finance vocab

IPO (Initial Public Offering)

The process in which a private company sells/distributes its first batch of shares, transitioning the company from private to public like a stock market debut

S-1 Filing Form

Before IPO this public form is submitted to the US SEC
1) The Prospectus - executive compensation, executive board, competition, material risks, financial statements
2) All Else - legal fees, promises to SEC, etc.

TAM (total addressable market)

An estimate to the broadest degree of the total number of customers who can use your product, or the total potential revenue

ETF (Exchange-Traded Fund)

An Investment Fund that holds a basket of assests such as company stocks

• examples: S&P 500,QQQ

• benefits: diversification, lower costs

• downsides: you may pay more than an assests NAV

NAV (Net Assest Value)

The per-share value of a fund. It equals the fund’s total assets minus liabilities, divided by shares outstanding

• Formula: NAV = (Assets − Liabilities) / Shares outstanding.