Bonds = Interest-paying securities issued by companies that need to borrow money
Capital = Money invested in a business
Deposit = Money you put in a bank Merger = When two formerly separate companies join together Mortgage = Loan to buy a property Pension = Money paid to a retired person Shares / Stocks = Securities representing part-ownership of a company Takeover = When a company gain control of another one by buying its s Conglomerates = Groups of companies that have joined together Depositors = People who place money in bank accounts Deregulated = Abolished or ended rules and restrictions Fines = Sums of money paid as penalties for breaking the law Prohibited = Made it illegal to do something Regulation = Control of something by rules or laws Repealed = Cancelled or ended (a law) Underwriting = Guaranteeing to buy a company’s newly issues stocks if no one else does Trend = A general development or change in a situation or in people’s behaviour Income = All the money receive by a person during a particular period Assets = Anything of value owned by a business (cash, buildings etc); for a bank, the loans it has made Liabilities = Money that a company will have to pay to someone else one day (bills, debts etc); for a bank, its deposits Lucrative = Profitable (describes an activity that makes a profit) National income = The money earned by a country’s people in a particular period Currency = The money used in a particular country EBIT = The abbreviation for a company’s earning before interest and taxes Portfolio = All the securities and financial assets held by a financial institution or an individual Credit rating = An evolution of a borrower’s ability to pa interest and pay back a loan in the future Collateral = Something of value that secures a loan or other credit; if the borrower cannot repay, the lender can sell it to pay of the loan Maturity = The date on which a loan must be repaid, or a length of time until this date Margin = The difference between the interest rate a lender pays and the rate it charges its borrowers Overhead costs = The expenses of operating a business that are not directly related to individual product or services (e.g. electricity, telephones, administrative costs) Credit limit = The maximum amount that a bank will lend to a costumer Operating cash flow = The money generated from a business’s normal activities Cost of funds = The price (interest rate) that a financial institution must pay for the use of money Tax accounting = Calculating how much tax an individual or an company should pay - or trying to reduce this figure Auditing = Checking and evaluating financial records Cost accounting = Determining the unit cost of a manufactured product, including indirect costs Financial accounting = Keeping financial records and preparing financial statements Bookkeeping = Recording transactions (purchases and sales) in ledgers Income = The money that a company receives fro supplying goods or services Expenditure = The money that a company spends Management accounting = The use of a company's accounting data by its managers for planning and control Commission = A charge for arranging a transaction (e.g. buying or selling securities Fee = A charge for a service performed by a bank Premiums = Payment for an insurance policy Amortization = A reduction in the value of the asset, charge against profits Net = Adjective meaning after all deductions have been made Consolidated = Adjective meaning for a whole group of companies Short-term = Adjective meaning one year or less in financial statements Minority interests = Part-ownership (less than 50%) of other companies Intangible assets = Things of a value that cannot be physically touched, such as reputation (goodwill), brand names and trademarks Shareholders’ equity = The net worth of a company – the amount by which assets exceed liabilities Sterling = Name of the British currency Oversight = Supervision Threats = Potential sources of danger Remunerated = Paid Sound = In good condition Core = Basic and most important Policy = An agreed plan of what to do Inflation = A general, continuous increase in prices Target = A level or situation which you intend to achieve Plant = Factories and the machines equipment in them Base rate = The rate at which the central ban lends money to commercial banks Labour = Work done by people employed by businesses Incentive = Encouragement or a reason to do something Capital = Money invested in companies, to buy buildings machinery etc. Consume = To spend money on goods or services Demand = What people consume and how much they invest Bill of exchange = An order written by an exporter instructing an importer to pay a specific amount of money at a specific time. Letter of credit = A method of payment for goods in which the buyer’s bank guarantees to pay a specified amount of money to the seller on presentation of specific documents, before a certain date and according to the international chamber of commerce rules. Bulls = A name for investors who buys shares because they expect their prices to rise Collateral = Assets a borrower uses to secure or guarantee a loan Day trades = People who buy and re-sell shares in a very short time, often just a few hours Bankruptcy = When you have no money to pay your debts, so you have to sell your assets Bears = A name for shareholders who sell because the expect the price to fall Shares = Certificates representing part-ownership of a company Raise capital = To get money from investors with which to run a company Bubble = A period of rapidly rising share prices, followed by a quick relapse Institutional investors = Financial organizations who own a lot of shares Issue = To offer securities for sale, to financial institutions an the public To cut job = To fire people To attract investors = To encourage people or companies to buy shares To call in a loan = To demand that a loan is repaid To pull out of the market = To sell all your stocks To strip out = To seperate Reputed to be = Generally considered to be Meant no harm = Didn't want to cause trouble for other people An endless chain of comment = A big hierarchy of directors and managers A breed apart = Special; different from other people Vast = Extremely big Market capitalization = A company's stock price times the nummer of stocks Creditors = Businesses or people to whom money is owned Liquid assets = Cash and things that can be easily sold and converted into cash Solvency = The ability to pay bills and fixed expenses and debts when they become due Profitability = The ability to produce earnings (or net income) relative to the amount invested Liquidity = The degree to which assets can easily be converted into cash (i.e. sold), with a minimum loss of value Leverage or gearing = The extent to which a company is funded by loans rather than it's own capital Ratio = The number obtained when one number is divided by another Book value = The value of a company's assets minus liabilities, as recorded on the balance sheet Efficiency = Using resources in a way that maximizes the production of goods and services (the ratio of output to input) To be burnt = To lose money (t. b. b.) To escape unharmed = Not to lose money (t. e. u.) To suffer pain = To lose money (t. s. p.) To take a hit = Not to lose money (t. t. a. h.) Intangible fixed assets = Assets that are not material Tangible fixed assets = Assets that are material Financial fixed assets = Assets comprised of money Current assets = Any asset that is reasonably expected to be sold Balance sheet = Statement of financial position Income statement = Profit and loss statement Patents = Exclusive rights Shareholder’s equity = Company’s capital which is invested by shareholders Derivates = Contract that value the performance of an underlying entity Revenue = Income that a company receives Profitability = Profit Liquidity = Market ability to facilitate an assets being sold Solvency = The ability of a company to meet its long terms financial obligations