Prime Brokerage
Prime brokerage is a suite of services offered by investment banks and financial institutions to hedge funds and other professional investors, including trade execution, clearing, custody, and financing, to enhance operational efficiency and market access.
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Related Terms
View all termsPair Trading
Pair trading is a market-neutral trading strategy that involves matching a long position with a short position in two stocks with high correlation to capitalize on their relative performance.
Performance Fee
A performance fee is a payment made to an asset manager for generating positive returns on an investment portfolio, often structured as a percentage of the profits above a set benchmark, aligning the manager’s interests with those of the investor.
Pivot
A pivot is a strategic shift in business direction to test a new approach or optimize performance.
Portfolio Company
A portfolio company is a business in which a private equity firm or venture capital fund has invested, forming part of their "portfolio" of investments.
Post-Money Valuation
Post-money valuation is the value of a company after external financing or capital injections have been added to its balance sheet, crucial for determining ownership percentages and the dilution impact on existing stakeholders.
Pre-Money Valuation
Pre-Money Valuation is the estimated value of a company before it receives external investment or financing, crucial for determining the equity stake an investor receives.
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