Investing Terms and Definitions
# Terms
13F Filings
A 13F filing via the SEC can be viewed as a quick snapshot of all the holdings of a fund manager’s portfolio at the end of a quarter. 13F filings must be submitted to the SEC’s EDGAR site no later than 45 days after the end of a quarter. A 13F must be filed for an institutional money manager with equity assets under management of at least $100 million. 13F filings indicate the stocks and options contracts a fund holds and the exact number of shares held at the time of filing. The filings also indicate the fund’s total value as of the end of the quarter.
A Terms
B Terms
Business Development Company
A BDC is simply a closed-end investment company whose business is to invest in small and medium-sized businesses. In other words, a BDC is a company whose purpose is to invest in other companies.
C Terms
D Terms
E Terms
EBIT
EBIT refers to a company’s Earnings Before Interest & Tax. EBIT measures a company’s profitability before taking into consideration its cost of capital or tax implications. The EBIT figure is already tabulated by the company and included in its income statement. Investors would look at the EBIT figure to gain a better understanding of a company’s operating performance without considering taxes and other unavoidable interest expenses.
EBITDA
EBITDA refers to a company’s Earnings Before Interest, Taxes and Amortization Depreciation. EBITDA takes the EBIT figure one step further and evaluates a company’s performance by excluding factors outside of its control, such as depreciation and amortization.
F Terms
G Terms
H Terms
I Terms
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L Terms
M Terms
Market Capitalization
The market capitalization of any company is the total market value of a company’s entire outstanding shares. It is calculated by taking the current price of one share and multiplying it by the total number of shares that exist.
Master Limited Partnerships
A master limited partnership (MLP) is simply a limited partnership company that is publicly traded. The limited partner is the group that supplies capital to the MLP and, in exchange, receives distributions, mostly in the form of dividends, from the MLP’s cash flow.
N Terms
O Terms
P Terms
Q Terms
R Terms
S Terms
Short Selling
In order to short sell or “short” a company, an investor must borrow shares from someone (usually through a bank) with an agreement to return those shares to the lender at the same price the security was originally borrowed at. Oftentimes, the investor must put up collateral worth the same amount the investor borrowed the shares at. This collateral would be returned once the investor returned the borrowed stock.
T Terms
U Terms
V Terms
W Terms
X Terms
Y Terms
Z Terms
Read More: Investing Terms Dictionary • Updated January 2022 • Benzinga Insurance