Outline of finance

The following outline provides an overview and topical guide to finance:

Finance – the field concerned with how individuals, businesses, and organizations raise, allocate, and manage monetary resources over time, while accounting for the risks associated with their activities and investments.

Overview

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

Finance – Academic discipline studying businesses and investments
- Arbitrage – Capitalisation of risk-free opportunities in financial markets
- Capital (economics) – Already-produced durable goods that are used in production of goods or services
- Capital asset pricing model – Finance model linking expected return to systematic risk
- Cash flow – Movement of money into or out of a business, project, or financial product
- Cash flow matching – Strategy aligning asset cash inflows with liability outflows
- Debt – Obligation to pay borrowed money
  - Default – Financial failure to meet legal conditions of a loan
  - Consumer debt – Amount owed by individual consumers
  - Debt consolidation – Form of debt refinancing
  - Debt settlement – Settlement negotiated with a debtor's unsecured creditor
  - Credit counseling – Process to help debtors
  - Bankruptcy – Legal status for relief from debts
  - Debt diet – Debt management plan
  - Debt-snowball method – Personal finance strategy
  - Debt of developing countries
- Financial ethics – Application of ethical principles to the area of business activities
- Asset types
  - Real estate – Land, including its buildings and resources
  - Securities – Tradable financial asset
  - Commodities – Fungible item produced to satisfy wants or needs
  - Futures – Standardised contract to buy or sell an asset at a future date
  - Cash – Physical currency and other immediately accessible liquid assets
- Discounted cash flow – Method of valuing a project, company, or asset
- Financial capital – Economic resources used to buy what is needed to make products or provide services
  - Funding – Act of providing resources
- Entrepreneur – Person who owns and operates a business
  - Entrepreneurship – Taking financial risks in the hope of profit
- Fixed income analysis – Process of valuing debt securities by assessing their risk and return
- Gap financing – Short-term loan covering the gap between available funds and total financing needs
- Global financial system – Global framework for capital flows
- Hedge – Investment position used to offset potential losses in another asset
  - Basis risk – Risk that a hedge and its underlying asset do not move perfectly together
- Interest rate – Percentage of a sum of money charged for its use
  - Risk-free interest rate – Interest rate for zero risk investment
  - Term structure of interest rates – Relationships among bond yields of different maturities
- Short-rate model – Interest-rate model describing the stochastic evolution of the instantaneous short rate
  - Vasicek model – Mathematical model of interest rates
  - Cox–Ingersoll–Ross model – Stochastic model for the evolution of financial interest rates
  - Hull–White model – Model of future interest rates
  - Chen model – Three-factor short-rate model for interest-rate dynamics
  - Black–Derman–Toy model – Short-rate model in mathematical finance
- Interest – Sum paid for the use of money
  - Effective interest rate – Precisely defined interest rate
  - Nominal interest rate – Interest rate without adjusting for inflation
  - Interest rate basis – Calculation method for the accrual of interest
  - Fisher equation – Estimate of future interest rates
  - Crowding out – Reduction in private investment caused by increased government borrowing
  - Annual percentage rate – Interest rate for a whole year
  - Interest coverage ratio, also known as Times interest earned – Ratio measuring a firm's ability to meet its interest payments
- Investment – Set of actions with the intent of earning profit
  - Foreign direct investment – Cross-border investment giving a foreign investor lasting control of an enterprise
  - Gold as an investment – Use of gold as a store of value and investment asset
  - Over-investing – Investing more in an asset than its market value justifies
- Leverage – Use of borrowed funds in the purchase of an asset
- Long (finance) – Position in a financial instrument in which the holder owns a positive amount
- Liquidity
  - Market liquidity – Finance property of an asset
  - Accounting liquidity – Measure of a debtor's ability to pay their debts as/when they mature
  - Funding liquidity – Ability of a financial institution to meet its payment obligations when due
- Margin (finance) – Type of financial collateral used to cover credit risk
- Mark to market – Accounting method valuing assets and liabilities at current market prices
- Market impact – Concept in economics
- Medium of exchange – Method by which value is transferred between parties
- Microcredit – Small loans to impoverished borrowers
- Money – Object or record accepted as payment
  - Money creation – Process by which the money supply of an economic region is increased
  - Currency – Standardization of money
  - Coin – Small, flat and usually round piece of material used as money
  - Banknote – Paper money issued by a bank
  - Counterfeit – Making a copy or imitation which is represented as the original
  - History of money
  - Monetary reform – Movements to amend the financial system
- Portfolio – Financial term for a collection of investments
  - Modern portfolio theory – Mathematical framework for investment risk
  - Mutual fund separation theorem – Theorem in portfolio theory
  - Post-modern portfolio theory – Portfolio theory
- Reference rate – Benchmark interest rate used to price loans and financial contracts
- Return – Finance term; profit on an investmentPages displaying short descriptions of redirect targets
  - Absolute return – One measure of the return of an investment portfolio
  - Investment performance
  - Relative return – Measure of the return on an investment
- Risk – Possibility of something bad happening
  - Financial risk – Any of various types of risk associated with financing
  - Risk management – Identification, evaluation and control of risks
    - Financial risk management – Protecting economic value by managing risk exposure
    - Uncompensated risk – In investments, level of additional risk
  - Risk measure – Concept in financial mathematics
    - Coherent risk measure – Concept in financial economics
    - Deviation risk measure – Risk metric quantifying variability of returns around their expected value
    - Distortion risk measure – Risk measure derived by applying a distortion function to a loss distribution
    - Spectral risk measure – Coherent risk measure using weighted outcomes based on risk aversion
    - Value at risk – Estimated potential loss for an investment under a given set of conditions
      - Expected shortfall – Risk measure estimating the average loss in the worst tail of the distribution
      - Entropic value at risk – Coherent measure for value at risk
- Scenario analysis – Futures studies / Futures techniques method
- Short (finance) – Selling unowned financial securities
- Speculation – Engaging in risky financial transactions
  - Day trading – Buying and selling financial instruments within the same trading day
- Position trader – Standardised contract to buy or sell an asset at a future date
- Spread trade – Type of financial purchase on securities
- Standard of deferred payment – Debt valuation in economics
- Store of value – Property that money is useful later
- Time horizon, also known as planning horizon – Planned duration over which an investment or decision is expected to be held
- Time value of money – Better to receive money now than later
  - Discounting – When a creditor delays payments from a debtor in exchange for a fee
  - Present value (PV), also known as Present Discounted Value (PDV) – Current worth of a future sum discounted to today
  - Future value – Value of an asset at a specific date
  - Net present value – Valuation in finance
  - Internal rate of return – Method of calculating an investment's rate of return
  - Modified internal rate of return – Measure of an investment's attractiveness
  - Annuity – Series of payments made at equal intervals
  - Perpetuity – Annuity with payments made at equal intervals indefinitely
- Trade – Exchange of goods and services
  - Free trade – Absence of government restriction on international trade
  - Free market – Form of market-based economy
  - Fair trade – Sustainable and equitable trade
- Unit of account – Standard numerical measure used to value and compare goods and services
- Volatility – Degree of variation of a trading price series over time
- Yield – Income return on an investment expressed as a percentage of its value
- Yield curve – Relationships among bond yields of different maturities
- Equated monthly installment – Loan repayment variant
- Down payment – Upfront partial payment for the purchase of something expensive
Financial Technology

History

History of finance – Academic discipline studying businesses and investments
History of banking – Development of banking institutions and practices from antiquity to the present
History of insurance – Development of insurance practices and institutions from antiquity to the present
Stock market bubble – Economic bubble in a stock market
- Tulip mania – 17th-century economic bubble in the Netherlands
- South Sea Bubble – 18th-century economic speculation bubble
- Mississippi Company – French joint-stock company
- Railway Mania – Speculative frenzy in the UK in the 1840s about railways
- Dot-com bubble – Tech stock speculative craze, c. 1995–2003
- United States housing bubble – Economic bubble
Vix pervenit 1745, on usury and other dishonest profit
Panic of 1837 – 19th-century United States financial crisis
Erie War – 19th-century Wall-Street battle for control of the Erie Railroad
Long Depression – Worldwide economic recession from 1873 to 1879
Post-World War I hyperinflation; see
- Hyperinflation – Rapidly accelerating inflation
- Inflation in the Weimar Republic – Period of extreme inflation in Germany during 1921–1923
Wall Street Crash of 1929 – Major stock market crash in the United States
Great Depression – Worldwide economic depression (1929–1939)
Bretton Woods Accord – Financial-economic agreement reached in 1944
1973 oil crisis – OAPEC petroleum embargo
1979 energy crisis – Worldwide increase in crude oil prices following the Iranian Revolution
Savings and Loan Crisis – US financial crisis from 1986 to 1995
Black Monday – Global stock market crash
1997 Asian financial crisis – Regional financial crisis that struck East and Southeast Asia in 1997–1998
Stock market downturn of 2002 – Downturn in international stock prices
2008 financial crisis – Worldwide economic crisis
Great Recession – 2007–2009 international economic decline

Finance terms by field

Accounting (financial record keeping)

Auditing – Independent examination of an organization
Accounting software – Computer program that maintains account books
Book keeping – Recording financial transactions or events
FASB – Private US organization for accounting
Financial accountancy – Field of accountingPages displaying short descriptions of redirect targets
- Financial statements – Formal record of the financial activitiesPages displaying short descriptions of redirect targets
  - Balance sheet – Accounting financial summary
  - Cash flow statement – Financial statement
  - Income statement – Type of financial statement
Management accounting – Field of business administration, part of the internal accounting system of a company
Philosophy of Accounting – Conceptual framework
Hedge accounting – Accounting method aligning hedging gains and losses with the hedged item
- IFRS 9 – Accounting standard
- Fair value accounting – Accounting method valuing assets and liabilities at current market prices

Banking

See articles listed under: Bank § See also

Corporate finance

Below § Corporate finance theory

Balance sheet analysis – Accounting financial summaryPages displaying short descriptions of redirect targets
- Financial ratio – Numerical value to determine the financial condition of a company
Business plan – Formal written document containing the goals of a business
- - Investment committee – Head of investments in an organization
  - Business valuation – Determination of the economic value of a business
  - Stock valuation – Method of calculating theoretical values of companies and their stocks
  - Fundamental analysis – Analysis of a business's financial statements, health, and market
  - Real option – Capital budgeting analysis term
  - Valuation topics – Overview of finance and finance-related topics
  - Fisher separation theorem – Firm"s investment decision is independent of its owners' consumption preferences
- Sources of financing – Mix of funds used to start and sustain a business
- Securities – Tradable financial asset
- Debt – Obligation to pay borrowed money
- Initial public offering – Type of securities offering in which a private company goes public
- Capital structure – Mix of funds used to start and sustain a business
- Cost of capital – Cost of a company's funds
  - Weighted average cost of capital – Concept in economics
  - Modigliani–Miller theorem – Economic theory about capital structure
  - Hamada's equation – Corporate finance equation on separating risk
- Dividend policy – Policies in finance
  - Dividend – Payment made by a corporation to its shareholders
  - Dividend tax – Tax levied on stock earnings
  - Dividend yield – Financial ratio of dividends to share price
  - Modigliani–Miller theorem – Economic theory about capital structure
Corporate action – Event initiated by a public company
(Strategic) Financial management
- Capital management – Management of capital assets and investments
  - Capital budgeting – How an organization allocates its cash and resources
  - Working capital – Difference between a firm's assets and liabilities used to fund day-to-day operations
    - Current assets – Assets held for less than a fiscal year
    - Current liabilities – Liabilities of the business that are to be settled in cash
- Managerial finance – Application of financial principles to managerial decision-making
- Management accounting – Field of business administration, part of the internal accounting system of a company
Mergers and acquisitions – Processes through which companies combine or transfer ownership
- Leveraged buyout – Acquisition of a company using a significant proportion of borrowed money
- Takeover – Purchase of a company by another company
- Corporate raid – Company acquisition strategy
- Contingent value rights – Buyer's rights in corporate finance
Real option – Capital budgeting analysis termPages displaying short descriptions of redirect targets
- Return on investment – Ratio between net income and investment
  - Return on capital – Measure of profitability relative to invested capital
  - Return on assets – Measure of how profitable a company's assets are in generating revenue
  - Return on equity – Measure of the profitability of a business
- Loan covenant – Condition in a commercial loan or bond agreement
- Cash conversion cycle – Length of time it takes a company to convert resource inputs to cash flows
- Cash management – Measures of managing short-term cash in the company
  - Strategic financial management § Cash management
- Inventory optimization – Business practice for improving location and size of inventory storage
  - Supply chain management – Management of the flow of goods and services
  - Just In Time (JIT) – Methodology used to improve production
  - Economic order quantity (EOQ), also known as Optimum Batch Quantity – Production scheduling model
  - Economic production quantity (EPQ) – Model in inventory management
  - Economic batch quantity – Model for determining the optimal production batch size
- Credit (finance) – Financial term for the trust between parties in transactions with a deferred payment
- Credit scoring – Numerical expression representing a person's creditworthiness
- Default risk – Risk that a borrower or counterparty fails to meet financial obligations
- Discounts and allowances – Reductions applied to the basic sale price of goods or services
- Factoring (trade) – Financial transaction and a type of debtor finance
- Supply chain finance, also known as supplier finance or reverse factoring – Financing methods that optimize cash flow across buyer–supplier relationships
- Corporate budget – Balance sheet or statement of estimated receipts and expenditures

Investment management

Active management – Investment approach where managers actively select and adjust portfolio holdings
Efficient market hypothesis – Economic theory that asset prices fully reflect all available information
Portfolio – Financial term for a collection of investments
Modern portfolio theory – Mathematical framework for investment risk
- Capital asset pricing model – Finance model linking expected return to systematic risk
Arbitrage pricing theory – Asset pricing theory
Passive management – Market-weighted investing strategy
- Index fund – Type of mutual fund or exchange-traded fund
Activist shareholder – Shareholder using equity to pressure management
Mutual fund – Professionally managed investment fund
- Open-end fund – Collective investment scheme
- Closed-end fund – Professionally managed investment fund
Financial engineering – Application of mathematical and computational practices in finance
- Long-Term Capital Management – Defunct American hedge fund
Hedge fund – Privately pooled investment fund using diverse strategies to seek high returns
Hedge – Investment position used to offset potential losses in another asset
Quantitative investing – Use of mathematical and statistical methods in finance

Personal finance

529 plan – United States savings program for educational expenses
ABLE account – U.S. savings program for individuals with disabilities
Asset allocation – Investment strategy
- Asset location
Budget – Balance sheet or statement of estimated receipts and expenditures
Coverdell Education Savings Account – US tax advantaged investment account
Credit and debt
- Credit card – Card for financial transactions on credit
- Debt consolidation – Form of debt refinancing
- Mortgage loan – Loan secured using real estatePages displaying short descriptions of redirect targets
  - Continuous-repayment mortgage – Mortgage repaid through continuous or near-continuous amortisation
Debit card – Card used for financial transactions
Direct deposit – Deposit of money by a payer into a payee's account
Employment contract – Kind of contract in labour law
- Commission – Form of variable-pay remuneration for services rendered or products sold
- Employee stock option – Option for employee to share in company stock
- Employee or fringe benefit – Non-wage compensation provided to employees in addition to normal wages or salaries
- Health insurance – Insurance covering health-related expenses
- Paycheck – Record of money paid or due to employees
- Salary – Form of periodic payment from an employer to an employee
- Wage – Payment by an employer to an employee for labour
Financial literacy – Ability to make informed choices about money
Insurance – Protection from financial loss
Predatory lending – Unethical lending practices
Retirement plan – Retirement fundPages displaying short descriptions of redirect targets
- Superannuation in Australia – Retirement pension benefit funds
- Canada
  - Registered retirement savings plan – Canadian financial account for savings and investment assets
  - Tax-free savings account – Registered tax free savings plan for Canadians
- Nippon individual savings account – Japanese retail investment account
- KiwiSaver – New Zealand savings scheme
- United Kingdom
  - Individual savings account – Class of retail investment arrangement
  - Self-invested personal pension – Type of UK government-approved personal pension scheme
- United States
  - 401(a) – Tax-deferred retirement savings plan
  - 401(k) – Type of U.S. retirement/pension plan
  - 403(b) – Type of retirement/pension plan in the United States
  - 457 plan – Type of retirement plan in the United States
  - Keogh plan – Type of pension plan in the U.S
  - Individual retirement account – Form of individual retirement plan
    - Roth IRA – Individual retirement account
    - Traditional IRA – Type of individual retirement arrangement
    - SEP IRA – Type of retirement pension account used in the United States
    - SIMPLE IRA – Type of retirement plan in United States
- Pension – Retirement fund
Simple living – Simplified, minimalistic lifestyle
Social security – Means-oriented social benefit
Tax advantage – Financial incentive
Wealth – Abundance of financial assets or possessions
Comparison of accounting software
Personal financial management – Managing ones own personal finances
Investment club – Group of people who pool their money to make investments
Collective investment scheme – Way of investing money alongside other investors

Public finance

Central bank – Government body that manages currency and monetary policy
Federal Reserve – Central banking system of the US
Fractional-reserve banking – Banking system where institutions hold only a fraction of deposits as reserves
- Deposit creation multiplier – Process by which the money supply of an economic region is increased
Tax – Compulsory contribution to state revenue
- Capital gains tax – Tax on investment profits
- Estate tax – Tax paid after inheritance of property
- inheritance tax – Tax paid after inheritance of property
- Gift tax – Tax on money or property that one living person gives to another
- Income tax – Tax based on taxable income
- Inheritance tax – Tax paid after inheritance of property
- Payroll tax – Tax imposed on employers or employees
- Property tax – Tax on property, particularly real estate
- land value tax – Levy on the unimproved value of land
- Sales tax – Tax on the sales of certain goods and services
- value added tax – Form of consumption tax
- excise tax – Goods tax levied at the moment of manufacture rather than sale
- use tax – Type of tax in the United States
- Transfer tax – Tax on the transfer of property or assets between parties
- stamp duty – Tax levied on property purchases or documents
- Tax advantage – Financial incentive
- Tax, tariff and trade – Compulsory contribution to state revenue
- Tax amortization benefit – Savings resulting from amortization
Crowding out – Reduction in private investment caused by increased government borrowing
Industrial policy – Government strategy promoting industrial development
Agricultural policy – Laws relating to domestic agriculture and foreign-imported agricultural products
Currency union – Agreement involving states sharing a single currency
Monetary reform – Movements to amend the financial system

Risk management

Asset and liability management – Framework for managing risks arising from mismatches between assets and liabilities
Asset–liability mismatch – Mismatch between the timing or sensitivity of a firm's assets and liabilities
Capital Requirements Regulation 2013 – EU banking law
Credit Institutions Directive 2013
Capital Requirements Directives – EU prudential capital and supervision rules for banks and investment firms
Cash flow hedge – Accounting method aligning hedging gains and losses with the hedged item
Cash management – Measures of managing short-term cash in the company
Corporate governance – Mechanisms, processes and relations by which corporations are controlled and operated
Climate-related asset stranding – Former physical asset, now a liability
Credit risk – Risk that a borrower or counterparty fails to meet financial obligations
Default (finance) – Financial failure to meet legal conditions of a loan
Discounted maximum loss – Measure of worst-case loss discounted to present value
Downside risk & Upside risk
Duration gap – Financial institutions duration gap
Enterprise risk management – Business methods and processes
Financial engineering – Application of mathematical and computational practices in finance
Financial risk – Any of various types of risk associated with financing
Financial risk management – Protecting economic value by managing risk exposure
Foreign exchange hedge – Method used to eliminate foreign exchange risk
Fuel price risk management – Strategies used to reduce financial exposure to fuel-price volatility
Gordon–Loeb model – Method for optimizing information security investments
Interest rate risk – Financial loss due to interest rate changes
- Interest rate risk in the banking book – Banking regulation framework
Insurance – Protection from financial loss
Investment risk – Any of various types of risk associated with financing
Irrational exuberance – Unfounded market optimism that lacks fundamental valuation
Kelly criterion – Bet sizing formula for long-term growth
Liquidity risk – Type of financial risk
Market risk – Risks arising from movements in market variables
Operational risk – Risk of disrupting business operations
Risk accounting – Extensive subject of Management accounting
Risk adjusted return on capital – Profitability measurement framework
Risk aversion – Economics theory
Risk-based internal audit – Internal audit approach that prioritises areas with higher organisational risk
Risk measure – Concept in financial mathematics
- Coherent risk measure – Concept in financial economics
- Deviation risk measure – Risk metric quantifying variability of returns around their expected value
- Distortion risk measure – Risk measure derived by applying a distortion function to a loss distribution
- Spectral risk measure – Coherent risk measure using weighted outcomes based on risk aversion
Risk modeling – Modelling financial risks
Risk of ruin – Concept in gambling, insurance, and finance
Risk pool – Insurance risk management sharing liability
Risk register – Document used as risk management tool, acting as a repository for all identified risks
Risk return ratio – Mathematical ratio used in investing
Risk–return spectrum – Tradeoff between investment return and risk
Security management – Computer security procedure
Settlement risk – Risk that a party fails to deliver
Shadow banking system – Non-banks that provide services similar to banks
Specific risk – Risk affecting a particular asset or company, reducible through diversification
St. Petersburg paradox – Paradox involving a game with repeated coin flipping
Systematic risk – Vulnerability to significant events that affect aggregate outcomes
Three lines of defence – Independent, objective assurance and consulting activity
Treasury management – Management of an enterprise's holdings and liquidity to mitigate risk
Uncompensated risk – In investments, level of additional risk
Valuation risk – Risk that financial assets are misstated due to uncertain or unreliable valuations
Value at risk – Estimated potential loss for an investment under a given set of conditions
- Computation
  - Historical simulation (finance) – Risk-measurement method that estimates losses using past market data
  - Monte Carlo – Probabilistic measurement methods
  - variance-covariance – Estimated potential loss for an investment under a given set of conditions
  - Greeks (finance) – Model parameters in mathematical finance
- Alternate measures
  - Entropic value at risk – Coherent measure for value at risk
  - Expected shortfall, also known as Conditional value-at-risk – Risk measure estimating the average loss in the worst tail of the distribution
  - Tail value at risk (TVaR), also known as Tail Conditional Expectation – Measure giving the average loss beyond a specified Value-at-Risk level
- Extensions
  - Profit at risk – Measure estimating the potential decline in profit under adverse market conditions
  - Margin at risk – Measure estimating potential margin shortfalls under adverse market moves
  - Liquidity at risk – Measure of potential liquidity shortfall in a financial portfolio
  - Earnings at risk (EaR), also known as Cash flow at risk – Estimate of the potential impact of market movements on a firm's earnings
  - Liquidity-adjusted VaR – Type of financial risk
Volatility risk – Risk arising from changes in market volatility affecting the value of financial positions
Volume risk – Risk that changes in transaction or production volumes will affect financial outcomes
Wrong way risk – Risk that exposure to a counterparty increases as their credit quality deteriorates

Constraint finance

Environmental finance – Field of finance focused on environmental policy
Feminist economics – Gender-aware branch of economics
Green economics – Economy based on ecological economics
Islamic economics – Handling of economics based on Islamic jurisprudence
Uneconomic growth – Economic growth that reflects or creates a decline in the quality of life
Value of Earth – Economical estimate of the net worth of the planet
Value of life – Economic measure placing a monetary value on reducing the risk of death

Insurance

Actuarial science – Statistics applied to risk in insurance and other financial products
Annuities – Series of payments at fixed intervals
Catastrophe modeling – Computer-assisted risk analysis
Earthquake loss – Form of property insurance
Extended coverage – Insurance for additional risks
Financial risk management § Insurance
Insurable interest – Legal requirement that a policyholder would suffer a loss from the insured event
Insurable risk – Conditions under which a risk can be covered by insurance
Insurance – Protection from financial loss
- Health insurance – Insurance covering health-related expenses
  - Disability insurance – Insurance providing income protection when a disability prevents a person from working
  - Accident insurance – Insurance that pays benefits for injuries or death caused by accidental events
  - Flexible spending account – Tax-advantaged financial accounts in the US
  - Health savings account – American tax-advantaged medical savings account
  - Long term care insurance – Insurance which pays monthly for nursing home or assisted-living care
  - Medical savings account – Bank holding limiting deposit use to health expenses
- Life insurance – Insurance that pays benefits upon the policyholder's death
  - Life insurance tax shelter – Use of life insurance to defer or reduce taxes
  - Term life insurance – Life insurance providing coverage for a fixed period with no cash-value component
  - Universal life insurance – Cash value life insurance in the US
  - Variable universal life insurance – Life insurance combining flexible premiums with investment-linked cash-value accounts
  - Whole life insurance – Permanent life insurance with fixed premiums and guaranteed cash-value accumulation
- Property insurance – Insurance that protects against most risks to property
  - Auto insurance – Insurance for road vehicles
  - Boiler insurance – Insurance covering boilers
  - Business interruption insurance – Insurance that covers lost income when normal business operations are disrupted
  - Earthquake insurance – Form of property insurance
  - Home insurance, also known as Condo insurance – Type of property insurance that covers a private residence
  - Title insurance – Form of indemnity insurance
  - Pet insurance – Insurance that reimburses veterinary costs
  - Renters' insurance – Insurance policy for a tenant's personal property and liability
- Casualty insurance – Insurance not directly concerned with life, health, or property insurance
  - Fidelity bond – Insurance against others' frauds
  - Liability insurance – Insurance that covers legal liability for injury, damage, or loss caused to others
  - Political risk insurance – Insurance that protects investments against losses from political or sovereign actions
  - War risk insurance – Insurance that covers losses arising from war, terrorism, or other hostile acts
  - Surety bond – Promise to assume responsibility for defaulted debt
  - Terrorism insurance – Financial coverage against terrorist attacks
- Credit insurance
  - Trade credit insurance – Insurance protecting businesses against losses from customer non-payment of trade debts
  - Payment protection insurance – Covers loan repayments if borrower cannot pay due to illness, unemployment, or death
  - Credit derivative – Financial contract that transfers the credit risk of a borrower between parties
- Mid-term adjustment – Change to an insurance policy's terms, cover, or premium made during the policy period
- Reinsurance – Insurance purchased by an insurance company
- Self insurance – Bearing risk that is usually outsourced
- Travel insurance – Insurance that covers financial losses from events during travel
- Niche insurance – Insurance for small, low-demand areas
Insurance contract – Contract between the insurer and the insured
Loss payee clause – Clause directing insurance claim payments to a third-party interest
Risk Retention Group – Member-owned US liability insurance group formed under the Liability Risk Retention Act

Economics and finance

Finance-related areas of economics

Financial economics – Academic discipline concerned with the exchange of money
Financial econometrics – Method to financial market data
Monetary economics – Branch of economics covering theories of money
Mathematical economics – Branch of applied mathematics
Managerial economics – Application of economics in a business
Economic growth – Measure of increase in market value of goods
Decision theory – Branch of applied probability theory
Game theory – Mathematical models of strategic interactions
Experimental economics – Method used to study economic questions
Experimental finance – Field using controlled experiments to study financial behaviour and market dynamics
Behavioral economics – Factors influencing economic decisions
Behavioral finance – How psychological biases shape investor behaviour and financial markets

Corporate finance theory

Fisher separation theorem – Firm"s investment decision is independent of its owners' consumption preferences
Modigliani–Miller theorem – Economic theory about capital structure
Theory of the firm – Theories relating to firms' roles in the economy
The Theory of Investment Value, book by John Burr Williams
Agency theory – Conflict of interest when one agent makes decisions on another's behalfPages displaying short descriptions of redirect targets
- Agency costs – Costs arising from conflicts of interest between principals and their agents
- Contract theory – Economic analysis of contracts
Managerial finance – Application of financial principles to managerial decision-making
Capital structure – Mix of funds used to start and sustain a business
- Corporate finance § Capitalization structure
- Capital structure substitution theory – Theory proposing that managers adjust capital structure to maximize earnings per share
- Pecking order theory – Theory that firms prefer internal funds, then debt, and use equity last
- Market timing hypothesis – Hypothesis that firms adjust financing decisions to exploit favourable market conditions
- Trade-off theory of capital structure – Firms balance tax benefits of debt against financial distress costs when choosing leverage
- Merton model – Model that values credit risk using option-based default mechanics
- Tax shield – Reduction in taxable income achieved through allowable deductible expenses
Dividend policy – Policies in finance
- Corporate finance § Dividend policy
- Walter model – Policies in finance
- Gordon model – Valuation model that prices a stock by discounting expected future dividends
- Lintner model – American economist (1916–1983)
- Residuals theory – Policies in finance
- Signaling hypothesis – Policies in finance
- Clientele effect – Investor shifts caused by policy changes that attract different investor groups
- Dividend puzzle – Why firms pay dividends despite theories predicting investor indifference
- Treasury stock § Buying back shares
- Dividend tax – Tax levied on stock earnings
Capital budgeting – How an organization allocates its cash and resources
- Corporate finance § Investment and project valuation
- Clean surplus accounting – Valuing firms by changes in book value excluding shareholder transactions
- Residual income valuation – Equity valuation method based on the present value of future residual income
- Economic value added – Value of a firm's profit after deduction of capital costs
- Market value added – Measure comparing a firm's market value with the capital invested in it
- T-model – Connects fundamentals with investment return
- Adjusted present value – Valuation separating financing effects
- Uncertainty
  - Penalized present value – Method of budgeting where an investment's value is penalized according to its risk
  - Expected commercial value – Prospect-weighted valuation method for assessing uncertain project outcomes
  - Risk-adjusted net present value – Valuation in finance
  - Contingent claim valuation – Derivative whose payoff depends on an underlying asset or uncertain future event
  - Real options – Capital budgeting analysis term
  - Monte Carlo methods – Probabilistic measurement methods
Risk management
- Corporate finance § Financial risk management
- Financial risk management § Corporate finance
- Hedging irrelevance proposition – Protecting economic value by managing risk exposure
- Risk modeling – Modelling financial risks
- Risk-adjusted return on capital – Profitability measurement framework

Asset pricing theory

Value (economics) – Benefit provided by a good or service in an economy
- Fair value – Financial estimation of potential market price
- Intrinsic value – Value calculated on simplified assumptions
- Market price – Amount of money given in order to purchase a thing or service
- Expected value – Average value of a random variable
- Opportunity cost – Benefit lost by a choice between options
- Risk premium – Measure of excess
- #Underlying theory below
Financial markets
- Stylized fact – Simplified presentation of empirical finding
- Regulatory economics – Economics of regulation
  - Macroprudential regulation § Theoretical rationale
- Market microstructure – How trading mechanisms and market design shape prices, liquidity, and transaction costs
  - Walrasian auction – Theoretical auction process where prices adjust until all markets clear
  - Fisher market
  - Arrow-Debreu market – Economic Model
  - Matching market – Field of market economics
- Market design – Methodology for creation of markets
- Agent-based model – Type of computational models
  - Representative agent
  - Aggregation problem – Concept in economics
  - Heterogeneity in economics
    - Heterogeneous agent model
    - Agent-based model § In economics and social sciences
    - Artificial financial market – Academic discipline concerned with the exchange of money
General equilibrium theory – Theory of equilibrium between supply and demand
- Supply and demand – Economic model of price determination in a market
- Competitive equilibrium – Economic equilibrium concept
- Economic equilibrium – Situation where economic forces are balanced
- Partial equilibrium – Concept in economics
Equilibrium price – Situation where economic forces are balancedPages displaying short descriptions of redirect targets
- Market efficiency – Economic theory that asset prices fully reflect all available information
- Economic equilibrium – Situation where economic forces are balanced
- Rational expectations – Economics concept
- Risk factor (finance) – Concept in finance
Arbitrage-free price
- Rational pricing – Assumption in financial economics
  - § Arbitrage free pricing – Assumption in financial economics
  - § Risk neutral valuation – Assumption in financial economics
- Contingent claim analysis – Derivative whose payoff depends on an underlying asset or uncertain future event
- Brownian model of financial markets – Financial model
- Complete market & Incomplete markets
Utility – Concept in economics and decision theory
- Risk aversion – Economics theory
- Expected utility hypothesis – Concept in economics
- Utility maximization problem – Problem of allocation of money by consumers in order to most benefit themselves
- Marginal utility – Benefit derived from consuming a product
- Quasilinear utility – Function linear in one argument, used in economics and consumer theory
- Generalized expected utility
Economic efficiency – Situation in which nothing can be improved without something else being hurt
- Efficient-market hypothesis – Economic theory that asset prices fully reflect all available information
- efficient frontier – Investment portfolio which occupies the "efficient" parts of the risk-return spectrum
- Production–possibility frontier – Visualization of all possible options of output for a two-good economy
- Allocative efficiency – When production relates to consumer preferences in an economy
- Pareto efficiency – Weakly optimal allocation of resources
- Productive efficiency – When one must decrease production of one good to increase another in an economy
- Dumb agent theory – Hypothesis in economics regarding true value of stocks by consensus
Stochastic discount factor – Concept in financial economics
- Pricing kernel – Concept in financial economics
- Marginal rate of substitution – Concept in consumer economics
- Hansen–Jagannathan bound – Theorem in financial economics
- Girsanov theorem – Theorem on changes in stochastic processes
- Radon–Nikodym derivative – Expressing a measure as an integral of another
State prices – Economic ModelPages displaying short descriptions of redirect targets
- Arrow–Debreu model – Economic Model
- Application:
  - Arrow–Debreu model § Economics of uncertainty: insurance and finance
  - State prices § Application to financial assets
Fundamental theorem of asset pricing – Necessary and sufficient conditions for a market to be arbitrage free and complete
- Rational pricing – Assumption in financial economics
- Arbitrage-free – Capitalisation of risk-free opportunities in financial markets
- No free lunch with vanishing risk – Concept in mathematical finance
- Self-financing portfolio
- Stochastic dominance – Partial order between random variables
  - Marginal conditional stochastic dominance
Martingale pricing
- Brownian model of financial markets – Financial model
- Random walk hypothesis – Financial theory
- Risk-neutral measure – Probability measure
- Martingale (probability theory) – Model in probability theory
  - Sigma-martingale
  - Semimartingale – Type of stochastic process
Quantum finance – Subfield of econophysics which applies quantum theory to finance

Asset pricing models

Equilibrium pricing
- Equities; foreign exchange and commodities
  - Capital asset pricing model – Finance model linking expected return to systematic risk
  - Consumption-based CAPM – Return on investment metrics
  - Intertemporal CAPM
  - Single-index model – Economic model
  - Multiple factor models – Asset pricing models
    - Fama–French three-factor model – Statistical model for asset pricing in finance
    - Carhart four-factor model – Model for stock portfolio management
  - Arbitrage pricing theory – Asset pricing theory
- Bonds; other interest rate instruments
  - Vasicek – Mathematical model of interest rates
  - Rendleman–Bartter – Short-rate model describing the evolution of interest rates
  - Cox–Ingersoll–Ross – Stochastic model for the evolution of financial interest rates
Risk neutral pricing
- Equities; foreign exchange and commodities; interest rates
  - Black–Scholes – Mathematical model of financial markets
  - Black – Financial model
  - Garman–Kohlhagen – Derivative financial instrument
  - Heston – Model in finance
  - CEV – Pricing model
  - SABR – Stochastic volatility model used in derivatives markets
- Bonds; other interest rate instruments
  - Ho–Lee – Short-rate model in financial mathematics
  - Hull–White – Model of future interest rates
  - Black–Derman–Toy – Short-rate model in mathematical finance
  - Black–Karasinski – Mathematical model of interest rate terms
  - Kalotay–Williams–Fabozzi – Interest-rate model describing the stochastic evolution of the instantaneous short rate
  - Longstaff–Schwartz – Interest-rate model describing the stochastic evolution of the instantaneous short rate
  - Chen – Three-factor short-rate model for interest-rate dynamics
  - Rendleman–Bartter – Short-rate model describing the evolution of interest rates
  - Heath–Jarrow–Morton – Model of interest rate curves
    - Cheyette – Model in mathematical finance
  - Brace–Gatarek–Musiela – Financial model of interest ratesPages displaying short descriptions of redirect targets
    - LIBOR market model – Financial model of interest rates

Mathematics and finance

Time value of money

Financial mathematics

Derivatives pricing

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

#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

Market and instruments

Equity market

Equity valuation

Investment theory

Bond market

Money market

Derivatives market

Derivative (finance)
(see also Financial mathematics topics; Derivatives pricing)
Underlying instrument

Forward markets and contracts

Forward contract

Futures markets and contracts

Swap markets and contracts

Swap (finance)

Derivative markets by underlyings

Equity derivatives

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

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
Strips of Collateralized mortgage obligation
- Interest only (IO)
- Principal only (PO)
Ratchet caps and floors

Credit derivatives

Foreign exchange derivative

Financial regulation

Designations and accreditation

Litigation

Liabilities Subject to Compromise

Fraud

Industry bodies

Regulatory and supervisory bodies

International

European Union

Regulatory bodies by country

United Kingdom

United States

United States legislation

Actuarial topics

Actuarial topics

Valuation

Considerations

Discounted cash flow valuation

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

Contingent claim valuation

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

"Fundamentals"-based (relying on accounting information)

Financial modeling

Portfolio theory

General concepts

Modern portfolio theory

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

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

Quantitative investing

Financial software tools

Financial modeling applications

Corporate Finance

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

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

Bank – Financial institution that accepts deposits
- List of banks
- Advising bank
- Central bank – Government body that manages currency and monetary policy
  - List of central banks
- Commercial bank – Financial institution that accepts deposits and provides loans
- Community development bank – Bank serving underserved or excluded communities
- Cooperative bank – Type of retail or commercial bank organized cooperatively
- Custodian bank – Financial institution providing safekeeping and securities services
- Depository bank – Specialist bank facilitating investment via depositary receipt services
- Ethical bank – Bank concerned with the social and environmental impacts of its investments and loans
- Investment bank – Financial service providing capital-raising and advisory functions
- Islamic banking – Financial activities compliant with Islamic law
- Merchant bank – Deals in commercial loans and investment
- Microcredit – Small loans to impoverished borrowers
- Mutual savings bank – Depositor-owned savings institution without capital stock
- Offshore bank – Bank located outside the country of residence of the depositor
- Private bank – Bank owned by individuals or partners with unlimited liability
- Savings bank – Financial institution focused on savings deposits
- Swiss bank
- Bank holding company – Company with significant ownership of one or more banks
Building society – Member-owned financial institution focused on savings and mortgages
Broker – Person who arranges transactions between a buyer and a seller for a commission
- Broker-dealer – One who engages in the business of trading securities on behalf of their customers
- Brokerage firm – Person who arranges transactions between a buyer and a seller for a commission
- Commodity broker – Agent facilitating trades in commodity markets
- Insurance broker – Intermediary between buyers and sellers of insurance
- Prime brokerage – Package of services offered by investment banks
- Retail brokerage – Person who arranges transactions between a buyer and a seller for a commission
- Stockbroker – Professional who buys and sells shares for others
Clearing house – Financial institution that provides clearing and settlement services
Commercial lender – Lending of money
Community development financial institution – Financial institution in the US and UK
Credit rating agency – Company that assigns credit ratings
Credit union – Member-owned financial cooperative
Diversified financial
Export Credit Agencies – Intermediary between governments and exporters
Financial adviser – Professional who renders financial services to clients
Financial intermediary – Financial institution that connects surplus and deficit agents
Financial planner – Professional who prepares financial plans for people
Futures exchange – Financial exchange for futures contracts
- List of futures exchanges
Government sponsored enterprise – Type of financial services corporation created by the United States Congress
Hard money lender – Short-term capital loans funded by private parties and secured by real estate
Independent financial adviser – Professional who offers financial advice under specific regulatory laws
Industrial loan company – FDIC-insured financial institutions with unique regulatory status
Insurance company – Protection from financial loss
Investment adviser – Professional who renders financial services to clients
Investment company – Financial institution
Investment trust – Collective investment fund
Large and Complex Financial Institutions
Mutual fund – Professionally managed investment fund
Non-banking financial company – Institution without a full banking license
Savings and loan association – Type of financial institution
Stock exchange – Organization that provides services for stock brokers and traders to trade securities
- List of stock exchanges
Trust company – Financial institution offering certain services

Education

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"
At the 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”
- as an 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

References

↑ 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

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

[SiegelShim1997-1] 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".

[2] 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.

[1]