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Finance

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0% found this document useful (0 votes)
6 views

Finance

Uploaded by

maria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Certainly!

Here’s a list of 50 finance-related terms and their meanings:

1. **Asset** - Anything of value owned by an individual or entity.

2. **Liability** - A financial obligation or debt owed by an individual or entity.

3. **Equity** - The ownership value in an asset or business, calculated as assets minus liabilities.

4. **Investment** - The allocation of resources, usually money, in order to generate income or


profit.

5. **Revenue** - The total income generated from business operations before expenses.

6. **Expense** - The cost incurred in the process of earning revenue.

7. **Profit** - The financial gain after subtracting expenses from revenue.

8. **Loss** - The financial deficit that occurs when expenses exceed revenue.

9. **Capital** - Financial assets or resources available for investment or business operations.

10. **Dividend** - A portion of a company's earnings distributed to shareholders.

11. **Interest** - The cost of borrowing money, typically expressed as a percentage of the
principal.

12. **Principal** - The original amount of money invested or borrowed, excluding interest.

13. **Bond** - A fixed-income security where the issuer borrows funds from investors and pays
interest.

14. **Stock** - Equity ownership in a corporation, representing a claim on its assets and earnings.

15. **Portfolio** - A collection of investments held by an individual or institution.

16. **Risk** - The potential for financial loss or uncertainty associated with an investment.

17. **Return** - The gain or loss on an investment over a specified period.

18. **Liquidity** - The ease with which an asset can be converted into cash without significant
loss of value.

19. **Market Capitalization** - The total value of a company's outstanding shares of stock.

20. **Inflation** - The rate at which the general level of prices for goods and services rises,
eroding purchasing power.

21. **Deflation** - The decline in the general price level of goods and services, increasing
purchasing power.

22. **Diversification** - The strategy of spreading investments across various assets to reduce
risk.
23. **Amortization** - The gradual repayment of a debt over time through scheduled payments.

24. **Depreciation** - The reduction in the value of an asset over time due to wear and tear.

25. **Leverage** - The use of borrowed funds to increase the potential return on investment.

26. **Margin** - The amount of equity contributed by an investor as a percentage of the total
investment.

27. **Futures** - Contracts obligating the buyer to purchase, or the seller to sell, an asset at a
predetermined future date and price.

28. **Options** - Financial derivatives giving the right, but not the obligation, to buy or sell an
asset at a specified price before a certain date.

29. **Hedge** - An investment strategy used to reduce the risk of adverse price movements in an
asset.

30. **Forex** - The global marketplace for trading national currencies against one another.

31. **Yield** - The income generated from an investment, typically expressed as a percentage of
the investment’s value.

32. **Net Worth** - The total value of an individual’s or entity’s assets minus liabilities.

33. **Cash Flow** - The net amount of cash being transferred into and out of a business.

34. **Budget** - A financial plan that estimates income and expenses over a specified period.

35. **Credit Score** - A numerical representation of an individual’s creditworthiness based on


credit history.

36. **Debt** - An obligation to repay borrowed funds, often with interest.

37. **Equity Financing** - Raising capital by selling shares of ownership in a company.

38. **Debt Financing** - Raising capital through borrowing, typically in the form of loans or
bonds.

39. **Bond Yield** - The return an investor can expect from a bond, usually expressed as an
annual percentage.

40. **Net Income** - The total profit of a company after all expenses, taxes, and costs have been
deducted from revenue.

41. **Gross Income** - The total earnings before any deductions or expenses.

42. **Capital Gains** - The profit from the sale of an asset or investment.

43. **Taxable Income** - The portion of income subject to taxation after allowable deductions.

44. **Warrant** - A security that gives the holder the right to purchase shares of stock at a
specific price before expiration.
45. **Real Estate** - Property consisting of land and the buildings on it, including natural
resources.

46. **Mutual Fund** - An investment vehicle that pools money from multiple investors to invest
in a diversified portfolio of assets.

47. **Exchange-Traded Fund (ETF)** - A type of investment fund traded on stock exchanges,
similar to individual stocks, but holding a diversified portfolio of assets.

48. **Financial Statement** - A formal record of the financial activities and position of an
individual or organization.

49. **Audit** - An examination and verification of financial records and statements to ensure
accuracy and compliance.

50. **Asset Allocation** - The process of dividing investments among different asset categories,
such as stocks, bonds, and real estate, to manage risk and achieve financial goals.

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