Financial Glossary

This glossary contains basic financial concepts everyone should be able to understand. Finance can be hard to understand, but I'm trying to explain it in simply. A lot of concepts are sometimes hard to understand, but it is really important that you understand what they mean. Finance is made of a lot of decisions that surround money. They usually want to make more money with the money they already have, such as investments. Some things like "risk/return" are what they structure their decisions around. If you work for a big company, a small company or even for yourself, finance is always present, even if you don't want to. The glossary has 23 terms that you can learn. I mainly found the words with the help of YouTube videos or terms I already knew. After you're done reading every term, you could do the little quiz or even practice yourself with flashcards, so you can become a master with the subject.

interest

noun

Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

Example: Credit Policy In order to alleviate a critical constraint hampering growth in agricultural output and in conjunction with the diversification program, small holders obtained INTEREST-free credit by the respective Marketing Board for the purchase of agricultural inputs (including fertilizers and pesticides) used in the production, e.g. of tobacco (WTO, 2001).

fr: intérêt

inflation

noun

A general increase in prices and fall in the purchasing value of money.

Example: Argentina's negative growth in this period can be linked to the transition from a pegged to a floating exchange rate system with consequent INFLATION (25.9% in 2002, 13.4% in 2003), generating economic instability.

fr: Inflation

deflation

noun

Reduction of the general level of prices in an economy.

Example: Let's now assume that the inflation in the country is indeed negative, i.e. the country is facing DEFLATION.

fr: Déflation

asset

noun

Resources with economic value that an individual or business owns or controls with the expectation that they will provide a future benefit.

Example: The model is designed to explain the excess return on an ASSET as a function of excess return on the market portfolio.

fr: actif

revenue

noun

An income, especially when of a company or organization and of a substantial nature.

Example: Net Profit Margin Net Profit Margin relates Net profit of a particular period to the sales REVENUE during the same period. It is calculated by net profit before interest and taxation divided by sales REVENUE, expressed in percentage.

fr: revenu

profit

noun

A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Example: The function of this report is to outline and assess the present performance of the company and then to propose the marketing strategy for the next three periods to increase market share and PROFIT.

fr: profit

stock

noun

The capital raised by a business or corporation through the issue and subscription of shares.

Example: The problem of dilution is because the Venture Capitalist Company will try to get the majority of the STOCK equity and also may try to get the majority of the company ownership if things go well.

fr: action

dividend

noun

A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).

Example: However, the intention of paying an interim DIVIDEND and later on carrying this out suggest that at the time of writing the annual report they knew they would still be making great profit.

fr: dividende

portfolio

noun

A range of investments held by a person or organization.

Example: Firstly, he states that with the acquisition of the new facilities Bodycote managed to "rebalance its PORTFOLIO" .

fr: portefeuille

market

noun

An area or arena in which commercial dealings are conducted.

Example: This is true whether with regard to initial MARKET entry decisions, product positioning or marketing mix decisions". (Douglas and Craig: International Marketing Research). Research can help a company to develop its global marketing strategy. Research can help to prevent inappropriate MARKET entry strategies, such as selecting an advertising campaign that fails to appeal to customers. Research can help to avoid the missing of a MARKET entry opportunity.

fr: marché

credit

noun

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Example: Some of the largest German corporations began to rely less on bank CREDIT and more on equity markets to raise capital (see appendix 1).

fr: crédit

debit

noun

An entry recording an amount owed, listed on the left-hand side or column of an account.

Example: As soon as user types his DEBIT card details and presses confirms them with "enter" key the data is send transport control protocol (TCP).

fr: débit

mortgage

noun

A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Example: As I have previously discussed, the UK suffers from high levels of MORTGAGE debt, combined with the dominance of variable rate mortgages.

fr: hypothèque

compound interest

noun and phrase

It's where you earn interest on both your initial deposit and on the interest that you've already earned, making the total invested at the end of each term greater than the last.

Example: The evidence in the Crowther Report shows that the first generation of the more educated seeks still more education for its children, so that culture as it were accumulates at COMPOUND INTEREST.

fr: intérêts composés

cash flow

noun and phrase

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Example: It is a measure of the company's ability to generate cash and can be easily calculated from the company's CASH FLOW statement. It is basically operating CASH FLOW minus capital expenditure. An increase in free CASH FLOW is useful for the investors as they can immediate benefit.

fr: des flux de trésorerie

liquidity

noun

The availability of liquid assets to a market or company.

Example: Maintaining high LIQUIDITY may require an aggressive credit regime, placing strains on customer relations. A resulting loss in customers could outweigh the advantages of LIQUIDITY.

fr: liquidité

risk

noun

The possibility of financial loss.

Example: It is worth pointing out that at first it has been applied mainly in the field of environment which Hathcock (2000) expresses in the following way: "The precautionary principle was originally developed to provide RISK managers with a tool for decision making on environmental threats form processes or substances that had not undergone safety evaluation or regulatory approval".

fr: risque

diversification

noun

The action of diversifying something or the fact of becoming more diverse.

Example: Ansoff's matrix (figure 3) shows that acquiring O 2 is a strategy between product development and DIVERSIFICATION; entering new markets (UK and Germany) and using products away from the landline service they offer. This cannot be considered complete DIVERSIFICATION as Telefónica offer mobile services in the Spanish and Latin American markets.

fr: diversification

expense

noun

The cost required for something; the money spent on something.

Example: The failure of sensors would mean that sensors would have to be replaced regularly, causing more EXPENSE.

fr: dépense

equity

noun

The value of the shares issued by a company.

Example: It is not commonly used by investors but still regarded as a valid relationship implying the potential return related to the value of EQUITY in Balance Sheet. (FACS, WMG notes, 2005) The level of all kinds of Debtor or Borrowing (considered as the high risk sources of finance) is shown as a proportion of the EQUITY.

fr: capitaux propres

supply

noun

The amount of a good or service offered for sale.

Example: Three regimes are commonly practiced at present, (1) field grown by which seeds are sown outdoors and trees are supplies as bare root stocks, (2) cell grown by which seeds germinate indoors and supplied with root protection by the plug of compost in the market and (3) Super Sitka for shoot cuttings to be grown in mist houses under the proper environment. 1.3) Evaluation of the provision The current structure for regulating the market SUPPLY of planting materials is well established.

fr: offre

index

noun

An index measures the performance of a stock market, or of a subset of a stock market.

Example: Marketing Concepts and Strategy - Dibb, Simkin, Pride and Ferrell - Page 673 Suggested marketing strategy The company's performance and therefore Stock price INDEX is based on a number of key performance indicators (KPI's).

fr: indice

net worth

noun and phrase

The value of all your assets, minus the value of your liabilities.

Example: To illustrate further, the turnover of Exxon Mobil accounts for $63 billion of NET WORTH whereas Pakistan accounts for only $62 billion of NET WORTH (Year 2000 Figures).

fr: valeur nette

This glossary was made with the Virtual Writing Tutor glossary maker and grammar checker.