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-

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