You are on page 1of 4

This some info about:

1 Stock

2 Bonds

3 Consumer Credit

4 Business Loan

5 Mathematical Logic

6 Axiom

7 Mortgage

8 Principal

9 Amount

A stock, a.k.a. equity, is a type of security that signifies ownership in a corporation and
represents a claim on part of the corporation's assets and earnings. Whether you own
one, 100 or 100 million shares of stock in a company, you're an owner of the company.

Ex. Corporations sell stock (or ownership in the company) in return for cash to run their
businesses. Much of the time, only a few people (the founders of the company, for
example, who have put their life savings into the company) own the company. But when
several owners want to cash out their investments or the company needs more cash for
whatever reason, the corporation might "go public," meaning that it sells some of, all of
or more of its shares to the general public via a stock exchange.

A bond is a debt investment in which an investor loans money to an entity (typically

corporate or governmental) which borrows the funds for a defined period of time at a
variable or fixed interest rate. Bonds are used by companies, municipalities, states and
sovereign governments to raise money and finance a variety of projects and activities.
Owners of bonds are debtholders, or creditors, of the issuer.
A bond, also known as a fixed-income security, is a debt instrument created for the
purpose of raising capital. They are essentially loan agreements between the
bond issuer and an investor, in which the bond issuer is obligated to pay a specified
amount of money at specified future dates.

Ex. When an investor purchases a bond, they are "loaning" that money (called
the principal) to the bond issuer, which is usually raising money for some project. When
the bond matures, the issuer repays the principal to the investor. In most cases, the
investor will receive regular interest payments from the issuer until the bond matures.
Consumer credit is a debt that a person incurs when purchasing a good or service. credit
given by shops, banks and other financial institutions to consumers so that they can buy
Consumer credit is also known as consumer debt.
Ex. The most common form of consumer credit is a credit card.

A business loan is borrowed capital that companies apply toward expenses that they
are unable to pay for themselves. Some business owners use business loans to pay for
salaries and wages until their new company gets off the ground, while other companies
put borrowed funds toward office supplies, inventory or business projects. Lenders want
to know how the business intends to use the borrowed monies, so business owners
must make sure to have a clear outline for how the money will be spent.

Commercial loans are granted to a variety of business entities, usually to assist with
short-term funding needs for operational costs or for the purchase of equipment to
facilitate the operating process. In some instances, the loan may be extended to help
the business meet more basic operational needs, such as funding for payroll or to
purchase smaller supplies that are used in the production and manufacturing process.

Ex. Business A is very promising in the business world. However, they do not have the
needed equipments for the business to be launch. They will get a business loan from a
financial institution to fund for those needed equipments.

Mathematical logic is the part of mathematics concerned with the study of formal
languages, formal reasoning, the nature of mathematical proof, provability of
mathematical statements, computability, and other aspects of the foundations of

Ex. Negation - Sometimes in mathematics it's important to determine what the opposite
of a given mathematical statement is. This is usually referred to as "negating" a
statement. One thing to keep in mind is that if a statement is true, then its negation is
false (and if a statement is false, then its negation is true). Negation is an operator
which gives the opposite statement of the previous statement. It is also known as NOT,
denoted by . It is an operation that gives the opposite result. If input is true then
output is false. If input is false then output is true. It has one input and one output.

The negation of the statement "This year is a leap year" is "This year is not a leap year.

An axiom(a proposition regarded as self-evidently true without proof) is a proposition

that is assumed to be true. With sufficient information, mathematical logic can often
categorize a proposition as true or false, although there are various exceptions (e.g.,
"This statement is false").
Ex. A proposition is a mathematical statement such as "3 is greater than 4," "an infinite
set exists," or "7 is prime."

A mortgage is a loan, secured by the collateral(Collateral is a property or other asset

that a borrower offers as a way for a lender to secure the loan. If the borrower stops
making the promised loan payments, the lender can seize the collateral to recoup its
losses). that the borrower is obliged to pay back with a predetermined set of payments.
Mortgages are used by individuals and businesses to make large real estate
purchases without paying the entire value of the purchase up front. Over a period of
many years, the borrower repays the loan, plus interest, until he/she eventually owns
the property free and clear(A slang phrase describing the situation of someone when he or
she gains outright ownership of an asset, such as when it is completely paid off and no creditor
has a claim on the property). Mortgages are also known as "liens against property" or
"claims on property." If the borrower stops paying the mortgage, the bank can
foreclose(take possession of a mortgaged property as a result of the mortgagor's failure
to keep up their mortgage payments.).

Ex. Rhexnielle needs to buy a real estate(property consisted of land and buildings) but
hes a little short of money. He will now enter to an agreement(mortgage) with a
lender(a bank). Over a period of many years, rhexnielle will repay the loan, plus interest,
until he eventually owns the property free and clear.

Amortization is an accounting term that refers to the process of allocating the cost of
an intangible asset(For example, goodwill, patents, trademarks and copyrights are
intangible assets. None of these assets can be physically touched, but they can still
have value.) over a period of time. It also refers to the repayment of loan principal over

Ex. Let's assume Company XYZ owns the patent on a piece of technology, and that
patent lasts 15 years. If the company spent $15 million to develop the technology, then
it would record $1 million each year for 15 years as amortization expense on its income

Alternatively, let's assume Company XYZ has a $10 million loan outstanding. If
Company XYZ repays $500,000 of that principal every year, we would say that
$500,000 of the loan has amortized each year.s

Principal refers to the original amount of money borrowed.

Ex If you borrow $25,000 from XYZ Bank to purchase a car, the principal balance is
$25,000. As time goes by and you make payments on the loan, the principal balance
goes down.
Amount A quantity of something, or the sum of multiple quantities expressed as a number that may
or may not be expressed as a number.

Ex., a company may have a great amount of brand recognition(Consumer awareness that a
particular brand exists)