An AI invents a source for your essay. This false output is called this.
What is a hallucination?
This financial statement lists assets, liabilities, and shareholders’ equity.
What is the balance sheet?
When market yields rise, fixed-rate bond prices generally move in this direction.
What is down?
A private company first offers shares to the public through this event.
What is an IPO?
This is the total market value of a company’s outstanding shares.
What is market capitalization?
Language models break text into these units, which can include words or word fragments.
What are tokens?
This expense allocates equipment’s cost over its useful life.
What is depreciation?
This bond provision lets the issuer repay its debt before maturity.
What is a call provision?
A merger between direct competitors is this type.
What is a horizontal merger?
This multiple compares a stock’s price with its earnings per share.
What is the price-to-earnings ratio?
Known as RAG, this method retrieves outside documents to help a model answer a question.
What is retrieval-augmented generation?
Already spent and unrecoverable, this cost should not influence future decisions.
What is a sunk cost?
Macaulay duration divided by one plus the periodic yield gives this measure of a bond’s price sensitivity.
What is modified duration?
A company that buys its own supplier or its own distributor is pursuing this type of integration.
What is vertical integration?
Annual dividends expressed as a percentage of the stock price give this yield.
What is dividend yield?
These numerical representations help AI search for similar meanings, rather than matching exact words.
What are embeddings?
Sales minus variable costs equals this amount available to cover fixed costs and profit.
What is contribution margin?
When rates fall, coupons and called principal must be redeployed at lower yields. This is the name for that risk.
What is reinvestment risk?
A parent distributes shares of a newly independent subsidiary to its shareholders in this transaction.
What is a spin-off?
Market cap plus debt, minus cash, gives this valuation measure.
What is enterprise value?
Instructions hidden in a webpage that an AI agent reads and then obeys are an example of this attack.
What is prompt injection?
This costing method includes fixed manufacturing overhead in inventory costs.
What is absorption costing?
This measure captures the curvature in a bond’s price-yield relationship.
What is convexity?
This acquisition uses substantial borrowing to finance the purchase.
What is a leveraged buyout or LBO?
This valuation method uses trading multiples from similar public companies.
What is comparable company analysis or trading comps?