Equity Capital Markets (ECM) Banker Career Profile
What is an Equity Capital Markets Banker? An ECM banker works in an investment bank on the sell-side and is the product expert that advises stock issuers and potential stock issuers on the best way to raise new equity and manage their outstanding equity. In most cases, an investment banker would be the first to...
Finance Interview Prep: Expert Tips to Land Your Next Role | Webinar Recording
When your dream finance opportunity comes knocking, be ready to answer it—and any interview questions you’ll be asked on the way to getting it. Get insider advice from CFI’s Chief Content Officer and VP of Financial Modeling, Scott Powell and Jeff Schmidt, on preparing for finance interviews so you can be confident you’ll ace your...
Material Adverse Change (MAC)
What is a Material Adverse Change (MAC)? A material adverse change (MAC) is a significant change or effect that may negatively influence the outcome of an agreement. Buyers, sellers, and creditors use MAC clauses in merger and acquisition (M&A) or financing agreements to protect their rights. MACs are also known as material adverse effects (MAEs)....
Win/Loss Ratio
What is the Win/Loss Ratio? The win/loss ratio, also known as the success ratio, is a ratio of the number of profitable trades to unprofitable trades over a specified time period. The win/loss ratio is a commonly used trading metric by traders to evaluate their stock-picking success. Formula for the Win/Loss Ratio To calculate the...
Prime Brokerage
What is Prime Brokerage? Prime brokerage is a set of services offered by investment banks and other large financial institutions to hedge funds and other investment clients. The clients need such services when borrowing securities or cash for the purpose of netting to allow a specific asset to achieve a higher return. What is Netting?...
Financial Sector
What is the Financial Sector? Key Roles and Institutions The financial sector refers to the businesses and institutions that manage money and provide intermediary services to transfer and allocate financial capital in an economy. Understanding the Financial Sector Every business expansion, home purchase, and investment depends on a financial regulatory framework that moves money efficiently....
Flotation
What is Flotation? Flotation is the process of issuing and selling shares to public investors. In other words, it is when a company goes public and issues new shares to raise capital. It is a term commonly used in the United Kingdom. Floating a company allows it to raise capital for the purpose of acquiring...
Hard Stop
What is a Hard Stop? A hard stop is an instruction from a client to their broker which informs them to sell units of a security when the market price declines to a specific level. Hard stops are used to minimize risk and reduce potential losses in the financial market when price fluctuations and unexpected...
Trading Desk
What is a Trading Desk? A trading desk is a department within a company or investment bank where securities are sold and purchased to provide market liquidity. Some of the securities traded on trading desks include stocks, bonds, commodities, and currencies. Firms with trading desks can add value to their portfolio by supplying expertise in...
Horizontal Integration: Definition, How It Works, and Examples
Horizontal integration is a competitive strategy where companies operating at the same stage of the value chain in the same industry combine to expand their production of goods and services and strengthen their market position. The goal is typically to increase market share, realize economies of scale, and enhance profitability by reducing competition and sharing...
