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A private equity or venture capital investment vehicle that does not disclose its investment strategy and goals when raising capital.
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Building and growing a business without external funding, often by reinvesting profits back into the business.
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An interim financing option used by companies and other entities to solidify their short-term position until a long-term financing option can be arranged. Bridge financing normally comes from an investment bank or venture capital firm in the form of a loan or equity investment. Short-term funding provided to a company until it secures long-term financing or reaches a milestone.
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A short-term loan used until a person or company secures permanent financing or removes an existing obligation.
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How quickly a company is spending its cash reserves to cover overhead costs usually expressed in monthly units. It is also a measure of negative cash flow also expressed as the amount of cash spent per month.
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A financial entity that is engaged with trading securities on behalf of clients, but which may also trade for itself.
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A standard, or a baseline, that's used for comparative purposes when assessing a portfolio or mutual fund. Investors use benchmarks to measure the performance of securities, mutual funds, exchange-traded funds, portfolios, or other investment instruments.
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The point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business. The amount of money, or change in value, for which an asset must be sold to cover the costs of acquiring and owning it.
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A fee paid by investors when selling mutual fund shares, and it is expressed as a percentage of the value of the fund's shares. A back-end load can be a flat fee or gradually decrease over time, usually within five to ten years. In the latter case, the percentage is highest in the first year and falls until it drops to zero.
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A performance-based method for evaluating the viability of a new investment strategy using historical data. Backtesting can serve as a valuable tool to understand how a particular investment could perform, and help boost confidence for the investor implementing the particular strategy.
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It typically describes a condition in which securities prices fall 20% or more from recent highs. A market condition characterized by falling prices and widespread pessimism among investors.
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The condition of a financial market in which prices are rising or are expected to rise and widespread optimism among investors.
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Measures sensitivity of a specific investment relative to a broader market index (e.g. S&P 500 Index). Private market investments typically display lower volatility in comparison to publicly-traded securiteis due to lagged and infrequent valuations that may artifically smooth overall volatility. A beta of 1.0 means a particlar investment will move in lockstep with the broader market, while a beta of 2.0 means that it is twice as volatile as the market.
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The difference between the highest price a buyer is willing to pay for a security and the lowest price a seller is willing to accept for any transaction.
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A type of financial derivative where the payoff is either a fixed amount or nothing at all.
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A cryptocurrency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, thus removing the need for third-party involvement in financial transactions. The first and most well-known cryptocurrency, based on decentralized blockchain technology.
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Equal to the cost of carrying an asset on a company’s balance sheet, and firms calculate it by netting the asset against its accumulated depreciation. As a result, book value can also be thought of as the net asset value (NAV) of a company, calculated as its total assets minus intangible assets(patents, goodwill) and liabilities.
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Is a recurring pattern of economic expansion and contraction. It is measured by the rise and fall of gross domestic product (GDP), which is the total value of goods and services produced in a country. The business cycle has four phases: Expansion, Peak, Contraction, and Trough.
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A segment of financial markets made up of investing institutions that buy securities for money-management purposes.
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A decentralized, distributed ledger system used to record transactions across many computers.
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The purchase of a controlling percentage of a company’s stock.
blind pool, bootstrapping, bridge financing, bridge loan, burn rate, broker-dealer, benchmark, break-even price