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Term
Main definition
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An accounting and financial principle that refers to the value that assets and liabilities would have in a free market where both the buyer and the seller are free to participate in or decline the transaction.
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A professional evaluation, assessment and opinion provided for an agreed fee by an investment bank, financial advisor or valuation firm as to the fairness from a financial point of view of a transaction, usually a merger, acquisition or sale of a company.
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Fiduciaries are persons who owe good faith and honesty to their clients or principals or shareholders, as the case may be, and who are entrusted by their clients or principals or shareholders, respectively, with their confidence and trust. Fiduciary comes from the Latin noun fiducia meaning a binding "trust."
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A fiduciary duty is a duty to act in the interests of the principals or clients of the fiduciary. A fiduciary duty is a strict duty of care which requires the fiduciary to focus first and foremost on what is in the best interests of the principal or client.
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A covenant of a party that relates to that party's ongoing obligations to maintain or to reach specific financial metrics, which may include various balance-sheet metrics, cash-flow metrics, earnings metrics or other metrics that are measurable and quantifiable.
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Financial statements are the accounting statements that formally report the financial position, results, cashflows or equity of the company and, if they exist, are prepared by a company's accountants and would be frequently referenced by its management for purposes of decision making.
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The persons or firms who, by merely identifying and introducing one or more potential investors to a fund-seeking company, sometimes help to arrange an investment transaction for some compensation.
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FINRA is an acronym for the title Financial Industry Regulatory Authority, a self-regulatory organization (SRO) of the securities industry.
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A commitment by a syndicate of investment banks acting as underwriters to purchase all the shares available for sale in a public offering of a company. The shares will then be resold to investors by the syndicate.
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See Right of First offer.
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The highest ranking secured indebtedness of a company, having priority in date of perfection of a valid security interest.
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See Right of First Refusal.
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The annual accounting cycle. Many companies use the calendar year as their fiscal year. Other companies choose a different beginning and ending date as their fiscal year.
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The act of purchasing something and then immediately or quickly selling it.
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A company's additional securities financing round(s) following its initial round of investor financing. These follow-on rounds can be funded by existing investors.
