Finance:Outline of finance

Short description: Overview of finance and finance-related topics

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The following outline provides an overview and topical guide to finance:

Finance – the field concerned with how individuals, businesses, and organizations raise, allocate, and manage monetary resources over time, while accounting for the risks associated with their activities and investments.

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
- Financial ethics
- Asset types
  - Real estate
  - Securities
  - Commodities
  - Futures
  - Cash
- Discounted cash flow
- Financial capital
  - Funding
- Entrepreneur
  - Entrepreneurship
- Fixed income analysis
- Gap financing
- Global financial system
- Hedge
  - Basis risk
- Interest rate
  - Risk-free interest rate
  - Term structure of interest rates
- Short-rate model
  - Vasicek model
  - Cox–Ingersoll–Ross model – Stochastic model for the evolution of financial interest rates
  - Hull–White model
  - Chen model
  - Black–Derman–Toy model
- Interest
  - Effective interest rate
  - Nominal interest rate
  - Interest rate basis
  - Fisher equation
  - Crowding out
  - Annual percentage rate
  - Interest coverage ratio, also known as Times interest earned
- Investment
  - Foreign direct investment
  - Gold as an investment
  - Over-investing
- Leverage
- Long (finance)
- Liquidity
  - Market liquidity
  - Accounting liquidity
  - Funding liquidity
- Margin (finance)
- Mark to market
- Market impact
- Medium of exchange
- Microcredit
- Money
  - Money creation
  - Currency
  - Coin
  - Banknote
  - Counterfeit
  - History of money
  - Monetary reform
- Portfolio
  - Modern portfolio theory
  - Mutual fund separation theorem
  - Post-modern portfolio theory
- Reference rate
- Return
  - Absolute return
  - Investment performance
  - Relative return
- Risk
  - Financial risk
  - Risk management – Identification, evaluation and control of risks
    - Financial risk management
    - Uncompensated risk
  - Risk measure – Concept in financial mathematics
    - Coherent risk measure – Concept in financial economics
    - Deviation risk measure
    - Distortion risk measure
    - Spectral risk measure
    - Value at risk – Estimated potential loss for an investment under a given set of conditions
      - Expected shortfall – Measure of financial risk
      - Entropic value at risk
- Scenario analysis
- Short (finance)
- Speculation
  - Day trading
- Position trader
- Spread trade
- Standard of deferred payment
- Store of value
- Time horizon, also known as planning horizon
- Time value of money – Better to receive money now than later
  - Discounting – When a creditor delays payments from a debtor in exchange for a fee
  - Present value, also known as Present Discounted Value (PDV)
  - Future value
  - Net present value
  - Internal rate of return
  - Modified internal rate of return
  - Annuity
  - Perpetuity
- Trade
  - Free trade
  - Free market
  - Fair trade
- Unit of account
- Volatility
- Yield
- Yield curve
- Equated monthly installment
- Down payment
Financial Technology

History

History of finance
History of banking
History of insurance
Stock market bubble
- Tulip mania
- South Sea Bubble
- Mississippi Company
- Railway Mania
- Dot-com bubble
- United States housing bubble
Vix pervenit 1745, on usury and other dishonest profit
Panic of 1837
Erie War
Long Depression
Post-World War I hyperinflation; see
- Hyperinflation
- Inflation in the Weimar Republic
Wall Street Crash of 1929
Great Depression
Bretton Woods Accord
1973 oil crisis
1979 energy crisis
Savings and Loan Crisis
Black Monday
1997 Asian financial crisis
Stock market downturn of 2002
2008 financial crisis
Great Recession

Finance terms by field

Accounting (financial record keeping)

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
- Financial ratio
Business plan
Corporate action
(Strategic) Financial management
Mergers and acquisitions
Real option
- Return on investment
- Loan covenant
- Cash conversion cycle
- Cash management
  - Strategic financial management § Cash management
- Inventory optimization
  - Supply chain management
  - Just In Time
  - Economic order quantity, also known as Optimum Batch Quantity
  - Economic production quantity
  - Economic batch quantity
- Credit (finance)
- Credit scoring
- Default risk
- Discounts and allowances
- Factoring (trade)
- Supply chain finance, also known as supplier finance or reverse factoring
- Corporate budget

Investment management

Personal finance

529 plan
ABLE account
Asset allocation – Investment strategy
- Asset location
Budget
Coverdell Education Savings Account
Credit and debt
- Credit card
- Debt consolidation
- Mortgage loan
  - Continuous-repayment mortgage
Debit card – Card used for financial transactions
Direct deposit
Employment contract
- Commission
- Employee stock option
- Employee or fringe benefit
- Health insurance
- Paycheck
- Salary
- Wage
Financial literacy
Insurance
Predatory lending
Retirement plan
- Superannuation in Australia
- Canada
  - Registered retirement savings plan
  - Tax-free savings account
- Nippon individual savings account
- KiwiSaver
- United Kingdom
  - Individual savings account
  - Self-invested personal pension
- United States
- Pension
Simple living
Social security
Tax advantage
Wealth
Comparison of accounting software
Personal financial management
Investment club
Collective investment scheme

Public finance

Risk management

Asset and liability management
Asset–liability mismatch
Capital Requirements Regulation 2013
Credit Institutions Directive 2013
Capital Requirements Directives
Cash flow hedge
Cash management
Corporate governance
Climate-related asset stranding – Former physical asset, now a liability
Credit risk – Type of financial risk
Default (finance)
Discounted maximum loss – Measure of worst-case loss discounted to present value
Downside risk & Upside risk
Duration gap
Enterprise risk management – Business methods and processes
Financial engineering
Financial risk
Financial risk management
Foreign exchange hedge
Fuel price risk management
Gordon–Loeb model – Method for optimizing information security investments
Interest rate risk
- Interest rate risk in the banking book
Insurance
Investment risk
Irrational exuberance
Kelly criterion – Bet sizing formula for long-term growth
Liquidity risk
Market risk – Risks arising from movements in market variables
Operational risk
Risk accounting
Risk adjusted return on capital
Risk aversion – Economics theory
Risk-based internal audit
Risk measure – Concept in financial mathematics
- Coherent risk measure – Concept in financial economics
- Deviation risk measure
- Distortion risk measure
- Spectral risk measure
Risk modeling
Risk of ruin – Concept in gambling, insurance, and finance
Risk pool
Risk register – Document used as risk management tool, acting as a repository for all identified risks
Risk return ratio
Risk–return spectrum
Security management – Computer security procedure
Settlement risk
Shadow banking system
Specific risk
St. Petersburg paradox – Paradox involving a game with repeated coin flipping
Systematic risk
Three lines of defence
Treasury management
Uncompensated risk
Valuation risk
Value at risk – Estimated potential loss for an investment under a given set of conditions
- Computation
  - Historical simulation (finance)
  - Monte Carlo
  - variance-covariance – Estimated potential loss for an investment under a given set of conditions
  - Greeks (finance)
- Alternate measures
  - Entropic value at risk
  - Expected shortfall, also known as Conditional value-at-risk – Measure of financial risk
  - Tail value at risk, also known as Tail Conditional Expectation – Measure giving the average loss beyond a specified Value-at-Risk level
- Extensions
  - Profit at risk – Risk management quantity used in electricity
  - 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, also known as Cash flow at risk – Estimate of the potential impact of market movements on a firm's earnings
  - Liquidity-adjusted VaR
Volatility risk
Volume risk
Wrong way risk – Concept in risk management

Constraint finance

Insurance

Actuarial science – Statistics applied to risk in insurance and other financial products
Annuities
Catastrophe modeling – Computer-assisted risk analysis
Earthquake loss
Extended coverage
Financial risk management § Insurance
Insurable interest
Insurable risk
Insurance
Insurance contract
Loss payee clause
Risk Retention Group

Economics and finance

Mathematics and finance

Time value of money

Financial mathematics

Mathematical tools

Probability
- Probability distribution
Stochastic calculus
- Brownian motion
  - Geometric 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
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
Forward contract
- Forward contract pricing
Futures
- Futures contract pricing
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
- Swap valuation
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
- Credit valuation adjustment
- XVA
Yield curve modelling

Portfolio mathematics

1. Mathematical techniques below
2. Quantitative investing below
Modern portfolio theory § Mathematical model
Portfolio optimization
- § Optimization methods
- § Mathematical tools
Merton's portfolio problem
Kelly criterion
Roy's safety-first criterion
Specific applications:

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

Investment theory

Bond market

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

Forward contract

Futures markets and contracts

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

Swap markets and contracts

Swap
- Interest rate swap
- Basis swap
- Asset swap
- Forex swap
- Stock swap
- Equity swap
- Currency swap
- Variance swap

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
- Covered warrant

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

Foreign exchange derivative

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

Industry bodies

International Swaps and Derivatives Association
National Association of Securities Dealers

Regulatory and supervisory 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
  - Rational pricing § Arbitrage free pricing
  - Rational pricing § Risk neutral valuation

Context

(Corporate) Bonds
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
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
- Paper valuation

Discounted cash flow valuation

Bond valuation
- Modeling
- Results
  - Clean price
  - Dirty price
  - Yield to maturity
  - Coupon yield
  - Current yield
  - Duration
  - Convexity
  - embedded options:
- Cash flows
  - Principal
  - 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
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
- 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
    1. Derivatives pricing above
- as typically employed
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)

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)
Terminal value
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
  - 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

Portfolio theory

General concepts

Modern portfolio theory

Portfolio optimization
Theory and results (derivation of the CAPM)
Related measures
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)

Post-modern portfolio theory

Approaches
Optimization considerations
- Pareto efficiency
- Bayesian efficiency
- Multiple-criteria decision analysis
- Multi-objective optimization
- Stochastic dominance
  - Second-order Stochastic dominance
  - Marginal conditional 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
- Dual-beta
  - Downside beta
  - Upside beta
- Upside potential ratio
- Upside risk
- Downside risk
- Sortino ratio
- Omega ratio
- Bias ratio
- Information ratio
  - Active return
  - Active risk
- Deviation risk measure
- Distortion risk measure
- Spectral risk measure
Optimization models

Performance measurement

Alpha
Beta
Performance attribution
- Market timing
- Stock selection
Fixed-income attribution
Benchmark
Lipper average
Returns-based style analysis
Rate of return on a portfolio
Holding period return
Tracking error
- Attribution analysis
Style drift
- Returns-based style analysis
Simple Dietz method
Modified Dietz method
Modigliani risk-adjusted performance
Upside potential ratio
Maximum Downside Exposure
Maximum drawdown
- Sterling ratio
Sharpe ratio
Treynor ratio
Jensen's alpha
Bias ratio
V2 ratio
Calmar ratio (hedge fund specific)

Mathematical techniques

Quantitative investing

Quantitative investing
Quantitative fund
Quantitative analysis (finance) § Quantitative investment management
Quantitative analysis (finance) § Algorithmic trading quantitative analyst
Applications of artificial intelligence § Trading and investment
Trading:
Portfolio optimization:
Risks:
- Best execution
- Implementation shortfall
- Trading curb
- Market impact
- Market depth
- Slippage
- Transaction costs
Discussion:
Leading companies (see Quantitative fund § List of notable quantitative funds):
- Prediction Company
- Renaissance Technologies
- D. E. Shaw & Co
- AQR Capital
- Barclays Investment Bank
- Cantab Capital Partners
- Robeco
- Jane Street Capital

Financial software tools

Financial software
Financial management systems
Financial data vendor
Accounting software
- Straight-through processing
Banking software
Treasury management system
Strategic planning software
Technical Analysis Software
Algorithmic trading
Electronic trading platform

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
- 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
- Offshore bank
- Private bank
- Savings bank
- Swiss bank
- Bank holding company
Building society
Broker
- Broker-dealer
- Brokerage firm
- Commodity broker
- Insurance broker
- Prime brokerage
- Retail brokerage
- Stockbroker
Clearing house
Commercial lender
Community development financial institution
Credit rating agency
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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 Lua error: Internal error: The interpreter has terminated with signal "24".)
- Quantitative analyst, Lua error: Internal error: The interpreter has terminated with signal "24". and Lua error: Internal error: The interpreter has terminated with signal "24"., 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 Lua error: Internal error: The interpreter has terminated with signal "24".)
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 Lua error: Internal error: The interpreter has terminated with signal "24". 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:
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- Actuarial credentialing and exams
- Business education
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- Economics education
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Related lists

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.

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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