company that its earnings may vary considerably, either positively or negatively, from expectations, or that earnings will still be in line with expectations.
earnings per share
The portion of a company’s profit allocated to each outstanding share of common stock.
economics
The science dealing with the production, distribution and consumption of goods and services and with the issues of labor, finance and taxation.
employee stock ownership plan
A plan where the company allows its employees to buy shares of the business. These plans are increasing in popularity with small and private businesses.
Environmental Protection Agency
A federal agency whose job is to protect the environment and human health by preventing the release of harmful items into the environment. The EPA can ban the use of certain products, and can fine companies for violating environmental laws.
Equal Employment Opportunity Commission
A federal agency created in 1964 to investigate claims of employment discrimination on the basis or race, color, sex, age, natural origin and religion. Its jurisdiction has since been expanded to include discrimination based on age and disability.
exchange
A market where securities, commodities, options and futures are traded.
exchange ratio
The number of shares of the acquiring company that a shareholder will receive for one share of the acquired company
existing home sales
existing home sales
fairness opinion
An opinion developed by qualified analysts or advisors with the purpose of providing key details and factual proof to the decision makers of a merger or acquisition.
Federal Communications Commission
A federal regulatory agency charged with and is charged with overseeing interstate and international communications by radio, television, wire, satellite and cable.
Federal Reserve Board
The governing body of the federal reserve system. They are appointed to the Board of Governors by the president, but must be approved by the Senate.
Federal Trade Commission
A federal agency that works to ensure that the nation’s markets are vigorous, efficient and free of restrictions that harm consumers. The FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that restrict competition.
forecast
A company or analyst’s estimate of the company’s future earnings.
foreclosure
A court proceeding where the property owner’s rights are terminated in order to sell the property to satisfy lenders.
Form 8-K
A report of unscheduled material events or corporate changes that could be of importance to the shareholders or the SEC. Examples include an acquisition, bankruptcy or a change in fiscal year.
Form 10-K
The annual report that public companies file with the SEC. It provides a comprehensive overview of the company’s business. The report must be filed within 90 days after the end of the company’s fiscal year.
Form 10-Q
A report filed quarterly by public companies. It includes unaudited financial statements and provides a continuing view of the company’s financial position during the year. The report must be filed for each of the first three fiscal quarters of the company’s fiscal year and is due within 45 days of the close of the quarter.
Form 990
A document filed with the Internal Revenue Service by virtually every non-profit organization and foundation. The filing discloses revenue, expenditures and salaries for management.
Form S-1
A document filed with the Securities and Exchange Commission by a company desiring to go public. This is also known as the registration statement, and is often amended frequently
foundation
A non-profit organization created to give money away. Foundations are required to grant 5 percent of their assets annually.
golden parachute
Lucrative benefits given to top executives in the event a company is taken over by another firm, resulting in the loss of the job. Benefits include items such as stock options, bonuses, severance pay, etc.
gdp
The monetary value of all goods, services and products made by an economy during a certain time period. It includes purchased, investments and exports minus imports.
housing starts
Number of residential buildings that have begun construction in a month
income statement
An accounting of sales, expenses and net profit for a given period.
inflation
The rate at which the average price of all goods and services in the economy from one year to the next is rising, and therefore, purchasing power is falling.
initial public offering
The first sale of stock by a private company to the public. IPOs are often smaller, younger companies seeking capital to expand their business.
insider trading
Trading in securities by executives, board members or large shareholders. When insider trading is based on privileged information, it is illegal.
institutional investor
A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. Institutional investors face less protective regulations because it is assumed that they are more knowledgeable and better able to protect themselves.
interest rate:
The rate paid on money borrowed, or received on money lent if you are the lender. It is typically expressed as a percent. $1,000 borrowed at a 6 percent interest rate means the person pays $60 a year in interest.
Internal Revenue Service
A federal regulatory agency that collects taxes from businesses and individuals. The IRS also determines the tax status of a business, and reviews documents to determine if a company is in compliance with federal laws.
investment banker
A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Investment bankers do the grunt work behind IPOs and debt offerings.
involuntary bankruptcy
When creditors file a plan to force a debtor into bankruptcy court protection. The debtor can protest and argue before the court.
joint venture
Agreement by two or more parties to work on a project together.
lagging indicators
An economic measurement that begins to change after the economy has already moved in that direction.
lead underwriter
The managing underwriter who maintains the books of securities sold for a new issue. Also commonly known as the book runner.
leading indicators
An economic measurement that begins to change before the economy moves in that direction
lease
An agreement where the owner of a piece of property agrees to allow another party to inhabit the property for a specified period of time.
lender
A financial institution that has financed the loan allowing a buyer to purchase a piece of property.
leveraged buyout:
A strategy involving the acquisition of another company using borrowed money, i.e. bonds or loans. The acquiring company uses its assets as collateral for the loan in hopes that the future cash flows will cover the loan payments.
liability
A legal debt or obligation estimated by accrual accounting. Recorded on the balance sheet, current liabilities are debts payable within one year, while long-term liabilities are debts payable over a longer period.
limited liability corporation
A business structure with corporation and partnership qualities. Often a business will become a limited liability corporation to receive the tax advantages of a partnership and the liability advantages of a corporation.
market capitalization
Value of a company as determined by the market price of its issued and outstanding common stock. It is calculated by multiplying the number of outstanding shares buy the current market price of a share.
maturity date
The date the borrower has to pay back the money it has borrowed through a bond issue.
medical malpractice
Allegations by a patient against a physician or medical provider that the provided did not meet the standards or professional conduct or caused damage.
mediation
An attempt to settle a lawsuit by an independent third party who attempts to find common points of agreement in order to reach a fair result for both sides.
merger
The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. Rarely are mergers equal for both companies.
mutual fund
Fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities or money market securities.
mutual ownership
n ownership structure commonly found in the insurance and thrift industries where the company is owned by the policyholders and depositors.
NASDAQ
Created in 1971 as the world’s first electronic stock market, the NASDAQ is a computerized system that facilitates trading and provides price quotations on some 5,000 of the more actively traded over-the-counter stocks. Its largest stocks include Microsoft, Dell and Cisco.
National Labor Relations Board:
A federal agency created in 1935 to enforce the National Labor Relations Act. It conducts secret-ballot elections to determine whether employees want union representation and investigates unfair labor practices by employers and unions.
net income
A company’s total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses. Do not confuse net income with operating income.
new car sales
Reported by the major automobile dealers, typically five days after the end of the month. The sales can give an indication about the economy because they reflect consumer demand.
new home sales
The sale of a newly built home to a buyer from the builder. An increase in new home sales can be a sign of a growing economy.
New York Stock Exchange
The largest stock exchange in the country, which is responsible for setting policies and supervising the stock exchange and its member activities. The NYSE also oversees the transfer of members’ seats on the Exchange and judging whether a potential applicant is qualified to be a specialist.
non-compete agreement:
A contract signed by an employee that prohibits them from working for a competitor or using the knowledge gained with one employer to go work for a competitor for a certain time period.
non-profit organization
A business created to provide a good or service to the community without making money. Many non-profit organizations, however, do have more revenue than expenses.
Occupational Safety and Health Administration
A federal agency whose job it is to enforce laws to ensure a safe and healthy workplace.
off balance sheet financing
The way a company raises money that does not appear on the balance sheet, unlike loans, debt, or equity that do appear on the balance sheet. Examples are joint ventures, research and development partnerships, and leases (rather than purchases of capital equipment).
ongoing concern
A statement made by independent auditors that raises doubts about the company’s ability to function in the future.
operating income
Revenue less the cost of goods sold and normal operating expenses.
operating margin
Calculated by dividing a company’s operating profit by net sales.
partnership
A business organization in which two or more people manage and operate the business. All of the owners are equally liable for the debts of the business.
plaintiff
The individual or business who files the charges in a lawsuit against another party asking for damages or a court ruling.
poison pill
A strategy used by many corporations to discourage its hostile takeover by another company by making its stock less attractive. Sometimes, a poison pill will allow existing shareholders to purchase more shares of company stock if an offer is made for the company.
premium
The difference between the actual cost for acquiring a target firm versus its value before the acquisition.
president or chief operating officer
The officer responsible for the day-to-day management of a company who usually reports to the chief executive officer.
price-to-book ratio
used to compare a stock’s market value to its book value, calculated by dividing the current closing price of the stock by the latest quarter’s book value.
price-to-earnings ratio
A stock analysis statistic in which the current price of a stock is divided by the company’s earnings per share.
A stock analysis statistic in which the current price of a stock is divided by the company’s earnings per share.
A business whose ownership is confined to a handful of people, or whose ownership can not be traded on a stock exchange.
Producer Price Index
A measure of price change from the perspective of the seller, it measures selling prices for goods and services.
productivity:
Output divided by input, with output being the goods and services produced and input being the number of worker hours.
profit margin
Net earnings after taxes divided by revenues. This is a number that is usually displayed as a percentage.
profit sharing plan
A plan where the employees of a company share in its profits. The business typically decides what profits will be shared.
proxy statement
A document sent to shareholders of public companies to invite owners of the company’s stock to its annual meeting. The proxy statement will include information about proposals to be voted on at the annual meeting and executive salaries.
public company
A business whose ownership includes stockholders that have purchased shares on Wall Street.
qualified opinion
Suggests that the information provided was limited in scope or the company being audited did not maintain GAAP accounting principles. Contrary to its connotation, a qualified opinion is not a good thing. Auditors that deem audits as qualified opinions are advising that the audit is not complete or that the accounting methods used by the company do not follow GAAP.
real estate broker
An agent who buys and sells real estate on a commission basis. The
broker does not have title to the property, but generally represents the owner or the buyer.
recession:
A decline in the Gross Domestic Product for at least two consecutive quarters.
Regulation Fair Disclosure
A rule passed by the Securities and Exchange Commission in an effort to prevent selective disclosure by public companies to market professionals and certain shareholders.
reorganization
A process designed to revive a financially troubled or bankrupt firm. It typically involves the restatement of assets and liabilities and communication with creditors in order to make arrangements for maintaining repayment.
reserve
Money set aside by a company from earnings to pay for other expenses, such as a pending lawsuit or other contingencies.
restricted stock
A restricted stock award is a grant of stock by an employer to an employee in which the employee’s rights to the shares are limited until the shares “vest” and cease to be subject to the restrictions. Typically, the employee may not sell or transfer the shares of stock until they vest – frequently a defined period of time – and forfeits the stock if the employee’s employment terminates before the stock vests.
restructuring
General term for major corporate changes aimed at greater efficiency and adaptation to changing markets. This can also be called a downsizing, a recapitalization and a major management realignment.
return on equity
A measure of a company’s profitability, calculated as net income divided by shareholder’s equity.
return on investment
The profit or loss resulting from an investment, usually expressed as an annual percentage return.
revenue:
The income generated by a product or service.
S corporation
A company that has met the requirements under subchapter S of the Internal Revenue Service code. This allows the company to be taxed as if it were a partnership. These businesses must be domestic, have 75 or fewer shareholders, and only one class of stock.
salary
A form of earnings given to employees at regular intervals in exchange for the work they have done. Traditionally, a salary is a form of remuneration given to professional employees on a monthly basis.
Schedule 13D:
A form filed by anyone acquiring a beneficial ownership of 5 percent or more of any equity security registered with the SEC. The form must also be filed with the exchange on which the stock is traded.
secured creditor
People or companies owed debt that is backed by collateral, such as a car loan or a home mortgage.
Secretary of State’s Office
A state agency that registers a variety of business organizations including corporations, assumed business names, banks, insurance companies, limited liability companies, limited liability partnerships and limited partnerships. Other business-related filings include trade and service marks, auctioneer's licenses and legal newspaper registrations, among others.
Securities and Exchange Commission
A federal agency that protects investors and ensures the integrity of the stock markets. The SEC regulates publicly traded companies, companies who trade stocks and investors. As part of its mission to protect investors and the investment community, the SEC required public companies to file documents disclosing financial information and other material so that it can be read by anyone.
sell-side analyst
Used to describe the retail brokers and research departments that sell securities and make recommendations for the brokerage firm's customers.
shareholders’ equity
A firm’s total assets minus total liabilities. It is the amount of the company that is financed through common and preferred shares. Also known as capital.
share repurchase plan
A company’s plan to buy back its own shares, reducing the number of outstanding shares, and typically an indication that the company’s management thinks the shares are undervalued. Also referred to as a buyback plan.
short selling
The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short selling is a legitimate trading strategy. Short sellers assume the risk that they will be able to buy the stock at a more favorable price than the price at which they sold short.
shortfall
Amount by which a financial objective has not been met.
stock
Ownership in a company that is represented by shares. A holder of stock (a shareholder) has a claim on a part of its assets and earnings. Also known as equities.
stock options
A stock option is the opportunity, given by your employer, to purchase a certain number of shares of your company’s common stock at a pre-established price, known as the grant price, during a specific period of time, known as the vesting period.
stock split:
Increase in a corporation’s number of outstanding shares of stock without any change in the shareholders’ equity or the aggregate market value at the time of the split. In a split, the share price declines. In a reverse split, the stock price rises.
strategic alternatives:
Anything up to and including the sale of a company.
takeover
Change in controlling interest of a corporation. A takeover may be a friendly acquisition or an unfriendly bid that the target company may fight. If the company is publicly traded then the acquiring company will make an offer for the outstanding shares.
tender offer
An offer to shareholders to purchase some or all or their shares in a corporation. The price offered is usually at a premium to the market price. Tender offers may be friendly or unfriendly.
trade deficit
When the buying and selling of goods and services between two economies results in fewer exports than imports.
trustee
A court-appointed representative who administers the business or estate. Can be assigned if creditors or others argue that the company is unfit to manage its operations.
unemployment rate
A measure of how many people are out of the labor force but are looking for work.
Uniform Commercial Code
A set of laws regulating commercial transactions, especially those involving the sale of goods where money is borrowed.
unsecured creditor
People or companies owed debt that is not backed by collateral, such as credit cards, medical bills and utility bills.
venture capital
Funds made available to start-up companies and small businesses, typically in return for an ownership stake and a say in how the operation is managed. A venture capital firm invests money in such companies, expecting that the company receiving the funds will grow and become successful.
yield
In general, a return on an investor’s capital investment. For bonds, the coupon rate of interest divided by the purchase price, called current yield. Also, the rate of return on a bond, taking into account the total of annual interest payments, the purchase price, the redemption value, and the amount of time remaining until maturity.
articles of incorporation:
A set of documents filed with state authorities for the
purpose of documenting the creation of a corporation.
basis point:
One one‐hundredth of a percentage point. The difference between 7.04
percent and 7.05 percent is one basis point. The Fed moves the interest rate in basis
points – typically 25 basis points at a time.
breach of contract:
Failing to live up to the stipulations set forth in a written or
verbal contract, such as not completing a job by a deadline or failing to pay for
services rendered.
defamation
Making untrue statements about a person that damages that person’s
reputation. If printed, the statements can be considered libel.
defendant
The individual or business sued in a civil lawsuit, or charged with a
crime in a criminal case.
dilutive
An acquisition that will decrease the acquiring company’s EPS. As a
general rule, a dilutive merger or acquisition occurs when the P/E ratio of the
acquiring firm is less than that of the target firm.
EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortization ‐‐
approximate measure of company's operating cash flow based on data from the
company's income statement. Calculated by looking at earnings before deduction of
interest expenses, taxes, depreciation, and amortization. EBITDA, is a good way of
comparing companies within and across industries. This measure is also of interest
to a company's creditors, since EBITDA is essentially the income that a company has
free for interest payments. Sometimes also called operational cash flow.
hedge fund:
A fund, usually used by wealthy individuals and institutions, which is
allowed to use aggressive strategies unavailable to mutual funds, including selling
short, leverage, program trading, swaps, arbitrage, and derivatives. Hedge funds are
exempt from many rules and regulations governing other mutual funds, which
allows them to accomplish aggressive investing goals. They are restricted by law to
no more than 100 investors per fund, and as a result most hedge funds set high
minimum investment amounts, ranging anywhere from $250,000 to over $1 million.
As with traditional mutual funds, investors in hedge funds pay a management fee;
however, hedge funds also collect a percentage of profits (usually 20%).
LIBOR rate:
London InterBank Offered Rate. It's the rate of interest at which banks
offer to lend money to one another in the wholesale money markets in London. It is
a standard financial index used in U.S. capital markets. It's an index that is used to
set the cost of various variable‐rate loans, including credit cards and adjustable‐rate
mortgages.
Line of credit:
A commitment by a financial institution to lend up to a specified
maximum amount to a customer during a specified period of time.
productivity
Output divided by input, with output being the goods and services
produced and input being the number of worker hours.
restricted stock:
A restricted stock award is a grant of stock by an employer to an
employee in which the employee’s rights to the shares are limited until the shares
“vest” and cease to be subject to the restrictions. Typically, the employee may not
sell or transfer the shares of stock until they vest – frequently a defined period of
time – and forfeits the stock if the employee’s employment terminates before the
stock vests.
tender offer:
An offer to shareholders to purchase some or all or their shares in a
corporation. The price offered is usually at a premium to the market price. Tender
offers may be friendly or unfriendly.
trade deficit:
When the buying and selling of goods and services between two
economies results in fewer exports than imports.
venture capital:
Funds made available to start‐up companies and small businesses,
typically in return for an ownership stake and a say in how the operation is
managed. A venture capital firm invests money in such companies, expecting that
the company receiving the funds will grow and become successful.