Ten Principles

1) The Risk-Return Trade off

2) The Time-Value of Money

3) Cash (not profits) is King

4) Incremental Cash Flows

5) The curse of competitive markets

6) Efficient capital markets

7) The Agency Problem

8) Taxes bias business decisions

9) All risk is not equal

10) Ethical behaviour is doing the right thing, and ethical dilemmas are everywhere in finance

Investment Banker

Underwriting

Liquidity

Average Collection Period

Sustainable Rate of Growth

Future Value

Subordinated Debentures

Mortgage Bonds

Junk Bonds

Preferred Stock
aka
Preferred Share

Diversifiable Risk

Market Risk

Payback Period

Current Assets

Working Capital

Dividend

Primary Market

Annuity