1.1 Finance Terminology Overview
One of the most common areas of frustration for students studying finance is terminology. Learning finance can sometimes feel like learning a foreign language. While we can't cover all the terminology you might encounter in finance, we want to focus on the most common areas of confusion. A solid understanding of finance terminology will make learning subsequent material much easier.
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Describe the use of the balance sheet, income statement, statement of cash flows, and equity statement.
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Recognize the difference between cash flow and net income.
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Compare and contrast public and private firms.
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Describe the methods by which a firm can raise capital.
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Identify the two methods by which a firm can pay out cash.
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Define common finance acronyms including CEO, CFO, COO, IPO, EPS, PE, NYSE, NASDAQ, OTC, SEC, FDIC, BLS, GDP, CPI, and IMF.