What is it that those busy people in finance DO all day?


The process of becoming or staying in accordance with regulations or other established guidelines or specifications

Deal Construction

The process of structuring and building a financial transaction, particularly when there are many parties involved

Design Investment Thesis

A process in which investors design a theory, strategy, or guidelines of how they will allocate capital within their portfolio

Due Diligence

A process of examining potential investments by asking questions regarding risk and potential return on investments

Exercise Governance Rights

The right of a shareholder or investor to vote on matters of corporate policy

Exit from Investments

The method by which an investor plans in advance to get out of an investment at an opportune time. Sometimes called exit strategy

Impact Reporting

The practice of sharing projections and results related to economic, environmental, and social outputs, outcomes, or impact

Issue Legal Opinion

The custom of obtaining an opinion on issue of some legal risk of an attorney or someone with legal authority


The process of communicating with a targeted consumer audience in order to persuade them to buy or use a specific product or service, in this case, a financial product or service

Negotiate Terms

Through the negotiation process, the parties involved come to a mutual agreement on price, terms, and how the investment is structured

Raising Capital

The process of approaching investors with investment products or fundraising to finance an investment or business opportunity or project


An evaluation of a corporate or municipal bond’s relative risk compared to other bonds

Pipeline Development

A process to identify and cultivate relationships for future investment opportunities


Underwriters research and assess the risk of a financial transaction and determine how much risk they are willing to take on in the investment.


A process to determine a company or investment’s worth, by looking at future projections, underlying assets, and risks


Within invoice financing, factoring is the process of discounting outstanding invoices to a lender who pays the company a percentage of what the invoices are worth


The systematic and comprehensive recording of financial transactions pertaining to a business. This also refers to the process of summarizing, analyzing, and reporting these transactions

Advising Portfolio Companies

The practice of consulting to a company that the fund has invested in, in order to increase the value of the investment


The official, professional examination of an individual’s or organization’s accounts, including giving an opinion as to their fairness, consistency, and conformity with generally accepted accounting principles


The practice of comparing investment and performance metrics to industry bests and best practices from other companies

It matters who we see as expert… who we see as holding the power of knowledge… who we trust to manage capital in all its forms


An outside party or company who is legally designated to provide a specific service or job


Individuals or organizations that protect securities by holding them for safekeeping in order to minimize the risk of theft or loss

Executive Teams

A team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation

Escrow Agents

Individuals or institutions that serve as a neutral, trusted third party to hold documents and funds in the transfer of assets, acting for both parties in line with instructions

Financial Advisors

Professionals who helps individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes, and retirement

Industry Experts

People who are trusted as having knowledge and authority about a specific subject matter or industry

Investment Committees

Maintain the prudent and effective investment of an endowment and formulates and oversees the investment policies and management of the endowment

Investment Managers

Individuals or organizations that make investments in portfolios of securities on behalf of clients, in accordance with the investment objectives defined by those clients


People who provides capital with the expectation of financial or other gain in the future

Investor Relations

The role of enabling the most effective two-way communication between a company, the financial community, and other constituencies


A person usually below the executive level who is hired by another to perform a service in exchange for wages or salary


Attorneys that represent the interests of their clients and provide legal advice


Individuals or groups who may not have a financial interest in a business or investment, but have something else at stake

Strategic Partners

Parties in a long term agreement, sharing physical and/or intellectual resources in achievement of defined outcome

Tax Accountants

Accountants that advise investors and companies of tax implications


Research and examine companies and markets in order to run calculations that will determine the perceived value of a particular investment


Produce an audit, a report that judges procedures and financial performance reports against the external standards that ensure common reporting across systems of finance


The group or individual who gains as the result of an investment, or specific financial instrument such as an insurance policy

Board Members

A group of governors that are elected to act as representatives of the shareholders to establish policies and to make decisions on major issues

Finance is a complicated business. It is possible to lose money on an investment before you even make it. What are the factors that affect the costs of making investments?

Complexity of the Transaction

A greater number of variables that leads to potential complications increasing the cost of a financial transaction

Maturity of Markets

Less mature markets or industries (also called emerging or frontier markets) are, in general, less organized and therefore more costly to participate in but they allow room for growth and innovation and so are attractive to investors

Regulatory Complexity

Significant complexity or rate of change in of the regulatory environment requires more time and expertise to navigate therefore increasing the costs of investments

Economies of Scope

Average total cost of a service or product decrease when number of different services provided within a single institution increases. As a result, financial institutions often diversify what financial services or products they offer

Economies of Scale

The greater number of similar transactions (also called specialization), the lower per unit fixed costs as costs are spread over a larger number of transactions. Scale also creates operational efficiencies and synergies

Access to Knowledge

Whether or not knowledge necessary to inform investment decision is readily available; for example, in an early stage, field knowledge is less readily organized or accessible

Access to Deal Flow

If investors cannot easily identify enterprises ready for investment in a particular industry or geography (also called absorptive capacity), investors need to build technical support or market formation activities into the cost of financing

Availability of Investment Capital

Investors rarely invest alone. Therefore, whether other appropriate investment capital is available to co-invest or partner affects the cost of the transaction to the investor

Whether investment returns go up or down matters a lot, but it isn’t the only way to make money in systems of finance.

Non-Monetary Benefit

A return that is not in the form of money but makes the opportunity advantageous to the investor

Sale of Assets

Gains that come from selling the asset to another party, at a price higher than the original purchase price

Sale of Equity

In the sale of the common shares of a company the investor’s return is determined by the price of the share

Management Fees

The blanket term for fees incurred while buying, selling, trading, and holding investments

Strategic Benefit

An advantage or non monetary benefit related to the way a company operates its business or within the industry or sector in which it exists

Broker Dealer Fees

Revenue generated through the handling of the sale and resale of securities by a broker dealer

Carried Interest

A share of any profits in a fund (often known as the “carry”) that the general partners of private equity and hedge funds receive as compensation

Consulting Fees

A source of revenue from providing consulting services that add value to the investment process


The charge for the privilege of borrowing money, typically expressed as percentage of the principal of the loan

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