Finance, like every other discipline, has developed its own secret language
- buzzwords, terms and equations. This serves several purposes:
(1) It
allows those who use the language to sound super-smart and well-informed.
(2)
By the same token, it keeps those who are not finance people out of the
loop.
(3) It does save us some time and effort by allowing us to communicate
with each other (at least within the profession)
Since I am as
guilty as everyone else in the profession of using these terms in my books,
classes, datasets and articles, this is my penance page. Here, you will
find an overall glossary that lists financial terms, though I have to
admit that it is neither comprehensive nor complete. A more useful extended
glossary covers only financial ratios and measures, notes how they are
defined and my comments on their use and misuse. The third section lists
primers that you may find useful before you embark on financial analysis.
In particular, it has very short, focused descriptions of accounting, statistics,
present value and risk aversion. The final section is a preview section,
where I present my visisons of what corporate finance, valuation and
portfolio management, with short presentations and podcasts on each topic.
I also provide some suggestions on how you can use this site to learn what
you need to on each topic.You may want to see these before you decide to
delve deeper into each of them.
Topic | Presentation | Podcast | Guide to Getting Started |
Corporate Finance | What is corporate finance? | Introduction to Corporate Finance | Corporate Finance |
Valuation | A preview of valuation | Introduction to Valuation | Valuation |
Portfolio Management | Investing Basics | Introduction to Portfolio Management | Portfolio Management |