Finance:Outline of finance
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Short description: Overview of finance and finance-related topics
The following outline is provided as an overview of and topical guide to finance:
Finance – addresses the ways in which individuals and organizations raise and allocate monetary resources over time, taking into account the risks entailed in their projects.
Overview
The term finance may incorporate any of the following:
- The study of money and other assets
- The management and control of those assets
- Profiling and managing related risks
Fundamental financial concepts
- Finance
- Arbitrage
- Capital (economics)
- Capital asset pricing model
- Cash flow
- Cash flow matching
- Debt
- Default
- Consumer debt
- Debt consolidation
- Debt settlement
- Credit counseling
- Bankruptcy
- Debt diet
- Debt-snowball method
- Debt of developing countries
- Asset types
- Real estate
- Securities
- Commodities
- Futures
- Cash
- Discounted cash flow
- Financial capital
- Entrepreneur
- Fixed income analysis
- Gap financing
- Global financial system
- Hedge
- Interest rate
- Risk-free interest rate
- Term structure of interest rates
- Short-rate model
- Interest
- Effective interest rate
- Nominal interest rate
- Interest rate basis
- Fisher equation
- Crowding out
- Annual percentage rate
- Interest coverage ratio
- Investment
- Leverage
- Long
- Liquidity
- Margin
- Mark to market
- Market impact
- Medium of exchange
- Microcredit
- Money
- Money creation
- Currency
- Coin
- Banknote
- Counterfeit
- History of money
- Monetary reform
- Portfolio
- Reference rate
- Return
- Risk
- Scenario analysis
- Short
- Speculation
- Position trader
- Spread trade
- Standard of deferred payment
- Store of value
- Time horizon
- Time value of money
- Discounting
- Present value
- Future value
- Net present value
- Internal rate of return
- Modified internal rate of return
- Annuity
- Perpetuity
- Trade
- Unit of account
- Volatility
- Yield
- Yield curve
History
- History of finance
- History of banking
- History of insurance
- Tulip mania (Dutch Republic), 1620s/1630s
- South Sea Bubble (UK) & Mississippi Company (France), 1710s; see also Stock market bubble
- Vix pervenit 1745, on usury and other dishonest profit
- Panic of 1837 (US)
- Railway Mania (UK), 1840s
- Erie War (US), 1860s
- Long Depression, 1873–1896 (mainly US and Europe, though other parts of the world were affected)
- Post-World War I hyperinflation; see Hyperinflation and Inflation in the Weimar Republic
- Wall Street Crash of 1929
- Great Depression 1930s
- Bretton Woods Accord 1944
- 1973 oil crisis
- 1979 energy crisis
- Savings and Loan Crisis 1980s
- Black Monday 1987
- Asian financial crisis 1990s
- Dot-com bubble 1995-2001
- Stock market downturn of 2002
- United States housing bubble
- Financial crisis of 2007–08, followed by the Great Recession
Finance terms by field
Accounting (financial record keeping)
- Auditing
- Accounting software
- Book keeping
- FASB
- Financial accountancy
- Financial statements
- Management accounting
- Philosophy of Accounting
- Hedge accounting
- IFRS 9
- Fair value accounting
Banking
- See articles listed under: Bank § See also
Corporate finance
- Balance sheet analysis
- Business plan
- Investment policy
- Business valuation
- Stock valuation
- Fundamental analysis
- Real options
- Valuation topics
- Fisher separation theorem
- Sources of financing
- Securities
- Debt
- Initial public offering
- Capital structure
- Cost of capital
- Dividend policy
- Investment policy
- Corporate action
- (Strategic) Financial management
- Capital management
- Capital budgeting
- Working capital
- Current assets
- Current liabilities
- Managerial finance
- Management accounting
- Capital management
- Mergers and acquisitions
- Real options
- Return on investment
- Loan covenant
- Cash conversion cycle
- Cash management
- Inventory optimization
- Supply chain management
- Just In Time (JIT)
- Economic order quantity (EOQ)
- Economic production quantity (EPQ)
- Economic batch quantity
- Credit (finance)
- Credit scoring
- Default risk
- Discounts and allowances
- Factoring (trade) & Supply chain finance
- Corporate budget
Investment management
- Active management
- Efficient market hypothesis
- Portfolio
- Modern portfolio theory
- Arbitrage pricing theory
- Passive management
- Activist shareholder
- Mutual fund
- Open-end fund
- Closed-end fund
- List of mutual-fund families
- Financial engineering
- Hedge fund
- Hedge
- Quantitative investing, below
Personal finance
- 529 plan (US college savings)
- ABLE account (US plan for benefit of individuals with disabilities)
- Asset allocation
- Budget
- Coverdell Education Savings Account (Coverdell ESAs, formerly known as Education IRAs)
- Credit and debt
- Debit card
- Direct deposit
- Employment contract
- Commission
- Employee stock option
- Employee or fringe benefit
- Health insurance
- Paycheck
- Salary
- Wage
- Financial literacy
- Insurance
- Predatory lending
- Retirement plan
- Australia – Superannuation in Australia
- Canada
- Registered retirement savings plan
- Tax-free savings account
- Japan – Nippon individual savings account
- New Zealand – KiwiSaver
- United Kingdom
- United States
- 401(a)
- 401(k)
- 403(b)
- 457 plan
- Keogh plan
- Individual retirement account
- Roth IRA
- Traditional IRA
- SEP IRA
- SIMPLE IRA
- Pension
- Simple living
- Social security
- Tax advantage
- Wealth
- Comparison of accounting software
- Personal financial management
- Investment club
- Collective investment scheme
Public finance
- Central bank
- Federal Reserve
- Fractional-reserve banking
- Deposit creation multiplier
- Tax
- Capital gains tax
- Estate tax (and inheritance tax)
- Gift tax
- Income tax
- Inheritance tax
- Payroll tax
- Property tax (including land value tax)
- Sales tax (including value added tax, excise tax, and use tax)
- Transfer tax (including stamp duty)
- Tax advantage
- Tax, tariff and trade
- Tax amortization benefit
- Crowding out
- Industrial policy
- Agricultural policy
- Currency union
- Monetary reform
Risk management
- Asset and liability management
- Asset liability mismatch
- Capital Requirements Directives
- Cash flow hedge
- Cash management
- Corporate governance
- Climate-related asset stranding
- Credit risk
- Default
- Downside risk & Upside risk
- Duration gap
- Enterprise risk management
- Finance § Risk management
- Financial engineering
- Financial risk
- Financial risk management
- Foreign exchange hedge
- Fuel price risk management
- Gordon–Loeb model for cyber security investments
- Interest rate risk
- Insurance
- Investment risk
- Irrational exuberance
- Kelly criterion
- Liquidity risk
- Market risk
- Operational risk
- Risk adjusted return on capital
- Risk aversion
- Risk-based internal audit
- Risk management § Finance
- Risk measure
- Risk modeling
- Risk of ruin
- Risk pool
- Risk register
- Risk return ratio
- Risk–return spectrum
- Security management
- Settlement risk
- Shadow banking system
- Specific risk
- St. Petersburg paradox
- Systematic risk
- Three lines of defence
- Treasury management
- Uncompensated risk
- Valuation risk
- Value at risk
- Computation
- Alternate measures
- Entropic value at risk
- Conditional value-at-risk / Expected shortfall
- Tail value at risk
- Extensions
- Volatility risk
- Wrong way risk
Constraint finance
- Environmental finance
- Feminist economics
- Green economics
- Islamic economics
- Uneconomic growth
- Value of Earth
- Value of life
Insurance
- Actuarial science
- Annuities
- Catastrophe modeling
- Earthquake loss
- Extended coverage
- Insurable interest
- Insurable risk
- Insurance
- Health insurance
- Disability insurance
- Accident insurance
- Flexible spending account
- Health savings account
- Long term care insurance
- Medical savings account
- Life insurance
- Life insurance tax shelter
- Permanent life insurance
- Term life insurance
- Universal life insurance
- Variable universal life insurance
- Whole life insurance
- Property insurance
- Auto insurance
- Boiler insurance
- Business interruption insurance
- Condo insurance
- Earthquake insurance
- Home insurance
- Title insurance
- Pet insurance
- Renters' insurance
- Casualty insurance
- Fidelity bond
- Liability insurance
- Political risk insurance
- Surety bond
- Terrorism insurance
- Credit insurance
- Mid-term adjustment
- Reinsurance
- Self insurance
- Travel insurance
- Niche insurance
- Health insurance
- Insurance contract
- Loss payee clause
- Risk Retention Group
Economics and finance
- Financial economics
- Financial econometrics
- Monetary economics
- Mathematical economics
- Managerial economics
- Economic growth theory
- Decision theory
- Game theory
- Experimental economics / Experimental finance
- Behavioral economics / Behavioral finance
Corporate finance theory
- Fisher separation theorem
- Modigliani–Miller theorem
- Theory of the firm
- The Theory of Investment Value
- Agency theory
- Managerial finance
- Capital structure
- Dividend policy
- Capital budgeting (valuation)
- Risk management
Asset pricing theory
- Value (economics)
- Fair value
- Intrinsic value
- Market price
- Expected value
- Opportunity cost
- Risk premium
- Underlying theory below
- Financial markets
- Stylized fact
- Regulatory economics
- Market microstructure
- Walrasian auction
- Fisher market
- Arrow-Debreu market
- Matching market
- Market design
- Agent-based model
- Equilibrium price
- Market efficiency
- Economic equilibrium
- Rational expectations
- Risk factor
- General equilibrium theory
- Arbitrage-free price
- Utility
- Economic efficiency
- State prices
- Fundamental theorem of asset pricing
- Martingale pricing
- Quantum finance
Asset pricing models
- Equilibrium pricing
- Equities; foreign exchange and commodities
- Bonds; other interest rate instruments
- Risk neutral pricing
- Equities; foreign exchange and commodities; interest rates
- Black–Scholes
- Black
- Garman–Kohlhagen
- Heston
- CEV
- SABR
- Bonds; other interest rate instruments
- Equities; foreign exchange and commodities; interest rates
Mathematics and finance
Time value of money
Financial mathematics
Mathematical tools
- Probability
- Stochastic calculus
- Brownian motion
- Cameron–Martin theorem
- Feynman–Kac formula
- Girsanov's theorem
- Itô's lemma
- Martingale representation theorem
- Radon–Nikodym derivative
- Stochastic differential equations
- Stochastic process
- Jump process
- Lévy process
- Markov process
- Ornstein–Uhlenbeck process
- Wiener process
- Monte Carlo methods
- Partial differential equations
- Volatility
Derivatives pricing
- Underlying logic (see also #Economics and finance above)
- Rational pricing
- Risk-neutral measure
- Arbitrage-free pricing
- Brownian model of financial markets
- Martingale pricing
- Rational pricing
- Forward contract
- Futures
- Options (incl. Real options and ESOs)
- Valuation of options
- Black–Scholes formula
- Approximations for American options
- Black model
- Binomial options model
- Finite difference methods for option pricing
- Garman–Kohlhagen model
- The Greeks
- Lattice model
- Margrabe's formula
- Monte Carlo methods for option pricing
- Monte Carlo methods in finance
- Quasi-Monte Carlo methods in finance
- Least Square Monte Carlo for American options
- Trinomial tree
- Volatility
- Swaps
- Interest rate derivatives (bond options, swaptions, caps and floors, and others)
- Black model
- Short-rate models (generally applied via lattice based- and specialized simulation-models, although "Black like" formulae exist in some cases.)
- Forward rate / Forward curve -based models (Application as per short-rate models)
- LIBOR market model (also called: Brace–Gatarek–Musiela Model, BGM)
- Heath–Jarrow–Morton Model (HJM)
- Cheyette model
- Valuation adjustments
- Yield curve modelling
Portfolio mathematics
- Mathematical techniques below
- Quantitative investing below
- Modern portfolio theory § Mathematical model
- Portfolio optimization
- Merton's portfolio problem
- Kelly criterion
- Roy's safety-first criterion
- Specific applications:
Financial markets
Financial markets
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
Equity valuation
- Dow theory
- Elliott wave principle
- Economic value added
- Fibonacci retracement
- Gordon model
- Growth stock
- PEG ratio
- PVGO
- Mergers and acquisitions
- Leveraged buyout
- Takeover
- Corporate raid
- PE ratio
- Market capitalization
- Income per share
- Stock valuation
- Technical analysis
- Chart patterns
- V-trend
- Paper valuation
Investment theory
- Behavioral finance
- Dead cat bounce
- Efficient market hypothesis
- Market microstructure
- Stock market crash
- Stock market bubble
- January effect
- Mark Twain effect
- Quantitative behavioral finance
- Quantitative analysis
- Statistical arbitrage
Bond market
- Bond
- Zero-coupon bond
- Junk bonds
- Convertible bond
- Accrual bond
- Municipal bond
- Sovereign bond
- Bond valuation
- 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
- (see also Financial mathematics topics; Derivatives pricing)
- Underlying instrument
Forward markets and contracts
Futures markets and contracts
- Backwardation
- Contango
- Futures contract
- Financial future
- Futures exchange
Option markets and contracts
- Options
- Stock option
- Box spread
- Call option
- Put option
- Strike price
- Put–call parity
- The Greeks
- Black–Scholes formula
- Black model
- Binomial options model
- Implied volatility
- Option time value
- Moneyness
- At-the-money
- In-the-money
- Out-of-the-money
- Straddle
- Option style
- Vanilla option
- Exotic option
- Binary option
- European option
- Interest rate floor
- Interest rate cap
- Bermudan option
- American option
- Quanto option
- Asian option
- Employee stock option
- Warrants
- Foreign exchange option
- Interest rate options
- Bond options
- Real options
- Options on futures
- Stock option
Swap markets and contracts
Derivative markets by underlyings
Equity derivatives
- Contract for difference (CFD)
- Exchange-traded fund (ETF)
- Closed-end fund
- Inverse exchange-traded fund
- Equity options
- Equity swap
- Real estate investment trust (REIT)
- Warrants
Interest rate derivatives
- LIBOR
- Forward rate agreement
- Interest rate swap
- Interest rate cap
- Exotic interest rate option
- Bond option
- Interest rate future
- Money market instruments
- Range accrual Swaps/Notes/Bonds
- In-arrears Swap
- Constant maturity swap (CMS) or Constant Treasury Swap (CTS) derivatives (swaps, caps, floors)
- Interest rate Swaption
- Bermudan swaptions
- Cross currency swaptions
- Power Reverse Dual Currency note (PRDC or Turbo)
- Target redemption note (TARN)
- CMS steepener
- Snowball
- Inverse floater
- Strips of Collateralized mortgage obligation
- Interest only (IO)
- Principal only (PO)
- Ratchet caps and floors
Credit derivatives
- Credit default swap
- Collateralized debt obligation
- Credit default option
- Total return swap
- Securitization
Foreign exchange derivative
- Basis swap
- Currency future
- Currency swap
- Foreign exchange binary option
- Foreign exchange forward
- Foreign exchange option
- Forward exchange rate
- Foreign exchange swap
- Foreign exchange hedge
- Non-deliverable forward
- Power reverse dual-currency note
Financial regulation
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 bodies
International
- Bank for International Settlements
- International Organization of Securities Commissions
- Security Commission
- Basel Committee on Banking Supervision
- Basel Accords – Basel I, Basel II, Basel III
- International Association of Insurance Supervisors
- International Accounting Standards Board
European Union
- European Securities Committee (EU)
- Committee of European Securities Regulators (EU)
Regulatory bodies by country
United Kingdom
- Financial Conduct Authority
- Prudential Regulation Authority (United Kingdom)
United States
- Commodity Futures Trading Commission
- Federal Reserve
- Federal Trade Commission
- Municipal Securities Rulemaking Board
- Office of the Comptroller of the Currency
- Securities and Exchange Commission
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
Actuarial topics
- Actuarial topics
Valuation
Underlying theory
- Value (economics)
- Valuation 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)
- Equilibrium price
- market efficiency
- economic equilibrium
- rational expectations
- Arbitrage-free price
- Equilibrium price
Context
- (Corporate) Bonds
- Equity valuation
- Real estate valuation
- Real estate appraisal
- Real estate economics
Considerations
- Bonds
- Equity
- Minimum acceptable rate of return
- Margin of safety (financial)
- Enterprise value
- Sum-of-the-parts analysis
- Minority discount
- Control premium
- Accretion/dilution analysis
- Certainty equivalent
- Haircut
- Paper valuation
Discounted cash flow valuation
- Bond valuation
- Modeling
- Results
- Cash flows
- Principal (finance)
- Coupon (bond)
- Fixed rate bond
- Floating rate note
- Zero-coupon bond
- Accrual bond
- sinking fund provisions
- Real estate valuation
- 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
- 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
- Results
Relative valuation
- Bonds
- Real estate
- Capitalization rate
- Gross rent multiplier
- Sales comparison approach
- Cash on cash return
- Equity
- Financial ratio
- Market-based valuation
- Valuation using multiples
- Comparable company analysis
- Dividend yield
- Return on equity
- PE ratio
- 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
- general
- 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
- Corporate investments and projects
Other approaches
- "Fundamentals"-based (relying on accounting information)
Financial modeling
- Cash flow
- Cash flow forecasting
- Cash flow statement
- Operating cash flow
- EBIDTA
- 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)
- Terminal value
- Forecasted financial statements
- Financial forecast
- Financial modeling § Accounting
- Pro forma § Financial statements
- Revenue
- Costs
- Profit margin
- Gross margin
- Net margin
- Cost of goods sold
- Operating expenses
- Cost driver
- Fixed cost
- Variable cost
- Overhead cost
- Value chain
- activity based costing
- common-size analysis
- Profit model
- Profit margin
- Capital
- Capital structure
- common-size analysis
- Equity
- Financial capital
- Long term asset / Fixed asset
- Long-term liabilities
- Working capital
- Current asset
- Current liability
- Inventory turnover / Days in inventory
- Cost of goods sold
- Debtor & Creditor days
- Days sales outstanding
- Days payable outstanding
Portfolio theory
General concepts
- Portfolio
- Portfolio manager
- Investment management
- Investor profile
- Rate of return on a portfolio / Investment performance
- Risk return ratio
- Risk factor
- Portfolio optimization
- Diversification
- Asset classes
- Asset allocation
- Sector rotation
- Correlation & covariance
- Risk-free interest rate
- Leverage
- Utility function
- Intertemporal portfolio choice
- Portfolio insurance
- Mathematical finance § Risk and portfolio management: the P world
- Quantitative investment / Quantitative fund (see below)
- Uncompensated risk
Modern portfolio theory
- Portfolio optimization
- Theory and results (derivation of the CAPM)
- Equilibrium price
- Market price
- Systematic risk
- Idiosyncratic risk / Specific risk
- Mean-variance analysis (Two-moment decision model)
- Efficient frontier (Mean variance efficiency)
- Feasible set
- Mutual fund separation theorem
- Tangent portfolio
- Market portfolio
- Beta
- Capital allocation line
- Capital market line
- Security characteristic line
- Capital asset pricing model
- Security market line
- Roll's critique
- Related measures
- Optimization models
- Equilibrium pricing models (CAPM and extensions)
Post-modern portfolio theory
- Approaches
- Optimization considerations
- Pareto efficiency
- Bayesian efficiency
- Multiple-criteria decision analysis
- Multi-objective optimization
- Stochastic dominance
- Downside risk
- Volatility skewness
- Semivariance
- Expected shortfall (ES; also called conditional value at risk (CVaR), average value at risk (AVaR), expected tail loss (ETL))
- Tail value at risk
- Statistical dispersion
- Discounted maximum loss
- Indifference price
- Measures
- Optimization models
Performance measurement
- Alpha
- Beta
- Performance attribution
- Fixed-income attribution
- Benchmark
- Lipper average
- Returns-based style analysis
- Rate of return on a portfolio
- Holding period return
- Tracking error
- Style drift
- Simple Dietz method
- Modified Dietz method
- Modigliani risk-adjusted performance
- Upside potential ratio
- Maximum Downside Exposure
- Maximum drawdown
- Sharpe ratio
- Treynor ratio
- Jensen's alpha
- Bias ratio
- V2 ratio
- Calmar ratio (hedge fund specific)
Mathematical techniques
- Modern portfolio theory § Mathematical model
- Quadratic programming
- Nonlinear programming
- Mixed integer programming
- Stochastic programming (§ Multistage portfolio optimization)
- Copula (probability theory) (§ Quantitative finance)
- Principal component analysis (§ Quantitative finance)
- Deterministic global optimization
- Genetic algorithm (List of genetic algorithm applications § Finance and Economics)
- Machine learning (§ Applications)
- Artificial neural network
- Extended Mathematical Programming (§ EMP for stochastic programming)
Quantitative investing
- Quantitative investing
- Quantitative fund
- Quantitative analysis (finance) § Quantitative investment management
- Quantitative analysis (finance) § Algorithmic trading quantitative analyst
- Trading:
- Portfolio optimization:
- Risks:
- Best execution
- Implementation shortfall
- Trading curb
- Market impact
- Market depth
- Slippage
- Transaction costs
- Discussion:
- Automated trading system § Market disruption and manipulation
- High-frequency trading § Risks and controversy
- Algorithmic trading § Issues and developments
- Positive feedback § Systemic risk
- 2010 flash crash
- Black Monday (1987) § Causes
- Statistical arbitrage § StatArb and systemic risk: events of summer 2007
- Leading companies:
- Prediction Company
- Renaissance Technologies
- D. E. Shaw & Co
- AQR Capital
- Barclays Investment Bank
- Cantab Capital Partners
- Robeco
- Jane Street Capital
Financial software tools
- Straight Through Processing Software
- Technical Analysis Software
- Algorithmic trading
- Electronic trading platform
- List of numerical-analysis software
- Comparison of numerical-analysis software
Financial modeling applications
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"[1])
- 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[2] 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
Financial institutions
- Bank
- List of banks
- List of banks in the Arab World
- List of banks in Africa
- List of banks in the Americas
- List of banks in Asia
- List of banks in Europe
- List of banks in Oceania
- List of international banking institutions
- Advising bank
- Central bank
- List of central banks
- Commercial bank
- Community development bank
- Cooperative bank
- Custodian bank
- Depository bank
- Ethical bank
- Investment bank
- Islamic banking
- Merchant bank
- Microcredit
- Mutual savings bank
- National bank
- Offshore bank
- Private bank
- Savings bank
- Swiss bank
- Bank holding company
- List of banks
- Building society
- Broker
- Broker-dealer
- Brokerage firm
- Commodity broker
- Insurance broker
- Prime brokerage
- Retail broker
- Stockbroker
- Clearing house
- Commercial lender
- Community development financial institution
- Credit rating agency
- Credit union
- Diversified financial
- Edge Act Corporation
- Export Credit Agencies
- Financial adviser
- Financial intermediary
- Financial planner
- Futures exchange
- Government sponsored enterprise
- Hard money lender
- Independent financial adviser
- Industrial loan company
- Insurance company
- Investment adviser
- Investment company
- Investment trust
- Large and Complex Financial Institutions
- Mutual fund
- Non-banking financial company
- Savings and loan association
- Stock exchange
- Trust company
Education
- For the typical finance career path and corresponding education requirements see:
- Financial analyst generally, and esp. § Qualification, discussing various investment, banking, and corporate roles (i.e. financial management, corporate finance, investment banking, securities analysis & valuation, portfolio & investment management, credit analysis, working capital & treasury management; see Financial modeling § Accounting)
- Quantitative analyst, Quantitative analysis (finance) § Education and Financial engineering § Education, specifically re roles in quantitative finance (i.e. derivative pricing & hedging, interest rate modeling, financial risk management, financial engineering, computational finance; also, the mathematically intensive variant on the banking roles; see Financial modeling § Quantitative finance)
- Business education lists undergraduate degrees in business, commerce, accounting and economics; "finance" may be taken as a major in most of these, whereas "quantitative finance" is almost invariably postgraduate, following a math-focused Bachelors; the most common degrees for (entry level) investment, banking, and corporate roles are:
- Bachelor of Business Administration (BBA)
- Bachelor of Commerce (BCom)
- Bachelor of Accountancy (B.Acc)
- Bachelor of Economics (B.Econ)
- Bachelor of Finance - the undergraduate version of the MSF below
- The tagged BS / BA "in Finance", or less common, "in Investment Management" or "in Personal Finance"
- At the postgraduate level, the MBA, MCom and MSM (and recently the Master of Applied Economics) similarly offer training in finance generally; at this level there are also the following specifically focused master's degrees, with MSF the broadest - see Master of Finance § Comparison with other qualifications for their focus and inter-relation:
- Master of Applied Finance (M.App.Fin)
- Master of Commerce in Finance (MCom)
- Master of Computational Finance
- Master's in Corporate Finance
- Master of Finance (M.Fin, MIF)
- Master's in Financial Analysis
- Master of Financial Economics
- Master of Financial Engineering (MFE)
- Master of Financial Planning
- Master's in Financial Management
- Master of Financial Mathematics
- Master's in Financial Risk Management
- Master's in Investment Management
- Master of Mathematical Finance
- Master of Quantitative Finance (MQF)
- Master of Science in Finance (MSF, MSc Finance)
- MS in Fintech
- Doctoral-training in finance is usually a requirement for academia, but not relevant to industry
- quants often enter the profession with PhDs in disciplines such as physics, mathematics, engineering, and computer science, and learn finance "on the job”
- as an academic field, finance theory is studied and developed within the disciplines of management, (financial) economics, accountancy, and applied / financial mathematics.
- For specialized roles, there are various Professional Certifications in financial services (see #Designations and accreditation above); the best recognized are arguably:
- Association of Corporate Treasurers (MCT / FCT)
- Certificate in Quantitative Finance (CQF)
- Certified Financial Planner (CFP)
- Certified International Investment Analyst (CIIA)
- Certified Treasury Professional (CTP)
- Chartered Alternative Investment Analyst (CAIA)
- Chartered Financial Analyst (CFA)
- Chartered Wealth Manager (CWM)
- CISI Diploma in Capital Markets (MCSI)
- Financial Risk Manager (FRM)
- Professional Risk Manager (PRM)
- Various organizations offer executive education, CPD, or other focused training programs, including:
- Amsterdam Institute of Finance
- Canadian Securities Institute
- Chartered Institute for Securities & Investment
- GARP
- Global Risk Institute
- ICMA Centre
- The London Institute of Banking & Finance
- New York Institute of Finance
- PRMIA
- South African Institute of Financial Markets
- Swiss Finance Institute
- See also qualifications in related fields:
See also
Related lists
- Index of accounting articles
- Outline of business management
- Outline of marketing
- Outline of economics
- Outline of production
- List of international trade topics
- List of business law topics
- List of business theorists
- Actuarial topics
References
- ↑ Joel G. Siegel; Jae K. Shim; Stephen Hartman (1 November 1997). Schaum's quick guide to business formulas: 201 decision-making tools for business, finance, and accounting students. McGraw-Hill Professional. ISBN 978-0-07-058031-2. https://books.google.com/books?id=4JpojQPk8YsC. Retrieved 12 November 2011. §39 "Corporate Planning Models". See also, §294 "Simulation Model".
- ↑ See for example: Low, R.K.Y.; Faff, R.; Aas, K. (2016). "Enhancing mean–variance portfolio selection by modeling distributional asymmetries". Journal of Economics and Business 85: 49–72. doi:10.1016/j.jeconbus.2016.01.003. https://espace.library.uq.edu.au/view/UQ:377912/UQ377912_OA.pdf.; Low, R.K.Y.; Alcock, J.; Faff, R.; Brailsford, T. (2013). "Canonical vine copulas in the context of modern portfolio management: Are they worth it?". Journal of Banking & Finance 37 (8): 3085–3099. doi:10.1016/j.jbankfin.2013.02.036. https://espace.library.uq.edu.au/view/UQ:297895/EC15UQ297895.pdf.
External links
- Prof. Aswath Damodaran - financial theory, with a focus in Corporate Finance, Valuation and Investments. Updated Data, Excel Spreadsheets.
- Web Sites for Discerning Finance Students (Prof. John M. Wachowicz) -Links to finance web sites, grouped by topic
- studyfinance.com - introductory finance web site at the University of Arizona
- SECLaw.com - law of the financial markets
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