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9 Corporate finance and investment vocabulary

Managing a company's capital structure, funding, and investment decisions.

capital structure – the mix of debt and equity financing used by a company.

equity financing – raising capital through the sale of shares.

debt financing – raising capital through borrowing.

bond – a fixed-income investment representing a loan made by an investor to a borrower.

stock – a type of security that signifies ownership in a corporation.

dividend – distribution of profits to shareholders.

initial public offering (IPO) – the process of offering shares of a private corporation to the public in a new stock issuance.

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option – a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a set price.

futures – a contract to buy or sell assets at a future date at a price agreed upon today.

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Finance & accounting essential vocabulary
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