Terminology you must know to take the CFA exam.
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Analyze

To study or determine the nature and relationship of the parts of by analysis.

Appraise

To judge and analyze the worth, significance, or status of.

Appraisal

For real estate, the process of estimating the current market value of a property.

Arrange

To put into a proper order or into a correct or suitable sequence, relationship, or adjustment.

Calculate

To ascertain or determine by mathematical processes.

Characterize

To describe the essential character or quality of.

Cite

To quote by way of evidence, authority, or proof.

Classify

To arrange in classes; to assign to a category.

Closed-end investment company

An investment company that issues a fixed number of shares, the shares are then traded in the secondary market.

Combine

To bring into such close relationship as to obscure individual characteristics.

Comment

To observe, remark, or express an opinion or attitude concerning what has been seen or heard about the subject at hand.

Comparative sales approach

The value of a real estate is, at the most, the cost of the land and constructing the building at current prices.

Compare

To examine the character or qualities of, for the primary purpose of discovering resemblances.

Compose

To form by putting together; to form the substance of.

Compute

To determine, especially by mathematical means.

Conclude

To make a decision about; to reach a logically necessary end by reasoning.

Construct

To create by organizing ideas or concepts logically and coherently.

Contrast

To compare in respect to differences.

Convert

To change from one form or function to another.

Create

To produce or bring about by a course of action or imaginative skill.

Criticize

To consider the merits and demerits of and judge accordingly; to find fault with.

Critique

To offer a critical review or commentary.

Define

To set forth the meaning of; specifically, to formulate a definition of.

Demonstrate

To prove or make clear by reasoning or evidence; to illustrate and explain, especially with examples.

Describe

To transmit a mental image, an impression, or an understanding of the nature and characteristics of.

Design

To conceive or plan out in the mind.

Determine

To come to a decision as the result of investigation or reasoning; to settle or decide by choice among alternatives or possibilities.

Diagram

To represent by or put into the form of a diagram.

Differentiate

To mark or show a difference in; to develop different characteristics in.

Discriminate

To mark or perceive the distinguishing or peculiar features of; to distinguish by discerning or exposing differences.

Discuss

To discourse about through reasoning or argument; to present in detail.

Distinguish

To perceive a difference in; to separate into kinds, classes, or categories.

Draft

To draw up, compose, prepare, frame.

Draw

To express graphically in words; to delineate.

Estimate

To judge the value, worth, or significance of.

Evaluate

To determine or fix the value of; to determine the significance or worth of, usually by careful appraisal and study.

Explain

To give the meaning or significance of; to provide an understanding of; to give the reason for or cause of.

First-stage financing

Venture capital provided for initial commercial manufacture and sales.

Formulate

To put into a systematized statement or expression; to prepare according to a formula.

Give

To yield or furnish as a product, consequence, or effect; to offer for the consideration, acceptance, or use of another.

Identify

To establish the identity of; to show or prove the sameness of.

Illustrate

To make clear, especially by giving examples or instances.

Income approach

The value of real estate is the present value of it future income.

Indicate

To point out or point to with more or less exactness; to show or make known with a fair degree of certainty.

Infer

To derive as a conclusion from factors or premises.

Interpret

To explain or tell the meaning of; to present in understandable terms.

Judge

To form an opinion about through careful weighing of evidence and testing of premises.

Justify

To prove or show to be valid, sound, or conforming to fact or reason; to furnish grounds or evidence for.

Leveraged buyouts (LBOs)

Capital to fund a management group (a management buyout) or other investors who wish to purchase a business or company.

List

To enumerate.

Investment company

A company that sell its own shares and uses the proceeds to buy stocks, bonds or other financial instruments.

Load fund

A fund that makes an initial sales charge, so the offering price is the net asset value plus a load.

Market capitalization rate

Divide a property's net operating income by the appropriate market capitalization rate to arrive at an estimate for its current market value.
It reflects the rate of return required by investors in such a property.

Match

To pair up or put in a set as possessing equal or harmonizing attributes.

Mezzanine (or bridge) financing

Venture capital provided for a company that expects to go public in the near future.

Modify

To make minor changes to give a new orientation to or to serve a new end.

Mutual fund

An open-end investment company.

Name

To mention or identify by name.

No-load fund

Shares are sold at net asset value, with no sales charge added.

Open-end investment company

A company that offers new shares to investors and redeems shares continuously.

Order

To put in order; to arrange.

Outline

To indicate the principal features or different parts of.

Real Estate Investment Trust (REIT)

A closed-end investment company that invests in real estate and mortgages on real estate.

Real Estate Limited Partnership (RELP)

A real estate syndicate that invests in different types of real estate.

Positive leverage

The return from a real estate investment is higher than the cost of debt, an investor will achieve a higher rate of return if he/she uses leverage to purchase the property.

Predict

To declare in advance; to foretell on the basis of observation, experience, or reason.

Prepare

To put into written form; to draw up.

Present

To offer or convey by way of message; to furnish or provide.

Rearrange

To put back into proper order or into a correct or suitable sequence, relationship, or adjustment.

Recommend

To bring forward as being fit or worthy; to indicate as being one's choice for something or as otherwise having one's approval or support.

Record

To set down in writing; to make an answer.

Relate

To show or establish logical or causal connection between.

Respond

To say or write something in return; to make an answer.

Restate

To state again in a new form.

Review

To make a formal or official examination of the state of; to go over or examine critically or deliberately.

Revise

To make a new, amended, improved, or up-to-date version of.

Seed financing

Venture capital provided for product development and market research, the product is still at the ‘idea’ stage.

Select

To choose from a number or group— usually, by fitness, excellence, or other distinguishing feature.

Separate

To set or keep apart; to make a distinction between; to sort.

Show

To set forth in a statement, account, or description; to make evident or clear.

Solve

To find a solution for a problem.

Start-up financing

Venture capital provided for early stage product development and initial marketing.

State

To express in words.

Subdivide

To divide the parts into more parts.

Summarize

To tell in or reduce to a summary.

Support

To provide with verification, corroboration, or substantiation.

Turnarounds

Capital provided to restructure a company that has problems.

Write

To put on paper; to record, state, or explain.

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