Business Valuation Glossary
Business Valuation Glossary This business valuation glossary covers the most important concepts to know in valuing a company. This guide is part of CFI’s Business Valuation Modeling Course. Alpha See Firm-Specific Risk for the definition of Alpha. Beta The Beta (β) of a stock or portfolio is a number describing the correlated volatility of an...
Fund of Funds (FOF)
What is a Fund of Funds (FOF)? A Fund of Funds (FOF) is an investment vehicle where a fund invests in a portfolio composed of shares of other funds rather than investing directly in stocks, bonds, or other securities. The strategy of investing in a fund of funds aims to achieve broad diversification and asset...
Structured Investment Vehicle (SIV)
What is a Structured Investment Vehicle (SIV)? A structured investment vehicle (SIV) is a non-bank financial entity set up to purchase investments designed to profit from the difference in interest rates – known as the credit spread – between short-term and long-term debt. The long-term debt investments frequently include structured financial products like asset-backed securities (ABS),...
Stop-Loss Order
What is a Stop-Loss Order? A stop-loss order is a tool used by traders and investors to limit losses and reduce risk exposure. With a stop-loss order, an investor enters an order to exit a trading position that he holds if the price of his investment moves to a certain level that represents a specified...
Stock Market
What is the Stock Market? The stock market refers to public markets that exist for issuing, buying, and selling stocks that trade on a stock exchange or over-the-counter. Stocks, also known as equities, represent fractional ownership in a company, and the stock market is a place where investors can buy and sell ownership of such...
