Private Investment in Public Equity (PIPE)

A type of private placement where publicly traded assets are sold privately, often to quickly raise capital.

Quantitative Easing (QE)

A form of unconventional monetary policy used by central banks to stimulate the economy by buying financial assets from commercial banks and other financial institutions.

Rehypothecation

The practice whereby banks and brokers use assets that have been posted as collateral by their clients for their own purposes.

Swap

A derivative contract through which two parties exchange financial instruments, such as interest rates, commodities, or foreign exchange.

Theta

A measure of the rate of decline in the value of an option due to the passage of time.

Underwriting

The process by which an individual or institution takes on financial risk for a fee, such as the risk associated with issuing new securities.

Venture Debt

A type of debt financing provided to venture-backed companies by specialized banks or non-bank lenders to fund working capital or capital expenses, such as purchasing equipment.

Warrant

A derivative that provides the right, but not the obligation, to buy or sell a security—most commonly an equity—at a certain price before expiration.

X-Efficiency

The degree of efficiency maintained by firms under conditions of imperfect competition.

Yield to Maturity (YTM)

The total return anticipated on a bond if the bond is held until it matures, representing the long-term yield on the bond.

Z-Score

A statistical measure that quantifies the distance (in standard deviations) a data point is from the mean of a data set, commonly used in credit risk analysis to predict bankruptcy.