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"A“ Round
A financing event whereby venture capitalists become involved in a fast-growth company that was previously financed by founders and/or angels. |
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AAM
[Asset / Asset MCodelling] |
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Abgegrenzte Rabatte am Markt
An increase in the market price of a discounted bond resulting from an approaching maturity date, rather than from declining interest rates. |
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Acceleration Order
An order by the SEC (Securities Exchange Commission) declaring a registration statement effective (and thereby making sales of securites permissible) before expiration of the statutory 20 day period from the date of filing. |
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Acceleration Request
A request (or in some cases, oral communication) to the SEC from both the issuer and the managing underwriters of a public offering, requesting that the SEC declare a registration statement effective. |
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Accountant’s Opinion
A report signed by an independant accountant, describing the scope of the accountant's review and expressing an opinion on the quality of the financial statements presented. |
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Accredited Investor
A term defined in Regulation D under the Securities Act of 1933 to include various financial institutions; certain corporations and trusts; an officer or director of the issuer; as well as a natural person with a net worth (with spouse) of US$ 1 million; or revenues of at least US$ 200'000 for the previous 2 years. |
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Accreted Value
The theoretical price a A meeting during the public offering process gathering representatives of the issuer, the underwriters, their respective lawyers and the issuer's accountants. |
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Accrual Basis
The most commonly used accounting method, which reports income when earned and expenses when incurred, as opposed to cash basis accounting, which reports income when received and expenses when paid. |
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Accrued Expenses
Expenses which are incurred as of a given date, but for which payment is not yet made. |
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Accumulated Earnings (or Profits) Tax (USA)
An additional tax on earnings that a business retains in an attempt to avoid the higher income taxes the owners would be subject to if the earnings were paid out to them as dividends. |
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Added Value
The value of improvement made by a venture capital company (Venture Capital) to an enterprise thanks to its know how and coaching. |
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Adjustable Rate Preferred Stock
Preferred stock whose dividend rate changes periodically based upon changes in a reference interest rate. |
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ADR (USA)
[American Depositary Receipts] |
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ADS (USA)
[American Depositary Shares] |
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Affiliate (USA)
A person that controls, is controlled by, or is under common control with (directly or indirectly) the entity specified. |
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AIM
[Alternative Investment Market) |
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Aircraft Carrier
A regulatory proposal issued by the SEC in November 1998 designed to streamline the regulatory environment in the United States for private and public offerings. |
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All Hands Meeting
A meeting during the public offering process gathering representatives of the issuer, the underwriters, their respective lawyers and the issuer's accountants. |
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All-or-none
An offering of securities which is realized at the condition that all the offered securities are sold. |
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ALM
[Asset/Liability Modelling] |
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Alpha
Designates the performance of a fund as compared to a benchmark. |
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Alternative Investment Funds
Funds which invest in various types of investments which are not classified as being traditional, such as >i>hedge funds, venture capital funds, buy-out funds, real estate funds and ever more esoteric vehicles. |
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American Option (or American-style Option)
An option that may be exercised at any time prior to expiration |
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AMEX
[American Stock Exchange] |
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AMM
[Asset Managers Modelling] |
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Amortization
An accounting procedure that gradually reduces the book value of an intangible asset through periodic charges to income. |
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Analyst
A person usually employed by an investment bank who “follows” a company and issues regular reports on its quality and prospects. |
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Angel / Buniness Angel
A person or entity that provides financing to companies that have progressed beyond the start-up phase but are not yet ready for venture financing. |
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Angel Financing
Capital raised for a private company from indepent wealthy investors. |
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Angel Investor
A private investor who provides both finance and business expertise to an investee company. |
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Annual instalment
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Anti-dilution provisions
Provisions in an option or a convertible security (such as convertible preferred stock, which is the typical form of venture capital or mezzanine investment) which protect the holder's investment from dilution as the result of later issues of stock at a lower price. |
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Anti-dilution, Full ratchet
Provisions that provide protection against dilution of a investment and apply the lowest sale price for any shares of common stock (or equivalents) sold by the company after the issuing of an option price or conversion ratio for existing shareholders. |
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Anti-dilution, Weighted Average
Anti-Dilution provisions that apply a weighted average formula of the price of various financing rounds. |
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Anti-flowback Rules (USA)
SEC rules under Regulation S that apply to offerings initially made outside the USA to prevent subsequent sales into the USA in violation of applicable restrictions or registration requirements. |
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Anti-take-over Provisions
Provsions in a company's charter and by-laws that are designed to discourage undesired take-over bids. |
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Antitrust Law
Laws designed to prevent businesses from monopolizing a market or restraining free trade. |
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Arrearage
Unpaid dividends due to holders of preferred stock. |
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Articles of Incorporation
A document filed with a state by a corporation's founders, describing the purpose, place of business, and other details of a corporation. |
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Asset Class
Any item of economic value owned by an individual or corporation, especially that could be converted to cash. |
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Asset Deal
Partial or total takeover of a company through the purchase of assets rather than shares. |
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Asset Sales Deal
Take-over deal financed by the purchase of assets of the acquired company. |
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Asset Stripping
Braking up of a company after take-over through the sale of business lines or other assets. |
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Audit Committee
A committee of the board of directors consisting of independant directors, responsible for selecting and overseeing the work of outside auditors.Under the rules of NASDAQ and other stock exchanges most public companies must have an audit committee. |
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Auditor's Opinion
A report signed by an independant accountant, describing the scope of the accountant’s review and expressing an opinion on the quality of the financial statements presented. |