Student Essay

value investing is an investment strategy that seeks returns through the discovery of undervalued stocks as well as finding a margin of safety.

The yield curve reflects investor expectations of future interest rates at any point in time.

Leveraged buyout (“LBO”) is an acquisition of an entire company or its division. The buyer (the “sponsor”) raises debt and equity to acquire the target.

A firm uses a mix of equity and debt to minimize the cost of capital.

Risk is inherent in financial and commodity markets.