mortgage lender free float

coupon consumer lending

merger

1. an activity when one company joins with another company to create a larger company

2. a situation when the number of shares in supply exceed the number which are in demand

3. money which is lent to private individuals

4. a company that provides loans of money for people to buy houses

5. the amount of interest that a bond pays

budget yield

market maker entrepreneur

option trade

1. somebody who has set up and runs their own company

2. the buying or selling of an option

3. a plan you make about what to buy and how much to spend

4. a business or company that buys and sells securities

5. the rate of income an investor receives from a security

corporate lending derivative

investment bank merger

auction
1. an entity that advises companies on how they can grow by joining with, or buying other companies

2. an option or future which often offers investors an easy way to make bets in markets that would
otherwise be difficult to get access to

3. money which is borrowed by companies

4. a public sale at which things are sold to the people who offer to pay the highest

5. an activity when one company joins with another company to create a larger company

list building society

call option acquisition

nominal value

1. an activity when one company buys another company or part of another company

2. the right to buy shares at a specific price in the future because you think that the market price will
rise above that price

3. a financial institution which was originally formed to help people buy or build houses with money
which was saved with it

4. the price written on a share

5. to register a security on a stock exchange so that it may be traded there

loan exposure all-time peak

underwrite put option

inbound acquisition

1. an activity when a foreign company buys a company in your country

2. the right to sell shares at a specific price in the future, which you buy because you think prices will
fall below that price

3. the total amount of money a financial institution has lent to customers

4. a situation when something such as a share reaches its highest historical point, price or value

5. to guarantee the sale of a security

go bust option

hedge funds credit crunch

outbound acquisition

1. an activity when a company in your country takes over a company in a foreign country

2. the right to buy or sell shares, bonds, currencies or commodities at a particular price within a
particular period of time or on a particular date in the future

3. a reduction in the general availability of loans or credit or a sudden tightening of the conditions
required to obtain a loan from the bank

4. another word for “go bankrupt”

5. private investment funds for wealthy investors that trade in securities and derivatives, and try to get
high returns whether markets move up or down

recession rally

default the Treasury

capital

1. finance for a newly set-up company

2. the government department in charge of the money that a government collects in taxes and from
borrowing, and the money that it spends

3. the reduction of a country’s gross domestic product (GDP), usually for at least two quarters of a year
4. an improvement or increase in prices

5. fail to repay a loan

kickstart benchmark

collapse central bank

debt finance

1. a type of money that start-up entrepreneurs need

2. the official bank of a country

3. when a company, organisation or system suddenly fails or becomes too weak to continue

4. a standard used when comparing other things

5. to revive or stimulate something

corporate credit-rating agency boom

derivative high-risk

yield

1. an adjective to show a project that is likely to fail in the early stages, but could bring a high rate of
return in the later stages

2. a company that calculates the risk of lending to or investing in a company or its financial products

3. a time when business activity increases rapidly

4. the rate of income an investor receives from a security

5. an option or future which often offers investors an easy way to make bets in markets that would
otherwise be difficult to get access to

public limited company robust

offer management buyout

 soar

1. an activity when the managers of a company decide to break away from that company and buy part
of it in order to run it separately

2. in Britain, this entity’s shares are freely sold and traded with a minimum share capital of £50,000

3. strong and stable

4. the price at which a seller is prepared to sell a security at a particular time

5. to rise quickly

mortgage lender insolvency

innovation company slowdown

bid

1. a firm or enterprise which develops a new product or service

2. a company that provides loans of money for people to buy houses

3. a period when demand for products and services decreases

4. the price at which a buyer is prepared to buy a security at a particular time

5. a situation when a person or company does not have enough money or assets to pay their debts

vulnerable bond issuer

market maker wholesale funding

misleading

1. an adjective to show something that is wrong or inaccurate

2.a company or bank that makes certain assets or securities such as bonds available for sale
3. an adjective to show something is at risk or open to danger

4. a business or company that buys and sells securities

5. a debt method that banks use in addition to savers’ deposits to finance operations

subprime mortgage organic

creditors healthy

resignation

1. an adjective to show the large return on capital investment

2. a loan to buy a house which has been given to a borrower with a poor credit rating

3. when someone leaves their job voluntarily

4. people or institutions to whom money is owed

5. an adjective to show how a company develops without buying other businesses

minute liquidity

coupon credit squeeze

cover

1. to financially compensate the investors for the losses in investment

2. a limitation of credit; usually a government measure designed to reduce inflation, by methods such
as increasing interest rates

3. to write down in the official notes of the meeting

4. the amount of interest that a bond pays

5. money or cash

insolvency financial engineering

 maturity loan

portfolio

1. the use of various mathematical tools to maximise profits from financial investments

2. a situation when a person or company does not have enough money or assets to pay their debts

3. all the investments owned by an individual or organization

4. a sum of money borrowed from a bank

5. the length of time for which a bond is issued (until it is repaid)

stockbroking liquidation

principal breakneck

highly leveraged

1. an adjective to show the situation when the major part of an investment is funded by borrowed
money

2. a situation when a failing company stops operating and its assets are sold to pay its debts

3. buying and selling stocks or shares for clients

4. the amount of capital making up a bond or other loan

5. extremely fast

bankrupt reform

collaterals administration

equity

1. assets which are promised by a borrower to a lender if the borrower cannot repay a loan (also known
as security)

2. a situation when a company which is experiencing financial difficulties is reorganized by an

independent specialist with the aim of continuing some of its activities

3. unable to pay debts or continue to do business

4. part ownership of a company in the form of stocks or shares

5. to change something to make it better

deregulation write off

credit crunch receivership

cash-settled

1. an adjective to show when shares bought on a financial market are paid for with real money

2. a situation when a company that is bankrupt is put under the control of an individual by the courts

3. the ending or relaxing of legal restrictions

4. cancel the bad debt or a worthless asset from an account

5. a reduction in the general availability of loans or credit or a sudden tightening of the conditions
required to obtain a loan from the banks

cash flow conglomerate

insolvency wholesale funding

blocking minority

1. the number of shares in a company needed to veto certain decisions at the Annual General Meeting
of shareholders

2. a debt method that banks use in addition to savers’ deposits to finance operations

3. a group of companies, operating in different fields, which have joined together

4. the money that goes in and out of the company, or the money generated by an investment
5. a situation when a person or company does not have enough money or assets to pay their debts

retail deposits credit rating

default management buyout

exposure

1. the amount of money an investor risks losing if the investment does badly, for example on the stock
market

2. the money that savers put into banks

3. an estimation of someone’s ability to fulfill their financial commitments

4. failure to repay loans

5. an activity when the managers of a company decide to break away from that company and buy part
of it in order to run it separately