CNBC explains

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  1. IPO
    • 1.To raise money to grow the company
    • 2.For liquidity
    • 3.Balance sheet restructuring
    • 4.Acquistions
    • 5.Talent recruitment
  2. underwrite
    the banker will buy up all the initial shares and then sell them to the public at a predetermined price.
  3. discount or fee in IPO
    • 1.6-7%->$100m
    • 2.3-5%->higher quality IPO
    • 3.1%->big IPO
  4. S-1 document
    This is the registration form required by the Securities and Exchange Commission (SEC). It's the legal document that tells the world about the company's plans for its proceeds, its business model, the competition, and its corporate governance, risks, and executive compensation.
    • Jumpstart Our Business Startups Act
    • is a law intended to encourage funding of United States small businesses by easing various securities regulations.
  6. "greenshoe"
    Most IPOs also give the underwriter the right to sell an additional 15 percent more (known as the "greenshoe") if there is sufficient demand.
  7. IPO plus 3 months-6 months-12 months "lockup"
    The "lockup" period for most companies ends, and insiders are free to sell shares.
  8. price-to-book ratio
    first subtract a company's liabilities (and intangible assets) from its assets. Then divide this number into the stock price. The P/B ratio of less than 1.0 can indicate that a stock is undervalued (or cheap), while a ratio of greater than 1.0 may indicate that a stock is overvalued (or expensive).
  9. Operating margin
    is a measure of profitability, so an efficient company has a high margin. It is calculated as operating income (= revenue minus operating costs) divided by net sales (= sales minus returns, discounts, etc.).
  10. track record
    all the achievements or failures that someone or something has had in the past
  11. "Private equity"
    means company shares that are not bought or sold on a public stock market. A private-equity firm mainly invests in companies whose shares are not sold to the public.
  12. a founder
    In fact, a founder is someone who starts a new business or organization. A person or organization that provides money for something is called a funder.
  13. A squawk box
    is an intercom speaker often used on brokers' trading desks in stock brokerages and investment banks. It allows a firm's analysts and traders to communicate with the firm's brokers.
  14. Dark pools
    Banks and brokers have created dark pools so that high-speed traders cannot see a customer's order before it is filled. Dark pools are not faster than other stock-trading venues, but they are effective because the transactions are private, so high-speed traders cannot see them.
  15. EBITDA
    is an abbreviation of Earnings Before Interest, Tax, Depreciation, and Amortization. It refers to a company's profits in a particular period, before taking away amounts for interest paid, tax paid, and the decrease in the value of things that the company owns.
  16. foreclosure
    to take back property that was bought with borrowed money because the money was not being paid back as formally agreed
  17. fixer-upper
    a house or apartment for sale that is in badcondition and needs work
  18. flipper
    A real estate participant who purchases a home, renovates it and sells it for a profit a short time later. Flipping (also called wholesale real estate investing) is a type of real estate investment strategy
  19. plaintiff
    The plaintiff accuses the defendant of doing something wrong.
  20. When you default on bonds
    you fail to pay interest on or make payments for them.
  21. "Across the board"
    • means "in every way, without exception." 
    • Company C's sales in all departments grew steadily, but because its costs decreased, its profits have surged.
  22. If you hedge your position
    you try to reduce the damage of a possible future loss. The main use of hedging is in corporate investment: hedge funds are investment tools that involve hedging large risks.
  23. to slug it out
    If two people slug it out, they fight or argue violently until one of them wins.
  24. +at the helm.
    +take the helm.
    • +officially controlling an organization or company.
    • +to start to officially control an organization or company.
  25. The incentive pool
    • +The incentive pool was triggered by the shares performing strongly. If the shares hadn't performed strongly, this money wouldn't have been paid to the underwriting banks.
    • +the amount of the main fee or base-fee pool
  26. "Declare bankruptcy" vs "Go out business"
    "Declare bankruptcy" means that a company enters a legal process to reorganize, pay its bills, and continue operating. "Go out business" means that an insolvent company's assets are liquidated and the company stops operating.
  27. Misrepresentation
    Misrepresentation is the act of giving false information about someone or something, usually to get an advantage.
  28. She's a great CEO considering she is only 30 years old.
    "when you consider / remember." In this case, the speaker is saying that the CEO is much better than you'd expect for a 30-year-old, but perhaps she would be even better if she had more experience.
  29. +mobile web usage vs desktop & laptop web
    +internet web usage
    In early 2014, the landscape in which businesses operate changed forever when Internet usage on mobile devices exceeded PC and desktop usage.
  30. Matching funds
    Matching funds may come from a wealthy donor or from a government organization.
  31. Digital divide
    It refers to the gap between people who have and haven't got access to technology. Lack of access is often due to money.
  32. the spread of a security or asset
    The term is commonly used when talking about stock prices, where there's a difference between the buying and selling prices.
  33. financing vs finances
    In fact, financing is money that a person or company borrows for a particular purpose. When a company lends money for a particular purpose, we say that it "finances" or "provides finance to" the person borrowing the money.
  34. "runoff"
    A "runoff" is a special kind of election used in some states and countries. If no candidate receives more than 50% of the votes in the first election, there is a second "runoff" election between the top two candidates. Only the top two candidates can be in the runoff election. This way, one candidate in the runoff will receive at least 50%.
  35. "on a roller coaster"
    Just like a real roller coaster, a stock that moves up and down rapidly and dramatically is "on a roller coaster." If a political candidate's poll numbers go up and down dramatically, he or she is also on a roller coaster.
  36. All-wheel-drive
    All-wheel-drive is good in cold-weather climates.
  37. "Clock time" vs "Event time"
    "Clock time" is when tasks are strictly organized according to the clock, for example by working from 10 to 11 on data entry, and then having a meeting from 11 to 11.30. "Event time" is when tasks are organized according to their completion, and are done until they are finished. People on "clock time" tend to be more efficient but people on "event time" feel more in control of their lives and are more creative.
  38. Businesses usually make decisions based completely on ethics?
    Many businesses consider ethics when making decisions, but they must also consider many other factors such as finance, manufacturing, product design, and so on.
  39. Royalties
    Royalties are payments made to the owners of intellectual property, such as musicians and writers, every time someone buys their work. Royalties are calculated as a percentage of a publisher's revenue. Not all writers and musicians receive royalties for their work. For example, they may be employed by the publisher (as in the case of Bob) or they may receive performance fees (as with Dora).
  40. Virus vs Bacteria vs Germ
    Bacteria are one-celled organisms that can cause illnesses. Viruses are much smaller than bacteria and cause different illnesses. "Germ" is a general term for a microbe (a small living thing). Viruses and bacteria and both kinds of germs.
  41. Blanket rule
    Like a large blanket on your bed, a blanket rule covers everyone and everything. We often talk about blanket bans, where something is completely banned (= forbidden, prohibited), rather than simply controlled or regulated.
  42. "the Holy Grail" to describe something that everybody is trying to find, because it is extremely valuable.
    For example, in engineering, the Holy Grail is a cheap, clean, safe, renewable and reliable source of energy. In marketing, the Holy Grail is a way of knowing exactly how adverts influence sales. In finance, the Holy Grail is a reliable (and legal) way of generating good returns on investment without high risk.
  43. one-on-one
    In fact, a one-on-one situation involves two people. "One-on-one coaching" is when a coach works with just one student rather than a group of students.
  44. keep tab on
    If you keep tabs on someone or something, you watch them carefully.
  45. sweet spot
    In fact, a person's sweet spot is where they feel most comfortable or what they feel most comfortable doing. Someone who enjoys eating candy and chocolate is said to have a "sweet tooth."
  46. goodwill
    Unlike equipment or factories, "goodwill" is not something you can see or touch. When one company buys another company, the difference between the purchase price and the company's actual assets is called "goodwill." For example, if Company X has assets of $2 billion but is purchased for $3 billion, the company's value includes $1 billion of goodwill.
  47. Imprint
    The statement is actually true. Imprints usually specialize in a specific subject or area, for example cookbooks, art books, or literary novels.
  48. "layovers"
    "layovers" (= stays in another place in the middle of a trip).
  49. coverage
    The right answer is "financial protection." If you have "coverage" – for example, "health-care coverage" or "flood insurance coverage" – it means you are protected from something financially.
  50. write-down
    A "write-down" is an occasion when a company decreases the value of something in its accounts.
  51. A "tie-in" movie or book
    A movie, book, TV series etc. that is a "tie-in," is based on another movie or book and may use the same characters or setting, but it tells a different story.
  52. "Impairment charge"
    "Impairment charge" is the new term for writing off worthless goodwill. If the fair value is less than the carrying value, the goodwill is deemed "impaired" and must be charged off. This charge reduces the value of goodwill to the fair market value and represents a "mark-to-market" charge.
  53. tax benefit
    A tax benefit is an allowable deduction on a tax return intended to reduce a taxpayer's burden while typically supporting certain types of commercial activity.
  54. corporate governance
    It's about the balance between different parties such as directors, managers, shareholders, creditors, auditors and regulators.
  55. We can't predict the extent to which our customers will complain.
    We can't predict how much our customers will complain.
  56. a funding round
    a startup looks for new investors. It asks the investors to give them money in exchange for stock in the company. A funding round is usually several weeks long, but it can be longer or shorter.
  57. disposable income
    A person's disposable income is the income or money that they have available to spend or save after taxes have been taken out and they have paid for food, gas and other basic needs. High gas prices mean that people spend more money on gas and have less left to spend on other things.
  58. "bitcoin miners"
    bitcoin exchanges do not create bitcoins. People, companies, and computers that create bitcoins are called "bitcoin miners."
  59. "make the grade"="make the cut"
    they perform well enough to succeed in something.
    When you "make a bundle," you make a lot of money; when you "make the fur fly," you cause a bad argument; and when you "make a splash" you suddenly become very successful or very well-known.
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CNBC explains
CNBC explains
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