Capital Markets Industry Technical Terms and Jargon

Term	Definition
bid bond	Issued as part of the bidding process by the surety to the project owner. It's used to guarantee that the winning bidder will undertake the contract using the same terms they bid with. Anyone, whether an individual or company, bidding on a contract may be required to post a bid bond, which is also known as a tender bond.
capital	A company's assets, such as factories, machinery, and equipment, or the financial value of those assets.
debt	Money borrowed by an individual or company from another individual or company; examples include bonds, loans, and commercial paper.
equity capital market	A relationship between a financial institution and a company that is used to raise equity capital for the company.
irrevocable documentary letter of credit	Assures the beneficiary that payment will be made if the required documents are presented, and the terms and conditions are complied with. Once these credits are established, they can only be amended or cancelled with the consent of all applicable parties; for instance, the applicant, issuing and confirming bank, and beneficiary.
market value added	A calculation that shows the difference between a company's market value and the capital contributed by its bondholders and shareholders.
performance bond	A type of special credit that undertakes payment if the buyer certifies that the seller neglected to perform in the manner specified in a commercial contract, or neglected to perform to the buyer's satisfaction.
revolving credit	A type of credit whereby a sum is available to be accessed up to a stated amount, during a specified period of time.
supply chain finance	A set of solutions available to finance goods as they move from their origin to their destination in the supply chain.
warranty bonds	Similar to performance bonds; however, they typically cover a warranty period after the contract is complete.