An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract.

When a stock is sold for a profit, it's the difference between the net sales price of securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss.

The price change portion of a stock's return.

The difference between the net cost of a security and the net sale price, if that security is sold at a loss.

In investments, it represents earnings before depreciation , amortization and non-cash charges. Sometimes called cash earnings. Cash flow from operations (called funds from operations ) by real estate and other investment trusts is important because it indicates the ability to pay dividends.

Assets than can be repossessed if a borrower defaults.

Pledges of capital to a venture capital fund. This capital is drawn down over the life of the fund.

The equity typically held by management and founders. Typically, at the time of an initial public offering, all equity is converted into common stock.

The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period.

A private equity investment strategy that involves merging several small firms together and exploiting economies of scale or scope.

a symbol of plenitude, strong harvests and abundance.

The required return for a capital budgeting project.

The cost of goods sold is the total of the variable costs that go into making a product.

The risk that an issuer of debt securities or a borrower may default on his obligations, or that the payment may not be made on a negotiable instrument.

For bonds or notes, the coupon rate divided by the market price of the bond.