Financial Abbreviations

There are some abbreviations and acronyms that refer to financial matters in general. Others are used more by businesses and accountants. Following are lists of both of these. First are general financial abbreviations and acronyms:

AIR: Assumed Interest Rate
APR: Annual Percentage Rate
ARM: Adjustable Rate Mortgage
CD: Certificate of Deposit
EFT: Electronic Funds Transfer
ETF: Exchange Traded Funds
FDIC: Federal Deposit Insurance Corporation
FOREX: Foreign Exchange
FRB: Federal Reserve Board
GNP: Gross National Product
IRA: Individual Retirement Account
LOI: Letter Of Intent
MMKT: Money Market
NAV: Net Asset Value
NYSE: New York Stock Exchange
PSP: Profit Sharing Plan
REIT: Real Estate Investment Trust
SEC: Securities Exchange Commission
TSA: Tax-Sheltered Annuity
YTM: Yield To Maturity

Banking Acronyms and Financial Abbreviations

CAGR: Compound annual growth rate
CAPEX: Capital Expenditures
COB: Close of Business
EPS: Earnings per share
LLC: Limited Liability Company
MTD: Month-to-Date
NAV: Net Asset Value
NCND: Non-Circumvent and Non-Disclosure
NDA: Non-Disclosure Agreement
P&L: Profit and Loss
P/E: Price-to-earnings ratio
QTD: Quarter-to-Date
ROA: Return on assets
ROCE: Return On Capital Employed
ROE: Return on Equity
ROI: Return on Investment
ROIC: Return on Invested Capital
RONA: Return on net assets
ROS: Return on Sales
SIV: Structured Investment Vehicle
TSR: Total Shareholder Return
WC: Working capital
YTD: Year-to-date

Lastly, here are some abbreviations for people whose jobs are in business and finance:

CAO: Chief Accounting Officer
CFA: Chartered Financial Analyst
CFM: Certified Financial Manager
CFO: Chief Financial Officer
CIA: Certified Internal Auditor
CISA: Certified Information Systems Auditor
CMA: Certified Management Accountant
CMO: Chief Marketing Officer
COO: Chief Operating Officer
CPA: Certified Public Accountant
CPP: Certified Payroll Professional
CSO: Chief Security Officer
CTO: Chief Technology Officer

The Stock Market

The New York Stock Exchange is made up of indexes which are groups of stocks. Whether or not a stock index rises or falls depends on the movement of all the stocks in the group. The three main indexes are: the NYSE Composite Index, which covers all common stocks that are traded on the New York Stock Exchange, the Dow Jones Average, which reports on the top 30 “blue chip” companies, and Standard & Poor’s 500, which is a combination of 500 large company stocks. Following are some common abbreviations that are found in Stock Market jargon:

ADTV is an abbreviation for Average Daily Trading Volume. It is the average of the amount of stock traded during a certain amount of time during a day.
AMEX stands for the American Stock Exchange. It is the third largest in the United States. It has more than 700 companies in it and is headquartered in New York City.
CB is an abbreviation for Current Bid and is simply the amount of the bids at the current time.
CMP stands for Current Market Price and is the price at which the stock is currently being traded. This figure is between the asking price of the stock and the bidding price.
DJIA is short for the Dow Jones Industrial Average. The average is taken from 30 of the top traded securities. It was first calculated by the founder and editor of the Wall Street Journal Charles Dow.
IPO is the abbreviation for Initial Public Offering. This occurs the first time a stock is offered to the public.
IRA stands for Individual Retirement Account. It provides tax breaks for people who are saving for retirement and invests in the Stock Market.
NASDAQ is the National Association of Securities Dealers Automated Quotation. Over 3000 companies are traded on it and it is the second largest in the United States.
PFD stands for preferred stock which has a higher priority than common stock.
QTE is short for Quote. It refers to a stock’s last price it was traded for on its exchange.

Financial Abbreviations