Finance, GMAT, LSAT & MCAT Glossaries
- Absolute Value
- Arithmetic Sequence
- Author's Purpose
- Axis of Symmetry
- Change of Base Formula
- Combination
- Comma Splice
- Completing the Square
- Complex Number
- Composite Score
- Compound Predicate
- Conditional Probability
- Conflicting Viewpoints
- Confounding Variable
- Conjugate
- Conservation Laws
- Control Group
- Coordinate Adjectives
- Correlation Coefficient (r)
- Dangling Modifier
- Data Representation
- Denaturation
- Dependent (Subordinate) Clause
- Dependent Variable (DV)
- Determinant
- Development and Support
- Direct Variation
- Discriminant
- Distance Formula
- Distractor
- Enhanced ACT
- Equating
- Evidence Rule
- Expected Value
- Extrapolation
- Factor Theorem
- Coordinating Conjunctions: For, And, Nor, But, Or, Yet, So (FANBOYS)
- Five-Number Summary
- Function
- Function Transformation
- Fundamental Counting Principle
- Geometric Sequence
- Greatest Common Factor (GCF)
- Hypothesis
- Ideas and Analysis
- Idiom
- Imaginary Unit (i)
- Independent Clause
- Independent Variable (IV)
- Inference
- Interpolation
- Interquartile Range (IQR)
- Inverse Variation
- Law of Cosines
- Law of Sines
- Least Common Multiple (LCM)
- Logarithm
- Main Idea
- Matrix Multiplication
- Midpoint Formula
- Modulus
- Paired Passage
- Parallelism
- Passage Map
- Percent Change
- Percentile
- Permutation
- Production of Writing
- Pronoun-Antecedent Agreement
- Pythagorean Theorem
- Pythagorean Triple
- Quadratic Formula
- Radian
- Reference Angle
- Research Summaries
- Run-on (Fused Sentence)
- Sinusoid Parameters
- Slope-Intercept Form
- Sine, Cosine, and Tangent Mnemonic (SOH-CAH-TOA)
- Special Right Triangles
- Standard Deviation
- Science, Technology, Engineering, and Mathematics (STEM) Score
- Subject-Verb Agreement
- System of Equations
- Tone
- Transition
- Triage
- Unit Circle
- Vertex Form
- Vieta’s Formulas
- Vocabulary-in-Context
- Weighted Mean
- ACT Core Test
- English Test
- Reading Test
- Raw Score
- Conventions of Standard English
- Knowledge of Language
- Key Ideas and Details
- Craft and Structure
- Integration of Knowledge and Ideas
- Preparing for Higher Math
- Integrating Essential Skills
- Modeling
- Number and Quantity
- Algebra
- Geometry
- Statistics and Probability
- Interpretation of Data
- Scientific Investigation
- Evaluation of Models, Inferences, and Experimental Results
- Appositive
- Nonessential Element
- Restrictive Clause
- Misplaced Modifier
- Pronoun Case
- Verb Tense Consistency
- Rhetorical Purpose
- Logical Sequence
- Textual Evidence
- Point of View
- Comparative Reading
- Line of Best Fit
- Residual
- Margin of Error
- Random Sample
- Experimental Design
- Placebo
- Replication
- Conventions: Grammar & Usage
- Conventions: Sentence Structure
- Conventions: Punctuation
- Functions
- Absolute Prepayment Speed (ABS)
- Advance rate
- Agency MBS
- Appraisal Reduction Amount (ARA)
- Auction call
- Available funds cap
- B-piece
- Backup servicer
- Bankruptcy-remote
- Base rate
- Basis risk
- Cap rate
- Cash flow waterfall priority
- Cash trapping
- Charge-off
- Cleanup call
- Collateralized Debt Obligation (CDO)
- Collection period
- Commercial Mortgage-Backed Security (CMBS)
- Companion (Support) bond
- Conduit CMBS
- Controlled amortization
- Controlling class
- CPR (Conditional Prepayment Rate)
- Commercial Real Estate Collateralized Loan Obligation (CRE CLO)
- Credit enhancement
- Cross-collateralization
- Cumulative net loss (CNL)
- Debt service coverage ratio (DSCR)
- Debt yield
- Defeasance
- Delinquency
- Dilution
- Early amortization
- Effective gross income (EGI)
- Eligible receivables
- Excess interest collections
- Excess spread
- Extension risk
- Fair Isaac Credit Score (FICO)
- Finance lease
- Forbearance
- Grantor trust
- Gross Yield
- Home Equity Loan (HEL)
- Horizontal Risk Retention (HRR)
- Interest-only (IO)
- Issuance volume
- L-Shaped Retention
- London Interbank Offered Rate (LIBOR) Transition and SOFR Conversion
- Liquidity facility
- Loan modification
- Loan-to-value (LTV)
- Lockbox
- Loss severity
- Master servicer
- Master trust
- Monthly Payment Rate (MPR)
- Negative convexity
- Net operating income (NOI)
- Nominal spread
- Non-agency MBS
- Non-recourse
- Option-adjusted spread (OAS)
- Overcollateralization (OC)
- PAC (Planned Amortization Class)
- Par
- Pari passu
- Pass-through
- Pay-through
- Pooling and servicing agreement (PSA)
- Portfolio yield
- Pre-funding account
- Prepayment
- Prepayment burnout
- Pro rata
- Public Securities Association model (100% PSA)
- Ramp-up period
- Rating trigger
- Recourse
- Recovery rate
- Refi efficiency
- Regulation AB / Reg AB II
- Real Estate Mortgage Investment Conduit (REMIC)
- Rep and warranty (R&W)
- Reserve account
- Residual
- Revolving period
- Rule 144A
- Securitization
- Senior-sub structure
- Sequential pay
- Servicer
- Servicing advance
- Servicing asset
- Servicing transfer
- Shifting interest
- Single-Asset / Single-Borrower (SASB)
- SMM (Single Monthly Mortality)
- Special purpose entity (SPE)
- Special servicer
- Step-down
- STS (Simple, Transparent, Standardised)
- Subordination
- Surety bond
- Swap counterparty
- TBA (To Be Announced)
- Tranche
- Trigger event
- True sale
- Variable Interest Entity (VIE)
- Vertical Risk Retention (VRR)
- Waterfall
- Weighted average coupon (WAC)
- Weighted average life (WAL)
- Weighted average maturity (WAM)
- Workout fee
- Yield maintenance
- Z-spread (zero-volatility spread)
- Asset Backed Securities
- CLOs & Structured Credit
- Asset Specific Nuances
- Collateral & Cash Flow Modeling
- Cash Flow Waterfalls & Triggers
- Regulatory, Syndication & Live Deal Processing
- Tranching & Structural Mechanics
- Accrued interest
- Add-on rate
- Alternative data
- American vs European waterfall
- Antidilutive security
- Arbitrage
- Backwardation / contango
- Balance of payments
- Base rate
- Basis risk
- Bond-equivalent yield
- Bootstrap resampling
- Cap rate
- Carried interest
- Cash conversion cycle
- Catch-up
- Central limit theorem
- Clawback
- Coefficient of variation
- Conditional expectation
- Consistency (estimator)
- Contraction / extension risk
- Controlled amortization
- Conversion premium
- Convexity
- Covenant
- Covered bond
- Credit enhancement
- Crossover rate
- Currency board
- Defensive interval ratio
- Deferred tax liability/asset
- Derecognition
- Discount margin
- Discouraged worker
- Duration (Macaulay/modified/effective)
- Duration gap
- Early amortization
- Economic profit
- Effective annual rate
- Effective interest method
- Efficiency (estimator)
- Efficient frontier
- Empirical duration
- Enterprise value
- Expected shortfall
- Fallen angel
- Fiduciary call / protective put
- Fiscal dominance
- Fraud triangle
- Free float
- GDP deflator
- Geometric mean
- Hedge ratio
- High-water mark
- Hurdle rate
- If-converted method
- Impairment
- Investment property
- Justified multiple
- Key rate duration
- Lease receivable
- LIFO reserve
- Lockout period
- Look-ahead bias
- Material nonpublic information
- Matrix pricing
- Minimum efficient scale
- Monetary union
- Money duration
- Money-weighted return
- Mosaic theory
- Negative convexity
- Notching
- On-the-run
- Option-adjusted spread
- Participation rate
- Pecking order
- PEG ratio
- Periodicity
- Prepayment risk
- Profitability index
- Pseudo-random seed
- Pull to par
- Put–call parity
- Quality spectrum
- Repurchase agreement
- Residual income
- Risk budgeting
- Risk-neutral probability
- Roll yield
- Sharpe ratio
- Sortino ratio
- Standard error of the estimate
- Stop order
- Structural subordination
- Sum-of-the-parts
- Support tranche
- TERP Concept
- The 90-Second Operating Rhythm
- The Exogenous Spread LVaR Adjustment
- The LIFO-to-FIFO Conversion Protocol
- Time tranching
- Time-weighted return
- Topic Triage Methodology
- Treasury stock method
- Unearned (deferred) revenue
- Variation margin
- Willingness vs. ability
- Window dressing
- Yield to worst
- Z-spread
- Accounting Rule: IFRS Inventory Valuation
- Accounting Rule: Investment Property (IFRS)
- Classification of 'Investment Property' under IFRS
- Classification Rule: US\ GAAP Dividends Paid
- Classification Rule: US\ GAAP Interest Paid
- Concept: Beneficial Ownership
- Concept: Beta (β_i)
- Concept: Beta (β)
- Concept: Bootstrap Resampling
- Concept: Conversion
- Concept: Harmonic Mean
- Concept: Holding Period Return (HPR)
- Concept: M^2 (M-squared)
- Concept: Mosaic Theory
- Concept: MWRR
- Concept: Reversal
- Concept: Risk-Neutral Probability (π)
- Concept: Standard of Practice I(B) Independence and Objectivity
- Concept: Standard V(A) - Diligence and Reasonable Basis
- Concept: Sustainable Growth Rate (g)
- Concept: TWRR
- Critical Formula: Approximation for Real Return
- Critical Formula: Harmonic Mean of n observations (X_H)
- Critical Formula: Holding Period Return (HPR)
- Critical Formula: Leveraged Return (R_L)
- Critical Formula: Log Return Additivity
- Critical Formula: Money-Weighted Rate of Return (MWRR)
- Critical Formula: Ordinary Annuity Present Value Factor (A)
- Critical Rule: IFRS vs US GAAP Lease Expense