Finance:
To nance: to pay for Corporate Bonds: certi cates of debt
A loan: The money you borrow
Debt: When you owe money
Credit worthiness - credit history
Credit score: rating w/ a credit rating
agency
Credit history: record of your use of
credit
Credit reporting agency: Credit bureau
Mortgage: the loan on a house
APR Annual percentage rate: interest
rate paid on a loan
Interest rate: The excess paid for getting
the loan
Risk: the danger of something
happening
Stock Market: marketplace where
people and institutions buy and sell
securities.
Diversi cation: to distribute your wealth
into di erent instruments to divide the
risk
Portfolio: the name given to your
collection of assets
Trend: something that is popular at the
moment like crypto or a certain stock.
Invest: to allocate capital into something
with expectations of generating a return
Investor: the person who is buying
assets to generate gains
Shareholder: the owner of a stock
Stockholder: the owner of a stock
Equities: stocks
Securities: nancial instruments for
investments. Stocks bonds ETF etc..
Shares: ownership in a company
Stocks: ownership in a company
Commodities: co ee iron, wood
Government Bonds: certi cates of debt
issued by the government
fi
ff
fi
fi
fi
ff
fl
fi
fi
fi
fi
fi
ff
issued by a company
Dividends: the return paid on a stock
Rate of Return: the % of pro t
Return on Investment: (ROÍ) How much
you will make on a certain investment.
Equity: capital in an investment
Student Loans: money you borrow to go
to college
Financial aid: money given to you to go
to college
Debt forgiveness: when you are not
required to pay a speci c debt
Accounting: the process of managing
the money and assets of an organization.
Balance Sheet: nancial document that
shows the relationships between the
assets and liabilities
Income Statement: nancial document
that shows the relationship between the
income and expenses of an organization.
Statement of Cash ow: Financial
document that shows all expenses
Deductions: items you can write o on
your taxes
Expenses: things you need to pay in
order to operate your business
Overhead: the total cost of operating
your business. (Rent payroll, light etc..)
Fix costs: expenses that don’t vary
month to month . For example rent.
Variable costs: expenses that vary from
month to month
Accounts payable: money you need to
pay. Light, internet
Accounts receivable: money need to
collect from customers.
Earnings: money made
Income: money made
Revenue: money made
 Inventory: products you have in Gross Pro t: money after
existence future sales. expenses.before tax
Assets: things you won that make you Net pro t: money after expenses and
money. Eg. a rental property after tax
Liabilities: debt you have
fi
fi