List of short forms used in finance in the USA

List of short forms used in finance (USA)

First of all, you should understand Finance which refers to the management of money and other assets, including investments, banking, credit, and debt. It involves the study of how individuals, businesses, and organizations allocate their resources over time and make decisions about the acquisition and use of funds.

Finance is concerned with the analysis of financial data, the valuation of assets and liabilities, and the determination of financial risk.

Here is the list of short forms or abbreviations mostly used in finance terms in the USA. You need to understand it perfectly. Check the list below-

1. ADR – American Depositary Receipt
2. ABS – Asset-Backed Security
3. ADR – American Depository Receipt
4. AP – Accounts Payable
5. APR – Annual Percentage Rate
6. APT – Arbitrage Pricing Theory
7. AR – Accounts Receivable
8. ARM – Adjustable Rate Mortgage
9. AROR – Average Rate of Return
10. ARPU – Average Revenue Per User
11. ATM – Automated Teller Machine
12. AUM – Assets Under Management
13. B2B – Business-to-Business
14. B2C – Business-to-Consumer
15. BDC – Business Development Company
16. BIS – Bank for International Settlements
17. CAC – Customer Acquisition Cost
18. CAGR – Compound Annual Growth Rate
19. CAMELS – Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to Market Risk
20. CAP – Capital Adequacy Plan
21. CAPM – Capital Asset Pricing Model
22. CBDC – Central Bank Digital Currency
23. CDO – Collateralized Debt Obligation
24. CDS – Credit Default Swap
25. CFA – Chartered Financial Analyst
26. CFO – Cash Flow from Operations
27. CFO – Chief Financial Officer
28. CFP – Certified Financial Planner
29. CFTC – Commodity Futures Trading Commission
30. CMA – Certified Management Accountant
31. CMO – Collateralized Mortgage Obligation
32. COA – Chart of Accounts
33. COFI – Cost of Funds Index
34. COGS – Cost of Goods Sold
35. CPA – Certified Public Accountant
36. CPFF – Commercial Paper Funding Facility
37. CRM – Customer Relationship Management
38. CRO – Chief Risk Officer
39. CSR – Corporate Social Responsibility
40. CTA – Commodity Trading Advisor
41. CTR – Currency Transaction Report
42. DCF – Discounted Cash Flow
43. DDT – Dividend Distribution Tax
44. DEA – Data Envelopment Analysis
45. DJIA – Dow Jones Industrial Average
46. DLOM – Discount for Lack of Marketability
47. DPO – Days Payable Outstanding
48. DRIP – Dividend Reinvestment Plan
49. DSCR – Debt Service Coverage Ratio
50. DSO – Days Sales Outstanding
51. EAC – Estimated Annual Cost
52. EBIT – Earnings Before Interest and Taxes
53. EBITDA – Earnings Before Interest, Taxes, Depreciation, and Amortization
54. EBITDAR – Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent
55. EBT – Earnings Before Taxes
56. ECB – European Central Bank
57. EDP – Electronic Data Processing
58. EMEA – Europe, Middle East, and Africa
59. EPS – Earnings Per Share
60. ERP – Enterprise Resource Planning
61. ESG – Environmental, Social, and Governance
62. ESOP – Employee Stock Ownership Plan
63. ETF – Exchange-Traded Fund
64. FASB – Financial Accounting Standards Board
65. FCF – Free Cash Flow
66. FCFE – Free Cash Flow to Equity
67. FDI – Foreign Direct Investment
68. FDIC – Federal Deposit Insurance Corporation
69. FHA – Federal Housing Administration
70. FICO – Fair Isaac Corporation
71. FIFO – First-In, First-Out
72. FINRA – Financial Industry Regulatory Authority
73. FOB – Free on Board
74. FOMC – Federal Open Market Committee
75. FOMO – Fear Of Missing Out
76. FRB – Federal Reserve Bank
77. FX – Foreign Exchange
78. GAAP – Generally Accepted Accounting Principles
79. GARP – Growth At a Reasonable Price
80. GATT – General Agreement on Tariffs and Trade
81. GDP – Gross Domestic Product
82. GICS – Global Industry Classification Standard
83. GMV – Gross Merchandise Value
84. GNP – Gross National Product
85. GSE – Government-Sponsored Enterprise
86. GSEs – Government-Sponsored Enterprises
87. HFT – High-Frequency Trading
88. HHI – Herfindahl-Hirschman Index
89. HNI – High Net Worth Individual
90. HNI – High-Net-Worth Individual
91. HPR – Holding Period Return
92. IAS – International Accounting Standards
93. ICAAP – Internal Capital Adequacy Assessment Process
94. ICAP – Interest Rate Swap Clearing House
95. IFRS – International Financial Reporting Standards
96. IFSC – International Financial Services Centre
97. IPO – Initial Public Offering
98. IPOD – Initial Public Offering Distribution
99. IRR – Internal Rate of Return
100. ISDA – International Swaps and Derivatives Association
101. ISO – International Organization for Standardization
102. ITM – In-The-Money
103. KPI – Key Performance Indicator
104. KYC – Know Your Customer
105. LBO – Leveraged Buyout
106. LDI – Liability-Driven Investment
107. LIBID – London Interbank Bid Rate
108. LIBOR – London Interbank Offered Rate
109. LIFO – Last-In, First-Out
110. LOI – Letter of Intent
111. LTRO – Long-Term Refinancing Operations
112. LTV – Loan-to-Value Ratio
113. M&A – Merger and Acquisition
114. MACD – Moving Average Convergence Divergence
115. MBS – Mortgage-Backed Securities
116. MBS – Mortgage-Backed Security
117. MSCI – Morgan Stanley Capital International
118. NAV – Net Asset Value
119. NDA – Non-Disclosure Agreement
120. NFA – National Futures Association
121. NII – Net Interest Income
122. NIRP – Negative Interest Rate Policy
123. NOL – Net Operating Loss
124. NPL – Non-Performing Loan
125. NPV – Net Present Value
126. OAS – Option-Adjusted Spread
127. OCC – Options Clearing Corporation
128. OPM – Other People’s Money
129. OTC – Over-the-Counter
130. P&L – Profit and Loss
131. P/B – Price-to-Book Ratio
132. P/E – Price-to-Earnings ratio
133. PCAOB – Public Company Accounting Oversight Board
134. PEG – Price/Earnings to Growth Ratio
135. PMI – Purchasing Managers’ Index
136. PPI – Producer Price Index
137. PWM – Private Wealth Management
138. R&D – Research and Development
139. RAROC – Risk-Adjusted Return On Capital
140. RFP – Request for Proposal
141. ROA – Return on Assets
142. ROE – Return on Equity
143. ROI – Return on Investment
144. RWA – Risk-Weighted Assets
145. S&P – Standard & Poor’s
146. SAR – Special Administrative Region
147. SAR – Suspicious Activity Report
148. SEC – Securities and Exchange Commission
149. SEZ – Special Economic Zone
150. SME – Small and Medium-sized Enterprises
151. SOX – Sarbanes-Oxley Act
152. SPAC – Special Purpose Acquisition Company
153. SRO – Self-Regulatory Organization
154. STP – Straight Through Processing
155. SWIFT – Society for Worldwide Interbank Financial Telecommunication
156. TARP – Troubled Asset Relief Program
157. TBTF – Too Big To Fail
158. TCO – Total Cost of Ownership
159. TIPS – Treasury Inflation-Protected Securities
160. TSR – Total Shareholder Return
161. TTM – Trailing Twelve Months
162. UCC – Uniform Commercial Code
163. UPI – Unique Product Identifier
164. VAR – Value at Risk
165. VAR – Value-at-Risk
166. VC – Venture Capital
167. VIX – Chicago Board Options Exchange Volatility Index
168. VUCA – Volatility, Uncertainty, Complexity, Ambiguity
169. WACC – Weighted Average Cost of Capital
170. WIP – Work in Progress
171. WIPRO – Western India Palm Refined Oils
172. WPI – Wholesale Price Index
173. YOY – Year Over Year
174. YTD – Year-to-Date
175. YTM – Yield to Maturity
176. ZBB – Zero-Based Budgeting
177. ZIRP – Zero Interest Rate Policy
178. Z-spread – Zero-Volatility Spread

you can see a List of short forms used in finance with more different abbreviations through the link