| Finance |
 | | Financial Markets
Bond market
Stock (Equities) Market
Forex market
Derivatives market
Commodity market
Spot (cash) Market
OTC market
Real Estate market
This article does not cite any references or sources. ...
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This article does not cite any references or sources. ...
The bond market, also known as the debit, credit, or fixed income market, is a financial market where participants buy and sell debt securities usually in the form of bonds. ...
A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately. ...
In finance, the exchange rate between two currencies specifies how much one currency is worth in terms of the other. ...
The derivatives markets are the financial markets for derivatives. ...
Chicago Board of Trade Futures market Commodity markets are markets where raw or primary products are exchanged. ...
Template:The Spot Market The Spot Market or Cash Marketis a commodities or securities market in which goods are sold for cash and delivered immediately. ...
Over-the-counter (OTC) trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. ...
Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ...
| | Market Participants
Investors
Speculators
Institutional Investors
There are two basic financial market participant catagories, Investor vs. ...
Investment is a term with several closely related meanings in finance and economics. ...
Speculation is the buying, holding, and selling of stocks, commodities, futures, currencies, collectibles, real estate, or any valuable thing to profit from fluctuations in its price as opposed to buying it for use or for income - dividends, rent etc. ...
An institutional investor is an investor who is an institution like a bank, insurance fund, retirement fund, or mutual fund manager. ...
| | Corporate finance
Structured finance
Capital budgeting
Financial risk management
Mergers and Acquisitions
Accounting
Financial Statements
Auditing
Credit rating agency
Domestic credit to private sector in 2005 Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. ...
Structured finance describes any non-standard way of raising money. ...
The process of determining which potential long-term projects are worth undertaking, by comparing their expected discounted cash flows with their internal rates of return. ...
Financial risk management is the practice of creating economic value in a firm by using financial instruments to manage exposure to risk, particularly credit and market risk. ...
The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business...
It has been suggested that Accounting scholarship be merged into this article or section. ...
Historical financial statement Financial statements (or financial reports) are formal records of a business financial activities. ...
Basic definition Audit is the examination of records and reports of a company, in order to check that what is provided is relevant and accurate. ...
A credit rating agency (CRA) is a company that assigns credit ratings for issuers of certain types of debt obligations. ...
| | Personal finance
Credit and Debt
Employment contract
Retirement
Financial planning
Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. ...
Credit as a financial term, used in such terms as credit card, refers to the granting of a loan and the creation of debt. ...
This article does not cite any references or sources. ...
An employment contract is an agreement entered into between an employer and an employee at the commencement of the period of employment and stating the exact nature of their business relationship, specifically what compensation the employee will receive in exchange for specific work performed. ...
Retirement is the point where a person stops employment. ...
A Financial Planner or Personal Financial Planner is a practicing professional who helps people to deal with various personal financial issues through proper planning, which includes but not limited to these major areas: tertiary education planning, retirement planning, investment planning, risk management and insurance planning, tax planning, estate planning and...
| | Public finance
Tax
Public finance (government finance) is the field of economics that deals with budgeting the revenues and expenditures of a public sector entity, usually government. ...
Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation A tax is a financial charge or other levy imposed on...
| | Banks and Banking
Central Bank
List of banks
Deposits
Loan
For other uses, see Bank (disambiguation). ...
This is a list of banks throughout the world. ...
Bank deposits are the large part of the money supply. They come in different types depending on withdrawal restrictions. ...
A loan is a type of debt. ...
| | Financial regulation
Finance designations
Accounting scandals
Financial supervision is government supervision of financial institutions by regulators. ...
There are a variety of Finance designations or Accreditations that can be earned, and awarded to those in the finance industry. ...
Accounting scandals, or corporate accounting scandals are political and business scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations. ...
| | History of finance
Stock market bubble
Recession
Stock market crash
A stock market bubble is a type of economic bubble taking place in stock markets when price of stocks rise and become overvalued by any measure of stock valuation. ...
A recession is traditionally defined in macroeconomics as a decline in a countrys real Gross Domestic Product (GDP) for two or more successive quarters of a year (equivalently, two consecutive quarters of negative real economic growth). ...
Black Monday (1987) on the Dow Jones Industrial Average A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market. ...
| | v d | In finance, default occurs when a debtor has not met its legal obligations according to the debt contract, e.g. it has not made a scheduled payment, or violated a loan covenant (condition) of the debt contract. Default may occur if the debtor is either unwilling or unable to pay their debt. This can occur with all debt obligations including bonds, mortgages, loans, and promissory notes. This article does not cite any references or sources. ...
A loan covenant is a condition in a commercial loan or bond issue that requires the borrower to fulfill certain conditions or forbids the borrower from undertaking certain actions, or possibly restricts certain activities to circumstances when other conditions are met. ...
This article does not cite any references or sources. ...
For alternative meanings, see bond (a disambiguation page). ...
This article does not cite any references or sources. ...
A loan is a type of debt. ...
A promissory note is a contract detailing the terms of a promise by one party (the maker) to pay a sum of money to the other (the payee). ...
The term default should be distinguished from the terms insolvency and bankruptcy. "Default" essentially means a debtor has not paid a debt. "Insolvency" is a legal term meaning that a debtor is unable to pay his debts. "Bankruptcy" is a legal finding that imposes court supervision over the financial affairs of those who are insolvent or in default. Insolvency is a financial condition experienced by a person or business entity when their assets no longer exceed their liabilities (commonly referred to as balance-sheet insolvency) or when the person or entity can no longer meet its debt obligations when they come due (commonly referred to as cash-flow...
Notice of closure stuck on the door of a computer store the day after its parent company, Granville Technology Group Ltd, declared bankruptcy (strictly, put into administration—see text) in the United Kingdom. ...
Insolvency is a financial condition experienced by a person or business entity when their assets no longer exceed their liabilities (commonly referred to as balance-sheet insolvency) or when the person or entity can no longer meet its debt obligations when they come due (commonly referred to as cash-flow...
Types of Default Default can be of two types: debt services default and technical default. Debt service default occurs when the borrower is unable to make a scheduled payment of interest or principal. Technical default happens when an affirmative or a negative covenant is violated.
Affirmative covenants are clauses in debt contracts that require firms to maintain certain levels of capital or financial ratios. The most commonly violated restrictions in affirmative covenants are tangible net worth, working capital/short term liquidity, and debt service coverage.
Negative covenants are clauses in debt contracts that limit or prohibit corporate actions (e.g sale of assets, payment of dividends) that could impair the position of creditors. Negative covenants may be continious or incurrance based. Violations of negative covenants are rare compared to the violation of affirmative covenants.
With most debt (including corporate debt, mortgages and bank loans) the total amount owed becomes immediately payable on the first instance of a default of payment. Generally, if the debtor defaults on any debt to any lender, a cross default covenant in the debt contract states that that particular debt is also in default.
In corporate finance, upon an uncured default, the holders of the debt will usually initiate proceedings (file a petition of involuntary bankruptcy) to foreclose on the collateral securing the debt. Domestic credit to private sector in 2005 Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. ...
There is a rich array of financial models for analyzing default risk such as the Jarrow Turnbull Model, Altman Z-score or the structural model of default by Robert C. Merton. There are very few or no other articles that link to this one. ...
Robert C. Merton (born July 31, 1944), a leading scholar in the field of finance, was one of three men who, in the early 1970s, developed the mathematics of the stock options markets. ...
Sovereign borrowers such as nation-states generally are not subject to bankruptcy courts in their own jurisdiction, and thus may be able to default without legal consequences. The term nation-state, while often used interchangeably with the terms unitary state and independent state, refers properly to the parallel occurence of a state and a nation. ...
References - de Servigny, Arnaud and Olivier Renault (2004). The Standard & Poor's Guide to Measuring and Managing Credit Risk. McGraw-Hill. ISBN13 978-0071417556.
- Duffie, Darrell and Kenneth J. Singleton (2003). Credit Risk: Pricing, Measurement, and Management. Princeton University Press. ISBN13 978-0691090467.
- Lando, David (2004). Credit Risk Modeling: Theory and Applications. Princeton University Press. ISBN13 978-0691089294.
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