Case – A legal matter, dispute, or trial.

FIR (First Information Report) – A formal report of a crime.

Bail – Temporary release of an accused person.
Court – The place where legal cases are heard.
Lawyer – A legal professional or advocate.
Advocate – A lawyer who represents clients in court.
Plaintiff – The person or entity bringing a lawsuit.
Defendant – The person or entity being sued or accused.
Summons – An official notice to appear in court.
Bailiff – A court official who helps maintain order in the court.
Court Fee – A fee paid to the court to file a case or document.
Habeas Corpus – A writ that protects against unlawful detention.
Section – A specific provision or part of a law.
Subpoena – A legal order requiring someone to attend court.
Cognizance – The act of a court taking notice of a case.
Complaint – A formal statement of a grievance or legal issue.
Precedent – A previous court decision used as a guide in future cases.
Plaint – A formal complaint or statement of a case.
Verdict – The decision or judgment of a court.
Remand – The action of sending an accused back into custody pending further hearings.
Appeal – A request for a higher court to review a case.
Affidavit – A written statement confirmed by oath.
Jurisdiction – The authority of a court to hear and decide a case.
Contempt of Court – Behavior that disrespects or disobeys court authority.
Arrest – The act of detaining someone by legal authority.
Plea – The formal statement made by a defendant in response to a charge.
Breach – A violation of law, contract, or agreement.
Contractual – Relating to a formal agreement or contract.
Compensation – Payment for harm or loss suffered by someone.
Docket – A list of cases to be heard by a court.
Cross-Examination – The questioning of a witness in court by the opposing party.
Injunction – A court order to stop or prevent a specific act.
Juror – A member of a jury.
Jury – A group of people selected to hear evidence in a case.
Moot Court – A simulated court proceeding used by law students for practice.
Plaintiff’s Counsel – The lawyer representing the plaintiff.
Defendant’s Counsel – The lawyer representing the defendant.
Plaintiff’s Evidence – The proof or material presented by the plaintiff in a case.
Case Law – The body of past judicial decisions.
Prosecutor – A lawyer who represents the state or government in criminal cases.
Defense Counsel – The lawyer who represents the accused in criminal cases.
Admissibility – The quality of being accepted as evidence in court.
Testimony – A formal statement given by a witness under oath.
Cross-Questioning – The process of questioning the opposing party's witness.
Witness Stand – The place where a witness sits while giving testimony.
Plaintiff’s Claim – The assertion made by the plaintiff in a case.
Negligence – The failure to take proper care in doing something.
Litigation – The process of taking legal action or suing someone.
Mediation – The process of resolving disputes through a neutral third party.
Arbitration – A process where a dispute is resolved by an arbitrator outside the court.
Damages – A sum of money claimed as compensation for harm or loss.
Writ – A formal written order from a court.
Civil Suit – A legal action to resolve a private dispute between parties.
Criminal Case – A case involving the prosecution of someone accused of a crime.
Tort – A wrongful act leading to legal liability.
Defamation – The act of harming someone's reputation by making false statements.
Breach of Trust – The violation of a fiduciary duty or responsibility.
Legal Maxims – Established principles or rules in law.
Property Law – The area of law dealing with ownership and rights to property.
Family Law – The area of law dealing with family matters like marriage, divorce, and
inheritance.
Constitutional Law – The area of law dealing with the principles and laws outlined in a
country's constitution.
Consumer Protection Law – Laws that protect the interests of consumers.
Trade Mark – A distinctive sign or symbol used to identify goods or services.
Patent – A government-granted right to exclude others from making or selling an invention.
Copyright – The legal right to use and distribute creative works.
Trademark Infringement – The unauthorized use of a registered trademark.
Preliminary Hearing – A hearing to determine if a case should proceed.
Petition – A formal request made to a court.
Probation – A sentence that allows an offender to remain out of jail under certain conditions.
Pardon – The act of forgiving someone for a crime, often granted by the president or
governor.
Bail Bond – A financial guarantee to ensure an accused person appears in court.
Concurrence – Agreement with the majority decision in a case, but for different reasons.
Dissent – Disagreement with the majority opinion in a case.
Charge Sheet – A document listing the charges against the accused.
Court Order – A directive issued by a judge in the course of a legal proceeding.
Probate – The legal process of proving the validity of a will.
Inheritance – The process of passing on property or rights after death.
Perjury – The act of lying under oath.
Hearing – A legal proceeding where evidence and arguments are presented before a judge.
Indictment – A formal charge or accusation of a serious crime.
Retainer – A fee paid to a lawyer to secure their services.
Public Interest Litigation (PIL) – A legal action taken to protect the public interest.
Legal Counsel – A lawyer or group of lawyers providing legal advice.
Court Ruling – A judgment or decision made by a court.
Settlement – An agreement between parties to resolve a dispute without going to trial.
Embezzlement – The illegal taking of money or property entrusted to one’s care.
Admissible Evidence – Evidence that is allowed to be presented in court.
Acquittal – A court's judgment that the defendant is not guilty of the charges.
Guilty – The verdict that the defendant committed the crime.
Murder Charge – An accusation of unlawfully killing someone.
Kidnapping – The unlawful taking and detaining of a person.
Conspiracy – An agreement between parties to commit an unlawful act.
Aggravated Assault – An attack with the intent to cause serious harm.
Juvenile Delinquency – Criminal behavior by a young person.
Breach of Contract – Failure to honor the terms of a contract.
Substantive Law – Law that defines rights, duties, and obligations.
Procedural Law – The rules that govern the process of litigation.
Civil Rights – Rights protecting individuals from unfair treatment.
Statutory Law – Laws enacted by a legislative body.
Common Law – Law developed by judges through decisions and precedents.
Tortfeasor – A person who commits a tort (wrongful act).
Causation – The relationship between an act and its effect.
Counterclaim – A claim made by a defendant against the plaintiff in response to the original
claim.
Statute of Limitations – The time limit within which a lawsuit must be filed.
Insolvency – The state of being unable to pay debts.
Liquidation – The process of winding up a company’s affairs, including selling off assets.
Mediation Clause – A clause in a contract requiring mediation before legal action.
Non-Compete Clause – A contract provision preventing an employee from competing with
their employer after leaving.
Tangible Assets – Physical assets, such as property or equipment.
Intangible Assets – Non-physical assets like patents or trademarks.
Vicarious Liability – Legal responsibility for the actions of another person, usually an
employee.
Mitigation – The process of reducing or lessening harm or damages.
Prejudice – A judgment or opinion formed without proper evidence, especially in a legal
case.
Strict Liability – Liability without fault or intent, typically in cases involving dangerous
activities.
Equitable Remedy – A legal solution based on fairness rather than strict rules.
Class Action – A lawsuit filed by one or more plaintiffs on behalf of a larger group.
Discovery – The process by which parties obtain evidence from each other before trial.
Adjudication – The legal process of resolving a dispute or deciding a case.
Declaratory Judgment – A court judgment that determines the rights of the parties without
ordering specific action.
Execution – The process of enforcing a court order, such as collecting a judgment.
Motion – A formal request made to a court for a specific ruling or order.
Deposition – The sworn out-of-court testimony of a witness, usually taken before trial.
Contingency Fee – A fee arrangement where a lawyer is paid only if the client wins the
case.
Pleadings – Written statements of the parties’ claims or defenses.
Summary Judgment – A judgment given on a legal issue without a full trial.
Writ of Certiorari – An order by a higher court to review the decision of a lower court.
Writ of Mandamus – A court order directing an official to perform a duty.
Writ of Prohibition – A court order to stop a lower court or government official from acting
outside their jurisdiction.
Writ of Quo Warranto – A legal order requiring someone to show by what authority they
hold office.
Injunction – A court order that requires a party to do or stop doing something.
Slander – Oral defamation, where false statements harm someone’s reputation.
Libel – Written defamation, where false statements are published to harm reputation.
Non-Disclosure Agreement (NDA) – A contract that prevents the sharing of confidential
information.
Joint Venture – A business arrangement where two or more parties agree to work together
on a project.
Arbitration Clause – A contract provision requiring disputes to be resolved by arbitration
rather than court.
Appeal Bond – A bond posted to secure a party’s right to appeal a court decision.
Discovery Request – A request made during the discovery phase to obtain evidence or
information.
Forum Shopping – Choosing a court with favorable rules for hearing a case.
Severability Clause – A provision that allows parts of a contract to remain valid even if one
part is invalid.
Indemnity – A promise to compensate for loss or damage.
Indemnification – The act of compensating for harm or loss.
Public Defender – A government-appointed lawyer who defends accused individuals who
cannot afford a private lawyer.
Standing – The legal right to initiate a lawsuit based on the party's stake in the outcome.
Locus Standi – The right to bring a case to court based on one’s involvement or interest in
the matter.
Substitution – Replacing one party or claim with another in a legal proceeding.
Restraining Order – A court order prohibiting a person from doing something, such as
contacting another person.
Provisional Remedies – Temporary solutions provided by a court until a final decision is
made.
Breach of Fiduciary Duty – Violating the trust placed by one party in another, often in
professional relationships.
Estoppel – A legal principle that prevents someone from asserting something contrary to
what they previously stated or agreed to.
Forensic Evidence – Scientific evidence used to solve crimes, often involving biology,
chemistry, or technology.
Hearsay – Evidence based on what others have said rather than direct knowledge.
Legal Aid – Assistance provided to those unable to afford a lawyer.
Supreme Court – The highest court in a country or jurisdiction.
High Court – A superior court in some legal systems, below the Supreme Court.
District Court – A trial court that hears civil and criminal cases in a specific district.
Magistrate – A judicial officer who typically handles minor cases or preliminary hearings.
Conciliation – A form of dispute resolution where a neutral third party helps parties reach an
agreement.
Third-Party Liability – Legal responsibility for harm caused to someone else by a third
party.
Quashing – The process of annulling or invalidating a decision or charge.
Res Judicata – A matter already adjudicated and not subject to re-litigation.
Force Majeure – A contract clause that excuses parties from liability for unforeseen events
beyond their control.
Prejudgment – An opinion or conclusion reached before all the evidence is considered.
Defeasance Clause – A clause in a contract that voids a contract under specific conditions.
Parole – The conditional release of a prisoner before the completion of their sentence.
Strict Scrutiny – A high level of judicial review applied to certain fundamental rights issues.
Due Process – The fair treatment of all individuals under the law.
Unconstitutional – Something that violates the constitution.
Constitutional Amendment – A formal change or addition to a constitution.
Caveat Emptor – The principle that the buyer is responsible for checking the quality of
goods before purchase.
Ex Parte – A decision made by a judge without hearing from the other party.
In Camera – A hearing or trial held in private, usually for sensitive matters.
Moot – A hypothetical legal case or issue used for educational purposes.
Duties of Care – The obligation to avoid causing harm to others.
Beneficiary – A person who receives benefits, often from a trust or will.
Notice of Appeal – A formal notification of a party’s intention to appeal a court ruling.
Vesting Order – A court order transferring legal title of property to another person.
Execution of Judgment – The enforcement of a court’s ruling.
Rebuttal – An argument made to contradict or refute evidence presented by the opposing
party.
Adversarial System – A legal system where two opposing parties present their cases to a
neutral judge.
Injunction Bond – A bond posted to obtain an injunction, ensuring compensation if the
injunction is later found to be improper.
Quitclaim – A legal document where one party relinquishes all claims or interests in a
property.
Bond – A legal document requiring a party to pay a specified sum if they fail to fulfill an
obligation.
Prosecutorial Discretion – The power of a prosecutor to decide whether or not to pursue
criminal charges.
Witness List – A list of individuals who will testify in a case.
Constitutional Interpretation – The process of determining the meaning of constitutional
provisions.
Legal Precedent – A previous case or decision that influences future cases with similar
facts.
Court Transcript – A written record of everything said in court during a trial or hearing.
Mediation Agreement – An agreement reached through mediation that resolves a dispute.
Lien – A legal right to keep possession of property belonging to another until a debt is paid.
Eminent Domain – The government’s right to take private property for public use with
compensation.
Testator – A person who has written a valid will.
Executor – A person appointed to carry out the terms of a will.
Witness Testimony – Statements made by a witness under oath.
Evidence Log – A record of evidence presented during a trial.
Emancipation – The legal process by which a minor gains independence from parental
control.
Duty of Loyalty – A legal duty requiring
Public Nuisance – An act that harms the public or community, often causing damage or
inconvenience.
Charter – A formal document establishing a corporate entity or a government’s legal
framework.
Confession – A formal admission of guilt made by an accused person.
Parliamentary Immunity – Protection from legal action given to lawmakers while performing
their duties.
Amicus Curiae – A person or organization offering information or expertise in a case but not
directly involved in the litigation.
Affidavit – A written statement made under oath, typically used as evidence in court.
Abatement – The reduction or elimination of a legal action or process, such as reducing the
amount of damages.
Accused – A person formally charged with a crime.
Actus Reus – The physical act or conduct that constitutes a criminal offense.
Mens Rea – The mental state or intent required to commit a criminal offense.
Acquittal – A legal judgment that a defendant is not guilty of the charges brought against
them.
Admissible Evidence – Evidence that is allowed to be presented in court based on legal
rules.
Affirmative Defense – A defense in which the defendant introduces evidence to avoid
liability.
Alibi – Evidence that a defendant was elsewhere when a crime occurred, thus exonerating
them.
Alimony – Financial support provided to a spouse after a divorce or separation.
Appeal – A request made to a higher court to review the decision of a lower court.
Arraignment – A court hearing in which a defendant is formally charged with a crime and
enters a plea.
Arrest Warrant – A legal document issued by a judge allowing law enforcement to arrest a
person.
Asset Forfeiture – The legal process of seizing property linked to criminal activity.
Bail – The temporary release of an accused person awaiting trial, typically in exchange for
money as a guarantee.
Breach of Contract – The failure to fulfill the terms of a contract without lawful excuse.
Burden of Proof – The obligation to prove one’s assertion or case in a legal dispute.
Capias – A type of arrest warrant issued by a court.
Case Law – Law established by judicial decisions in individual cases rather than by statutes.
Caveat – A warning or notice, often used in legal contexts such as a cautionary notice
regarding a legal claim.
Census – The official population count, often relevant for districting and electoral matters.
Chattel – Personal property that is movable, as opposed to real estate or immovable
property.
Citation – A reference to legal authority or a case, statute, or legal principle.
Civil Law – The body of law governing private rights and obligations, as opposed to criminal
law.
Civil Procedure – The rules governing the process of litigation in civil courts.
Claimant – A person who makes a claim in a legal action.
Cognizance – The legal awareness or acknowledgment of a legal matter or case.
Collateral – Property pledged as security for the repayment of a loan.
Common Law – A legal system based on judicial precedents and customs rather than
written laws.
Compensatory Damages – Financial compensation awarded to a plaintiff to cover actual
losses or harm.
Complainant – A person who files a formal accusation of wrongdoing, particularly in criminal
cases.
Concurrent Sentence – Multiple prison sentences that are served simultaneously.
Concurrence – Agreement or cooperation in the decision or opinion of a court.
Confidentiality Agreement – A contract that ensures information shared between parties is
not disclosed to others.
Conflict of Interest – A situation where a person’s personal interests conflict with their
professional duties.
Constructive Notice – Legal notice that is presumed to have been given, even if not directly
communicated.
Contempt of Court – The offense of disobeying or disrespecting the authority of a court.
Contractual Capacity – The ability of a party to enter into a legally binding contract.
Conversion – The wrongful possession or use of someone else’s property.
Conveyance – The legal transfer of property from one party to another.
Corporation – A legal entity that is separate from its owners, usually formed to conduct
business.
Corpus Delicti – The body of the crime, which refers to the physical evidence or elements
of a crime.
Costs – The expenses associated with a legal action, including court fees, attorney’s fees,
and other expenses.
Covenant – A formal agreement or promise in a contract.
Cross-Examination – The questioning of a witness by the opposing party to challenge their
testimony.
Custodial Sentence – A sentence involving imprisonment.
Custody – The legal right to keep and care for a child or an individual under arrest.
Diligence – The careful and persistent effort required to carry out legal duties or obligations.
Direct Evidence – Evidence that directly proves a fact, such as eyewitness testimony.
Discovery Rule – A rule in some jurisdictions that allows the statute of limitations to start
from the time the injury is discovered.
Domicile – A person’s permanent home or residence, which may affect legal jurisdiction.
Double Jeopardy – The legal principle that prevents a person from being tried twice for the
same offense.
Due Process – The constitutional requirement that legal proceedings be conducted fairly
and impartially.
Election Law – Laws governing the processes of elections and voting.
Embezzlement – The wrongful appropriation or theft of funds entrusted to one’s care.
Enforcement – The act of compelling compliance with a law or court order.
Equity – A system of justice based on fairness, often used to remedy situations where the
strict law does not provide an adequate solution.
Escheat – The reversion of property to the state when an individual dies without a will and
without heirs.
Estoppel – A legal principle preventing someone from making claims that are inconsistent
with their previous statements or actions.
Evidence – Information presented in court to support or oppose a legal argument.
Exemption – A legal provision that excludes certain individuals or actions from the scope of
a law.
Executor – A person appointed to carry out the terms of a will.
Ex Parte – A legal proceeding or order made with only one party present.
Extradition – The process of delivering a person from one jurisdiction to another for
prosecution or punishment.
Felony – A serious criminal offense typically punishable by imprisonment for more than one
year.
Fiduciary Duty – The obligation to act in the best interests of another party, often in
relationships like trustee and beneficiary.
Foreclosure – The legal process by which a lender seizes property used as collateral for a
loan due to non-payment.
Forfeiture – The loss or giving up of something as a penalty for wrongdoing.
Fraud – The intentional deception for personal gain or to harm another person.
Frivolous Lawsuit – A lawsuit that has no legal merit and is often filed to harass or
intimidate the defendant.
Garnishment – A legal process by which a creditor can collect a portion of a debtor’s wages
or bank account.
Good Faith – Acting with honesty and integrity in legal transactions or dealings.
Grand Jury – A group of citizens tasked with determining whether there is enough evidence
to indict someone for a crime.
Guardian – A person legally appointed to care for the person or property of someone unable
to do so.
Habeas Corpus – A writ requiring a person to be brought before a judge, typically used to
challenge unlawful detention.
Hearing – A legal proceeding where arguments are presented to a judge or other
decision-maker.
Heir – A person who is legally entitled to inherit property from a deceased person.
Hostile Witness – A witness who is openly antagonistic to the party that called them to
testify.
Immunity – Protection from legal liability or prosecution, often granted to government
officials or witnesses in exchange for cooperation.
Implied Contract – A contract formed by the actions of the parties involved, rather than
through explicit written or spoken words.
Indictment – A formal charge or accusation of a serious crime, issued by a grand jury.
Injunction – A court order that prohibits a party from doing certain acts or compels them to
do certain acts.
Innocent Until Proven Guilty – The legal principle that one is considered innocent unless
proven guilty beyond a reasonable doubt.
Insider Trading – The illegal practice of trading stocks or securities based on confidential
information not available to the public.
Intellectual Property (IP) – Legal rights granted to individuals or organizations over
creations of the mind, such as patents, copyrights, and trademarks.
Interlocutory Order – A temporary court order made before the final resolution of a case.
Interrogatories – Written questions submitted by one party to the other, requiring written
responses under oath.
Intestate – Dying without having made a valid will.
Jurisprudence – The philosophy or theory of law.
Jurisdiction – The authority of a court to hear a case and make binding decisions.
Jury Trial – A trial in which a jury of peers determines the facts and renders a verdict.
Laches – A legal doctrine that prevents a party from asserting a claim due to an
unreasonable delay.
Lawsuit – A legal action taken by one party against another in a court of law.
Lease – A contract that allows one party to use another party’s property for a specified
period in exchange for payment.
Legislative Intent – The purpose or goal that lawmakers had in mind when drafting a law or
statute.
Lien – A legal right or claim on property as security for a debt or obligation.
Litigation – The process of taking legal action or resolving disputes in court.
Malfeasance – The commission of an unlawful or wrongful act by a public official or other
person in a position of trust.
Mandamus – A court order requiring a public official to perform their duty or act in a specific
way.
Articles of Incorporation – The primary legal document used to establish a corporation,
outlining its structure and purpose.
Annual General Meeting (AGM) – A yearly meeting held by a corporation for its
shareholders to discuss the company’s performance, future plans, and other corporate
matters.
Asset Management – The management of investments on behalf of clients or a corporation,
often including stocks, bonds, and real estate.
Auditor – An independent professional responsible for reviewing and verifying a company's
financial statements.
Board of Directors – A group of individuals elected to represent shareholders' interests and
oversee the management of a corporation.
Bond – A debt security issued by a corporation, promising to repay the principal along with
interest at a future date.
Bylaws – Internal rules and regulations that govern the operation and management of a
corporation.
Capital Structure – The combination of debt, equity, and other financial instruments used to
fund a company’s operations.
Charter Capital – The initial capital invested in a company upon its formation, usually in
exchange for shares.
C Corporation – A type of corporation taxed separately from its owners, with its own legal
identity.
Close Corporation – A corporation in which shares are not publicly traded and are typically
held by a small group of individuals.
Common Stock – Equity securities that represent ownership in a corporation, giving
shareholders voting rights and potential dividends.
Compensation Committee – A group within a corporation responsible for determining
executive compensation and benefits.
Corporate Governance – The systems, principles, and processes by which corporations
are directed and controlled.
Corporate Law – The area of law governing the rights, relations, and conduct of companies,
shareholders, directors, and employees.
Corporate Veil – The legal distinction between a corporation and its shareholders,
protecting individual shareholders from being personally liable for the company’s debts.
Debenture – A long-term debt instrument issued by a company, usually unsecured and
bearing a fixed interest rate.
Debt Financing – The process of raising capital through borrowing, typically by issuing
bonds or taking loans.
Dividend – A payment made by a corporation to its shareholders, usually from profits, in the
form of cash or additional shares.
Due Diligence – The process of thoroughly investigating a business, its financial status, and
other relevant factors before a merger or acquisition.
Economic Entity – A legally separate business or organization that operates to make
profits.
Employee Stock Option – A financial incentive given to employees, allowing them to buy
company stock at a discounted price.
Equity Financing – Raising capital by issuing shares of stock in exchange for funds.
Executive Compensation – The total compensation package given to senior executives,
including salary, bonuses, stock options, and other benefits.
External Auditor – An independent auditor hired to review and verify a company’s financial
records and ensure they comply with accounting standards.
Fiduciary Duty – The obligation of corporate directors and officers to act in the best
interests of the company and its shareholders.
Foreign Corporation – A corporation that is incorporated in one jurisdiction but does
business in another.
Form 10-K – A comprehensive annual report required by the SEC, providing detailed
financial information about a corporation.
Form 10-Q – A quarterly report filed by a public company with the SEC, providing financial
statements and other disclosures.
Franchise – A legal agreement in which one party (the franchisor) allows another party (the
franchisee) to use its brand, business model, and intellectual property.
Greenmail – The practice of purchasing a substantial number of shares of a corporation to
threaten a takeover, then selling them back to the company at a premium to avoid a hostile
takeover.
Holding Company – A company that owns a controlling interest in other companies, usually
for investment purposes.
Hostile Takeover – The acquisition of a company against the wishes of its management and
board of directors.
Initial Public Offering (IPO) – The first sale of stock by a private company to the public.
Intellectual Property (IP) – Legal rights that grant ownership and control over creations of
the mind, such as patents, trademarks, and copyrights.
Insider Trading – The illegal practice of trading securities based on non-public information
that gives an unfair advantage.
Insolvency – A financial state in which a company cannot pay its debts as they come due.
Intangible Assets – Non-physical assets, such as trademarks, patents, and goodwill, that
add value to a company.
Joint Venture – A business arrangement in which two or more parties agree to pool their
resources to achieve a specific goal.
Liquidation – The process of selling off assets to pay creditors when a company is winding
down or going bankrupt.
Limited Liability Company (LLC) – A type of business structure that provides limited
liability to its owners while allowing flexibility in management and taxation.
Limited Liability Partnership (LLP) – A partnership in which partners have limited liability
for the partnership’s debts.
Merger – The combination of two companies into one, typically involving the absorption of
one company by another.
Minority Shareholder – A shareholder who owns less than 50% of a company’s shares and
typically has limited control.
Moral Hazard – A situation in which a party has an incentive to take risks because they do
not bear the full consequences of those risks.
Non-Compete Agreement – A contract in which an employee agrees not to work for a
competitor or start a competing business for a certain period after leaving the company.
Non-Disclosure Agreement (NDA) – A legally binding contract in which one party agrees
not to disclose confidential information to others.
Operating Agreement – A document that outlines the management structure and
operational procedures of an LLC.
Officers – Executives and managers in a corporation who hold positions of authority and are
responsible for the day-to-day operations.
Par Value – The nominal value of a corporation's stock, often set at a very low amount,
which has little relevance in modern corporate finance.
Partnership – A business arrangement where two or more individuals share ownership and
responsibility for the operations of a business.
Poison Pill – A defense mechanism used by companies to make themselves less attractive
to hostile takeovers.
Preferred Stock – A type of stock that gives shareholders priority over common
stockholders in receiving dividends and assets in the event of liquidation.
Proxy – A person authorized to vote on behalf of a shareholder at a corporate meeting.
Public Limited Company (PLC) – A company whose shares are traded on public stock
exchanges and are available for public ownership.
Private Placement – The sale of securities to a select group of investors, rather than
through a public offering.
Receivership – A situation in which a court appoints a receiver to manage and liquidate a
company’s assets, usually due to insolvency.
Red Herring – A preliminary prospectus used in an IPO, providing an overview of the
company but lacking certain final details.
Reorganization – A legal process in which a financially distressed company restructures its
debts and operations to continue functioning.
Securities – Financial instruments such as stocks, bonds, and options that can be traded.
Shareholder Agreement – A contract between shareholders outlining their rights and
obligations regarding the management of the company.
Share Capital – The total amount of capital raised by a company through the issuance of
shares.
Shareholder Equity – The value of a company’s assets after subtracting its liabilities,
representing the ownership interest of its shareholders.
Squeeze-Out – A tactic used by majority shareholders to force minority shareholders to sell
their shares, often at a premium.
Stock Buyback – A process by which a company repurchases its own shares from the open
market, often to reduce the number of outstanding shares.
Subsidiary – A company controlled by another company, typically through the ownership of
a majority of its stock.
Takeover Bid – An offer made by one company to acquire control of another company,
either friendly or hostile.
Tax Shield – The reduction in taxable income achieved through deductions such as
depreciation and interest payments.
Tortious Liability – Legal responsibility for committing a tort, which is a civil wrong causing
harm to another party.
Trademark – A distinctive symbol, word, or design used by a company to identify its
products or services.
Transfer Pricing – The practice of setting prices for transactions between related
companies, often for tax or profit-shifting purposes.
Unsecured Debt – Debt that is not backed by collateral and relies on the borrower’s
creditworthiness.
Venture Capital – Funding provided to early-stage companies with high growth potential,
often in exchange for equity.
Winding-Up – The process of dissolving a company, typically by liquidating its assets and
distributing the proceeds to creditors and shareholders.
Whistleblower – An individual who reports illegal or unethical activity within a corporation.
White Knight – A company or individual that acquires a target company to prevent a hostile
takeover by another party.
Workout – An agreement between a distressed company and its creditors to restructure
debt and avoid bankruptcy.
Write-Off – A formal declaration that an asset or debt is no longer recoverable and is
removed from the company’s financial records.
Zombie Company – A company that continues to operate despite being financially
distressed or insolvent.
Zero-Coupon Bond – A bond that does not pay periodic interest but is issued at a discount
to its face value, with the full amount paid at maturity.
Accredited Investor – An individual or institution that meets specific financial criteria,
allowing them to participate in certain types of investments.
Acquisition Agreement – A contract between a buyer and a seller outlining the terms and
conditions of an acquisition.
Agency Relationship – A legal relationship where one party (the agent) acts on behalf of
another (the principal).
Agency Costs – The costs associated with the potential conflicts of interest between a
company's management and its shareholders.
Anti-Dilution Provision – A clause in a contract or agreement designed to protect investors
from dilution of their equity in case of future stock issuances.
Asset Purchase Agreement – A contract used in a transaction where a buyer purchases
specific assets of a company, rather than its stock.
Audit Committee – A committee within a company’s board of directors responsible for
overseeing financial reporting and auditing processes.
Authorized Shares – The maximum number of shares a corporation can issue, as specified
in its charter.
Balance Sheet – A financial statement that summarizes a company’s assets, liabilities, and
shareholders' equity at a specific point in time.
Barriers to Entry – Obstacles that make it difficult for new competitors to enter a market or
industry.
Beneficial Ownership – The actual ownership of an asset, even if it is held in another
person’s name, usually for legal or financial reasons.
Board Resolutions – Official decisions made by a company’s board of directors.
Business Judgment Rule – A legal principle that protects directors and officers from liability
for decisions made in good faith and with reasonable judgment.
Buy-Sell Agreement – An agreement between business owners outlining the conditions
under which shares can be sold or transferred.
Callable Bond – A bond that can be redeemed by the issuer before its maturity date, usually
at a premium.
Capital Gain – The profit earned from the sale of an asset, such as stocks or real estate.
Churning – The practice of a broker excessively buying and selling securities to generate
commissions.
Class Action – A lawsuit in which a group of people with similar legal claims files a single
case against a defendant.
Closed-End Fund – A type of investment fund with a fixed number of shares that are traded
on the stock exchange.
Covenant – A condition or promise in a legal agreement, such as a loan agreement or bond
contract.
Debt Covenant – A restriction placed on a borrower by a lender in a debt agreement, often
to protect the lender’s interests.
Debt Equity Ratio – A financial ratio used to measure a company’s financial leverage by
comparing its debt to its equity.
Delisting – The removal of a company's shares from a stock exchange, either voluntarily or
due to non-compliance with exchange regulations.
Derivative – A financial contract whose value is derived from the performance of an
underlying asset, such as stocks or bonds.
Disclosure Requirements – The legal obligation of a company to disclose certain
information to investors and the public.
Distressed Assets – Assets that are in financial trouble, often due to bankruptcy or other
financial difficulties.
Dissolution – The formal termination of a corporation or partnership, involving the
liquidation of assets and distribution to creditors and shareholders.
Dividend Yield – The annual dividend income divided by the market price of a share,
indicating the return on investment in terms of dividends.
Double Taxation – The taxation of the same income twice, typically in the case of
corporations and their shareholders.
Earn-Out – A provision in an acquisition agreement that specifies additional payments to the
seller based on future business performance.
Economic Moat – A business’s ability to maintain a competitive advantage and protect itself
from competitors over time.
Environmental, Social, and Governance (ESG) – Criteria used by investors to evaluate a
company’s operations and impact on society and the environment.
Escrow – A financial arrangement in which a third party holds funds or assets until certain
conditions are met.
Exclusive Distribution Agreement – A contract in which a supplier grants a distributor
exclusive rights to sell its products in a specified area.
Exit Strategy – A plan for how an investor or business owner will sell or liquidate their
ownership stake in a company.
Expedited Procedure – A streamlined process used to expedite the resolution of certain
legal matters or corporate transactions.
Fair Market Value – The price at which an asset would trade in an open market between a
willing buyer and seller.
Fiduciary – A person or entity with a legal duty to act in the best interest of another, such as
a trustee or corporate director.
Financial Leverage – The use of borrowed funds to increase the potential return on
investment.
Financial Reporting – The process of preparing and presenting financial statements, such
as balance sheets and income statements, to stakeholders.
Foreign Direct Investment (FDI) – Investment made by a company or individual in assets
or businesses located in a foreign country.
Founder’s Agreement – An agreement between the founders of a company outlining their
roles, responsibilities, and equity ownership.
Franchise Disclosure Document (FDD) – A legal document required by law that provides
information about a franchisor’s business and the terms of the franchise agreement.
Friendly Takeover – A takeover in which the target company’s board of directors agrees to
the acquisition by another company.
Fund Manager – An individual or company responsible for overseeing and making
investment decisions for a fund, such as a mutual fund or hedge fund.
Golden Parachute – A clause in an executive's employment contract that provides
substantial benefits if the executive is terminated or leaves the company.
Golden Share – A special class of share that gives the holder control over certain decisions,
typically used by governments to retain control over privatized companies.
Goodwill – The intangible value of a company’s brand, reputation, and customer base, often
considered an asset in mergers and acquisitions.
Grantor – A person or entity that transfers property or assets to another party.
Greenfield Investment – A type of foreign investment in which a company builds new
operations in a foreign country, such as constructing a new plant or office.
Growth Stock – A stock in a company that is expected to grow at an above-average rate
compared to other companies.
Headquarters Agreement – A contract that outlines the relationship between an
organization’s headquarters and the country or region where it is based.
Holding Period – The length of time an investor holds an asset before selling or liquidating
it.
Hostile Bid – An offer made by one company to acquire another against the wishes of the
target company's management.
Independent Contractor – A person or business that provides services under a contract but
is not an employee of the company.
Indemnification – The act of compensating someone for loss or damage, typically in a
corporate context where directors and officers are protected from certain liabilities.
In-House Counsel – A lawyer who works directly for a company, providing legal advice and
handling legal matters internally.
Injunction – A court order requiring a party to do or refrain from doing a specific action,
often used in corporate disputes.
Insider Information – Non-public, material information about a company that could
influence an investor's decision, which can lead to insider trading if used improperly.
Intellectual Property Rights (IPR) – Legal rights granted to the creators and owners of
intellectual property, such as patents, copyrights, and trademarks.
International Financial Reporting Standards (IFRS) – A set of global accounting
standards used to prepare financial statements, ensuring consistency across international
markets.
Joint and Several Liability – A legal concept in which multiple parties are held individually
and collectively responsible for a debt or obligation.
Joint Stock Company – A company whose capital is divided into shares that are owned by
its shareholders.
Junior Debt – Debt that is lower in priority for repayment compared to senior debt, often
bearing higher interest rates.
KPI (Key Performance Indicator) – A measurable value that demonstrates how effectively
a company is achieving key business objectives.
Letter of Intent (LOI) – A document that outlines the preliminary understanding between
parties about a proposed business transaction.
Limited Partnership (LP) – A partnership with both general partners (who manage the
business) and limited partners (who contribute capital but do not manage the business).
Liquidation Preference – The order in which investors are paid in the event of a liquidation,
typically giving certain investors priority.
Lock-Up Period – A period of time after an IPO during which major shareholders and
insiders are restricted from selling their shares.
Merger Agreement – A formal agreement between two companies to combine into one
entity, specifying terms and conditions.
Mergers and Acquisitions (M&A) – The process of combining companies or acquiring one
company by another.
Minimum Capital Requirement – The minimum amount of capital that a business must
have to operate, as required by regulatory authorities.
Minority Interest – Ownership of less than 50% of a company’s shares, giving limited
control over company decisions.
Minority Shareholders’ Rights – Legal protections granted to minority shareholders,
ensuring their interests are considered in corporate decisions.
Net Asset Value (NAV) – The value of a company's total assets minus its liabilities, often
used to value investment funds.
Non-Disclosure Agreement (NDA) – A legally binding contract that prohibits one party from
disclosing confidential information.
Non-Compete Clause – A clause in a contract that restricts an employee or business
partner from starting or joining a competing business within a specified time period and
region.
Off-Balance Sheet Financing – Financial arrangements that are not recorded on a
company’s balance sheet, often used to keep liabilities off the record.
Open-End Fund – A type of investment fund that allows investors to buy and sell shares at
any time, with the number of shares increasing or decreasing as necessary.
Option – A financial contract that gives the holder the right, but not the obligation, to buy or
sell an asset at a predetermined price within a specified time.
Par Value – The nominal or face value of a share as stated in a company’s charter, often
different from its market value.
Peer Review – A process where a company’s financial statements, practices, or strategies
are reviewed by others in the same industry to ensure accuracy and quality.
Pledge – A legal agreement in which a borrower offers an asset as collateral for a loan.
Poison Pill – A defensive strategy used by a company to prevent or discourage a hostile
takeover.
Preferred Stock – A class of stock that gives shareholders preferential treatment in terms of
dividends and liquidation payments.
Private Equity – Investment in private companies, typically through venture capital or
buyout firms, rather than public stocks.
Public Offering – The process of selling a company’s shares to the public for the first time,
typically through an IPO.
Pump and Dump – A fraudulent practice where the price of a stock is artificially inflated, and
then the fraudsters sell off their shares for a profit.
Put Option – A contract that gives the holder the right to sell an asset at a specific price
within a specified time frame.
Qualified Institutional Buyer (QIB) – An institutional investor that meets certain criteria for
investing in certain types of securities.
Quick Ratio – A financial ratio used to measure a company’s ability to pay its short-term
obligations using its most liquid assets.
Recession – A period of significant economic decline, typically defined by two consecutive
quarters of negative GDP growth.
Recapitalization – A corporate strategy used to change a company’s capital structure by
altering its debt and equity ratios.
Redeemable Share – A type of share that can be bought back by the company at a
predetermined price.
Registrar of Companies (RoC) – A government authority responsible for registering
companies and overseeing compliance with corporate laws.
Rights Issue – A method of raising capital by offering additional shares to existing
shareholders at a discounted price.
Securities and Exchange Commission (SEC) – The U.S. government agency responsible
for regulating the securities industry and enforcing federal securities laws.
Securities Law – A body of laws governing the issuance, purchase, and sale of securities to
protect investors.
Shareholder Agreement – A contract among shareholders of a company that outlines their
rights, obligations, and expectations regarding the ownership of shares.
Shelf Registration – A process that allows a company to register securities with the SEC
before offering them to the public, keeping the registration active for a specified period.
Short Selling – A trading strategy that involves selling borrowed securities with the intention
of buying them back at a lower price to make a profit.
Social Impact Investing – Investing in companies or projects that generate both financial
returns and positive social or environmental outcomes.
Special Purpose Acquisition Company (SPAC) – A company formed solely to acquire or
merge with an existing company, often used as a faster alternative to an IPO.
Spin-Off – A type of corporate restructuring in which a company creates a new independent
company by selling or distributing shares of a subsidiary.
Stakeholder – Any party that has an interest or stake in a company, including employees,
shareholders, customers, and suppliers.
Stock Option – A financial contract that gives an individual the right to buy or sell company
stock at a predetermined price within a certain time frame.
Stock Split – A corporate action that increases the number of shares outstanding by issuing
more shares to existing shareholders, often to make the stock more affordable.
Takeover Defense – Strategies employed by a company to resist or prevent an unwanted
takeover.
Target Company – The company being acquired or taken over in a merger or acquisition.
Tender Offer – A public offer to buy some or all of shareholders' shares at a specified price,
usually at a premium above the market price.
Toxic Debt – Debt that is unlikely to be repaid due to the financial troubles of the borrower.
Tranche – A portion of a security offering or debt issuance that is issued in multiple stages.
Trustee – An individual or entity appointed to manage assets or interests on behalf of
another party, often in the context of bankruptcy or trust funds.
Undervalued Stock – A stock that is selling for less than its intrinsic value, often seen as an
investment opportunity.
Unicorn – A privately held startup company valued at over $1 billion.
Underwriting – The process by which an underwriter (usually a bank or financial institution)
assumes the risk of issuing securities on behalf of a company.
Venture Capital – Capital invested in startups or small businesses with high growth
potential, usually in exchange for equity ownership.
White Knight – A company or investor that comes to the aid of a target company by offering
a more favorable merger or acquisition deal.
Working Capital – The capital available to a company for its day-to-day operations,
calculated as current assets minus current liabilities.
Write-Down – The reduction in the book value of an asset, typically due to impairment or
reduced market value.
Accretion – The gradual accumulation of capital or wealth, especially when referring to the
growth of a company's assets or equity over time.
Acquirer – A company or individual that seeks to purchase or gain control of another
company.
Advisory Board – A group of individuals selected to provide strategic advice and guidance
to a company, though they do not have formal decision-making authority.
Affiliated Company – A company that is linked to another company by ownership, control,
or other significant business relationships.
Affiliate Transactions – Transactions that occur between two companies or entities under
common control or ownership.
Agency Cost Theory – The theory that explains the costs incurred due to the conflicts of
interest between managers (agents) and shareholders (principals).
Alpha – A measure of an investment’s performance relative to a market index or
benchmark, often used to assess an investment manager's skill.
Alternative Dispute Resolution (ADR) – A range of methods, such as arbitration or
mediation, used to resolve disputes without going to court.
Amalgamation – The combination of two or more companies into one, typically with the aim
of improving efficiency, reducing competition, or increasing market share.
Amendment – A formal change or addition to an existing contract, law, or document,
including corporate governance documents.
Annual General Meeting (AGM) – A mandatory yearly meeting of a company’s
shareholders where they discuss the company’s financial performance, approve dividends,
and elect directors.
Anti-Competitive Practices – Business practices that unfairly limit competition, such as
price-fixing, collusion, or abuse of market power.
Arbitration – A form of dispute resolution in which an impartial third party, known as an
arbitrator, resolves a dispute outside of the court system.
Asset-Based Lending – A type of loan where the borrower uses their assets, such as
inventory or receivables, as collateral for the loan.
Asset Disposal – The sale or liquidation of a company’s assets, often to raise capital or
restructure operations.
Authorized Representative – An individual who has been granted legal authority to act on
behalf of another party, typically in business transactions.
Bargaining Power – The influence or leverage one party has over another during
negotiations, based on market position or resource control.
Barter System – A system where goods and services are exchanged for other goods and
services rather than for money.
Benchmarking – The process of comparing a company's performance or practices to those
of other companies or industry standards to identify areas for improvement.
Beneficiary – A person or entity entitled to receive benefits from a contract, trust, or estate.
Breach of Contract – A violation or failure to perform any term of a legally binding
agreement.
Buyback Program – A corporate strategy where a company repurchases its own shares
from the market, often to increase shareholder value.
Cumulative Voting – A voting system that allows shareholders to allocate all their votes to a
single candidate for the board of directors, giving minority shareholders more influence.
Covenant Not to Compete – A contractual clause in which an employee agrees not to start
or join a competing business for a specified period after leaving a company.
Cross-Border M&A – Mergers and acquisitions that occur between companies in different
countries or regions.
Cumulative Preferred Stock – A class of preferred stock where unpaid dividends
accumulate and must be paid before common stockholders receive dividends.
Debenture – A type of debt instrument issued by companies to raise capital, typically
unsecured by collateral.
Debt Restructuring – The process of reorganizing or modifying the terms of a company’s
outstanding debt, often to avoid default or bankruptcy.
Default – A failure to meet the legal obligations of a contract or debt agreement, such as
missing a payment.
Derivative Action – A lawsuit filed by a shareholder on behalf of a company, typically
against management, for actions that harm the company’s interests.
Dilution – The reduction in the ownership percentage of a shareholder as a result of the
issuance of additional shares by the company.
Directors’ Fiduciary Duty – The legal obligations of company directors to act in the best
interests of the company and its shareholders.
Discretionary Power – The ability to make decisions based on personal judgment, often
granted to company executives or directors within the bounds of their role.
Dispute Resolution Clause – A contract provision that outlines the process for resolving
conflicts or disagreements between parties without litigation.
Dissenting Shareholder – A shareholder who disagrees with a major corporate decision,
such as a merger or acquisition, and may have the right to sell their shares.
Divestiture – The process of selling off part of a company’s business, assets, or
subsidiaries, often as part of a restructuring strategy.
Due Diligence – The process of thoroughly investigating a business or investment
opportunity to assess its risks, liabilities, and potential before entering into a transaction.
Earnings Before Interest and Taxes (EBIT) – A measure of a company’s profitability,
calculated by subtracting operating expenses from revenues before deducting interest and
tax expenses.
Equity Financing – The process of raising capital by issuing shares of the company’s stock
to investors.
Equity Security – A financial instrument that represents ownership in a company, such as
common stock or preferred stock.
Escrow Account – An account where funds are held by a third party until certain conditions
are met, commonly used in mergers, acquisitions, or real estate transactions.
Exchange Offer – A proposal by a company to exchange its existing securities for new
ones, often used in debt restructuring or corporate transactions.
Exclusivity Agreement – An agreement that grants one party exclusive rights to perform
certain actions or provide certain goods or services within a specific territory or period.
Exit Clause – A provision in a contract or agreement that allows one or both parties to
terminate or exit the agreement under specified conditions.
Expropriation – The act of a government taking private property for public use, typically with
compensation to the owner.
Executive Compensation – The total pay package, including salary, bonuses, stock
options, and other incentives, given to a company’s top executives.
Exemption Clause – A provision in a contract that limits or excludes one party's liability
under certain conditions.
Fair Value – The price at which an asset or liability could be bought or sold in a market
transaction between willing parties.
Foreign Exchange Risk – The risk of financial loss due to fluctuations in the value of one
currency relative to another, often relevant in cross-border transactions.
Foreign Investment Promotion Board (FIPB) – A government body that approves foreign
direct investments in certain sectors of the economy.
Forward Contract – A financial agreement between two parties to buy or sell an asset at a
future date for a predetermined price.
Free Cash Flow – The cash a company generates from its operations after accounting for
capital expenditures, often used to measure financial health.
Friendly Acquisition – An acquisition in which the target company’s board and
management willingly agree to the terms of the acquisition.
Golden Handcuffs – A financial incentive that encourages an executive or key employee to
stay with a company for a specified period, often in the form of stock options or bonuses.
Greenfield Investment – Investment in a new business or project where the investor builds
from the ground up, rather than acquiring an existing business.
Grounds for Termination – The specific legal reasons or conditions under which a contract,
agreement, or employee relationship can be ended.
Guarantee – A promise or assurance that a debt or obligation will be met, typically offered
by a third party to ensure payment.
Hedging – The practice of using financial instruments or strategies to offset potential losses
in investments or business operations.
Holding Company – A company that owns enough voting stock in another company to
control its policies and management but does not directly engage in its operations.
Hostile Acquisition – A takeover in which the target company’s management does not
agree to the acquisition.
Hybrid Security – A financial instrument that combines features of both debt and equity,
such as convertible bonds.
Impairment – A reduction in the value of an asset due to unforeseen events or
circumstances, often reflected in financial statements.
Incorporation – The process of legally creating a corporation, granting it legal status as a
separate entity from its owners.
Indemnity – A contractual agreement in which one party agrees to compensate another
party for any harm, loss, or damage.
Indenture – A formal contract between a borrower and a lender, typically outlining the terms
of a bond issue.
Initial Public Offering (IPO) – The first sale of a company’s stock to the public, allowing it to
raise capital from public investors.
Intangible Asset – Non-physical assets, such as trademarks, patents, and goodwill, that
have value for a business.
Intellectual Property (IP) – Creations of the mind, such as inventions, designs, and brand
names, that are protected by law from unauthorized use.
International Monetary Fund (IMF) – An international financial institution that provides
loans and assistance to countries facing economic difficulties.
Internal Control – The processes and procedures implemented by a company to ensure the
accuracy of financial reporting and compliance with laws and regulations.
Investment Bank – A financial institution that assists companies in raising capital by issuing
stocks, bonds, and other securities.
Junk Bond – A high-risk bond issued by a company with poor creditworthiness, often
yielding higher returns.
Joint Venture (JV) – A business arrangement where two or more parties agree to pool
resources for a specific project or venture, sharing profits and risks.
Judicial Review – The power of courts to examine the actions of government officials or
bodies to ensure they comply with the law.
Kiss of Death – A term used to describe an acquisition or business deal that significantly
harms the target company’s value.
KYC (Know Your Customer) – The process by which a business verifies the identity of its
customers, often required by financial institutions to prevent fraud and money laundering.
Labor Union – An organization of workers formed to protect their rights and interests in the
workplace.
Lender’s Liability – The legal responsibility of a lender for actions that cause harm to the
borrower or other stakeholders.
Letter of Intent (LOI) – A document outlining the preliminary terms and conditions of a
business transaction or agreement.
Leverage Buyout (LBO) – The acquisition of a company using borrowed funds to finance
the purchase, often involving the target company’s assets as collateral.
Limited Liability Partnership (LLP) – A partnership structure where partners have limited
liability for the debts and obligations of the business.
Liquidation Preference – The order in which investors or shareholders are paid during a
company’s liquidation, often giving preferred shareholders priority.
Loan Syndication – The process of multiple lenders coming together to provide a large loan
to a borrower, spreading the risk among them.
Macroprudential Regulation – Regulatory measures designed to ensure the stability of the
financial system as a whole, rather than focusing on individual institutions.
Management Buyout (MBO) – A transaction where a company’s management team
purchases the company from its owners or shareholders.
Margin Call – A demand by a broker or lender for additional funds or securities to cover
potential losses in an investment account.
Mark-to-Market Accounting – An accounting method that records the value of assets and
liabilities based on current market prices, rather than historical cost.
Merger Arbitrage – A trading strategy that involves buying and selling stocks in companies
involved in mergers or acquisitions to profit from price discrepancies.
Minority Shareholder – A shareholder who owns less than 50% of a company’s shares and
does not have control over corporate decisions.
Moral Hazard – A situation where one party takes on excessive risk because they do not
bear the full consequences of their actions.
Naked Short Selling – A practice of selling shares without actually borrowing them, often
leading to market manipulation.
Netting – The process of offsetting the values of multiple transactions between two parties
to reduce the number of transactions and risk.
Over-the-Counter (OTC) – Securities or derivatives traded directly between parties, rather
than through an exchange.
Pari Passu – A Latin term meaning "on equal footing," used to describe situations where
multiple parties are treated equally, particularly in terms of payment priority.
Participation Agreement – An agreement in which a party agrees to participate in an
investment or financing arrangement.
Pay-to-Play – A provision in venture capital or private equity financing that requires existing
investors to participate in subsequent rounds of financing to maintain their rights.
Penny Stock – A low-priced, speculative stock, often traded over-the-counter, with high
volatility.
Performance Bond – A guarantee provided by a contractor or company to ensure the
fulfillment of a contractual obligation.
Petty Cash – A small amount of cash held by a business for minor or incidental expenses.
Power of Attorney – A legal document granting one person the authority to act on behalf of
another, typically in business or legal matters.