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  2. Funds transfer pricing - Wikipedia

    en.wikipedia.org/wiki/Funds_Transfer_Pricing

    If a bank can obtain 3-year borrowing at 3% but is only paying 2% on their 3-year customer deposits (CDs) then each CD is providing 1% of the value each of the 3 years it is open. The net interest margin assigned to the CD would be 1% multiplied by the balance in each of the 3 years. The same calculation is made on the loan side.

  3. Price–earnings ratio - Wikipedia

    en.wikipedia.org/wiki/Price–earnings_ratio

    Robert Shiller's plot of the S&P composite real price–earnings ratio and interest rates (1871–2012), from Irrational Exuberance, 2d ed. [1] In the preface to this edition, Shiller warns that "the stock market has not come down to historical levels: the price–earnings ratio as I define it in this book is still, at this writing [2005], in the mid-20s, far higher than the historical average

  4. Cash flow forecasting - Wikipedia

    en.wikipedia.org/wiki/Cash_flow_forecasting

    Cash flow forecasting is the process of obtaining an estimate of a company's future cash levels, and its financial position more generally. [1] A cash flow forecast is a key financial management tool, both for large corporates, and for smaller entrepreneurial businesses. The forecast is typically based on anticipated payments and receivables.

  5. Financial statement - Wikipedia

    en.wikipedia.org/wiki/Financial_statement

    The section contains a description of the year gone by and some of the key factors that influenced the business of the company in that year, as well as a fair and unbiased overview of the company's past, present, and future.

  6. Value at risk - Wikipedia

    en.wikipedia.org/wiki/Value_at_risk

    The 5% Value at Risk of a hypothetical profit-and-loss probability density function. Value at risk (VaR) is a measure of the risk of loss of investment/capital.It estimates how much a set of investments might lose (with a given probability), given normal market conditions, in a set time period such as a day.

  7. Employee stock option - Wikipedia

    en.wikipedia.org/wiki/Employee_stock_option

    The "dynamic assumptions of expected volatility and dividends", e.g. expected changes to dividend policy, as well as of forecast changes in interest rates [13] as consistent with today's term structure, may also be incorporated in a lattice model; although a finite difference model would be more correctly (if less easily) applied in these cases.

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