Vocabulary

• Asset – Anything of value owned by an individual or organization.
• Bankruptcy – Legal procedure for dealing with debt problems of individuals and businesses.
• Bonds – A debt investment where an investor loans money to an entity that borrows the funds for a defined period of time at a fixed interest rate.
• Budget – An estimate of income and expenditure for a set period of time.
• Capital – Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.
• Credit – The ability of a customer to obtain goods or services before payment based on the trust that payment will be made in the future.
• Credit Score – A number assigned to a person that indicates to lenders their capacity to repay a loan.
• Debt – Money that is owed or due.
• Dividend – A sum of money paid regularly by a company to its shareholders out of its profits.
• Equity – The value of the shares issued by a company.
• Financial Planner – A qualified investment professional who helps individuals and corporations meet their long-term financial objectives.
• Gross Income – The total income from all sources before taxes and other deductions.
• Hedge Fund – A limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains.
• Inflation – The rate at which the general level of prices for goods and services is rising.
• Interest – Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
• Investment – The action or process of investing money for profit or material result.
• Liability – A company's financial debt or obligations.
• Loan – A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
• Market Value – The amount for which something can be sold on a given market.
• Mutual Fund – An investment program funded by shareholders that trades in diversified holdings and is professionally managed.
• Net Worth – The total assets minus total outside liabilities of an individual or a company.
• Pension – A regular payment made during a person's retirement from an investment fund.
• Portfolio – A range of investments held by a person or organization.
• Profit – A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
• Recession – A period of temporary economic decline during which trade and industrial activity are reduced.
• Rental Income – Income received from renting a property out.
• Retirement – The action or fact of leaving one's job and ceasing to work.
• Risk – A situation involving exposure to danger in terms of investment.
• Savings – The money one has saved, especially through a bank or official scheme.
• Shares – One of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits.
• Stocks – The capital raised by a business or corporation through the issue and subscription of shares.
• Tax – A compulsory contribution to state revenue, levied by the government on workers' income and business profits.
• Treasury Bonds – Long-term, interest-bearing securities issued by the U.S. government.
• Venture Capital – Capital invested in a project in which there is a substantial element of risk, typically a new or expanding business.
• Yield – The income return on an investment, such as the interest or dividends received.
• Annuity – A fixed sum of money paid to someone each year, typically for the rest of their life.
• Capital Gain – A profit from the sale of property or an investment.
• Financial Advisor – A professional who provides financial services to clients based on their financial situation.
• Liquid Asset – An asset that can be converted into cash quickly and with minimal impact to the price received.
• Mortgage – A legal agreement by which a bank lends money at interest in exchange for taking title of the debtor's property.
• Premium – An amount to be paid for a contract of insurance.
• Real Estate – Property consisting of land or buildings.
• Securities – Tradable financial assets such as bonds, equities, or derivatives.
• Trust – A fiduciary relationship in which one party holds property for the benefit of another.
• Depreciation – A reduction in the value of an asset over time, due in particular to wear and tear.
• Diversification – The process of allocating capital in a way that reduces the exposure to any one particular asset or risk.
• Exchange Rate – The value of one currency for the purpose of conversion to another.
• Fixed Income – A type of investing or budgeting style for which real return rates or periodic income is received at regular intervals and at reasonably predictable levels.
• Leverage – The use of borrowed money to increase the potential return of an investment.
• ROI (Return on Investment) – A performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.