Outline of finance

Accounting (financial record keeping)

• Auditing – Independent examination of an organizationPages displaying short descriptions of redirect targets
• Accounting software – Computer program that maintains account books
• Bookkeeping – Recording financial transactions or events
• FASB – Private US organization for accountingPages displaying short descriptions of redirect targets
• Financial accountancy – Field of accountingPages displaying short descriptions of redirect targets
  • Financial statements – Formal record of financial activitiesPages displaying short descriptions of redirect targets
    • Balance sheet – Accounting financial summary
    • Cash flow statement – Financial statement
    • Income statement – Type of financial statement
• Management accounting – Field of business administration, part of the internal accounting system of a company
• Philosophy of accounting – Conceptual framework
• Hedge accounting – Accounting method aligning hedging gains and losses with the hedged item
  • IFRS 9 – Accounting standard
  • Fair value accounting – Accounting method valuing assets and liabilities at current market pricesPages displaying short descriptions of redirect targets

Banking

• See articles listed under: Bank § See also

Corporate finance

• Below § Corporate finance theory
• Introduction to business: The most widely used and accessible textbook for Introduction to Business courses globally is "Introduction to Business" by OpenStax. Other popular standard textbooks include "Introduction to Business" by Jeff Madura and "Introduction to Business" by Neck, Neck, and Murray.
• Balance sheet analysis – Accounting financial summaryPages displaying short descriptions of redirect targets
  • Financial ratio – Numerical value to determine the financial condition of a company
• Business plan – Formal written document containing the goals of a business
  • • Investment committee – Head of investments in an organizationPages displaying short descriptions of redirect targets
    • Business valuation – Determination of the economic value of a business
    • Stock valuation – Method of calculating theoretical values of companies and their stocks
    • Fundamental analysis – Analysis of a business's financial statements, health, and market
    • Real option – Capital budgeting analysis termPages displaying short descriptions of redirect targets
    • Valuation topics – Overview of finance and finance-related topicsPages displaying short descriptions of redirect targets
    • Fisher separation theorem – Firm"s investment decision is independent of its owners' consumption preferences
  • Sources of financing – Mix of funds used to start and sustain a business
  • Securities – Tradable financial assetPages displaying short descriptions of redirect targets
  • Debt – Obligation to pay borrowed money
  • Initial public offering – Type of securities offering in which a private company goes public
  • Capital structure – Mix of funds used to start and sustain a business
  • Cost of capital – Cost of a company's funds
    • Weighted average cost of capital – Concept in economics
    • Modigliani–Miller theorem – Economic theory about capital structure
    • Hamada's equation – Corporate finance equation on separating risk
  • Dividend policy – Policies in finance
    • Dividend – Payment made by a corporation to its shareholders
    • Dividend tax – Tax levied on stock earnings
    • Dividend yield – Financial ratio of dividends to share price
    • Modigliani–Miller theorem – Economic theory about capital structure
• Corporate action – Event initiated by a public company
• (Strategic) Financial management
  • Capital management – Management of capital assets and investments
    • Capital budgeting – How an organization allocates its cash and resources
    • Working capital – Difference between a firm's assets and liabilities used to fund day-to-day operations
      • Current assets – Economic resource, from which future economic benefits are expectedPages displaying short descriptions of redirect targets
      • Current liabilities – Liabilities of the business that are to be settled in cashPages displaying short descriptions of redirect targets
  • Managerial finance – Application of financial principles to managerial decision-making
  • Management accounting – Field of business administration, part of the internal accounting system of a company
• Mergers and acquisitions – Processes through which companies combine or transfer ownership
  • Leveraged buyout – Acquired control over a company by the purchase of its shares with borrowed money
  • Takeover – Purchase of a company by another company
  • Corporate raid – Company acquisition strategy
  • Contingent value rights – Buyer's rights in corporate finance
• Real option – Capital budgeting analysis termPages displaying short descriptions of redirect targets
  • Return on investment – Ratio between net income and investment
    • Return on capital – Measure of profitability relative to invested capital
    • Return on assets – Measure of how profitable a company's assets are in generating revenue
    • Return on equity – Measure of the profitability of a business
  • Loan covenant – Condition in a commercial loan or bond agreement
  • Cash conversion cycle – Length of time it takes a company to convert resource inputs to cash flows
  • Cash management – Measures of managing short-term cash in the company
    • Strategic financial management § Cash management
  • Inventory optimization – Business practice for improving location and size of inventory storage
    • Supply chain management – Management of the flow of goods and services
    • Just In Time (JIT) – Methodology used to improve productionPages displaying short descriptions of redirect targets
    • Economic order quantity (EOQ), also known as Optimum Batch Quantity – Production scheduling model
    • Economic production quantity (EPQ) – Model in inventory management
    • Economic batch quantity – Model for determining the optimal production batch size
  • Credit (finance) – Financial term for the trust between parties in transactions with a deferred paymentPages displaying short descriptions of redirect targets
  • Credit scoring – Numerical expression representing a person's creditworthinessPages displaying short descriptions of redirect targets
  • Default risk – Risk that a borrower or counterparty fails to meet financial obligationsPages displaying short descriptions of redirect targets
  • Discounts and allowances – Reductions applied to the basic sale price of goods or services
  • Factoring (trade) – Financial transaction and a type of debtor financePages displaying short descriptions of redirect targets
  • Supply chain finance, also known as supplier finance or reverse factoring – Financing methods that optimize cash flow across buyer–supplier relationships
  • Corporate budget – Balance sheet or statement of estimated receipts and expendituresPages displaying short descriptions of redirect targets

Investment management

• Active management – Investment approach where managers actively select and adjust portfolio holdings
• Efficient-market hypothesis – Economic theory that asset prices fully reflect all available information
• Portfolio – Financial term for a collection of investments
• Modern portfolio theory – Mathematical framework for investment risk
  • Capital asset pricing model – Finance model linking expected return to systematic risk
• Arbitrage pricing theory – Asset pricing theory
• Passive management – Market-weighted investing strategy
  • Index fund – Type of mutual fund or exchange-traded fund
• Activist shareholder – Shareholder using equity to pressure managementPages displaying short descriptions of redirect targets
• Mutual fund – Professionally managed investment fund
  • Open-end fund – Collective investment scheme
  • Closed-end fund – Professionally managed investment fund
• Financial engineering – Application of mathematical and computational practices in finance
  • Long-Term Capital Management – Defunct American hedge fund
• Hedge fund – Privately pooled investment fund using diverse strategies to seek high returns
• Hedge – Investment position used to offset potential losses in another asset
• Quantitative investing – Use of mathematical and statistical methods in financePages displaying short descriptions of redirect targets

Personal finance

• 529 plan – United States savings program for educational expenses
• ABLE account – U.S. savings program for individuals with disabilities
• Asset allocation – Investment strategy
  • Asset location
• Budget – Balance sheet or statement of estimated receipts and expenditures
• Coverdell Education Savings Account – US tax advantaged investment accountPages displaying short descriptions of redirect targets
• Credit and debt
  • Credit card – Card for financial transactions on credit
  • Debt consolidation – Form of debt refinancing
  • Mortgage loan – Loan secured using real estatePages displaying short descriptions of redirect targets
    • Continuous-repayment mortgage – Mortgage repaid through continuous or near-continuous amortisation
• Debit card – Card used for financial transactions
• Direct deposit – Deposit of money by a payer into a payee's account
• Employment contract – Kind of contract in labour law
  • Commission – Form of variable-pay remuneration for services rendered or products sold
  • Employee stock option – Option for employee to share in company stock
  • Employee or fringe benefit – Non-wage compensation provided to employees in addition to normal wages or salariesPages displaying short descriptions of redirect targets
  • Health insurance – Insurance covering health-related expenses
  • Paycheck – Record of money paid or due to employees
  • Salary – Form of periodic payment from an employer to an employee
  • Wage – Payment by an employer to an employee for labour
• Financial literacy – Ability to make informed choices about money
• Insurance – Protection from financial loss
• Predatory lending – Unethical lending practices
• Retirement plan – Retirement fundPages displaying short descriptions of redirect targets
  • Superannuation in Australia – Retirement pension benefit funds
  • Canada
    • Registered retirement savings plan – Canadian financial account for savings and investment assets
    • Tax-free savings account – Registered tax free savings plan for Canadians
  • Nippon individual savings account – Japanese retail investment account
  • KiwiSaver – New Zealand savings scheme
  • United Kingdom
    • Individual savings account – Class of retail investment arrangement
    • Self-invested personal pension – Type of UK government-approved personal pension scheme
  • United States
    • 401(a) – Tax-deferred retirement savings plan
    • 401(k) – Type of U.S. retirement/pension plan
    • 403(b) – Type of retirement/pension plan in the United States
    • 457 plan – Type of retirement plan in the United States
    • Keogh plan – Type of pension plan in the U.S
    • Individual retirement account – Form of individual retirement plan
      • Roth IRA – Individual retirement account
      • Traditional IRA – Type of individual retirement arrangement
      • SEP IRA – Type of retirement pension account used in the United StatesPages displaying short descriptions of redirect targets
      • SIMPLE IRA – Type of retirement plan in United States
  • Pension – Retirement fund
• Simple living – Simplified, minimalistic lifestyle
• Social security – Means-oriented social benefitPages displaying short descriptions of redirect targets
• Tax advantage – Financial incentive
• Wealth – Abundance of financial assets or possessions
• Comparison of accounting software
• Personal financial management – Managing ones own personal finances
• Investment club – Group of people who pool their money to make investments
• Collective investment scheme – Way of investing money alongside other investorsPages displaying short descriptions of redirect targets

Public finance

• Central bank – Government body that manages currency and monetary policy
• Federal Reserve – Central banking system of the US
• Fractional-reserve banking – Banking system where institutions hold only a fraction of deposits as reserves
  • Deposit creation multiplier – Process by which the money supply of an economic region is increasedPages displaying short descriptions of redirect targets
• Tax – Compulsory contribution to state revenue
  • Capital gains tax – Tax on investment profits
  • Estate tax – Tax paid after inheritance of propertyPages displaying short descriptions of redirect targets
  • inheritance tax – Tax paid after inheritance of property
  • Gift tax – Tax on money or property that one living person gives to another
  • Income tax – Tax based on taxable income
  • Inheritance tax – Tax paid after inheritance of property
  • Payroll tax – Tax imposed on employers or employees
  • Property tax – Tax on property, particularly real estate
  • land value tax – Levy on the unimproved value of land
  • Sales tax – Tax on the sales of certain goods and services
  • value added tax – Form of consumption taxPages displaying short descriptions of redirect targets
  • excise tax – Goods tax levied at the moment of manufacture rather than salePages displaying short descriptions of redirect targets
  • use tax – Type of tax in the United States
  • Transfer tax – Tax on the transfer of property or assets between parties
  • stamp duty – Tax levied on property purchases or documents
  • Tax advantage – Financial incentive
  • Tax, tariff and trade – Compulsory contribution to state revenuePages displaying short descriptions of redirect targets
  • Tax amortization benefit – Savings resulting from amortization
• Crowding out – Reduction in private investment caused by increased government borrowing
• Industrial policy – Government strategy promoting industrial development
• Agricultural policy – Laws relating to domestic agriculture and foreign-imported agricultural products
• Currency union – Agreement involving states sharing a single currency
• Monetary reform – Movements to amend the financial system

Risk management

• Asset and liability management – Framework for managing risks arising from mismatches between assets and liabilities
• Asset–liability mismatch – Mismatch between the timing or sensitivity of a firm's assets and liabilities
• Capital Requirements Regulation 2013 – EU banking law
• Credit Institutions Directive 2013
• Capital Requirements Directives – EU prudential capital and supervision rules for banks and investment firms
• Cash flow hedge – Accounting method aligning hedging gains and losses with the hedged itemPages displaying short descriptions of redirect targets
• Cash management – Measures of managing short-term cash in the company
• Corporate governance – Mechanisms, processes and relations by which corporations are controlled and operated
• Climate-related asset stranding – Former physical asset, now a liability
• Credit risk – Risk that a borrower or counterparty fails to meet financial obligations
• Default (finance) – Financial failure to meet legal conditions of a loan
• Discounted maximum loss – Measure of worst-case loss discounted to present value
• Downside risk – Risk of the actual return being below the expected return
• Upside risk
• Duration gap – Financial institutions duration gap
• Enterprise risk management – Business methods and processes
• Financial engineering – Application of mathematical and computational practices in finance
• Financial risk – Any of various types of risk associated with financing
• Financial risk management – Protecting economic value by managing risk exposure
• Foreign exchange hedge – Method used to eliminate foreign exchange risk
• Fuel price risk management – Strategies used to reduce financial exposure to fuel-price volatility
• Gordon–Loeb model – Method for optimizing information security investments
• Interest rate risk – Financial loss due to interest rate changes
  • Interest rate risk in the banking book – Banking regulation frameworkPages displaying short descriptions of redirect targets
• Insurance – Protection from financial loss
• Investment risk – Any of various types of risk associated with financingPages displaying short descriptions of redirect targets
• Irrational exuberance – Unfounded market optimism that lacks fundamental valuation
• Kelly criterion – Bet sizing formula for long-term growth
• Liquidity risk – Type of financial risk
• Market risk – Risks arising from movements in market variables
• Operational risk – Risk of disrupting business operations
• Risk accounting – Extensive subject of Management accounting
• Risk adjusted return on capital – Profitability measurement frameworkPages displaying short descriptions of redirect targets
• Risk aversion – Economics theory
• Risk-based internal audit – Internal audit approach that prioritises areas with higher organisational risk
• Risk measure – Concept in financial mathematics
  • Coherent risk measure – Concept in financial economics
  • Deviation risk measure – Risk metric quantifying variability of returns around their expected value
  • Distortion risk measure – Risk measure derived by applying a distortion function to a loss distribution
  • Spectral risk measure – Coherent risk measure using weighted outcomes based on risk aversion
• Risk modeling – Modelling financial risksPages displaying short descriptions of redirect targets
• Risk of ruin – Concept in gambling, insurance, and finance
• Risk pool – Insurance risk management sharing liability
• Risk register – Document used as risk management tool, acting as a repository for all identified risks
• Risk return ratio – Mathematical ratio used in investing
• Risk–return spectrum – Tradeoff between investment return and risk
• Security management – Computer security procedure
• Settlement risk – Risk that a party fails to deliver
• Shadow banking system – Non-banks that provide services similar to banks
• Specific risk – Risk affecting a particular asset or company, reducible through diversification
• St. Petersburg paradox – Paradox involving a game with repeated coin flipping
• Systematic risk – Vulnerability to significant events that affect aggregate outcomes
• Three lines of defence – Independent, objective assurance and consulting activityPages displaying short descriptions of redirect targets
• Treasury management – Management of an enterprise's holdings and liquidity to mitigate risk
• Uncompensated risk – In investments, level of additional risk
• Valuation risk – Risk that financial assets are misstated due to uncertain or unreliable valuations
• Value at risk – Estimated potential loss for an investment under a given set of conditions
  • Computation
    • Historical simulation (finance) – Risk-measurement method that estimates losses using past market data
    • Monte Carlo – Probabilistic measurement methods
    • variance-covariance – Estimated potential loss for an investment under a given set of conditions
    • Greeks (finance) – Model parameters in mathematical finance
  • Alternate measures
    • Entropic value at risk – Coherent measure for value at risk
    • Expected shortfall, also known as Conditional value-at-risk – Risk measure estimating the average loss in the worst tail of the distribution
    • Tail value at risk (TVaR), also known as Tail Conditional Expectation – Risk measure estimating the average loss in the worst tail of the distributionPages displaying short descriptions of redirect targets
  • Extensions
    • Profit at risk – Measure estimating the potential decline in profit under adverse market conditions
    • Margin at risk – Measure estimating potential margin shortfalls under adverse market moves
    • Liquidity at risk – Measure of potential liquidity shortfall in a financial portfolio
    • Earnings at risk (EaR), also known as Cash flow at risk – Estimate of the potential impact of market movements on a firm's earnings
    • Liquidity-adjusted VaR – Type of financial risk
• Volatility risk – Risk arising from changes in market volatility affecting the value of financial positions
• Volume risk – Risk that changes in transaction or production volumes will affect financial outcomes
• Wrong way risk – Risk that exposure to a counterparty increases as their credit quality deteriorates

Constraint finance

• Environmental finance – Field of finance focused on environmental policy
• Feminist economics – Gender-aware branch of economics
• Green economics – Economy based on ecological economicsPages displaying short descriptions of redirect targets
• Islamic economics – Handling of economics based on Islamic jurisprudence
• Uneconomic growth – Economic growth that reflects or creates a decline in the quality of life
• Value of Earth – Economical estimate of the net worth of the planet
• Value of life – Economic measure placing a monetary value on reducing the risk of deathPages displaying short descriptions of redirect targets

Finance-related areas of economics

• Financial economics – Academic discipline concerned with the exchange of money
• Financial econometrics – Method to financial market data
• Monetary economics – Branch of economics covering theories of money
• Mathematical economics – Branch of applied mathematics
• Managerial economics – Application of economics in a business
• Economic growth – Measure of increase in market value of goods
• Decision theory – Branch of applied probability theory
• Game theory – Mathematical models of strategic interactions
• Experimental economics – Method used to study economic questions
• Experimental finance – Field using controlled experiments to study financial behaviour and market dynamics
• Behavioral economics – Factors influencing economic decisions
• Behavioral finance – How psychological biases shape investor behaviour and financial marketsPages displaying short descriptions of redirect targets

Corporate finance theory

• Fisher separation theorem – Firm"s investment decision is independent of its owners' consumption preferences
• Modigliani–Miller theorem – Economic theory about capital structure
• Theory of the firm – Theories relating to firms' roles in the economy
• The Theory of Investment Value, book by John Burr Williams – American economistPages displaying short descriptions of redirect targets
• Agency theory – Conflict of interest when one person acts on another's behalfPages displaying short descriptions of redirect targets
  • Agency costs – Costs arising from conflicts of interest between principals and their agentsPages displaying short descriptions of redirect targets
  • Contract theory – Economic analysis of contracts
• Managerial finance – Application of financial principles to managerial decision-making
• Capital structure – Mix of funds used to start and sustain a business
  • Corporate finance § Capitalization structure
  • Capital structure substitution theory – Theory proposing that managers adjust capital structure to maximize earnings per share
  • Pecking order theory – Theory that firms prefer internal funds, then debt, and use equity last
  • Market timing hypothesis – Hypothesis that firms adjust financing decisions to exploit favourable market conditions
  • Trade-off theory of capital structure – Financial concept
  • Merton model – Model that values credit risk using option-based default mechanics
  • Tax shield – Reduction in taxable income achieved through allowable deductible expenses
• Dividend policy – Policies in finance
  • Corporate finance § Dividend policy
  • Walter model – Policies in finance
  • Gordon model – Valuation model that prices a stock by discounting expected future dividendsPages displaying short descriptions of redirect targets
  • Lintner model – American economist (1916–1983)
  • Residuals theory – Policies in finance
  • Signaling hypothesis – Policies in finance
  • Clientele effect – Investor shifts caused by policy changes that attract different investor groups
  • Dividend puzzle – Why firms pay dividends despite theories predicting investor indifference
  • Treasury stock § Buying back shares
  • Dividend tax – Tax levied on stock earnings
• Capital budgeting – How an organization allocates its cash and resources
  • Corporate finance § Investment and project valuation
  • Clean surplus accounting – Valuing firms by changes in book value excluding shareholder transactions
  • Residual income valuation – Equity valuation method based on the present value of future residual income
  • Economic value added – Value of a firm's profit after deduction of capital costs
  • Market value added – Measure comparing a firm's market value with the capital invested in it
  • T-model – Connects fundamentals with investment return
  • Adjusted present value – Valuation separating financing effects
  • Uncertainty
    • Penalized present value – Method of budgeting where an investment's value is penalized according to its risk
    • Expected commercial value – Prospect-weighted valuation method for assessing uncertain project outcomes
    • Risk-adjusted net present value – Valuation in financePages displaying short descriptions of redirect targets
    • Contingent claim valuation – Derivative whose payoff depends on an underlying asset or uncertain future eventPages displaying short descriptions of redirect targets
    • Real options – Capital budgeting analysis termPages displaying short descriptions of redirect targets
    • Monte Carlo methods – Probabilistic measurement methods
• Risk management
  • Corporate finance § Financial risk management
  • Financial risk management § Corporate finance
  • Hedging irrelevance proposition – Protecting economic value by managing risk exposure
  • Risk modeling – Modelling financial risksPages displaying short descriptions of redirect targets
  • Risk-adjusted return on capital – Profitability measurement framework

Asset pricing theory

• Value (economics) – Benefit provided by a good or service in an economy
  • Fair value – Financial estimation of potential market price
  • Intrinsic value – Value calculated on simplified assumptions
  • Market price – Amount of money given in order to purchase a thing or servicePages displaying short descriptions of redirect targets
  • Expected value – Average value of a random variable
  • Opportunity cost – Benefit lost by a choice between options
  • Risk premium – Measure of excess
  • #Underlying theory below
• Financial markets
  • Stylized fact – Simplified presentation of empirical finding
  • Regulatory economics – Economics of regulation
    • Macroprudential regulation § Theoretical rationale
  • Market microstructure – How trading mechanisms and market design shape prices, liquidity, and transaction costs
    • Walrasian auction – Theoretical auction process where prices adjust until all markets clear
    • Fisher market
    • Arrow-Debreu market – Economic Model
    • Matching market – Field of market economicsPages displaying short descriptions of redirect targets
  • Market design – Methodology for creation of markets
  • Agent-based model – Type of computational models
    • Representative agent
    • Aggregation problem – Concept in economics
    • Heterogeneity in economics
      • Heterogeneous agent model
      • Agent-based model § In economics and social sciences
      • Artificial financial market – Academic discipline concerned with the exchange of moneyPages displaying short descriptions of redirect targets
• General equilibrium theory – Theory of equilibrium between supply and demand
  • Supply and demand – Economic model of price determination in a market
  • Competitive equilibrium – Economic equilibrium concept
  • Economic equilibrium – Situation where economic forces are balanced
  • Partial equilibrium – Concept in economics
• Equilibrium price – Situation where economic forces are balancedPages displaying short descriptions of redirect targets
  • Market efficiency – Economic theory that asset prices fully reflect all available informationPages displaying short descriptions of redirect targets
  • Economic equilibrium – Situation where economic forces are balanced
  • Rational expectations – Economics concept
  • Risk factor (finance) – Concept in finance
• Arbitrage-free – Capitalisation of risk-free opportunities in financial marketsPages displaying short descriptions of redirect targets
  • Rational pricing – Assumption in financial economics
    • § Arbitrage free pricing – Assumption in financial economics
    • § Risk neutral valuation – Assumption in financial economics
  • Contingent claim analysis – Derivative whose payoff depends on an underlying asset or uncertain future eventPages displaying short descriptions of redirect targets
  • Brownian model of financial markets – Financial model
  • Complete market & Incomplete markets
• Utility – Concept in economics and decision theory
  • Risk aversion – Economics theory
  • Expected utility hypothesis – Concept in economics
  • Utility maximization problem – Problem of allocation of money by consumers in order to most benefit themselves
  • Marginal utility – Benefit derived from consuming a product
  • Quasilinear utility – Function linear in one argument, used in economics and consumer theory
  • Generalized expected utility
• Economic efficiency – Situation in which nothing can be improved without something else being hurt
  • Efficient-market hypothesis – Economic theory that asset prices fully reflect all available information
  • efficient frontier – Investment portfolio which occupies the "efficient" parts of the risk-return spectrum
  • Production–possibility frontier – Visualization of all possible options of output for a two-good economy
  • Allocative efficiency – When production relates to consumer preferences in an economy
  • Pareto efficiency – Weakly optimal allocation of resources
  • Productive efficiency – When one must decrease production of one good to increase another in an economy
  • Dumb agent theory – Hypothesis in economics regarding true value of stocks by consensus
• Stochastic discount factor – Concept in financial economics
  • Pricing kernel – Concept in financial economicsPages displaying short descriptions of redirect targets
  • Marginal rate of substitution – Concept in consumer economics
  • Hansen–Jagannathan bound – Theorem in financial economics
  • Girsanov theorem – Theorem on changes in stochastic processes
  • Radon–Nikodym derivative – Expressing a measure as an integral of anotherPages displaying short descriptions of redirect targets
• State prices – Economic ModelPages displaying short descriptions of redirect targets
  • Arrow–Debreu model – Economic Model
  • Application:
    • Arrow–Debreu model § Economics of uncertainty: insurance and finance
    • State prices § Application to financial assets
• Fundamental theorem of asset pricing – Necessary and sufficient conditions for a market to be arbitrage free and complete
  • Rational pricing – Assumption in financial economics
  • Arbitrage-free – Capitalisation of risk-free opportunities in financial marketsPages displaying short descriptions of redirect targets
  • No free lunch with vanishing risk – Concept in mathematical finance
  • Self-financing portfolio
  • Stochastic dominance – Partial order between random variables
    • Marginal conditional stochastic dominance
• Martingale pricing
  • Brownian model of financial markets – Financial model
  • Random walk hypothesis – Financial theory
  • Risk-neutral measure – Probability measure
  • Martingale (probability theory) – Model in probability theory
    • Sigma-martingale
    • Semimartingale – Type of stochastic process
• Quantum finance – Subfield of econophysics which applies quantum theory to finance

Time value of money

• Present value – Current worth of a future sum discounted to today
• Future value – Value of an asset at a specific date
• Discounting – When a creditor delays payments from a debtor in exchange for a fee
• Net present value – Valuation in finance
• Internal rate of return – Method of calculating an investment's rate of return
• Annuity – Series of payments made at equal intervalsPages displaying short descriptions of redirect targets
• Perpetuity – Annuity with payments made at equal intervals indefinitely

Financial mathematics

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

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

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 and supervisory bodies

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

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 #Asset pricing theory above)
  • Arbitrage-free price
    • Rational pricing § Shares
  • Equilibrium price
    • market efficiency
    • economic equilibrium
    • rational expectations

Context

• (Corporate) Bonds
  • Bond valuation
  • Bond (finance) § Bond valuation
  • Corporate bond § Valuation
• Equity valuation
  • #Equity valuation above
  • Fundamental analysis
  • Stock valuation
  • Capital Markets
  • 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
    • Conglomerate discount
  • Minority discount
  • Control premium
  • Accretion/dilution analysis
  • Certainty equivalent
  • Haircut (finance)
  • Paper valuation

Discounted cash flow valuation

• Bond valuation
  • Modeling
    • 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
  • 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)
    • Fixed rate bond
    • Floating rate note
    • Zero-coupon bond
    • Accrual bond
    • sinking fund provisions
• 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
    • Sum of perpetuities method
    • Benjamin Graham formula
    • LBO valuation model
    • Goldman Sachs asset management factor model
  • Cash flows
    • Cash flow forecasting
    • EBIDTA
    • NOPAT
    • Free cash flow
      • Free cash flow to firm
      • Free cash flow to equity
    • Dividends
    • Valuation using discounted cash flows § Determine cash flow for each forecast period

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
  • Valuation using multiples
  • Comparable company analysis
  • Dividend yield
    • Yield gap
  • 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
• Applications
  • Corporate investments and projects
    • Real options
    • Corporate finance § Valuing flexibility
    • Contingent value rights
    • Business valuation § Option pricing approaches
    • structured finance investments (funding dependent)
    • special purpose entities (funding dependent)
  • Balance sheet assets and liabilities
    • warrants and other convertible securities
    • securities with embedded options such as callable bonds
    • employee stock options

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

Financial modeling

• 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)
  • Valuation using discounted cash flows § Determine discount factor / 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
  • Valuation using discounted cash flows § Determine the continuing 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
      • Operating ratio
    • Cost driver
    • Fixed cost
    • Variable cost
    • Overhead cost
    • Value chain
    • activity based costing
    • common-size analysis
    • Profit model
  • Capital
    • Capital structure
    • common-size analysis
    • Equity (finance)
      • Shareholders' equity
      • Book value
      • Retained earnings
    • Financial capital
      • Long term asset / Fixed asset
        • Fixed-asset turnover
      • 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

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
      • CAN SLIM
    • Index investing
    • Magic formula investing
    • Momentum investing
    • Quality investing
    • Style investing
    • Factor investing
    • Thematic investing
  • Investment strategy
    • Benchmark-driven investment strategy
    • Liability-driven investment strategy
  • Financial risk management § Investment management
• Investor profile
• Rate of return on a portfolio / Investment performance
• Risk return ratio
  • Risk–return spectrum
• Risk factor (finance)
• Portfolio optimization
• Diversification (finance)
• Asset classes
  • Exter's Pyramid
• Asset allocation
  • Tactical asset allocation
    • Global tactical asset allocation
    • Cyclical tactical asset allocation
  • Strategic asset allocation
  • Dynamic 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)
• Uncompensated risk

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
    • Risk factor (finance)
  • 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
    • Single-index 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 – Mathematical theory for analyzing stock market structure and portfolio behavior
    • Chance-constrained portfolio selection – Approach to portfolio selection under loss aversion
  • Maslowian portfolio theory
  • Dedicated portfolio theory (fixed income specific)
  • Risk parity – Approach to investment management focusing on allocation of risk
  • Tail risk parity
• Optimization considerations
  • Pareto efficiency – Weakly optimal allocation of resources
  • Bayesian efficiency – Analog of Pareto efficiency for situations with incomplete information
  • Multiple-criteria decision analysis – Operations research that evaluates multiple conflicting criteria in decision making
  • Multi-objective optimization – Mathematical concept
  • Stochastic dominance – Partial order between random variables
    • Second-order Stochastic dominance – Partial order between random variables
    • Marginal conditional stochastic dominance
  • Downside risk – Risk of the actual return being below the expected return
  • Volatility skewness – Portfolio theory
  • Semivariance – Statistical measure of how far values spread from their average
  • Expected shortfall (ES; also called conditional value at risk (CVaR), average value at risk (AVaR), expected tail loss (ETL))
  • Tail value at risk – Risk measure estimating the average loss in the worst tail of the distributionPages displaying short descriptions of redirect targets
  • Statistical dispersion – Statistical property quantifying how much a collection of data is spread out
  • Discounted maximum loss – Measure of worst-case loss discounted to present value
  • Indifference price
• Measures
  • Dual-beta
    • Downside beta
    • Upside beta
  • Upside potential ratio
  • Upside risk
  • Downside risk – Risk of the actual return being below the expected return
  • Sortino ratio – Measurement in finance
  • Omega ratio – Concept in financial risk modeling
  • Bias ratio – Indicator in finance
  • Information ratio – Measure of an investment's return vs risk
    • Active return – Measure of profitability relative to an investment benchmark
    • Active risk – Measure of investment riskPages displaying short descriptions of redirect targets
  • Deviation risk measure – Risk metric quantifying variability of returns around their expected value
  • Distortion risk measure – Risk measure derived by applying a distortion function to a loss distribution
  • Spectral risk measure – Coherent risk measure using weighted outcomes based on risk aversion
• Optimization models
  • Black–Litterman model – Financial model for portfolio allocation
  • Universal portfolio algorithm – Portfolio selection algorithm
  • Resampled efficient frontier – Technique for constructing investment portfolios

Performance measurement

• Alpha (finance) – Risk-adjusted measure of the so-called active return on an investment
• Beta (finance) – Expected change in price of a stock relative to the whole market
• Performance attribution – Investment portfolio analysis technique
  • Market timing – Buying or selling per prediction of market price trends
  • Stock selection – Method of calculating theoretical values of companies and their stocksPages displaying short descriptions of redirect targets
• Fixed-income attribution – Measurement of risk in a portfolio
• Benchmark (finance) – Investment portfolio analysis techniquePages displaying short descriptions of redirect targets
• Lipper average
• Returns-based style analysis – Statistical technique used to deconstruct the returns of investment strategies
• Rate of return on a portfolio – Ratio of net portfolio earnings
• Holding period return
• Tracking error – Measure of investment risk
  • Attribution analysis – Investment portfolio analysis techniquePages displaying short descriptions of redirect targets
• Style drift
  • Returns-based style analysis – Statistical technique used to deconstruct the returns of investment strategies
• Simple Dietz method – Means of measuring historical investment portfolio performance
• Modified Dietz method – Historical performance of an investment portfolio
• Modigliani risk-adjusted performance – Measure of the risk-adjusted returns of some investment portfolio
• Upside potential ratio
• Maximum Downside Exposure
• Maximum drawdown – Measure of the decline from a historical peakPages displaying short descriptions of redirect targets
  • Sterling ratio
• Sharpe ratio – Formula for measuring financial risk
• Treynor ratio – Measure of financial risk
• Jensen's alpha – Financial calculation
• Bias ratio – Indicator in finance
• V2 ratio
• Calmar ratio

(hedge fund specific)

Mathematical techniques

• Modern portfolio theory § Mathematical model
• Quadratic programming – Solving an optimization problem with a quadratic objective function
  • Critical line method – Process of selecting a portfolioPages displaying short descriptions of redirect targets
• Nonlinear programming – Solution process for some optimization problems
• Mixed integer programming – Method to solve optimization problemsPages displaying short descriptions of redirect targets
• Stochastic programming (§ Multistage portfolio optimization)
• Copula (probability theory) (§ Quantitative finance)
• Principal component analysis (§ Quantitative finance)
• Deterministic global optimization – Branch of numerical optimization
• Extended Mathematical Programming (§ EMP for stochastic programming)
• Genetic algorithm (List of genetic algorithm applications § Finance and Economics)
• Artificial intelligence:
  • Applications of artificial intelligence § Trading and investment
  • Machine learning (§ Applications)
  • Artificial neural network (§ Finance)

Corporate Finance

• Business valuation / stock valuation – especially via discounted cash flow, but including other valuation approaches
• Scenario planning and management decision making ("what is"; "what if"; "what has to be done")
• Capital budgeting, including cost of capital (i.e. WACC) calculations
• Financial statement analysis / ratio analysis (including of operating- and finance leases, and R&D)
• Revenue related: forecasting, analysis
• Project finance modeling
• Cash flow forecasting
• Credit decisioning: Credit analysis, Consumer credit risk; impairment- and provision-modeling
• Working capital- and treasury management; asset and liability management
• Management accounting: Activity-based costing, Profitability analysis, Cost analysis, Whole-life cost

Quantitative finance

• Option pricing and calculation of their "Greeks"
• Other derivatives, especially interest rate derivatives, credit derivatives and exotic derivatives
• Modeling the term structure of interest rates (bootstrapping / multi-curves, short-rate models, HJM framework) and credit spreads
• Credit valuation adjustment, CVA, as well as the various XVA
• Credit risk, counterparty credit risk, and regulatory capital: EAD, PD, LGD, PFE
• Structured product design and manufacture
• Portfolio optimization and Quantitative investing more generally; see further re optimization methods employed.
• Financial risk modeling: value at risk (parametric- and / or historical, CVaR, EVT), stress testing, "sensitivities" analysis