This is a glossary that a personnal finance management need to know and understand. It is about specific terms focused on money management, saving, investing, retirement planning, loans, and other areas of personal finance can help you decode the jargon that you will face while doing your job.
annuity
noun
A fixed sum of money paid to someone each year, typically for the rest of their life.
A form of insurance or investment entitling the investor to a series of annual sums.
Example: Equivalent annual cash flow equals the present value of cash flows divided by the annuity factor for N years at the required rate of return.
fr: rente
bankruptcy
noun
The state of being completely lacking in a particular quality or value.
Example: Cash position is core to corporation when comparing with profit, for a company may loss in profit for several times, while facing bankruptcy after exhausting cash.
fr: faillite
beta
noun
A measure of how an investment changes relative to a broader index that can be helpful in determining whether a stock, fund, or entire portfolio could experience large swings in the future.
Example: He is looking for a stock that performs well in both an up or down S&P 500 market, and has asked Brenda to perform a beta analysis on the stocks to work out which is the best stock to buy.
fr: bêta
bond
noun
A fixed-income security that represents the ownership of debt and serves as a loan between a company or government and an investor.
Example: An integrated capital market would also reduce the cost of equity, bond and bank finance and lead to a rise in Europe-wide GDP growth by 1.1 per cent.
fr: engagement
claim
noun
A demand or request for something considered one's due.
Example: Many see this as being entirely fair otherwise it is possible to claim money for doing nothing and there are worries that that would have a detrimental effect on society.
fr: revendication
cosigner
noun
A person who agrees to assume responsibility for repaying a loan if the borrower doesn't pay.
Example: Consider adding a cosigner with a better credit score than you.
fr: cosignataire
deductible
noun
A specified amount of money that the insured must pay before an insurance company will pay a claim.
Example: Political In every country there are different regulations regarding expense claims - whether they are tax deductible etc.
fr: franchise
dividend
noun
A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
Example: EPS and DEPS both increased and dividend cover increased from 2.38 to 2.42 times.
fr: dividende
fiduciary
noun
A fiduciary is a financial professional (e.g., financial advisor or insurance agent) who is legally required to place each client's best interests over their own.
Example: Hence it is not surprising that whether a fiduciary should be allowed the defence of contributory negligence has been academically questioned.
fr: professionel en finance
fungible
adjective
Refers to items or commodities that can be exchanged with other assets or commodities of the same type, such as currency, commodities, and precious stones.
Example: Oil, wheat, and lumber are fungible commodities.
fr: fongible
grant
noun
A sum of money given by a government or other organization for a particular purpose.
Example: Cost Changes Table 3 shows the reduction in cost for buy-in yarn when the suppliers grant 20% and 30% discounts respectively.
fr: subvention
leverage
Use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.
Example: Without clear legal title to their assets, they own property that cannot be leveraged as collateral for loans.
fr: optimiser
liquidity
noun
The availability of liquid assets to a market or company.
Example: The banks closed, causing serious liquidity problems for smaller companies.
fr: liquidité
overdraft
noun
A deficit in a bank account caused by drawing more money than the account holds.
Example: When I left Paris I had a $900 overdraft.
fr: découvert
prospectus
noun
A legal document that a company files with the SEC that details a potential investment offering for sale to the public.
Example: When a company is issuing stocks or bonds, it publishes a prospectus to provide investors with all the information that they need to make an informed decision.
fr: prospectus
shrinkflation
noun
The act of downsizing the size or quality of a good while holding its sticker price constant.
Example: Fans will also have to learn about shrinkflation because 32 years ago the packets had six not five stickers.
fr: réduflation
stock
noun
The capital raised by a business or corporation through the issue and subscription of shares.
Example: Between 1982 and 1986 the value of the company's stock rose by 86%.
fr: action
trust
noun
A legal entity that can hold almost any asset, including real estate, bank accounts, investment accounts, business interests, and life insurance policies.
Example: I know that a trust was set up.
fr: fidéicommis
vesting
noun
Refers to how much ownership an employee has in employer-sponsored retirement and stock-incentive plans.
Example: He took in $19 million from the vesting of stock awards he had received in previous years.
fr: dévolution
yield
noun
A measure of income an investment generates beyond its principal, usually in the form of interest or dividends.
Example: The high yields available on the dividend shares made them attractive to private investors.
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