1) TAKING A BATH - Intentionally incurring all losses in current period, rather than spreading it to other periods
2) TAKE A FLIER - Intentionally investing in high risk investments, leading to huge losses for current period
2) TAKE A FLIER - Intentionally investing in high risk investments, leading to huge losses for current period
3) FLIGHT TO QUALITY- Moving to a low risk investment
4) BUBBLE - Rapid growth of an economic accompanied by a downturn in assets/securities prices
5) SPECULATION - Gambling based on individual calculations
6) MARKET CRASH - Unexpected downturn of investments value
7) HEDGE - Entering into futures contract to prevent adverse price changes
8) MASTER FEEDER FUND - Combination several funds of into one portfolio, which reduces cost and increases service level
9) LONG POSITIONS - Purchase of a security, anticipating that its will rise in value subsequently
10) QUOTE STUFFING - Forcing weaker market competitors to lose out on opportunities by flooding market with quotes and removing them at high speed
11) BLEEDING EDGE - Unknown risk future of an upcoming technology
12) WHITE ELEPHANT - A Burden
13) SIX STIGMA - Quality control guide for defect goods
14) OBSOLESCENCE - Technology that are no longer attractive to consumers
15) BUILT IN OBSOLESCENCE - Product produced is made known to be outdated after a short period, in order to keep customers spending frequently
16) FREE CASH FLOW/ FCF - Cash available to increase assets
17) FREE CASH FLOW TO EQUITY/ FCFE - Amount of cash available to equity shareholders after expenses , debt payments and reinvestment
FORMULA TO FCFE
FCFE = Earning / Per Share - (Capital Expenditure - Depreciation) (1-Debt ratio**)- (Change in Net Working Capital* ) (1- Debt ratio**)
OR
FCFE = Net Income - Capital Expenditure - Change in Net Working Capital*+ New debt - Debt payment
*WC= CA-CL
**Debt Ratio= Total Liabilities/ Total Assets
(1:1 means Liabilities = Assets)
