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Finance Concepts Cheat Sheet by

Finance Concepts, testing cheatography


This cheat sheet seeks to bridge the gap between technical knowledge and financial literacy. Its purpose is to empower engineers with the knowledge to navigate financial discus­sions effect­ively. Your feedback and sugges­tions for enhanc­ements are greatly apprec­iated. Please send them to Enrique at enriqu­eM@­com­pan­


“Financial Terms Dictio­nary.” Invest­opedia, Invest­opedia,­ves­top­edi­a.c­om/­fin­anc­ial­-te­rm-­dic­tio­nar­y-4­769738. Accessed 18 Mar. 2024.

Basic Investment Termin­ology

Any resource with economic value that an indivi­dual, corpor­ation, or country owns or controls with the expect­ation that it will provide future benefit.
Capital refers to financial assets or resources that a business or individual uses to generate income or wealth. It can include cash, machinery, property, invest­ments, and other assets.
The original sum of money invested or borrowed, excluding any interest or earnings. It is the initial amount of money that is either invested or loaned.
A collection of financial invest­ments such as stocks, bonds, mutual funds, and other securities held by an indivi­dual, instit­ution, or fund manager.
Also known as investment return, is the gain or loss on an investment over a specific period, expressed as a percentage of the initial invest­ment.
Capital Gain
The profit earned from the sale of an asset, such as stocks, real estate, or other invest­ments, that has increased in value since its purchase.
Capital Loss
The decrease in value of an asset when it is sold for less than its purchase price.

Investment Asset Classes

Physical currency or money in the form of coins or banknotes that is readily available for transa­ctions.
Bonds are debt securities issued by govern­ments or corpor­ations to raise capital.
Mutual Funds
Investment vehicles that pool money from multiple investors to invest in a divers­ified portfolio of stocks, bonds, or other assets.
Investment funds that are traded on stock exchanges like individual stocks. They hold assets such as stocks, bonds, or commod­ities and provide investors with exposure to a divers­ified portfolio in a single security.
Also known as shares or equities, represent ownership in a company.
Real Estate
Property consisting of land, buildings, and natural resources such as minerals and water. It includes reside­ntial, commer­cial, and industrial properties that can be bought, sold, or rented for investment or personal use.
Raw materials or primary agricu­ltural products that can be bought and sold, such as oil, gold, wheat, and livestock.

Basic Finance Termin­ology

A financial transa­ction that increases assets or decreases liabil­ities and equity on a company's balance sheet.
A financial transa­ction that decreases assets or increases liabil­ities and equity on a company's balance sheet.
An obligation or debt that a person or entity owes to another party. It can include loans, mortgages, accounts payable, and other financial obliga­tions that must be settled in the future.
The ownership interest in a company or asset after subtra­cting liabil­ities. It can also refer to stock or shares in a company that represent ownership.
Net worth
The value of assets owned by an indivi­dual, company, or entity minus the total liabil­ities or debts owed.

Transfer Agent Share Movement

Financial interm­ediary or agent who facili­tates the buying and selling of securities (such as stocks, bonds, and mutual funds) between buyers and sellers.
Share Issuance
The process of a company offering new shares of stock to investors, either through an initial public offering (IPO) or a secondary offering. It increases the total number of shares outsta­nding.
Share Retirement
The process by which a company buys back its own shares from the open market or existing shareh­olders. It reduces the number of shares outsta­nding.
Share Split
Also known as a stock split, is a corporate action in which a company increases the number of its outsta­nding shares by dividing existing shares into multiple shares.
Payments made by a company to its shareh­olders as a distri­bution of profits. They can be in the form of cash dividends, stock dividends, or property dividends and are typically paid on a regular basis.
Initial public offering, is the process by which a private company offers its shares to the public for the first time, allowing it to raise capital from investors in exchange for ownership stakes in the company.

Transfer Agent Respon­sib­ilities



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