Black Swan Events
Financial events that are difficult to predict. Till people ventured to Australia, swans were assumed only to be white. No one had seen a black one until then.
Blue Chip
In Poker, blue chips are traditionally the highest-valued. Therefore, a blue-chip company is one that is large and considered to be safe or prestigious, picking its origin from Poker.
Break-even Point
The point in time when you will have paid back all your debts, or when revenues exactly match expenses, aka “No Profit No Loss Situation.”
Collateral
Collateral is security people give against a loan. Often this is a significant asset such as a house.
Gazumping
A process in which a seller who has already accepted one buyer’s offer goes on to take a higher offer, pushing the first buyer out of the picture.
Enterprise value
This is the market value of a business. It is calculated by market capitalization times current share price, minus cash, plus debt.
Exit strategy
An exit strategy is a conscious plan to dispose of an investment in a business venture or a financial asset. The purpose of the exit strategy can be to limit losses or when a business has met its financial objectives or when an investor/ owner wants to cash out its share.
Golden Hello
An attractive package (typically a bonus, or stock options) that are offered to a senior employee as an incentive to join the company.
Grey knight
During a business takeover, this is a bidder who has no clearly stated intentions.
Golden Share
A golden share in a company can outvote all other stocks in a specified circumstance.
Arm’s-Length Transaction
Business dealings between independent and rational parties who are looking out for their interests.