Finance Glossary

20 Finance terms

To begin, my field of study is Finance. This field can be very complicated sometimes, but it is really simple and exists since a long time ago. 3000 BC, at the time of the Mesopotamia, money was already existing and the first financial products appeared some years after. Since all this time, finance is still the same things. The objective of it is to manage money. I did this glossary for people who have interest towards this field and wants to understand the base of it. Since it is also a part of ours society since the beginning.

Accountant
Someone who keeps or examines the records of money received, paid, and owed by a company or person.
Actuary
Person whose job is to calculate risk.
Amortization
The process of reducing a cost or total in regular small amounts.
Annuity
A fixed amount of money paid to someone every year, usually until their death, or the insurance agreement or investment that provides the money that is paid.
Bank
An organization where people and businesses can invest or borrow money, change it to foreign money, etc., or a building where these services are offered.
Bank account
An arrangement between a bank and a customer that allows him or her to keep money there and to pay in or take out money.
Bankrupt
Officially declared to be without money and unable to pay what you owe.
BOC
The Bank of Canada is a Crown corporation and Canada's central bank.
Cash flow
The amount of money moving into and out of a business.
Credit
An arrangement to pay for something later.
Debt
An amount you owe.
Deficit
The total amount by which money spent is more than money received, or the state of having spent more money than has been received.
Financial analysis
The study of financial information about companies, projects, etc. to understand their financial situation.
Financial system
Network of financial institutions that work together to exchange and transfer capital from one place to another.
Interest rate
Percent that a bank or other financial company charges you when you borrow money, or the interest percent it pays you when you keep money in an account.
Investment
Something you buy or spend money on in order to benefit in the future.
Lender
A bank or organization that lends money.
Monetary policy
Actions taken by a government to control the amount of money in an economy and how easily available it is.
Money
Money used to make money.
Money
Coins and paper bills used to pay for things.