A Haircut represents the difference between the market value of an asset and the value used for a specific purpose, such as use of the asset as collateral for a loan. A Haircut reduces the risk associated with the possibility future changes in the market value of the asset.

An Investment Bank is a financial institution which focuses on helping businesses meet their capital needs. Investment Banks help businesses issue and sell securities, such as stock or bonds. They also help with mergers or acquisitions.

Net Present Value is a measure of the current value of a set of investments and income which occur over time. This provides an estimate of profitability based on a series of planned cash flows.

A Hedge Fund pools money from a group of investors (typically accredited investors or institutions) to invest using investment strategies and leverage in order to pursue high returns. They are typically high risk, less regulated, and expensive – meaning that they may not be appropriate investments except for sophisticated investors.

Delisting is the process of removing a security that is traded on a market (e.g., NYSE) from that market. This usually occurs because the security in no longer eligible for being listed according to the rules of that market.

A margin call occurs when an investor borrows money to invest in securities such as stock, and the value of those securities declines. A Margin Call is a request from the broker that the investor deposit more securities or funds in to their account, to ensure that there are sufficient assets to repay the borrowed money.

Averaging down is a strategy used by investors to show a larger profit. By buying more shares of a stock that is already owned as the price falls, the average cost paid by the investor falls. Thus, when the price rises again, it does not have to rise as far to realize the same gains. For example, let us say you purchase 100 shares of stock $XYZ at $30 per share. Your average cost is therefore $30. In order to achieve a profit of $1000 on your 100 shares, the value of $XYZ must rise by $10 to $40 per share. Now, let us say you average down when the price of $XYZ falls to $10, by buying an additional 100 shares. Now, your average cost is [$30 per share x 100 shares + $10 per share x 100 shares]/(100 shares + 100 shares) = $20 per share. Now, the price of $XYZ only has to rise by $5 to $25 per share on your 200 shares in order to make $1000 of profit. So, by averaging down, you can achieve a greater profit even when the value of the share is lower than what it was originally! Note: it is important to research the company so that you can be confident that the price will rise eventually, so that you can make that profit. A sharp price fall could be a warning signal that the company is in turmoil.

A bear market describes when investors are pessimistic about the state of the market. It is usually characterized by falling stock prices. Investors can also be described as bearish about a specific stock or industry, if they predict a general downward trend associated with it. In the stock market, bears are the opposite of bulls.

A bull market describes when investors are optimistic about the state of the market. It is usually characterized by rising stock prices. Investors can also be described as bullish about a specific stock or industry, if they predict a general upward trend associated with it. In the stock market, bulls are the opposite of bears.

EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, is a measure of financial the health of a business. It is important because is ignores the effect of some accounting and tax management strategies which vary across businesses.