Model

1. Spreadsheets - financial models.

A representation of a real situation using a selected set of simplifying assumptions and relationships.

In finance, financial models are widely used as tools for valuation and to support financial decisions.

An important benefit of well-structured financial models is to facilitate sensitivity analysis and stress testing.

2. Best practice - good practice.

Something designed or selected as a good example to be followed.

For example, the OECD model tax convention.

See also

• Agent based modelling
• Best practice
• Binomial option pricing model
• Black Scholes option pricing model
• Business model
• Capital asset pricing model (CAPM)
• Decision tree
• Deterministic
• Dividend growth model (DGM)
• Financial model
• Five Forces model
• Four-corner model
• Four way equivalence model
• Game
• Good practice
• Model risk
• Modelling
• Mostly positive
• OECD model tax convention
• Scenario analysis
• Sensitivity analysis
• Shadow model
• Spreadsheet
• Stochastic
• Stress test
• Tab
• Three-corner model
• Three Lines of Defence Model
• Workbook