
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-
- ADR – American Depositary Receipt
- ABS – Asset-Backed Security
- ADR – American Depository Receipt
- AP – Accounts Payable
- APR – Annual Percentage Rate
- APT – Arbitrage Pricing Theory
- AR – Accounts Receivable
- ARM – Adjustable Rate Mortgage
- AROR – Average Rate of Return
- ARPU – Average Revenue Per User
- ATM – Automated Teller Machine
- AUM – Assets Under Management
- B2B – Business-to-Business
- B2C – Business-to-Consumer
- BDC – Business Development Company
- BIS – Bank for International Settlements
- CAC – Customer Acquisition Cost
- CAGR – Compound Annual Growth Rate
- CAMELS – Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to Market Risk
- CAP – Capital Adequacy Plan
- CAPM – Capital Asset Pricing Model
- CBDC – Central Bank Digital Currency
- CDO – Collateralized Debt Obligation
- CDS – Credit Default Swap
- CFA – Chartered Financial Analyst
- CFO – Cash Flow from Operations
- CFO – Chief Financial Officer
- CFP – Certified Financial Planner
- CFTC – Commodity Futures Trading Commission
- CMA – Certified Management Accountant
- CMO – Collateralized Mortgage Obligation
- COA – Chart of Accounts
- COFI – Cost of Funds Index
- COGS – Cost of Goods Sold
- CPA – Certified Public Accountant
- CPFF – Commercial Paper Funding Facility
- CRM – Customer Relationship Management
- CRO – Chief Risk Officer
- CSR – Corporate Social Responsibility
- CTA – Commodity Trading Advisor
- CTR – Currency Transaction Report
- DCF – Discounted Cash Flow
- DDT – Dividend Distribution Tax
- DEA – Data Envelopment Analysis
- DJIA – Dow Jones Industrial Average
- DLOM – Discount for Lack of Marketability
- DPO – Days Payable Outstanding
- DRIP – Dividend Reinvestment Plan
- DSCR – Debt Service Coverage Ratio
- DSO – Days Sales Outstanding
- EAC – Estimated Annual Cost
- EBIT – Earnings Before Interest and Taxes
- EBITDA – Earnings Before Interest, Taxes, Depreciation, and Amortization
- EBITDAR – Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent
- EBT – Earnings Before Taxes
- ECB – European Central Bank
- EDP – Electronic Data Processing
- EMEA – Europe, Middle East, and Africa
- EPS – Earnings Per Share
- ERP – Enterprise Resource Planning
- ESG – Environmental, Social, and Governance
- ESOP – Employee Stock Ownership Plan
- ETF – Exchange-Traded Fund
- FASB – Financial Accounting Standards Board
- FCF – Free Cash Flow
- FCFE – Free Cash Flow to Equity
- FDI – Foreign Direct Investment
- FDIC – Federal Deposit Insurance Corporation
- FHA – Federal Housing Administration
- FICO – Fair Isaac Corporation
- FIFO – First-In, First-Out
- FINRA – Financial Industry Regulatory Authority
- FOB – Free on Board
- FOMC – Federal Open Market Committee
- FOMO – Fear Of Missing Out
- FRB – Federal Reserve Bank
- FX – Foreign Exchange
- GAAP – Generally Accepted Accounting Principles
- GARP – Growth At a Reasonable Price
- GATT – General Agreement on Tariffs and Trade
- GDP – Gross Domestic Product
- GICS – Global Industry Classification Standard
- GMV – Gross Merchandise Value
- GNP – Gross National Product
- GSE – Government-Sponsored Enterprise
- GSEs – Government-Sponsored Enterprises
- HFT – High-Frequency Trading
- HHI – Herfindahl-Hirschman Index
- HNI – High Net Worth Individual
- HNI – High-Net-Worth Individual
- HPR – Holding Period Return
- IAS – International Accounting Standards
- ICAAP – Internal Capital Adequacy Assessment Process
- ICAP – Interest Rate Swap Clearing House
- IFRS – International Financial Reporting Standards
- IFSC – International Financial Services Centre
- IPO – Initial Public Offering
- IPOD – Initial Public Offering Distribution
- IRR – Internal Rate of Return
- ISDA – International Swaps and Derivatives Association
- ISO – International Organization for Standardization
- ITM – In-The-Money
- KPI – Key Performance Indicator
- KYC – Know Your Customer
- LBO – Leveraged Buyout
- LDI – Liability-Driven Investment
- LIBID – London Interbank Bid Rate
- LIBOR – London Interbank Offered Rate
- LIFO – Last-In, First-Out
- LOI – Letter of Intent
- LTRO – Long-Term Refinancing Operations
- LTV – Loan-to-Value Ratio
- M&A – Merger and Acquisition
- MACD – Moving Average Convergence Divergence
- MBS – Mortgage-Backed Securities
- MBS – Mortgage-Backed Security
- MSCI – Morgan Stanley Capital International
- NAV – Net Asset Value
- NDA – Non-Disclosure Agreement
- NFA – National Futures Association
- NII – Net Interest Income
- NIRP – Negative Interest Rate Policy
- NOL – Net Operating Loss
- NPL – Non-Performing Loan
- NPV – Net Present Value
- OAS – Option-Adjusted Spread
- OCC – Options Clearing Corporation
- OPM – Other People’s Money
- OTC – Over-the-Counter
- P&L – Profit and Loss
- P/B – Price-to-Book Ratio
- P/E – Price-to-Earnings ratio
- PCAOB – Public Company Accounting Oversight Board
- PEG – Price/Earnings to Growth Ratio
- PMI – Purchasing Managers’ Index
- PPI – Producer Price Index
- PWM – Private Wealth Management
- R&D – Research and Development
- RAROC – Risk-Adjusted Return On Capital
- RFP – Request for Proposal
- ROA – Return on Assets
- ROE – Return on Equity
- ROI – Return on Investment
- RWA – Risk-Weighted Assets
- S&P – Standard & Poor’s
- SAR – Special Administrative Region
- SAR – Suspicious Activity Report
- SEC – Securities and Exchange Commission
- SEZ – Special Economic Zone
- SME – Small and Medium-sized Enterprises
- SOX – Sarbanes-Oxley Act
- SPAC – Special Purpose Acquisition Company
- SRO – Self-Regulatory Organization
- STP – Straight Through Processing
- SWIFT – Society for Worldwide Interbank Financial Telecommunication
- TARP – Troubled Asset Relief Program
- TBTF – Too Big To Fail
- TCO – Total Cost of Ownership
- TIPS – Treasury Inflation-Protected Securities
- TSR – Total Shareholder Return
- TTM – Trailing Twelve Months
- UCC – Uniform Commercial Code
- UPI – Unique Product Identifier
- VAR – Value at Risk
- VAR – Value-at-Risk
- VC – Venture Capital
- VIX – Chicago Board Options Exchange Volatility Index
- VUCA – Volatility, Uncertainty, Complexity, Ambiguity
- WACC – Weighted Average Cost of Capital
- WIP – Work in Progress
- WIPRO – Western India Palm Refined Oils
- WPI – Wholesale Price Index
- YOY – Year Over Year
- YTD – Year-to-Date
- YTM – Yield to Maturity
- ZBB – Zero-Based Budgeting
- ZIRP – Zero Interest Rate Policy
- Z-spread – Zero-Volatility Spread
you can see a List of short forms used in finance with more different abbreviations through the link