Finance
Finance
3. **Equity** - The ownership value in an asset or business, calculated as assets minus liabilities.
5. **Revenue** - The total income generated from business operations before expenses.
8. **Loss** - The financial deficit that occurs when expenses exceed revenue.
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.
16. **Risk** - The potential for financial loss or uncertainty associated with an investment.
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.
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.