This page brings together a number of posts that I call key financial concepts. Each is explained simply for non-experts, mostly without any diagrams or equations. They are intended to be helpful to students or anybody just curious about finance. More posts to come soon.
Net present value and cost benefit analysis
What do we mean by risk and return?
The benefits of diversification
Two key types of capital: debt and equity
Classifying funds: the length of the contract
Introduction to financial markets
Public and private ownership
IPOs
Dividends
Buyouts and private equity
What is free cashflow to the firm?
The weighted average cost of capital
The Capital Asset Pricing Model as a way to estimate the cost of equity
Share buybacks
What is leverage?
Financial distress
Mergers and acquisitions
Leave a Reply