Corporate Finance Basics

Corporate finance deals with financing, capital structure, and money management to help maximize returns and shareholder value.

Explore Corporate Finance Basics

Implicit Cost
Implicit Cost Explained: How They Work, With Examples
London Interbank Offered Rate (LIBOR)
LIBOR: What the London Interbank Offered Rate Is, How It's Used
Payback Period
Payback Period Explained, With the Formula and How to Calculate It
Series B Financing
Series B Financing: Definition, Examples, and Funding Sources
Oil pumps at sunset
Which Types of Industries Have the Largest Capital Expenditures?
Ex Works (EXW) vs. Free on Board (FOB): What's the Difference?
Private vs. Public Company: What's the Difference?
Capital Lease
Capital Lease: What It Means in Accounting, 4 Criteria
Clawback: Definition, Meaning, How It Works, and Example
Loss Leader Strategy
Loss Leader Strategy: Definition and How It Works in Retail
Retainer Fee Meaning, Uses, Example, and How It Works
Reverse Stock Split: What It Is, How It Works, Examples
Special Warranty Deed
Special Warranty Deed: Definition, Use, Vs. General Warranty Deed
An image of the both hands of businessman and business chart document on the wooden table during sunrise.
Do Banks Have Working Capital?
Pennies with a digital arrow across them.
Residual Dividend: Definition, Purposes, Example
Differences for Barter Transactions Recognition Between IFRS and USGAAP
Board Room Meeting
Optimal Use of Financial Leverage in a Corporate Capital Structure
Business Woman Thinking Account
How to Determine the Proper Weights of Costs of Capital
Optimal Capital Structure
Optimal Capital Structure Definition: Meaning, Factors, and Limitations
Stock Market Graph Chart. the Digital Information for Forex Trading Market.
How Are Fixed Costs Treated in Cost Accounting?
Capital Budgeting: What It Is and How It Works
a boardroom meeting
Equity Financing vs. Debt Financing: What's the Difference?
Asset Financing
Asset Financing: Definition, How It Works, Benefits and Downsides
Authorized Share Capital
Authorized Share Capital: Definition, Example, and Types
Capital Funding
Capital Funding: Definition, How It Works, and 2 Primary Methods
Cash Position
Cash Position: Definition, Ratios, and Example
Financial Structure
Levered Free Cash Flow
What Is Levered Free Cash Flow (LFCF)? Definition and Calculation
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Non-Controlling Interest
Parent Company
Parent Company: Definition, Types, and Examples
Profit Center
Profit Center: Characteristics vs. a Cost Center, With Examples
Strategic Financial Management
Strategic Financial Management: Definition, Benefits, and Example
Underwriting Agreement
Underwriting Agreement: Meaning and Types
Economic Life
Economic Life: Definition, Determining Factors, Vs. Depreciation
Non-Cash Charge
Non-Cash Charge: Definition and Examples in Accounting
Business Woman Accounting Concept Financial in Office
Deferred Expenses vs. Prepaid Expenses: What's the Difference?
Activity-Based Management (ABM)
Activity-Based Management (ABM) Definition and Examples
BCG Growth-Share Matrix
Understanding the BCG Growth Share Matrix and How to Use It
Cost of Labor
Cost of Labor (aka Labour Costs): What It Is, Why It Matters
Decision Support System
Decision Support System (DSS): What It Is and How Businesses Use Them
Incremental Analysis
Incremental Analysis: Definition, Types, Importance, and Example
Letter of Intent (LOI)
How to Use a Letter of Intent (LOI) to Make a Deal
Private Investment in Public Equity (PIPE)
Private Investment in Public Equity (PIPE) Definition and Example
Proxy Definition, How It Works, Statements, Benefits, and Example
Qualified Institutional Placement (QIP)
Qualified Institutional Placement (QIP): Definition and Rules
Recurring Revenue
Recurring Revenue: Types and Considerations
Scrap Value
Scrap Value Depreciation Formula and Example Using It
Service Charge
Service Charge Definition, Types, and Why It's Not a Tip
Trade Finance
Trade Finance: What It Is, How It Works, Benefits
Value Engineering
Value Engineering: Definition, Meaning, and How It Works
Measuring Company Efficiency To Maximize Profits
Down Round
Down Round: Overview, Implications and Alternatives
Accelerated Bookbuild
Accelerated Bookbuild Definition, How the Process Works
Asset-Light Debt
Asset-Light Debt
What Is a Proxy Statement? Definition, What's In It, and Voting
Businesspeople Sitting Around the Desk in an Office, Having Meeting
How Do Companies Benefit From Interest Rate and Currency Swaps?
How Should a Company Budget for Capital Expenditures?
Midsection of Businessman Talking Over Smart Phone While Working at Desk in Office
Liquidity Management in Business and Investing
Interest Rate Gap
Interest Rate Gap: Definition, What It Measures, and Calculation
Shareholder Value Added (SVA)
Shareholder Value Added (SVA): Definition, Uses, Formula