Jump to content

Main menu Navigation ●Main page ●Contents ●Current events ●Random article ●About Wikipedia ●Contact us ●Donate Contribute ●Help ●Learn to edit ●Community portal ●Recent changes ●Upload file

●Create account ●Log in ●Create account ● Log in Pages for logged out editors learn more ●Contributions ●Talk

(Top) 1 Overview 2 Fundamental financial concepts 3 History 4 Finance terms by field 4.1 Accounting (financial record keeping) 4.2 Banking 4.3 Corporate finance 4.4 Investment management 4.5 Personal finance 4.6 Public finance 4.7 Risk management 4.8 Constraint finance 5 Insurance 6 Economics and finance 6.1 Finance-related areas of economics 6.2 Corporate finance theory 6.3 Asset pricing theory 6.3.1 Asset pricing models 7 Mathematics and finance 7.1 Time value of money 7.2 Financial mathematics 7.2.1 Mathematical tools 7.2.2 Derivatives pricing 7.2.3 Portfolio mathematics 8 Financial markets 8.1 Market and instruments 8.2 Equity market 8.2.1 Equity valuation 8.2.2 Investment theory 8.3 Bond market 8.4 Money market 8.5 Commodity market 8.6 Derivatives market 8.6.1 Forward markets and contracts 8.6.2 Futures markets and contracts 8.6.3 Option markets and contracts 8.6.4 Swap markets and contracts 8.6.5 Derivative markets by underlyings 8.6.5.1 Equity derivatives 8.6.5.2 Interest rate derivatives 8.6.5.3 Credit derivatives 8.6.5.4 Foreign exchange derivative 9 Financial regulation 9.1 Designations and accreditation 9.2 Litigation 9.3 Fraud 9.4 Industry bodies 9.5 Regulatory bodies 9.5.1 International 9.5.2 European Union 9.5.3 Regulatory bodies by country 9.5.3.1 United Kingdom 9.5.3.2 United States 9.6 United States legislation 10 Actuarial topics 11 Valuation 11.1 Underlying theory 11.2 Context 11.3 Considerations 11.4 Discounted cash flow valuation 11.5 Relative valuation 11.6 Contingent claim valuation 11.7 Other approaches 11.8 Financial modeling 12 Portfolio theory 12.1 General concepts 12.2 Modern portfolio theory 12.3 Post-modern portfolio theory 12.4 Performance measurement 12.5 Mathematical techniques 13 Quantitative investing 14 Financial software tools 15 Financial modeling applications 15.1 Corporate Finance 15.2 Quantitative finance 16 Financial institutions 17 Education 18 See also 19 Related lists 20 References 21 External links

Outline of finance

●Français Edit links ●Article ●Talk ●Read ●Edit ●View history Tools Actions ●Read ●Edit ●View history General ●What links here ●Related changes ●Upload file ●Special pages ●Permanent link ●Page information ●Cite this page ●Get shortened URL ●Download QR code ●Wikidata item Print/export ●Download as PDF ●Printable version Appearance From Wikipedia, the free encyclopedia

Assets
Asset (economics) Bond Asset growth Capital asset Commodity Derivatives Domains Equity Foreign exchange Money Over-the-counter Private equity Real estate Spot Stock
Participants
Angel investor Bull (stock market speculator) Financial planner Investor institutional Retail Speculator
Locations
Financial centres Offshore financial centres Conduit and sink OFCs

Bond

Cash

Collateralised debt obligation

Credit default swap

Time deposit (certificate of deposit)

Option (call

exotic

put)

General
Accounting Audit Capital budgeting Capital structure Corporate finance Credit rating agency Enterprise risk management Enterprise value Risk management Financial statements
Transactions
Leveraged buyout Mergers and acquisitions Structured finance Venture capital
Taxation
Base erosion and profit shifting (BEPS) Corporate tax haven Tax inversion Tax haven Transfer pricing

Credit / Debt

Employment contract

Financial planning

Retirement

Student loan

Government spending
Final consumption expenditure Operations Redistribution Transfer payment
Government revenue
Taxation Deficit spending Budget (balance) Debt Non-tax revenue Warrant of payment

Central bank

Lists of banks

Private equity and venture capital

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 term finance may incorporate any of the following:

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

Fundamental financial concepts[edit]

Finance

History[edit]

History of finance
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]

Banking[edit]

See articles listed under: Bank § See also

Corporate finance[edit]

Investment management[edit]

Personal finance[edit]

529 plan (US college savings)
ABLE account (US plan for benefit of individuals with disabilities)
Asset allocation
- Asset location
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
  - Registered retirement savings plan
  - Tax-free savings account
- Japan – Nippon individual savings account
- New Zealand – KiwiSaver
- United Kingdom
  - Individual savings account
  - Self-invested personal pension
- 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
- Deposit creation multiplier
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

Risk management[edit]

Constraint finance[edit]

Insurance[edit]

Economics and finance[edit]

Finance-related areas of economics[edit]

Corporate finance theory[edit]

Asset pricing theory[edit]

Asset pricing models[edit]

Equilibrium pricing
- Equities; foreign exchange and commodities
- Bonds; other interest rate instruments
Risk neutral pricing
- Equities; foreign exchange and commodities; interest rates
  - Black–Scholes
  - Black
  - Garman–Kohlhagen
  - Heston
  - CEV
  - SABR
- Bonds; other interest rate instruments

Mathematics and finance[edit]

Time value of money[edit]

Financial mathematics[edit]

Mathematical tools[edit]

Derivatives pricing[edit]

Underlying logic (see also #Economics and finance above)
Forward contract
- Forward contract pricing
Futures
- Futures contract pricing
Options (incl. Real options and ESOs)
Swaps
- Swap valuation
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 / Forward curve -based models (Application as per short-rate models)
  - LIBOR market model (also called: Brace–Gatarek–Musiela Model, BGM)
  - Heath–Jarrow–Morton Model (HJM)
  - Cheyette model
Valuation adjustments
- Credit valuation adjustment
- XVA
Yield curve modelling

Portfolio mathematics[edit]

#Mathematical techniques below
#Quantitative investing below
Modern portfolio theory § Mathematical model
Portfolio optimization
- § Optimization methods
- § Mathematical tools
Merton's portfolio problem
Kelly criterion
Roy's safety-first criterion
Specific applications:

Financial markets[edit]

 Financial markets

Market and instruments[edit]

Equity market[edit]

Equity valuation[edit]

Investment theory[edit]

Bond market[edit]

Money market[edit]

Futures markets and contracts[edit]

Option markets and contracts[edit]

Options

Swap markets and contracts[edit]

Swap (finance)

Derivative markets by underlyings[edit]

Equity derivatives[edit]

Contract for difference (CFD)
Exchange-traded fund (ETF)
- Closed-end fund
- Inverse exchange-traded fund
Equity options
Equity swap
Real estate investment trust (REIT)
Warrants
- Covered warrant

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
StripsofCollateralized mortgage obligation
- Interest only (IO)
- Principal only (PO)
Ratchet caps and floors

Credit derivatives[edit]

Foreign exchange derivative[edit]

Financial regulation[edit]

Designations and accreditation[edit]

Litigation[edit]

Liabilities Subject to Compromise

Fraud[edit]

Industry bodies[edit]

Regulatory bodies[edit]

International[edit]

European Union[edit]

Regulatory bodies by country[edit]

United Kingdom[edit]

United States[edit]

United States legislation[edit]

Actuarial topics[edit]

Actuarial topics

Valuation[edit]

Underlying theory[edit]

Context[edit]

Considerations[edit]

Discounted cash flow valuation[edit]

Bond valuation
- Modeling
- Results
  - Clean price
  - Dirty price
  - Yield to maturity
  - Coupon yield
  - Current yield
  - Duration
  - Convexity
  - embedded options:
- Cash flows
  - Principal (finance)
  - Coupon (bond)
  - Fixed rate bond
  - Floating rate note
  - Zero-coupon bond
  - Accrual bond
  - sinking fund provisions
Real estate valuation
- Intrinsic value (finance) § Real estate
- Income approach
Equity valuation

Relative valuation[edit]

Contingent claim valuation[edit]

Valuation techniques
- general
- as typically employed
Applications
- Corporate investments and projects
  - Real options
  - Corporate finance § Valuing flexibility
  - Contingent value rights
  - Business valuation § Option pricing approaches
  - structured finance investments (funding dependent)
  - special purpose entities (funding dependent)
- Balance sheet assets and liabilities
  - warrants and other convertible securities
  - securities with embedded options such as callable bonds
  - employee stock options

Other approaches[edit]

"Fundamentals"-based (relying on accounting information)

Financial modeling[edit]

Portfolio theory[edit]

General concepts[edit]

Modern portfolio theory[edit]

Portfolio optimization
Theory and results (derivation of the CAPM)
Related measures
Optimization models
- Markowitz model
- Treynor–Black model

Equilibrium pricing models (CAPM and extensions)
- Capital asset pricing model (CAPM)
- Consumption-based capital asset pricing model (CCAPM)
- Intertemporal CAPM (ICAPM)
- Single-index model
- Multiple factor models (see Risk factor (finance))

Post-modern portfolio theory[edit]

Approaches
Optimization considerations
- Pareto efficiency
- Bayesian efficiency
- Multiple-criteria decision analysis
- Multi-objective optimization
- Stochastic dominance
  - Second-order Stochastic dominance
  - Marginal conditional stochastic dominance
- Downside risk
- 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
- Black–Litterman model
- Universal portfolio algorithm

Performance measurement[edit]

Mathematical techniques[edit]

Quantitative investing[edit]

Financial software tools[edit]

Financial modeling applications[edit]

Corporate Finance[edit]

Business valuation / stock valuation - especially via discounted cash flow, but including other valuation approaches
Scenario planning and management decision making ("what is"; "what if"; "what has to be done"^[1])
Capital budgeting, including cost of capital (i.e. WACC) calculations
Financial statement analysis / ratio analysis (including of operating- and finance leases, and R&D)
Revenue related: forecasting, analysis
Project finance modeling
Cash flow forecasting
Credit decisioning: Credit analysis, Consumer credit risk; impairment- and provision-modeling
Working capital- and treasury management; asset and liability management
Management accounting: Activity-based costing, Profitability analysis, Cost analysis, Whole-life cost

Quantitative finance[edit]

Option pricing and calculation of their "Greeks"
Other derivatives, especially interest rate derivatives, credit derivatives and exotic derivatives
Modeling the term structure of interest rates (bootstrapping / multi-curves, short-rate models, HJM framework) and credit spreads
Credit valuation adjustment, CVA, as well as the various XVA
Credit risk, counterparty credit risk, and regulatory capital: EAD, PD, LGD, PFE
Structured product design and manufacture
Portfolio optimization^[2] and Quantitative investing more generally; see further re optimization methods employed.
Financial risk modeling: value at risk (parametric- and / or historical, CVaR, EVT), stress testing, "sensitivities" analysis

Financial institutions[edit]

Financial institutions

Education[edit]

For the typical finance career path and corresponding education requirements see:
- Financial analyst generally, and esp. § Qualification, discussing various investment, banking, and corporate 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 analyst, Quantitative analysis (finance) § Education and Financial engineering § 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 almost invariably postgraduate, following a math-focused Bachelors; the most common degrees for (entry level) investment, banking, and corporate roles are:
- Bachelor of Business Administration (BBA)
- Bachelor of Commerce (BCom)
- Bachelor of Accountancy (B.Acc)
- Bachelor of Economics (B.Econ)
- Bachelor of Finance - the undergraduate version of the MSF below
- The tagged BS / BA "in Finance", or less common, "in Investment Management" or "in Personal Finance"
Atthe postgraduate level, the MBA, MCom and MSM (and recently the Master of Applied Economics) similarly offer training in finance generally; at this level there are also the following specifically focused master's degrees, with MSF the broadest - see Master of Finance § Comparison with other qualifications for their focus and inter-relation:
- Master of Applied Finance (M.App.Fin)
- Master of Commerce in Finance (MCom)
- Master of Computational Finance
- Master's in Corporate Finance
- Master of Finance (M.Fin, MIF)
- Master's in Financial Analysis
- Master of Financial Economics
- Master of Financial Engineering (MFE)
- Master of Financial Planning
- Master's in Financial Management
- Master of Financial Mathematics
- Master's in Financial Risk Management
- Master's in Investment Management
- Master of Mathematical Finance
- Master of Quantitative Finance (MQF)
- Master of Science in Finance (MSF, MSc Finance)
- MS in Fintech
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”
- asan academic field, finance theory is studied and developed within the disciplines of management, (financial) economics, accountancy, and applied / financial mathematics.
For specialized roles, there are various Professional Certifications in financial services (see #Designations and accreditation above); the best recognized are arguably:
- Association of Corporate Treasurers (MCT / FCT)
- 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)
- Chartered Wealth Manager (CWM)
- CISI Diploma in Capital Markets (MCSI)
- Financial Risk Manager (FRM)
- Professional Risk Manager (PRM)
Various organizations offer executive education, CPD, or other focused training programs, including:
See also qualifications in related fields:

Related lists[edit]

References[edit]

^ Joel G. Siegel; Jae K. Shim; Stephen Hartman (1 November 1997). Schaum's quick guide to business formulas: 201 decision-making tools for business, finance, and accounting students. McGraw-Hill Professional. ISBN 978-0-07-058031-2. Retrieved 12 November 2011. §39 "Corporate Planning Models". See also, §294 "Simulation Model".

^ See for example: Low, R.K.Y.; Faff, R.; Aas, K. (2016). "Enhancing mean–variance portfolio selection by modeling distributional asymmetries" (PDF). Journal of Economics and Business. 85: 49–72. doi:10.1016/j.jeconbus.2016.01.003.; Low, R.K.Y.; Alcock, J.; Faff, R.; Brailsford, T. (2013). "Canonical vine copulas in the context of modern portfolio management: Are they worth it?" (PDF). Journal of Banking & Finance. 37 (8): 3085–3099. doi:10.1016/j.jbankfin.2013.02.036. S2CID 154138333.

External links[edit]

Definitions from Wiktionary

Media from Commons

News from Wikinews

Quotations from Wikiquote

Texts from Wikisource

Textbooks from Wikibooks

Resources from Wikiversity

Prof. Aswath Damodaran - financial theory, with a focus in Corporate Finance, Valuation and Investments. Updated Data, Excel Spreadsheets.
Web Sites for Discerning Finance Students (Prof. John M. Wachowicz) -Links to finance web sites, grouped by topic
studyfinance.com - introductory finance web site at the University of Arizona
SECLaw.com - law of the financial markets

Wikipedia outlines

General reference

Retrieved from "https://en.wikipedia.org/w/index.php?title=Outline_of_finance&oldid=1234251159" Categories: ●Outlines of economics ●Outlines ●Finance lists ●Business terms Hidden categories: ●Articles with short description ●Short description is different from Wikidata ●Articles with hatnote templates targeting a nonexistent page ●Pages using Sister project links with default search ●This page was last edited on 13 July 2024, at 11:04 (UTC). ●Text is available under the Creative Commons Attribution-ShareAlike License 4.0; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. ●Privacy policy ●About Wikipedia ●Disclaimers ●Contact Wikipedia ●Code of Conduct ●Developers ●Statistics ●Cookie statement ●Mobile view