Question 1

Acronym: ROI

Accepted Answer

Full Form: Return on Investment Definition: A measure of the profitability of an investment, calculated as the ratio of net profit to the initial cost of the investment.

Question 2

Acronym: EBITDA

Accepted Answer

Full Form: Earnings Before Interest, Taxes, Depreciation, and Amortization Definition: A metric used to evaluate a company’s operating performance, excluding non-operating expenses.

Question 3

Acronym: NAV

Accepted Answer

Full Form: Net Asset Value Definition: The value of an entity’s assets minus its liabilities, often used in mutual funds to represent per-share value.

Question 4

Acronym: EPS

Accepted Answer

Full Form: Earnings Per Share Definition: The portion of a company's profit allocated to each outstanding share of common stock, used as an indicator of a company's profitability.

Question 5

Acronym: IPO

Accepted Answer

Full Form: Initial Public Offering Definition: The process by which a private company offers its shares to the public for the first time to raise capital.

Question 6

Acronym: P/E Ratio

Accepted Answer

Full Form: Price-to-Earnings Ratio Definition: A valuation ratio of a company's current share price compared to its per-share earnings, used to determine if a stock is over or undervalued.

Question 7

Acronym: CAGR

Accepted Answer

Full Form: Compound Annual Growth Rate Definition: The rate of return required for an investment to grow from its beginning balance to its ending balance, assuming profits are reinvested.

Question 8

Acronym: CFD

Accepted Answer

Full Form: Contract for Difference Definition: A financial derivative allowing investors to speculate on price movements without owning the underlying asset.

Question 9

Acronym: SEC

Accepted Answer

Full Form: Securities and Exchange Commission Definition: A U.S. government agency responsible for regulating the securities industry and protecting investors.

Question 10

Acronym: FDI

Accepted Answer

Full Form: Foreign Direct Investment Definition: An investment made by a firm or individual in one country into business interests in another country, typically by acquiring assets or establishing operations.

Question 11

Acronym: LIBOR

Accepted Answer

Full Form: London Interbank Offered Rate Definition: A benchmark interest rate at which major global banks lend to one another in the international interbank market.

Question 12

Acronym: ETF

Accepted Answer

Full Form: Exchange-Traded Fund Definition: An investment fund that is traded on stock exchanges, much like stocks, and typically aims to track an index.

Question 13

Acronym: AML

Accepted Answer

Full Form: Anti-Money Laundering Definition: Laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.

Question 14

Acronym: FX

Accepted Answer

Full Form: Foreign Exchange Definition: The market in which currencies are traded, also known as the forex market, where participants can buy, sell, exchange, and speculate on currencies.

Question 15

Acronym: GDP

Accepted Answer

Full Form: Gross Domestic Product Definition: The total monetary value of all goods and services produced within a country during a specific period, used to gauge economic performance.

Question 16

Acronym: GAAP

Accepted Answer

Full Form: Generally Accepted Accounting Principles Definition: A set of accounting standards, procedures, and principles that companies must follow when preparing their financial statements.

Question 17

Acronym: NPV

Accepted Answer

Full Form: Net Present Value Definition: The difference between the present value of cash inflows and outflows of an investment, used to assess its profitability.

Question 18

Acronym: REIT

Accepted Answer

Full Form: Real Estate Investment Trust Definition: A company that owns, operates, or finances income-generating real estate, allowing investors to invest in large-scale properties.

Question 19

Acronym: KYC

Accepted Answer

Full Form: Know Your Customer Definition: A process that financial institutions and other entities use to verify the identity of their clients, helping prevent fraud and financial crimes.

Question 20

Acronym: FIFO

Accepted Answer

Full Form: First In, First Out Definition: An inventory valuation method where the goods purchased or produced first are the ones sold or used first.

Question 21

Acronym: ESG

Accepted Answer

Full Form: Environmental, Social, and Governance Definition: A set of standards for a company’s operations that socially conscious investors use to screen potential investments.

Question 22

Acronym: LIFO

Accepted Answer

Full Form: Last In, First Out Definition: An inventory valuation method where the most recently produced or acquired items are sold or used first.

Question 23

Acronym: M&A

Accepted Answer

Full Form: Mergers and Acquisitions Definition: The consolidation of companies or assets through various financial transactions, including mergers, acquisitions, and consolidations.

Question 24

Acronym: IRR

Accepted Answer

Full Form: Internal Rate of Return Definition: A discount rate that makes the net present value of all cash flows from a particular project equal to zero, used to evaluate investment profitability.

Question 25

Acronym: NIM

Accepted Answer

Full Form: Net Interest Margin Definition: A measure of the difference between the interest income generated by banks and the interest paid out to lenders, expressed as a percentage of interest-earning assets.

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Acronyms in Finance Flashcards

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