1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices.2. In underwriting…

A form of offering in the equity capital markets. It involves offering shares in a short time period, with little to no marketing. The bookbuild of the…

A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions…

A slang term describing an acquisition or merger in which the companies involved have trouble integrating with one another. Acquisition indigestion may…

The price level performance of a newly issued stock after its IPO. There is no standard ending time period that is considered, but after-market performance…

During an IPO, this is the number of shares granted to each participating underwriting firm that they are permitted to sell. Remaining surpluses are then…

The early rounds of funding for a startup company, which get their name because the first is known as Series A financing, followed by Series B financing…

An investor who provides financial backing for small startups or entrepreneurs. Angel investors are usually found among an entrepreneur’s family and friends…

An individual or company, which purchases a corporation with the intention of dividing that corporation up into its parts and selling these parts for…

The absorption of stock by the public from a new issue. Underwriters hope to sell all of a new issue to the public.

A strategy of going public used by a company that fails to meet the criteria for listing on a stock exchange. To get onto the exchange, the company desiring…

A slang term that refers to the representation of the basic components of a business model excluding any fine details. It incorporates only the core ideas…

The act of providing last-resort support or security in a securities offering for the unsubscribed portion of shares. A company will try and raise capital…

An entity that agrees to purchase all the remaining, unsubscribed securities from a rights offering. The backstop purchaser provides security to the issuing…

An agreement an underwriter makes to act as an agent between an issuing company and investors. In a best efforts agreement, the underwriter agrees to…

A limited partnership or stock offering with no stated investment goal for the funds that are raised from investors. In a blind pool, money is raised…

A takeover offer that is intended to be so attractive that very few objections will arise and the takeover will occur swiftly. In German, "blitz" means…

State regulations designed to protect investors against securities fraud by requiring sellers of new issues to register their offerings and provide financial…

The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors.An underwriter…

The managing or lead underwriter who maintains the books of securities sold for a new issue. In other words, this person is the underwriter who "runs…

The name given to the first formal recommendation report issued by an underwriter for an IPO. It is presented in the process of the public offering.The…

A situation in which an entrepreneur starts a company with little capital. An individual is said to be boot strapping when he or she attempts to found…

1. A procedure used to calculate the zero-coupon yield curve from market figures. 2. A situation in which an entrepreneur starts a company with little…

A new share issue that is bought entirely by one underwriter to resell to investors. An underwriter will only do a bought deal if it is confident there…

A type of stock initial public offering (IPO) that trades below the original offering price to the market within the first few months after trading begins…

The dissolution of a group of investment bankers that created a syndication to underwrite the issue of a particular security. Prior to termination of…

A common fee used in takeover agreements if the seller backs out of a deal to sell to the purchaser. A breakup fee, or termination fee, is required to…

A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. These funds are usually supplied…

A mechanism seen in early-stage, pre-public companies in response to a subsequent round of financing that involves issuing shares at a lower price than…

A situation where an employee in the research department of an investment bank - usually a research analyst - is brought over to work for the underwriting…

A slang term used to describe the company or companies who issued the largest amount of securities on a new issue in an underwriting syndicate, or who…

The rate at which a new company uses up its venture capital to finance overhead before generating positive cash flow from operations. In other words…

A company that is created to help grow small companies in the initial stages of their development. BDCs are very similar to venture capital funds. Many…

A compilation of statistics published by Dun & Bradstreet that reports the number of businesses – incorporated and unincorporated – that start each week…

When a private equity firm buys out a target firm (usually with a leveraged buyout) and then sells the target firm in an IPO within a relatively short…

A form of a buyout that incorporates characteristics of both a management buyout and a management buy-in. A BIMBO occurs when existing management - along…

A share of any profits that the general partners of private equity and hedge funds receive as compensation, despite not contributing any initial funds…

1. Sometimes known as a partial spinoff, a carve out occurs when a parent company sells a minority (usually 20% or less) stake in a subsidiary for an…

A mathematical method of comparing the costs of different cash value life insurance policies. The cash accumulation method assumes that the death benefits…

A private equity buyout or the assumption of a controlling interest in a company that involves several different private equity firms. This group of firms…

A letter given to organizations or persons of interest by external auditors regarding statutory audits, statements and reports used in a prospectus. The…

A contractual agreement between an investor and a venture-capital fund that obligates the investor to contribute money to the fund. The investor may pay…

A process whereby an underwriter submits a sealed bid to the issuer. The issuer awards the contract to the underwriter with the best price and contract…

A selling group's compensation in a stock or bond underwriting agreement. This is usually on a per-share or per-bond basis.

A guarantee of payment that is dependent on one or more future events. Here's an example of a contingent guarantee: say a bank writes a guarantee of…

A type of right given to shareholders of an acquired company (or a company facing major restructuring) that ensures they receive additional benefit if…

The act of reorganizing the structure of government owned entity into a legal entity with the corporate structure found in publicly trade companies. These…

A trading strategy where an investor attempts to make small gains through a series of trades against the current trend. It is also known as "counter-trend…

1. A situation in which venture capitalists refuse to invest in a new project unless the preceding investors of the company lower the value of their original…

A form of credit agreement, backed by physical assets, where the lending party will provide working capital and collateral to another company, known as…