10 words that could be used and that are related with finance terms
In the world of finance, understanding key terms and concepts is crucial for navigating the complexities of business, investment, and economic strategies. The purpose of this glossary is to give basic definitions and examples of key financial terms that are frequently used in both business contexts and casual financial conversations. This glossary will be a useful resource for the students that are beginning to study the subject or for someone who wants to review financial terms.
asset
noun
Something valuable that a person or company owns, such as property, stocks, or cash.
Example: The company’s assets include buildings, equipment, and intellectual property.
fr: Actif
capitalize
verb
To take advantage of an opportunity or to convert something into a financial resource.
Example: The company plans to capitalize on the holiday season to boost sales.
fr: Capitaliser
cost of capital
noun
The cost of obtaining money to fund a business or investment, usually through loans or by selling shares. It represents the return a company must earn on its investments to cover the cost of borrowing or raising funds.
Example: The cost of capital for the new project was higher than expected, affecting the overall feasibility.
fr: Coût du capital
diversification
noun
The practice of spreading investments across different areas to reduce risk.
Example: Diversification in the investment portfolio helps protect against market volatility.
fr: Diversification
fiscally
adverb
In a way that relates to government revenue, especially taxes.
Example: The government is fiscally responsible in balancing its budget each year.
fr: Fiscalement
liquidate
verb
To sell assets to convert them into cash, usually during the winding up of a business.
Example: The company had to liquidate its inventory to pay off outstanding debts.
fr: Liquider
liquidity management
noun
The proactive process of ensuring a company has the cash on hand to meet its financial obligations as they come due.
Example: Effective liquidity management is crucial for maintaining enough cash flow to meet our short-term expenses.
fr: Gestion des liquidités
return on Investment
noun
A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the gain or loss from an investment by its initial cost.
Example: We calculated the ROI of the new marketing campaign and found it to be highly profitable.
fr: retour sur investissement
solvent
adjective
Having assets in excess of liabilities; able to pay one's debts.
Example: The business remains solvent despite the challenging market conditions.
fr: Solvable
sustainable
adjective
Able to be maintained at a certain rate or level.
Example: The company is focusing on sustainable investments that benefit both the environment and their bottom line.
