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THE FINANCIAL DICTIONARY

Financial Terms & Definitions A to Z

The definitive, peer-reviewed financial glossary. Every definition includes key takeaways, calculation formulas, real-world examples, and expert review by CFA charterholders and CPAs.

FEATURED GLOSSARY

Top Financial Terms

Corporate Finance #E

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization.

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Personal Finance #C

Compound Interest

Interest calculated on initial principal plus accumulated interest.

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Equity Valuation #P

Price-to-Earnings (P/E)

Ratio for valuing a company measuring current share price relative to EPS.

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Valuation #D

Discounted Cash Flow (DCF)

Valuation method estimating intrinsic value based on future cash flows.

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Macroeconomics #Y

Yield Curve Inversion

Macro condition where short-term yields exceed long-term bond yields.

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Derivatives #O

Options Greeks

Mathematical sensitivities measuring option price sensitivity.

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Corporate Finance #F

Free Cash Flow (FCF)

Cash generated after subtracting expenditures for capital assets.

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Investing #D

Dividend Yield

Financial ratio measuring annual dividend payouts relative to stock price.

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Corporate Finance #W

Weighted Average Cost of Capital

Firm's blended cost of capital across equity and debt obligations.

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Valuation #E

Enterprise Value (EV)

Comprehensive measure of a company's total economic valuation.

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Technical Analysis #R

Relative Strength Index (RSI)

Momentum oscillator measuring price velocity to evaluate overbought conditions.

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Monetary Policy #Q

Quantitative Tightening (QT)

Central bank balance sheet runoff reducing liquidity in financial markets.

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