Finance Terms 101
A small piece of ownership in a company, like owning shares of any company x
What is a Stock (or Share)?
This side of finance invests money with the goal of earning profits and growing returns.
What is the Buy-Side?
The 3-letter acronym for when a private company sells stock to the general public for the very first time
What is an IPO (Initial Public Offering)?
BlackRock, Vanguard, and Fidelity belong to this buy-side industry that manages client investments to help them grow over time.
What is Asset Management?
The entry-level job title given to college graduates starting out in investment banking or asset management.
What is an Analyst? ?
The total money a company brings in from selling its goods or services before paying any expenses
What is Revenue?
This side of finance helps companies raise money and earns advisory fees or commissions for its services.
What is the Sell-Side?
The popular branch of banking abbreviated as "M&A," where companies combine or purchase one another.
What is Mergers and Acquisitions?
This branch of finance provides personalized financial planning and investing specifically for high-net-worth individuals and families.
What is Wealth Management?
The professional at a buy-side firm who makes the final call on which investments to buy and sell for a fund.
Who is a Portfolio Manager?
A loan you give to a company or government that pays you interest over time.
What is a Bond?
Regular everyday people who invest their own personal money are called this type of investor.
Who are Retail Investors?
What "M" word happens when two separate companies decide to join together into one single firm?
What is a Merger?
This type of investing aims to generate profits while also creating a positive social or environmental impact.
What is Impact Investing (or ESG Investing)?
In Wealth Management, this professional meets directly with clients and families to plan their personal finances and investments
Who is a Financial Advisor (or Wealth Manager)
How easily and quickly an asset can be converted into cash.
What is Liquidity?
Large professional entities like pension funds, hedge funds, and university endowments that invest massive pools of money are called this type of investor.
Who are Institutional Investors?
Goldman Sachs, J.P. Morgan, and Morgan Stanley are known as this "heavy" term for the largest full-service banks in the world.
What are Bulge Brackets?
n ESG, the letter "E" stands for this key category that covers areas like renewable energy and green solutions.
What is Environmental?
n Equity Research, this person has full responsibility for covering an entire industry, writing the final reports, and recommending stocks.
Who is an Equity Research Analyst?
The practice of spreading your money across different investments so you don’t put all your eggs in one basket.
What is Diversification?
The buy-side often checks how well its stock investments performed by comparing returns against this major 500-stock index.
What is the S&P 500?
Smaller, specialized investment banks that focus on advisory services
What are Boutiques?
At an asset management firm, this professional makes the ultimate decision on where to invest the fund's money.
Who is a Portfolio Manager?
The most senior leadership title in an investment banking division, ranking above Vice President and Director.
What is a Managing Director (MD)?