Finance Glossary
Finance Glossary
20 terms
Finance is a broad term that refers to the management of money. This field involves actions like investing money, borrowing money, saving money, budgeting... etc.
- asset
- a property owned by a person or a company, regarding as having value.
- bank dept
- money that is owed to a bank
- bankruptcy
- the state of being bankrupt
- budget
- an estimate of income and expenditure for a set of period
- credit
- a customer's ability to obtain goods or services before payment based on the trust that payment will be made in the future.
- debt ratio
- ratio of total debt to total assets, expressed as a decimal or percentage.
- financial action plan
- to set down the current state of your finances, financial goals and methods to achieve them
- financial statement
- a set of documents that shows your financial status at a specific point in time
- franchise
- the right granted to an individual or group to market a company's goods or services in a particular territory
- interest rate
- the amount a lender charges a borrower and is a percentage of the amount loaned
- investment credit
- a tax incentive that permits businesses to deduct as specified percentage of action investment costs from their tax liability in addition to the normal allowances for depreciation
- line of credit
- a type of loan that lets you borrow money up to a preset limit
- liquidity
- a company's ability to convert assets to cash or acquire cash through a loan or money in the bank
- loan
- a sum of money that is borrowed that is expected to be paid back with interest
- mortgage security
- a debt security that is collateralized by a mortgage or a collection of mortgages
- personal security
- any obligation of another person to pay, incur or otherwise become liable for or in respect of such financial indebtedness
- profitability
- the degree to which a business or activity yields profit or financial gain
- recession
- a period of temporary economic decline during which trade and industrial activity are reduced
- refinancing
- to renew or reorganize the financing of something
- volatility
- a tendency to change quickly and unpredictably