Resources owned by an individual or entity that have economic value and can provide future benefits, such as cash, property, or equipment.
The gradual reduction of a debt over time through regular payments. It often refers to the process of spreading out loan repayments over a fixed term.
The practice of taking advantage of price differences in different markets by buying and selling the same asset to profit from the discrepancy.
An increase in the value of an asset over time, often due to market demand, economic conditions, or improvements made to the asset.
A financial product that provides a series of payments made at equal intervals. Annuities are often used for retirement income.
A portion of a company’s earnings distributed to shareholders, typically paid in cash or additional shares, reflecting the company’s profitability.
A financial contract whose value is derived from the performance of an underlying asset, such as stocks, bonds, or commodities.
A risk management strategy that involves spreading investments across various assets to reduce exposure to any single asset or risk.
The measure of an increase in a company’s earnings, revenue, or other financial metrics over a specific period, often expressed as a percentage.
The revenue remaining after deducting the cost of goods sold (COGS), reflecting the efficiency of production and sales operations.
An intangible asset that arises when a company acquires another for more than the fair value of its net identifiable assets, often linked to brand reputation.
An investment fund that pools capital from accredited investors to invest in a range of assets, employing various strategies to achieve high returns.
An investment strategy designed to reduce or eliminate the risk of adverse price movements in an asset, often through the use of derivatives.
Refers to investments that offer higher returns compared to other securities, often associated with greater risk, such as junk bonds.
The portion of a homeowner’s property that they truly own, calculated as the current market value minus any outstanding mortgage balance.
The percentage charged on borrowed money or earned on invested funds, representing the cost of borrowing or the return on investment.
The allocation of resources, usually money, into an asset or venture with the expectation of generating profit or income over time.
A financial state in which an individual or organization cannot meet its debt obligations as they become due, potentially leading to bankruptcy.
The rate at which the general level of prices for goods and services rises, eroding purchasing power and affecting economic decisions.
A financial report that summarizes revenues, expenses, and profits or losses over a specific period, providing insight into a company’s financial performance.
A business arrangement where two or more parties collaborate on a specific project, sharing resources, risks, and profits.
A high-yield bond rated below investment grade, considered riskier but offering higher returns to attract investors.
A graphical representation of an entity’s performance over time, illustrating an initial decline followed by a significant recovery or improvement.
An inventory management strategy that aims to reduce waste by receiving goods only as they are needed in the production process.
A legal decision made by a court, often relating to financial disputes, that can result in a requirement for one party to pay damages or fulfill an obligation.
A measurable value that demonstrates how effectively a company is achieving its key business objectives, often used to assess performance.
A type of exotic option that becomes active only when the underlying asset reaches a specific price level.
A tax document used to report income, deductions, and credits from partnerships, S corporations, and LLCs to the IRS.
An economic theory that advocates for increased government expenditures and lower taxes to stimulate demand and pull the economy out of recession.
A real estate valuation measure used to estimate the return on an investment property, calculated by dividing net operating income by the property value.
A financial obligation or debt that an individual or organization owes to another party, typically settled over time through the transfer of economic benefits.
The ease with which an asset can be converted into cash without affecting its market price, indicating the financial health of an entity.
The use of borrowed capital to increase the potential return on investment, which can amplify both profits and losses.
A sum of money borrowed from a lender, to be paid back with interest over a predetermined period, often secured by collateral.
An investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
The total market value of a company’s outstanding shares, calculated by multiplying the share price by the total number of shares, indicating company size.
The difference between the cost of a product or service and its selling price, reflecting profitability; in trading, it refers to borrowing funds to buy securities.
The date on which a debt obligation, such as a bond or loan, is due for repayment, after which interest payments cease.
A sector of the financial market where short-term borrowing and lending of securities with maturities of one year or less occurs, providing liquidity.
The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating financial performance.
The value per share of a mutual fund or an exchange-traded fund, calculated by dividing the total assets minus liabilities by the number of outstanding shares.
The interest rate before adjusting for inflation, representing the stated rate on a loan or investment.
A formal debt instrument that represents a promise to pay a specific amount of money at a defined future date, often used in business financing.
A loan or asset that is not generating income or has defaulted, indicating a financial risk to lenders and investors.
A financial derivative that provides the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price before a specified date.
The profit realized from a company’s normal business operations, excluding income derived from investments or the sale of assets.
A facility allowing an account holder to withdraw more money than is available in their account, resulting in a negative balance and interest charges.
The potential benefits lost when choosing one alternative over another, emphasizing the trade-offs in financial decision-making.
The total amount of money spent on an investment or project, including initial costs and any ongoing expenses.
A collection of financial assets such as stocks, bonds, and cash equivalents held by an investor, used to diversify risk and achieve specific investment goals.
A profitability ratio that indicates the percentage of revenue that exceeds the costs of goods sold, reflecting a company’s financial health and efficiency.
The original sum of money borrowed or invested, excluding interest or profit, which forms the basis for interest calculations.
A valuation metric calculated by dividing a company’s current share price by its earnings per share, indicating how much investors are willing to pay for a dollar of earnings.
A class of stock that typically provides dividends before common stock dividends and has a higher claim on assets in the event of liquidation.
A statement of the current price of a security, commodity, or currency, often used in trading to provide real-time market information.
An assessment of a bond or security’s risk and creditworthiness, typically assigned by credit rating agencies to guide investor decisions.
An unconventional monetary policy used by central banks to stimulate the economy by increasing the money supply and lowering interest rates.
An entity that is part government and part private, typically serving a public function while operating with some level of commercial principles.
An individual or institution that meets specific regulatory criteria, allowing them to participate in investment opportunities that are not available to the general public.
A measure of the profitability of an investment, calculated by dividing net profit by the initial investment cost, often expressed as a percentage.
A period of temporary economic decline characterized by falling GDP, rising unemployment, and reduced consumer spending, often lasting six months or more.
The total income generated by a business from its operations, including sales of goods or services before any expenses are deducted.
The gain or loss made on an investment relative to the amount invested, expressed as a percentage, indicating the efficiency of the investment.
A type of security that represents ownership in a company, providing shareholders with a claim on the company’s assets and earnings.
A loan backed by collateral to reduce the lender’s risk, allowing borrowers to access funds at potentially lower interest rates.
Financial instruments that represent ownership (stocks), creditor relationships (bonds), or rights to ownership (options) in a company or government.
A bank account that earns interest on deposits, typically used for storing money while allowing easy access and liquidity.
An investment strategy that involves selling borrowed shares of stock with the expectation of repurchasing them at a lower price, profiting from the price decline.
A long-term debt security issued by the U.S. government with a maturity of 10 years or more, considered one of the safest investments.
A mandatory financial charge imposed by the government on individuals and businesses to fund public services and infrastructure.
The difference between a country’s exports and imports, indicating whether a country has a trade surplus or deficit.
The sum of all assets owned by an individual or entity, reflecting their overall financial position and wealth.
The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.
The process by which an investment bank assesses the risk of a new security issuance and determines its price and terms for investors.
A loan that is not backed by collateral, typically carrying higher interest rates due to the increased risk for lenders.
The expenses incurred for essential services such as electricity, gas, and water, often included in operating costs for businesses.
The practice of charging excessively high-interest rates on loans, often considered illegal or unethical under certain jurisdictions.
Referring to the early stages of a supply chain, particularly in the oil and gas industry, encompassing exploration and production activities.
The process of determining the current worth of an asset or company, often used in investment analysis, mergers, and acquisitions.
A statistical measure of the dispersion of returns for a given security or market index, indicating the degree of variation in price over time.
Financing provided to startups and small businesses with high growth potential in exchange for equity, often involving higher risk and reward.
Costs that change in direct proportion to the volume of goods or services produced, such as raw materials or direct labor.
The process of verifying the authenticity of financial transactions and records, often used in auditing to ensure accuracy and compliance.
A comprehensive financial advisory service that provides investment management, financial planning, and estate planning to high-net-worth individuals.
The formal recognition that an asset is no longer recoverable, reducing the book value of the asset and impacting financial statements.
The difference between a company’s current assets and current liabilities, indicating its short-term financial health and operational efficiency.
A financial instrument that gives the holder the right to purchase a company’s stock at a specific price before a certain date, often issued with bonds.
An amount deducted from an employee’s paycheck or payments to foreign entities for tax purposes, remitted directly to the government.
The degree of efficiency maintained by firms under conditions of imperfect competition, focusing on resource utilization and cost management.
A method of calculating the annualized return on an investment with multiple cash flows occurring at irregular intervals.
The amount of capital that exceeds the minimum required to meet obligations or regulatory standards, often used for growth opportunities.
The exchange rate between two currencies, calculated based on their respective exchange rates against a third currency, typically the U.S. dollar.
A currency that is held or traded outside of its country of origin, often used in international finance and trade.
The income generated from an investment, typically expressed as a percentage of the investment’s cost or market value, indicating profitability.
A period starting from the beginning of the current year and continuing up to the present date, often used for financial reporting.
A term referring to the Government Accountability Office’s publication on government auditing standards, guiding financial audits in the public sector.
A graph that plots the interest rates of bonds with different maturities, used to understand the relationship between short-term and long-term rates.
A general term referring to personal finance management, focusing on budgeting, saving, and investing to grow one’s financial resources.
A debt security that does not pay periodic interest but is sold at a discount to its face value, maturing at par value, providing a return at maturity.
A statistical measure that quantifies a company’s credit risk by evaluating its financial ratios and predicting bankruptcy likelihood.
The process of dividing land into zones for different uses, impacting real estate values and development opportunities.
A term often used to describe the peak or highest point of an investment or business cycle, indicating optimal performance or value.
A budgeting approach where every expense must be justified for each new period, ensuring that all costs are aligned with current priorities and goals.
