# Outline of finance

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The following outline is provided as an overview of and topical guide to finance:

**Finance** – addresses the ways in which individuals and organizations raise and allocate monetary resources over time, taking into account the risks entailed in their projects.

## Overview[edit]

The word **finance** may incorporate any of the following:

- The study of money and other assets
- The management and control of those assets
- Profiling and managing project risks

## Fundamental financial concepts[edit]

- Finance
- Arbitrage
- Capital (economics)
- Capital asset pricing model
- Cash flow
- Cash flow matching
- Debt
- Discounted cash flow
- Financial capital
- Financial modeling
- Entrepreneur
- Fixed income analysis
- Gap financing
- Global financial system
- Hedge
- Interest rate
- Short rate model
- Interest
- Investment
- Leverage
- Long (finance)
- Liquidity
- Margin (finance)
- Mark to market
- Market Impact
- Medium of exchange
- Microcredit
- Money
- Portfolio
- Reference rate
- Return
- Risk
- Scenario analysis
- Short (finance)
- Speculation
- Position trader
- Spread trade
- Standard of deferred payment
- Store of value
- Time horizon
- Time value of money
- Unit of account
- Volatility
- Yield
- Yield curve

## History[edit]

- History of banking
- History of insurance
- Tulip mania (Dutch Republic), 1620s/1630s
- South Sea Bubble (UK) & Mississippi Company (France), 1710s; see also Stock market bubble
*Vix pervenit*1745, on usury and other dishonest profit- Panic of 1837 (US)
- Railway Mania (UK), 1840s
- Erie War (US), 1860s
- Long Depression, 1873–1896 (mainly US and Europe, though other parts of the world were affected)
- Post-World War I hyperinflation; see Hyperinflation and Inflation in the Weimar Republic
- Wall Street Crash of 1929
- Great Depression 1930s
- Bretton Woods Accord 1944
- 1973 oil crisis
- 1979 energy crisis
- Savings and Loan Crisis 1980s
- Black Monday 1987
- Asian financial crisis 1990s
- Dot-com bubble 1995-2001
- Stock market downturn of 2002
- United States housing bubble
- Financial crisis of 2007–08, followed by the Great Recession

## Finance terms by field[edit]

### Accounting (financial record keeping)[edit]

- Auditing
- Accounting software
- Book keeping
- FASB
- Financial accountancy
- Management accounting
- Philosophy of Accounting
- Working capital

### Banking[edit]

- Anonymous banking
- Automatic teller machine
- Deposit
- Deposit creation multiplier
- Ethical banking
- International Bank Account Number
- Islamic banking
- Loan
- Withdrawal

### Corporate finance[edit]

- Balance sheet analysis
- Business plan
- Capital budgeting
- Corporate action
- Managerial finance
- Mergers and acquisitions
- Real options
- Working capital management

### Investment management[edit]

- Active management
- Efficient market hypothesis
- Portfolio
- Modern portfolio theory
- Arbitrage pricing theory
- Passive management
- Activist shareholder
- Mutual fund
- Financial engineering
- Hedge fund
- Hedge

### Personal finance[edit]

- 529 plan (US college savings)
- ABLE account (US plan for benefit of individuals with disabilities)
- Asset allocation
- Budget
- Coverdell Education Savings Account (Coverdell ESAs, formerly known as Education IRAs)
- Credit and debt
- Debit card
- Direct deposit
- Employment contract
- Financial literacy
- Insurance
- Predatory lending
- Retirement plan
- Australia – Superannuation in Australia
- Canada
- Japan – Nippon individual savings account
- New Zealand – KiwiSaver
- United Kingdom
- United States
- Pension

- Simple living
- Social security
- Tax advantage
- Wealth
- Comparison of accounting software
- Personal financial management
- Investment club
- Collective investment scheme

### Public finance[edit]

- Central bank
- Federal Reserve
- Fractional-reserve banking
- Tax
- Capital gains tax
- Estate tax (and inheritance tax)
- Gift tax
- Income tax
- Inheritance tax
- Payroll tax
- Property tax (including land value tax)
- Sales tax (including value added tax, excise tax, and use tax)
- Transfer tax (including stamp duty)
- Tax advantage
- Tax, tariff and trade
- Tax amortization benefit

- Crowding out
- Industrial policy
- Agricultural policy
- Currency union
- Monetary reform

### Insurance[edit]

- Actuarial science
- Annuities
- Catastrophe modeling
- Earthquake loss
- Extended coverage
- Insurable interest
- Insurable risk
- Insurance
- Insurance contract
- Loss payee clause
- Risk Retention Group

### Economics and finance[edit]

### Mathematics and finance[edit]

#### Time value of money[edit]

#### Financial mathematics[edit]

##### Mathematical tools[edit]

- Probability
- Stochastic calculus
- Monte Carlo methods
- Partial differential equations
- Volatility

##### Derivatives pricing[edit]

- Brownian model of financial markets
- Martingale pricing
- Rational pricing assumptions (See also Fundamental theorem of asset pricing)
- Risk-neutral measure
- Arbitrage-free pricing

- Forward contract
- Futures
- Options (incl. Real options and ESOs)
- Black–Scholes formula
- Approximations for American options

- Black model
- Binomial options model
- Finite difference methods for option pricing
- Garman–Kohlhagen model
- The Greeks
- Lattice model (finance)
- Margrabe's formula
- Monte Carlo methods for option pricing
- Monte Carlo methods in finance
- Quasi-Monte Carlo methods in finance
- Least Square Monte Carlo for American options

- Trinomial tree
- Volatility

- Black–Scholes formula
- Swaps
- Interest rate derivatives (bond options, swaptions, caps and floors, and others)
- Black model
- Short-rate models (generally applied via lattice based- and specialized simulation-models, although "Black like" formulae exist in some cases.)
- Forward rate-based models (Application as per short-rate models)
- LIBOR market model (also called: Brace–Gatarek–Musiela Model, BGM)
- Heath–Jarrow–Morton Model (HJM)

- Valuation adjustments

### Constraint finance[edit]

- Environmental finance
- Feminist economics
- Green economics
- Islamic economics
- Uneconomic growth
- Value of Earth
- Value of life

## Financial markets[edit]

### Market and instruments[edit]

- Capital markets
- Securities
- Financial markets
- Primary market
- Initial public offering
- Aftermarket
- Free market
- Bull market
- Bear market
- Bear market rally
- Market maker
- Dow Jones Industrial Average
- Nasdaq
- List of stock exchanges
- List of stock market indices
- List of corporations by market capitalization
- Value Line Composite Index

### Equity market[edit]

- Stock market
- Stock
- Common stock
- Preferred stock
- Treasury stock
- Equity investment
- Index investing
- Private Equity
- Financial reports and statements
- Fundamental analysis
- Dividend
- Dividend yield
- Stock split

#### Equity valuation[edit]

- Dow theory
- Elliott wave principle
- Economic value added
- Fibonacci retracement
- Gordon model
- Growth stock
- Mergers and acquisitions
- Leveraged buyout
- Takeover
- Corporate raid
- PE ratio
- Market capitalization
- Income per share
- Stock valuation
- Technical analysis
- Chart patterns
- V-trend
- Paper valuation

#### Investment theory[edit]

- Behavioral finance
- Dead cat bounce
- Efficient market hypothesis
- Market microstructure
- Stock market crash
- Stock market bubble
- January effect
- Mark Twain effect
- Quantitative behavioral finance
- Quantitative analysis (finance)
- Statistical arbitrage

### Bond market[edit]

- Bond (finance)
- Zero-coupon bond
- Junk bonds
- Convertible bond
- Accrual bond
- Municipal bond
- Sovereign bond
- Bond valuation
- Fixed income

### Money market[edit]

- Repurchase agreement
- International Money Market
- Currency
- Exchange rate
- International currency codes
- Table of historical exchange rates

### Commodity market[edit]

- Commodity
- Asset
- Commodity Futures Trading Commission
- Day trading
- Drawdowns
- Forfaiting
- Fundamental analysis
- Futures contract
- Fungibility
- Gold as an investment
- Hedging
- Jesse Lauriston Livermore
- List of traded commodities
- Ownership equity
- Position trader
- Risk (Futures)
- Seasonal traders
- Seasonal spread trading
- Slippage
- Speculation
- Spread trade
- Technical analysis
- Trade
- Trend

### Derivatives market[edit]

- Derivative (finance)
- (see also Financial mathematics topics; Derivatives pricing)
- Underlying instrument

#### Forward markets and contracts[edit]

#### Futures markets and contracts[edit]

- Backwardation
- Contango
- Futures contract
- Financial future

- Futures exchange

#### Option markets and contracts[edit]

- Options
- Stock option
- Warrants
- Foreign exchange option
- Interest rate options
- Bond options
- Real options
- Options on futures

#### Swap markets and contracts[edit]

#### Derivative markets by underlyings[edit]

##### Equity derivatives[edit]

- Contract for difference (CFD)
- Exchange-traded fund (ETF)
- Equity options
- Equity swap
- Real estate investment trust (REIT)
- Warrants

##### Interest rate derivatives[edit]

- LIBOR
- Forward rate agreement
- Interest rate swap
- Interest rate cap
- Exotic interest rate option
- Bond option
- Interest rate future
- Money market instruments
- Range accrual Swaps/Notes/Bonds
- In-arrears Swap
- Constant maturity swap (CMS) or Constant Treasury Swap (CTS) derivatives (swaps, caps, floors)
- Interest rate Swaption
- Bermudan swaptions
- Cross currency swaptions
- Power Reverse Dual Currency note (PRDC or Turbo)
- Target redemption note (TARN)
- CMS steepener
- Snowball
- Inverse floater
- Strips of Collateralized mortgage obligation
- Ratchet caps and floors

##### Credit derivatives[edit]

- Credit default swap
- Collateralized debt obligation
- Credit default option
- Total return swap
- Securitization

##### Foreign exchange derivative[edit]

- Foreign exchange option
- Currency future
- Forex swap
- Foreign exchange hedge
- Binary option: Foreign exchange

## Financial regulation[edit]

### Designations and accreditation[edit]

*See also: Professional certification in financial services; Professional certification #Accountancy, auditing and finance; #Education below*

- Certified Financial Planner
- Chartered Financial Analyst
- Chartered Alternative Investment Analyst
- Professional risk manager
- Chartered Financial Consultant
- Canadian Securities Institute
- Independent financial adviser
- Financial risk manager
- Chartered Market Technician
- Certified Financial Technician

### Litigation[edit]

### Fraud[edit]

### Industry bodies[edit]

### Regulatory bodies[edit]

#### International[edit]

- Bank for International Settlements
- International Organization of Securities Commissions
- Security Commission
- Basel Committee on Banking Supervision
- Basel Accords – Basel I, Basel II, Basel III
- International Association of Insurance Supervisors
- International Accounting Standards Board

#### European Union[edit]

#### Regulatory bodies by country[edit]

##### United Kingdom[edit]

##### United States[edit]

- Commodity Futures Trading Commission
- Federal Reserve
- Federal Trade Commission
- Municipal Securities Rulemaking Board
- Office of the Comptroller of the Currency
- Securities and Exchange Commission

### United States legislation[edit]

- Glass–Steagall Act (US)
- Gramm–Leach–Bliley Act (US)
- Sarbanes–Oxley Act (US)
- Securities Act of 1933 (US)
- Securities Exchange Act of 1934 (US)
- Investment Advisers Act of 1940 (US)
- USA PATRIOT Act

## Actuarial topics[edit]

## Asset types[edit]

## Raising capital[edit]

## Valuation[edit]

*Note that this section is corporate-finance-focused; for the valuation of derivatives and interest rate / fixed income instruments see § Derivatives pricing above.*

### Underlying theory[edit]

- Value (economics)
- Valuation (finance) and specifically #Valuation overview
- "The Theory of Investment Value"
- Financial economics § Corporate finance theory
- Valuation risk
- Real versus nominal value (economics)
- Real prices and ideal prices
- Fair value
- Intrinsic value
- Market price
- Value in use
- Fairness opinion
- Asset pricing

### Discounted cash flow valuation[edit]

- (Corporate) Bond valuation
- Context
- Modelling
- Results
- Cash flows
- Considerations

- Equity valuation
- Context (see also #Equity valuation above)
- Results
- Considerations
- Specific models and approaches
- Modelling
- Cash flow
- Required return (i.e. discount rate)
- Terminal value
- Forecasted financial statements

### Relative valuation[edit]

- Bonds

- Real estate

- Equity

### Contingent claim valuation[edit]

- Valuation techniques
- Applications
- Corporate investments and projects
- Balance sheet assets and liabilities
- warrants and other convertible securities
- securities with embedded options such as callable bonds
- employee stock options
- structured finance investments (funding dependent)
- special purpose entities (funding dependent)

### Other approaches[edit]

- "Fundamentals"-based (relying on accounting information)

## Portfolio theory[edit]

### General concepts[edit]

- Portfolio (finance)
- Portfolio manager
- Investment management
- Investor profile
- Rate of return on a portfolio / Investment performance
- Risk return ratio
- Risk factor (finance)
- Portfolio optimization
- Diversification (finance)
- Asset classes
- Asset allocation
- Sector rotation
- Correlation & covariance
- Risk-free interest rate
- Leverage (finance)
- Utility function
- Intertemporal portfolio choice
- Portfolio insurance
- Mathematical finance § Risk and portfolio management: the P world

### Modern portfolio theory[edit]

- Theory and results (derivation of the CAPM)
- Equilibrium price
- Market price
- Systematic risk
- Idiosyncratic risk / Specific risk
- Mean-variance analysis (Two-moment decision model)
- Efficient frontier (Mean variance efficiency)
- Feasible set
- Mutual fund separation theorem
- Tangent portfolio
- Market portfolio
- Beta (finance)
- Capital allocation line
- Capital market line
- Security characteristic line
- Capital asset pricing model
- Security market line
- Roll's critique

- Related measures

- Optimization models

- Equilibrium pricing models (CAPM and extensions)

### Post-modern portfolio theory[edit]

- Approaches

- Optimization considerations
- Pareto efficiency
- Bayesian efficiency
- Multiple-criteria decision analysis
- Multi-objective optimization
- Stochastic dominance
- Downside risk
- Risk parity
- Tail risk parity
- Volatility skewness
- Semivariance
- Expected shortfall (ES; also called conditional value at risk (CVaR), average value at risk (AVaR), expected tail loss (ETL))
- Tail value at risk
- Statistical dispersion
- Discounted maximum loss
- Indifference price

- Measures

- Optimization models

### Performance measurement[edit]

- Performance attribution
- Fixed-income attribution
- Benchmark
- Lipper average
- Returns-based style analysis
- Rate of return on a portfolio
- Holding period return
- Tracking error
- Alpha (finance)
- Beta (finance)
- Simple Dietz method
- Modified Dietz method
- Modigliani risk-adjusted performance
- Upside potential ratio
- Maximum Downside Exposure
- Maximum drawdown
- Sharpe ratio
- Treynor ratio
- Jensen's alpha
- Bias ratio
- V2 ratio
- Calmar ratio (hedge fund specific)

### Mathematical techniques[edit]

- Quadratic programming
- Nonlinear programming
- Mixed integer programming
- Stochastic programming (§ Multistage portfolio optimization)
- Copula (probability theory) (§ Quantitative finance)
- Principal component analysis (§ Quantitative finance)
- Deterministic global optimization
- Genetic algorithm (List of genetic algorithm applications § Finance and Economics)
- Machine learning (§ Applications)

## Financial software tools[edit]

- Straight Through Processing Software
- Technical Analysis Software
- Fundamental Analysis Software
- Algorithmic trading
- Electronic trading platform
- List of numerical analysis software
- Comparison of numerical analysis software

## Financial institutions[edit]

- Bank
- List of banks
- Advising bank
- Central bank
- Commercial bank
- Community development bank
- Cooperative bank
- Custodian bank
- Depository bank
- Ethical bank
- Investment bank
- Islamic banking
- Merchant bank
- Microcredit
- Mutual savings bank
- National bank
- Offshore bank
- Private bank
- Savings bank
- Swiss bank
- Bank holding company

- Building society
- Broker
- Clearing house
- Commercial lender
- Community development financial institution
- Credit rating agency
- Credit union
- Diversified financial
- Edge Act Corporation
- Export Credit Agencies
- Financial adviser
- Financial intermediary
- Financial planner
- Futures exchange
- Government sponsored enterprise
- Hard money lender
- Independent financial adviser
- Industrial loan company
- Insurance company
- Investment adviser
- Investment company
- Investment trust
- Large and Complex Financial Institutions
- Mutual fund
- Non-banking financial company
- Savings and loan association
- Stock exchange
- Trust company

## Education[edit]

- For the typical finance career path and corresponding education requirements see:
- Financial analyst #Qualification, discussing various corporate and banking roles (i.e. financial management, corporate finance, investment banking, securities analysis & valuation, portfolio & investment management, credit analysis, working capital & treasury management; see Financial modeling #Accounting)
- Quantitative analysis (finance) #Education, specifically re roles in quantitative finance (i.e. derivative pricing & hedging, interest rate modeling, financial risk management, financial engineering, computational finance; also, the mathematically-intensive variant on the banking roles; see Financial modeling #Quantitative finance)

- Business education lists undergraduate degrees in business, commerce, accounting and economics - "finance" may be taken as a major in most of these, whereas "quantitative finance" is invariably postgraduate, following a math-focused Bachelors; the most common degrees for corporate and banking roles are:
- At the postgraduate level, the MBA and MCom, as well the MSM, similarly offer training in finance generally; at this level there are also the following specifically focused masters degrees - see Master of Finance #Comparison with other qualifications for their focus and inter-relation:
- Doctoral-training in finance is usually a requirement for academia, but not relevant to industry; quants often
*enter*the profession with PhDs in disciplines such as physics, mathematics, engineering, and computer science, and learn finance "on the job" - There are various Professional Certifications in financial services relating to specialized roles (see #Designations and accreditation above); the best known are arguably:
- Association of Corporate Treasurers Membership (MCT)
- Certificate in Quantitative Finance (CQF)
- Certified Financial Planner (CFP)
- Certified International Investment Analyst (CIIA)
- Certified Treasury Professional (CTP)
- Chartered Alternative Investment Analyst (CAIA)
- Chartered Financial Analyst (CFA)
- Financial Risk Manager (FRM)
- Professional Risk Manager (PRM)

- See also qualifications in related fields:

## Lists[edit]

- Index of accounting articles
- Outline of business management
- Outline of marketing
- Outline of economics
- Outline of production
- List of international trade topics
- List of business law topics
- List of business theorists

## See also[edit]

## External links[edit]

- Wharton Finance Knowledge Project – aimed to offer free access to finance knowledge for students, teachers, and self-learners.
- Comprehensive site about topics of financial theory, with a focus in Corporate Finance, Valuation and Investments. Updated Data, Excel Spreadsheets and more. Prof. Aswath Damodaran
- For links to finance web sites, grouped by topic see Web Sites for Discerning Finance Students, Prof. John M. Wachowicz -
- For the introductory finance web site at the University of Arizona, studyfinance.com
- For introductory articles, a full glossary and links to resources on behavioral finance see the BF gallery
- For the law of the financial markets see SECLaw.com
- For various shared blog posts on finance see fwisp.com
- For stock market related financial definitions see TheStreet.com Glossary
- The Finance Director provides access to essential suppliers of financial services and solutions
- Middle East Banking & Finance News —
*ArabianBusiness.com*

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