Understand Corporate Finance TermsThis practical financial dictionary for Corporate Finance terms helps you understand and comprehend most common Corporate Finance lingo. It was written with an emphasis to quickly grasp the context without using jargon. Each of the 100 Corporate Finance term is explained in detail and also gives practical examples.It is based on common usage as practiced by financial professionals. Compiled over the last 3 years from questions and feedback to financial articles published by the Wealth Building Course education program.Principles of Corporate FinanceThis book is useful if you are new to business and finance. It includes most corporate finance terms for businesses, investors and entrepreneurs. It also covers the lingo that was introduced in the financial crisis of 2008 until 2017. With the alphabetical order it makes it quick and easy to find what you are looking for.Financial Dictionary SeriesAdditional financial dictionaries are available in this series. Please also check out: Accounting, Banking, Retirement, Economics, Investments, Laws & Regulations, Acronyms, Real Estate & Trading. Click on the author name to see them.Example: What is Market Capitalization?Market capitalization refers to a company’s total value. Analysts determine it by multiplying the number of shares in existence times the price of the stock. This concept can also be utilized to measure the full value of a stock exchange. The New York Stock Exchange market capitalization would equal the value of all publicly traded companies on the exchange added together.Market cap is another name for market capitalization. Examples of how this is figured make it easier to understand. Companies that have 2 million shares which have been issued that sell for $20 apiece have a market cap of $40 million. If an investor had enough money and could get the stockholders to agree to sell their shares, he or she could purchase the company for $40 million total. In practice many shareholders would want more than the current share price to sell their stock.There are three different main sizes of market capitalization among traded companies. These are large cap, mid cap, and small cap corporations. Large cap companies are generally considered the least risky ones in which to invest. They typically possess substantial financial resources to survive economic downturns. They are also generally leaders in their industries. This gives them a smaller amount of growth opportunity.Because of this the returns for these large cap companies are often not as spectacular as with successful companies in the other two categories. They also have a significantly greater chance of paying dividends out to their share holders. Large cap corporations have $5 billion and higher capitalization.Mid cap companies are generally less risky than the smaller companies. They still do not have the same possibilities for aggressive growth. Mid cap companies commonly possess market capitalization of from $1 billion to $5 billion. Studies have shown that mid caps have outperformed large cap and small cap corporation stocks in the past 20 years.Small cap corporations are those which possess under $1 billion in market capitalization. These tinier companies have often completed an Initial Public Offering in the recent past. Such companies are considered the riskiest of the three types. This is because in economic downturns, they have the greatest chance of failing or defaulting. They also enjoy plenty of opportunity and space to expand. This means that they potentially could be extremely profitable if they succeed.Note: This example description is shorted due to publish restrictions. Each term is explained with 600 words and more.