Finance vocabulary list with definitions

Finance: Finance is defined as the management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting.

Finance vocabulary with definition and example

Asset
Meaning: Any resource owned by an individual or organization that is expected to provide future economic benefits.
Example: The company’s assets include real estate, equipment, and cash reserves.

Balance Sheet
Meaning: A financial statement that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time.
Example: The balance sheet shows the company’s financial position as of December 31.

Bankruptcy
Meaning: A legal process in which a person or business declares the inability to pay outstanding debts.
Example: The retailer filed for bankruptcy after accumulating significant debt.

Bond
Meaning: A fixed income instrument representing a loan made by an investor to a borrower, typically corporate or governmental.
Example: She invested in government bonds for a stable return.

Budget
Meaning: An estimate of income and expenditure for a set period.
Example: We need to create a budget to manage our household expenses better.

Capital
Meaning: Wealth in the form of money or assets, used to invest in a business.
Example: The company raised capital through a new share issue.

Cash Flow
Meaning: The total amount of money being transferred in and out of a business.
Example: Maintaining positive cash flow is essential for the company’s operations.

Collateral
Meaning: An asset that a borrower offers as a way for a lender to secure the loan.
Example: She used her car as collateral for the loan.

Credit
Meaning: The ability to borrow money or access goods or services with the understanding that you’ll pay later.
Example: He has a good credit score, allowing him to get a low-interest rate on his mortgage.

Debt
Meaning: An amount of money borrowed by one party from another.
Example: The company is struggling to manage its debt.

Dividend
Meaning: A portion of a company’s earnings distributed to shareholders.
Example: Shareholders received a quarterly dividend of $1.50 per share.

Equity
Meaning: The value of an owner’s interest in an asset, after deducting liabilities.
Example: The homeowner’s equity increased as they paid down the mortgage.

Expense
Meaning: The cost required for something; the money spent on something.
Example: Office supplies are a common business expense.

Financial Statement
Meaning: A formal record of the financial activities and position of a business, person, or other entity.
Example: The financial statement includes the balance sheet, income statement, and cash flow statement.

Fiscal Year
Meaning: A year as reckoned for taxing or accounting purposes.
Example: The company’s fiscal year ends in March.

Income
Meaning: Money received, especially on a regular basis, for work or through investments.
Example: His annual income is derived from his salary and investments.

Interest
Meaning: The cost of borrowing money, usually expressed as a percentage of the amount borrowed.
Example: The interest rate on her student loan is 5%.

Investment
Meaning: The action or process of investing money for profit or material result.
Example: Real estate investment can be very profitable over time.

Liability
Meaning: A company’s legal financial debts or obligations that arise during business operations.
Example: The company’s liabilities include loans and accounts payable.

Loan
Meaning: A sum of money that is expected to be paid back with interest.
Example: He took out a loan to buy a new car.

Market
Meaning: A medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange.
Example: The stock market was volatile last week.

Mortgage
Meaning: A loan used to purchase or maintain a home, land, or other types of real estate.
Example: They are paying off their mortgage over 30 years.

Net Worth
Meaning: The total assets minus total outside liabilities of an individual or a company.
Example: His net worth increased after his business became profitable.

Profit
Meaning: Financial gain, especially the difference between the amount earned and the amount spent.
Example: The company reported a profit of $2 million last quarter.

Revenue
Meaning: The income generated from normal business operations.
Example: The company’s revenue grew by 10% compared to last year.

Risk
Meaning: The possibility of loss or injury.
Example: Investing in stocks carries a higher risk than bonds.

Savings
Meaning: Money that has been saved, especially through a bank or official scheme.
Example: She transferred part of her salary into her savings account every month.

Share
Meaning: A unit of ownership interest in a corporation or financial asset.
Example: He bought 100 shares of the tech company.

Stock
Meaning: A type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.
Example: She invests in stocks to build her retirement fund.

Tax
Meaning: A compulsory financial charge imposed by a government to fund various public expenditures.
Example: The government increased the income tax rate.

Transaction
Meaning: An instance of buying or selling something; a business deal.
Example: The bank recorded the transaction in his account.

Treasury
Meaning: The funds or revenue of a state, institution, or society.
Example: The company’s treasury is managed by the CFO.

Valuation
Meaning: The process of determining the current worth of an asset or a company.
Example: The property valuation was higher than expected.

Yield
Meaning: The income return on an investment.
Example: The bond’s yield is 3% annually.

Audit
Meaning: An official inspection of an organization’s accounts, typically by an independent body.
Example: The company passed its annual financial audit.

Hedge
Meaning: An investment to reduce the risk of adverse price movements in an asset.
Example: Investors use hedging strategies to protect their portfolios.

Inflation
Meaning: A general increase in prices and fall in the purchasing value of money.
Example: Inflation eroded the purchasing power of his savings.

Liquidity
Meaning: The availability of liquid assets to a market or company.
Example: The bank has sufficient liquidity to cover its obligations.

Portfolio
Meaning: A range of investments held by a person or organization.
Example: Her investment portfolio includes stocks, bonds, and real estate.

Recession
Meaning: A period of temporary economic decline during which trade and industrial activity are reduced.
Example: The country is facing a severe recession due to the pandemic.

Account
Meaning: A record or statement of financial expenditure or receipts relating to a particular period or purpose.
Example: She opened a new savings account at the bank.

Accounting
Meaning: The process of recording financial transactions pertaining to a business.
Example: He works in the accounting department of a large firm.

Accrue
Meaning: To accumulate or receive (payments or benefits) over time.
Example: Interest will accrue on the account until it is paid off.

Accumulate
Meaning: To gather together or acquire an increasing number or quantity of.
Example: He accumulated a significant amount of debt over the years.

Acquisition
Meaning: An asset or object bought or obtained.
Example: The company announced the acquisition of a smaller rival.

Activity
Meaning: A situation in which many things are happening or being done.
Example: There was a lot of trading activity on the stock market today.

Adjustable
Meaning: Able to be changed or adjusted to meet different conditions or needs.
Example: They opted for an adjustable-rate mortgage.

Adjustment
Meaning: A small alteration or movement made to achieve a desired fit, appearance, or result.
Example: He made a few adjustments to his investment strategy.

Amex
Meaning: Abbreviation for American Stock Exchange.
Example: The company’s stock is listed on Amex.

Amortization
Meaning: The process of paying off a debt with a fixed repayment schedule in regular installments over time.
Example: The mortgage amortization schedule spans 30 years.

And
Meaning: Used to connect words of the same part of speech, clauses, or sentences.
Example: The company sells products and services.

Annual
Meaning: Occurring once every year.
Example: They hold an annual general meeting for shareholders.

Annuity
Meaning: A fixed sum of money paid to someone each year, typically for the rest of their life.
Example: She invested in an annuity to provide a steady income during retirement.

Appraisal
Meaning: An expert estimate of the value of something.
Example: They ordered an appraisal of the property before making an offer.

Arbitrage
Meaning: The simultaneous buying and selling of securities, currency, or commodities in different markets to take advantage of differing prices for the same asset.
Example: Traders use arbitrage to profit from price discrepancies.

Arrangement
Meaning: A plan or preparation for a future event.
Example: They made arrangements for the loan repayment.

Arrear
Meaning: Money that is owed and should have been paid earlier.
Example: The company is in arrears with its loan payments.

Authentic
Meaning: Genuine; real.
Example: The appraiser confirmed the painting is authentic.

Authorization
Meaning: The action or fact of authorizing or being authorized.
Example: He received authorization to approve the budget.

Automated
Meaning: Operated by largely automatic equipment.
Example: The company uses automated systems to process transactions.

Average
Meaning: A number expressing the central or typical value in a set of data.
Example: The average return on investment is 7%.

Averaging
Meaning: The process of calculating the average of multiple values.
Example: Dollar-cost averaging helps reduce investment risk.

Balance
Meaning: An even distribution of weight enabling someone or something to remain upright and steady.
Example: She checks the balance of her bank account regularly.

Balloon
Meaning: To increase rapidly.
Example: The loan has a balloon payment due at the end of the term.

Bank
Meaning: A financial institution licensed to receive deposits and make loans.
Example: He works as a manager at a local bank.

Bankrupt
Meaning: Declared in law unable to pay outstanding debts.
Example: The company went bankrupt after failing to secure funding.

Barter
Meaning: Exchange goods or services for other goods or services without using money.
Example: They bartered goods in the market instead of using cash.

Bear
Meaning: A person who believes that stock prices will decline.
Example: The bear investors were proven right when the market fell.

Beneficiary
Meaning: A person who derives advantage from something, especially a trust, will, or life insurance policy.
Example: She is the beneficiary of her late husband’s life insurance policy.

Bid
Meaning: An offer made by an investor, trader, or dealer to buy a security.
Example: His bid for the shares was accepted.

Bill
Meaning: A statement of money owed for goods or services supplied.
Example: She received a bill for the medical services provided.

Blue
Meaning: High-quality or well-regarded in its class.
Example: Blue-chip stocks are considered safe investments.

Bracket
Meaning: A range of incomes with a corresponding tax rate.
Example: He falls into a higher tax bracket due to his increased income.

Broker
Meaning: An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.
Example: She works as a stockbroker in New York.

Brokerage
Meaning: The business or service of acting as a broker.
Example: He opened a brokerage account to start investing.

Bull
Meaning: A person who believes that stock prices will rise.
Example: The bulls were optimistic about the market’s future.

Buy
Meaning: To acquire in exchange for payment.
Example: He decided to buy more shares of the company.

Buying
Meaning: The act of purchasing something.
Example: There was a lot of buying activity in the market today.

Calculation
Meaning: The process of using mathematics to find an answer.
Example: He made a quick calculation of his monthly expenses.

Call
Meaning: An option contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying security at a specified price within a specified time.
Example: He bought a call option on the stock, betting it would rise.

Cartel
Meaning: An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.
Example: The oil cartel agreed to cut production to boost prices.

Cashier
Meaning: A person handling payments and receipts in a store, bank, or other business.
Example: The cashier at the grocery store was very efficient.

Certificate
Meaning: An official document attesting a certain fact, in particular.
Example: She received a certificate of deposit from the bank.

Certified
Meaning: Officially recognized as possessing certain qualifications or meeting certain standards.
Example: He is a certified public accountant.

Chart
Meaning: A sheet of information in the form of a table, graph, or diagram.
Example: The stock’s price movements were plotted on a chart.

Chip
Meaning: A small piece of something removed in the course of chopping, cutting, or breaking a hard material.
Example: Blue-chip stocks are considered stable and secure investments.

Churn
Meaning: The rate at which customers stop doing business with an entity.
Example: The company has a high customer churn rate.

Circulation
Meaning: The movement of money within an economy.
Example: The government took steps to increase the circulation of currency.

Clearing
Meaning: The process of settling transactions between buyers and sellers of financial instruments.
Example: The clearing of transactions ensures that trades are completed smoothly.

Collect
Meaning: To bring or gather together.
Example: The company collects payments from its customers monthly.

Commission
Meaning: A fee paid to an agent or employee for transacting a piece of business or performing a service.
Example: The broker earned a commission on the sale of the stocks.

Commodity
Meaning: A raw material or primary agricultural product that can be bought and sold.
Example: Oil is a widely traded commodity.

Common
Meaning: Occurring, found, or done often; prevalent.
Example: Common stocks represent ownership in a company.

Compensation
Meaning: Something, typically money, awarded to someone as a recompense for loss, injury, or suffering.
Example: He received compensation for the damages to his property.

Competitor
Meaning: A person, team, or company that competes against others.
Example: The company is facing stiff competition from its competitors.

Compound
Meaning: Made up or consisting of several parts or elements.
Example: Compound interest can significantly increase your savings over time.

Conglomerate
Meaning: A corporation that is made up of a number of different, seemingly unrelated businesses.
Example: The multinational conglomerate has operations in various industries.

Consolidation
Meaning: The action or process of making something stronger or more solid.
Example: The company announced the consolidation of its various subsidiaries.

Consortium
Meaning: An association of several companies for a common purpose.
Example: The consortium of banks provided a large loan to the corporation.

Consumer
Meaning: A person who purchases goods and services for personal use.
Example: The consumer market drives the economy through spending on goods and services.

Convertible
Meaning: A type of security that can be converted into another form, such as convertible bonds into stocks.
Example: He invested in convertible bonds that can be exchanged for company shares.

Correction
Meaning: A decline in the market or stock price after a period of rising prices, often seen as a healthy adjustment.
Example: The stock market experienced a correction after reaching an all-time high.

Cost
Meaning: The amount that needs to be paid or spent to buy or obtain something.
Example: The cost of living in the city has risen significantly.

Counter
Meaning: A level or structure on which transactions occur; also, in finance, it refers to measures or actions taken to balance or mitigate risks.
Example: The company took counter measures to hedge against currency fluctuations.

Countersign
Meaning: To sign a document that has already been signed by another person, as a form of verification.
Example: The manager was required to countersign the check to authorize the payment.

Currency
Meaning: A system of money in general use in a particular country.
Example: The exchange rate between the US dollar and the euro fluctuates daily.

Custodian
Meaning: A financial institution that holds and safeguards securities for an investor.
Example: The bank acted as a custodian for the investor’s assets.

Deal
Meaning: An agreement entered into by two or more parties for their mutual benefit.
Example: They closed a major deal to acquire a new technology company.

Debenture
Meaning: A type of debt instrument that is not secured by physical assets or collateral.
Example: The company issued debentures to raise capital for expansion.

Debit
Meaning: An entry recording an amount owed, listed on the left-hand side or column of an account.
Example: She debited $500 from her bank account to pay the rent.

Deductible
Meaning: The amount paid out of pocket by the policyholder before an insurance provider will pay any expenses.
Example: His health insurance has a high deductible but lower monthly premiums.

Deduction
Meaning: An amount that is subtracted from something, especially as an allowance against tax or income.
Example: She claimed a tax deduction for her charitable donations.

Default
Meaning: Failure to fulfill an obligation, especially to repay a loan or appear in a court of law.
Example: The company defaulted on its loan payments during the recession.

Delinquency
Meaning: Minor crime, especially that committed by young people; in finance, it refers to overdue payments.
Example: His account showed several months of delinquency.

Demand
Meaning: Consumer willingness and ability to buy products; also the quantity of a good that buyers are willing and able to purchase.
Example: The demand for electric cars has increased significantly.

Depository
Meaning: A place where something is deposited, especially for safekeeping.
Example: The bank acts as a depository for savings and securities.

Depreciation
Meaning: A reduction in the value of an asset over time, particularly due to wear and tear.
Example: The company calculated depreciation on its equipment annually.

Depression
Meaning: A severe and prolonged downturn in economic activity.
Example: The Great Depression of the 1930s had a lasting impact on global economies.

Deregulation
Meaning: The removal or simplification of government rules and regulations that constrain the operation of market forces.
Example: The deregulation of the airline industry led to increased competition and lower fares.

Designation
Meaning: The action of choosing someone to hold an office or post.
Example: His official designation is Chief Financial Officer.

Devaluation
Meaning: A reduction in the value of a currency with respect to other monetary units.
Example: The devaluation of the currency made exports more competitive.

Differential
Meaning: A difference in any rate or amount, such as interest rates or prices.
Example: The interest rate differential between the two countries influenced exchange rates.

Discount
Meaning: A deduction from the usual cost of something.
Example: The store offered a 20% discount on all items during the sale.

Discretionary
Meaning: Available for use at the discretion of the user, typically referring to spending or actions.
Example: Discretionary income is what remains after paying for necessities.

Distribution
Meaning: The action of sharing something out among a number of recipients.
Example: The company planned the distribution of dividends to its shareholders.

Diversify
Meaning: To spread investment risk by allocating funds across different financial instruments, industries, or other categories.
Example: She diversified her portfolio by investing in stocks, bonds, and real estate.

Dow
Meaning: Refers to the Dow Jones Industrial Average, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.
Example: The Dow closed at a record high yesterday.

Downturn
Meaning: A decline in economic, business, or other activity.
Example: The economic downturn resulted in higher unemployment rates.

Draft
Meaning: A preliminary version of a piece of writing or a plan; in finance, a written order to pay a specified sum.
Example: He prepared a draft of the business proposal for review.

Driven
Meaning: Operated, moved, or controlled by a specified person or source of power.
Example: The company’s success is driven by innovative technology.

Dump
Meaning: To sell off assets rapidly, often at a loss, typically in large quantities.
Example: Investors began to dump their stocks amid fears of a recession.

Earn
Meaning: To receive money as payment for work that you do.
Example: She earns a salary of $50,000 per year.

Economy
Meaning: The system of production and distribution and consumption of goods and services in a society.
Example: The global economy is recovering from the impacts of the pandemic.

Electronic
Meaning: Relating to devices or systems that operate using electrical signals.
Example: Most banking transactions are now conducted electronically.

Elimination
Meaning: The complete removal or destruction of something.
Example: The elimination of unnecessary costs helped improve the company’s profitability.

Embezzlement
Meaning: Theft or misappropriation of funds placed in one’s trust or belonging to one’s employer.
Example: The accountant was fired for embezzlement of company funds.

Employee
Meaning: A person employed for wages or salary, especially at a non-executive level.
Example: The company hired 50 new employees this year.

Endorse
Meaning: To sign the back of a check or bill of exchange to make it payable to someone other than the stated payee.
Example: He endorsed the check to transfer it to his business partner.

Enterprise
Meaning: A business or company.
Example: She started a new enterprise focused on renewable energy.

Entity
Meaning: Something that exists independently, especially a business organization.
Example: Each subsidiary operates as a separate legal entity.

Escrow
Meaning: A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.
Example: The funds are held in escrow until all conditions of the sale are met.

Estimation
Meaning: A rough calculation of the value, number, quantity, or extent of something.
Example: The estimation of costs was higher than initially expected.

Evaluation
Meaning: The making of a judgment about the amount, number, or value of something; assessment.
Example: The evaluation of the project’s feasibility is underway.

Exceed
Meaning: To go beyond the limits or expectations.
Example: The company’s profits exceed expectations for the third quarter.

Exchange
Meaning: An act of giving one thing and receiving another in return.
Example: They agreed to an exchange of goods and services.

Exorbitant
Meaning: Unreasonably high or excessive.
Example: The bank charged an exorbitant fee for international transfers.

Expectation
Meaning: A strong belief that something will happen or be the case in the future.
Example: There is a high expectation of success for the new product launch.

Extortion
Meaning: The practice of obtaining something, especially money, through force or threats.
Example: The company fell victim to extortion by cybercriminals.

Failure
Meaning: Lack of success in doing or achieving something.
Example: The business faced failure after the market demand plummeted.

Falling
Meaning: Moving from a higher to a lower level, typically quickly and without control.
Example: The falling prices in the housing market benefited first-time buyers.

Federal
Meaning: Relating to the central government.
Example: Federal regulations require banks to maintain certain reserve levels.

Fee
Meaning: A payment made to a professional person or to a professional or public body in exchange for advice or services.
Example: The lawyer’s fee was quite substantial.

Fiduciary
Meaning: Involving trust, especially with regard to the relationship between a trustee and a beneficiary.
Example: The financial advisor has a fiduciary responsibility to act in the client’s best interest.

Finance
Meaning: The management of large amounts of money, especially by governments or large companies.
Example: He studied finance in college to become an investment banker.

Fiscal
Meaning: Relating to government revenue, especially taxes.
Example: The fiscal policy aimed at reducing the national deficit.

Fixed
Meaning: Fastened securely in position; also refers to investments that pay a fixed rate of return.
Example: They invested in fixed-income securities to ensure a stable return.

Float
Meaning: The process of a company selling shares to the public for the first time; also, the amount of currency available in an economy.
Example: The company decided to float its shares on the stock exchange.

Foreclosure
Meaning: The action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments.
Example: The bank initiated foreclosure proceedings after the homeowner defaulted on the loan.

Forfeiture
Meaning: The loss or giving up of something as a penalty for wrongdoing.
Example: He faced the forfeiture of his deposit after breaking the lease agreement.

Frugality
Meaning: The quality of being economical with money or food; thriftiness.
Example: Her frugality allowed her to save a significant portion of her income.

Fulfillment
Meaning: The achievement of something desired, promised, or predicted.
Example: The fulfillment of the order took longer than expected due to supply chain issues.

Fund
Meaning: A sum of money saved or made available for a particular purpose.
Example: He started a fund to support small businesses in his community.

Future
Meaning: A financial contract obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.
Example: They invested in futures contracts to hedge against price volatility.

Gain
Meaning: An increase in wealth or resources.
Example: The investment showed a significant gain over the past year.

GDP
Meaning: Gross Domestic Product, a measure of a country’s economic performance.
Example: The country’s GDP grew by 3% last quarter.

Gold
Meaning: A precious yellow metal used as a form of currency and investment.
Example: Investors often buy gold as a hedge against inflation.

Government
Meaning: The governing body of a nation, state, or community.
Example: The government implemented new economic policies to stimulate growth.

Growth
Meaning: The process of increasing in size, number, value, or strength.
Example: The company’s growth strategy focuses on expanding into new markets.

Guarantee
Meaning: A formal promise or assurance that certain conditions will be fulfilled.
Example: The manufacturer offered a guarantee on all their products.

Guaranty
Meaning: An agreement to assume the responsibility for the debt obligation of a borrower if that borrower defaults.
Example: He signed a guaranty for his friend’s business loan.

Hiring
Meaning: The act of giving someone a job.
Example: The company is hiring new employees for its expanding operations.

Identification
Meaning: The action or process of identifying someone or something or the fact of being identified.
Example: The bank required identification before opening a new account.

Illegal
Meaning: Contrary to or forbidden by law.
Example: Insider trading is considered illegal and punishable by law.

Imprint
Meaning: A mark made by pressing something onto a softer substance so that its outline is reproduced.
Example: The company’s logo was imprinted on all their official documents.

Index
Meaning: An indicator or measure of something.
Example: The stock market index rose by 2% today.

Industrial
Meaning: Relating to or characterized by industry.
Example: The industrial sector has seen significant growth in recent years.

Inflated
Meaning: Excessively or unreasonably high.
Example: The inflated prices of housing have made it difficult for many to buy a home.

Information
Meaning: Facts provided or learned about something or someone.
Example: Accurate information is crucial for making informed investment decisions.

Insider
Meaning: A person within a group or organization, especially someone privy to information unavailable to others.
Example: Insider trading involves trading based on confidential information.

Insolvent
Meaning: Unable to pay debts owed.
Example: The company was declared insolvent and had to file for bankruptcy.

Installment
Meaning: A sum of money due as one of several equal payments for something, spread over an agreed period of time.
Example: He paid for the car in monthly installments.

Institution
Meaning: An organization founded for a religious, educational, professional, or social purpose.
Example: The financial institution offers various investment products to its clients.

Institutional
Meaning: Relating to a large organization or an established system or practice.
Example: Institutional investors hold large quantities of securities for investment purposes.

Insufficient
Meaning: Not enough; inadequate.
Example: There were insufficient funds in the account to cover the transaction.

Intangible
Meaning: Unable to be touched or grasped; not having a physical presence.
Example: Goodwill is considered an intangible asset on the balance sheet.

Intermediary
Meaning: A person who acts as a link between people in order to try and bring about an agreement or reconciliation.
Example: Brokers act as intermediaries between buyers and sellers in the stock market.

Intervention
Meaning: The action or process of intervening.
Example: Government intervention helped stabilize the economy during the crisis.

Invalidate
Meaning: To make an argument, statement, or theory unsound or erroneous.
Example: The discovery of new evidence may invalidate the previous assumptions.

IRA
Meaning: Individual Retirement Account, a savings account with tax advantages that individuals can use to save and invest long-term.
Example: He contributes to his IRA every month to save for retirement.

Issue
Meaning: The action of supplying or distributing something, especially for official purposes.
Example: The company will issue new shares to raise capital.

Joint
Meaning: Shared, held, or made by two or more people together.
Example: They opened a joint bank account for their shared expenses.

Jones
Meaning: Refers to the Dow Jones Industrial Average, an index that tracks 30 large publicly-owned companies trading on the New York Stock Exchange (NYSE) and the NASDAQ.
Example: The Dow Jones rose by 150 points today.

Junk
Meaning: High-risk, high-yield bonds issued by companies with lower credit ratings.
Example: Investors were cautious about purchasing junk bonds due to their volatility.

Kit
Meaning: A set of articles or equipment needed for a specific purpose.
Example: The investor’s starter kit included basic financial instruments and guides.

Laundering
Meaning: The process of concealing the origins of money obtained illegally, typically by means of transfers involving foreign banks or legitimate businesses.
Example: He was arrested for laundering money through multiple shell companies.

Lending
Meaning: The act of giving money on the condition that it is paid back later.
Example: The bank specializes in lending to small and medium-sized enterprises.

Leverage
Meaning: The use of borrowed money to supplement existing funds for investment purposes.
Example: The company used leverage to finance its expansion.

Lien
Meaning: A right to keep possession of property belonging to another person until a debt owed by that person is discharged.
Example: The bank has a lien on the property until the mortgage is paid off.

Long term
Meaning: A period of time typically extending beyond one year.
Example: Long-term investments are essential for securing a stable financial future.

Lot
Meaning: A collection of a set number of securities that are traded together.
Example: He bought a lot of 100 shares in the technology company.

Low
Meaning: A price or value that is less than the usual or expected level.
Example: The stock hit a 52-week low amid market volatility.

Lucrative
Meaning: Producing a great deal of profit.
Example: The new business venture proved to be extremely lucrative.

Maintain
Meaning: To keep in an existing state or continue without changing.
Example: The company aims to maintain its market share despite increased competition.

Margin
Meaning: The difference between the cost of producing something and the price at which it is sold.
Example: The profit margin on luxury goods is often higher than on basic items.

Maturity
Meaning: The time at which a financial instrument or investment becomes due for payment.
Example: The bond will reach maturity in five years.

Member
Meaning: An individual or organization that belongs to a group or an association.
Example: He is a member of the local chamber of commerce.

Mercantile
Meaning: Relating to trade or commerce.
Example: The mercantile laws regulate trade practices within the region.

Merger
Meaning: The combination of two or more companies into one.
Example: The merger of the two banks created one of the largest financial institutions in the country.

Money
Meaning: A medium of exchange in the form of coins and banknotes.
Example: Saving money is important for future financial security.

Monopoly
Meaning: The exclusive possession or control of the supply or trade in a commodity or service.
Example: The company was accused of holding a monopoly in the telecommunications market.

Municipal
Meaning: Relating to a city or town or its governing body.
Example: Municipal bonds are issued by local governments to finance public projects.

Mutual
Meaning: Shared by two or more parties.
Example: They agreed to a mutual decision that benefited both companies.

Negotiable
Meaning: Open to discussion or modification.
Example: The terms of the contract are negotiable.

Note
Meaning: A financial instrument that represents a promise to pay a certain amount of money at a future date.
Example: The company issued a promissory note to secure the loan.

Obligation
Meaning: A legal or moral responsibility or duty.
Example: The company has an obligation to repay its debts.

Odd
Meaning: Referring to numbers not divisible by two; also, unusual or unexpected in finance.
Example: They bought an odd lot of 37 shares.

Operation
Meaning: The functioning or work of a business or organization.
Example: The daily operations of the factory run smoothly.

Option
Meaning: A contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.
Example: He purchased a call option to buy shares at a lower price.

Over
Meaning: Above a certain level or more than something else.
Example: The stock price increased over the course of the year.

Overcompensate
Meaning: To pay more than what is necessary or justified.
Example: He tends to overcompensate for his lack of experience with extra effort.

Oversight
Meaning: The action of overseeing something.
Example: The regulatory agency provides oversight for financial markets.

Ownership
Meaning: The act, state, or right of possessing something.
Example: He transferred ownership of the property to his daughter.

Par
Meaning: The face value of a bond or stock as stated by the issuer.
Example: The bond is currently trading above par.

Payment
Meaning: The action or process of paying someone or something or of being paid.
Example: The final payment for the car is due next month.

Peak
Meaning: The highest point, value, or level of something.
Example: The market reached its peak before starting to decline.

Penalty
Meaning: A punishment imposed for breaking a law, rule, or contract.
Example: The company faced a penalty for violating environmental regulations.

Percent
Meaning: A part or share of the whole, expressed as a fraction of 100.
Example: The interest rate on the loan is 5 percent.

Plan
Meaning: A detailed proposal for doing or achieving something.
Example: The company unveiled its strategic plan for the next five years.

Planning
Meaning: The process of making plans for something.
Example: Financial planning is crucial for retirement security.

Pledge
Meaning: A solemn promise or agreement to do or refrain from doing something.
Example: He made a pledge to donate a portion of his profits to charity.

Point
Meaning: A unit of measurement used in finance, often referring to interest rates or changes in stock prices.
Example: The stock market gained 100 points today.

Practice
Meaning: The actual application or use of an idea, belief, or method.
Example: The company follows sustainable business practices.

Predetermine
Meaning: To decide or establish something in advance.
Example: The terms of the contract were predetermined before the meeting.

Preferred
Meaning: Referring to a type of stock that has a fixed dividend and priority over common stock in the event of liquidation.
Example: Investors often choose preferred stock for its steady dividends.

Premium
Meaning: An amount paid periodically to the insurer by the insured for covering their risk; also, an additional amount above the normal price.
Example: She pays a monthly premium for her health insurance.

Prepayment
Meaning: The settlement of a debt or installment payment before its official due date.
Example: He made a prepayment on his mortgage to reduce the principal.

Price
Meaning: The amount of money expected, required, or given in payment for something.
Example: The price of oil has been fluctuating recently.

Principal
Meaning: The original sum of money borrowed in a loan, or put into an investment, as distinct from interest or profit.
Example: He paid off the principal of his loan over five years.

Product
Meaning: An article or substance that is manufactured or refined for sale.
Example: The company launched a new product line this quarter.

Progressive
Meaning: Happening or developing gradually or in stages.
Example: The company has a progressive approach to employee training.

Promissory
Meaning: Containing or implying a promise to pay.
Example: He signed a promissory note agreeing to repay the loan.

Public
Meaning: Relating to or involving people in general.
Example: The company went public last year, offering shares to the general public.

Quality
Meaning: The standard of something as measured against other things of a similar kind; the degree of excellence of something.
Example: The quality of the product is reflected in its higher price.

Qualm
Meaning: An uneasy feeling of doubt, worry, or fear.
Example: He had no qualms about investing in the new venture.

Quantity
Meaning: The amount or number of a material or immaterial thing not usually estimated by spatial measurement.
Example: The company sold a large quantity of its products last month.

Questionable
Meaning: Doubtful as regards truth or quality.
Example: The company’s financial practices were deemed questionable by regulators.

Quick
Meaning: Happening with little or no delay.
Example: They made a quick decision to invest in the startup.

Quittance
Meaning: A release or discharge from a debt or obligation.
Example: He received a quittance from the bank after paying off his mortgage.

Quote
Meaning: To give someone the estimated price of a job or service.
Example: The contractor quoted a price for the renovation project.

Raid
Meaning: An attempt to take control of a company by buying a large number of its shares.
Example: The hostile raid on the company was thwarted by defensive measures.

Rally
Meaning: A period of sustained increases in the prices of stocks, bonds, or indexes.
Example: The market rally continued for the third consecutive week.

Ramification
Meaning: A consequence of an action or event, especially when complex or unwelcome.
Example: The new law has several economic ramifications for businesses.

Rate
Meaning: A measure, quantity, or frequency, typically one measured against another quantity or measure.
Example: The interest rate on the loan is 4%.

Ratio
Meaning: A relationship between two numbers indicating how many times the first number contains the second.
Example: The debt-to-equity ratio is used to evaluate a company’s financial leverage.

Record
Meaning: The highest or best level achieved in a particular area.
Example: The company reported record profits in 2023.

Recoup

Definition: To regain or recover (money spent or lost).
Example: The company hoped to recoup its losses through increased sales.

Recourse

Definition: The legal right to demand compensation or payment.
Example: Investors had no recourse when the company declared bankruptcy.

Redemption

Definition: The action of saving or being saved from sin, error, or evil; or the action of regaining or gaining possession of something in exchange for payment.
Example: The bond’s redemption date was set for next month.

Reduction

Definition: The action or fact of making something smaller or less in amount, degree, or size.
Example: The reduction in interest rates stimulated housing sales.

Regulation

Definition: A rule or directive made and maintained by an authority.
Example: Financial markets require strict regulation to ensure fairness and stability.

Reimburse

Definition: To repay (someone) for money spent or lost.
Example: The company reimbursed employees for travel expenses.

Reliability

Definition: The quality of being trustworthy or of performing consistently well.
Example: The reliability of the data is crucial for decision-making.

Reserve

Definition: An amount of something kept in store for future use.
Example: The central bank maintains large reserves of foreign currency.

Retirement

Definition: The action or fact of leaving one’s job and ceasing to work.
Example: She saved diligently for retirement throughout her career.

Rumor

Definition: A currently circulating story or report of uncertain or doubtful truth.
Example: Stock prices fluctuated due to rumors of a merger.

Sale

Definition: The exchange of a commodity for money; the action of selling something.
Example: The sale of company assets helped raise funds.

Saving

Definition: The money one has saved, especially through a bank or official scheme.
Example: Her savings allowed her to buy a new car.

Securities

Definition: Investments that can be traded on a financial market.
Example: Stocks and bonds are types of securities.

Select

Definition: To carefully choose as being the best or most suitable.
Example: They selected a diverse portfolio of investments.

Sell

Definition: To transfer goods or provide services in exchange for money.
Example: She decided to sell her shares in the company.

Selling

Definition: The action of selling something.
Example: The selling of the property generated significant profit.

Shelter

Definition: Protection from danger or risk.
Example: Real estate is often seen as a shelter for investment.

Short

Definition: The selling of borrowed securities or commodities with the intention of buying them back at a lower price.
Example: He took a short position on the stock anticipating a decline.

Shylock

Definition: A lender who charges excessive or exorbitant interest rates.
Example: They accused him of being a shylock for his predatory lending practices.

Slump

Definition: A sudden severe or prolonged fall in the price, value, or amount of something.
Example: The market experienced a slump due to economic uncertainties.

Solvency

Definition: The ability of a company to meet its long-term financial obligations.
Example: The solvency ratio indicated the company’s financial stability.

Speculate

Definition: To invest in stocks, property, or other ventures in the hope of gain but with the risk of loss.
Example: They speculated on the real estate market during the boom.

Speculative

Definition: Involving a high risk of loss; based on conjecture rather than knowledge.
Example: He made a speculative investment in a startup company.

Split

Definition: A division or separation.
Example: The company announced a stock split to increase liquidity.

Stagflation

Definition: A situation in which the inflation rate is high, economic growth rate slows, and unemployment remains high.
Example: The economy faced stagflation in the 1970s.

Subscription

Definition: The action of making an advance payment in order to receive or participate in something.
Example: He signed up for a subscription to the financial magazine.

Summary

Definition: A brief statement or account of the main points of something.
Example: The summary of the financial report highlighted key metrics.

Supply

Definition: The amount of a commodity, product, or service available and the desire of buyers for it.
Example: The supply of oil affects its market price.

Surety

Definition: A person who takes responsibility for another’s performance of an undertaking.
Example: He provided surety for his brother’s loan.

Surplus

Definition: An amount of something left over when requirements have been met.
Example: The surplus of goods led to lower prices.

Survivorship

Definition: The condition of having survived.
Example: Survivorship benefits were paid to the spouse after the pensioner’s death.

Swap

Definition: An agreement between two parties to exchange financial instruments or other assets.
Example: They entered into a currency swap to manage exchange rate risk.

Take over

Definition: To assume control or possession of something.
Example: The larger company decided to take over the smaller competitor.

Tape

Definition: The ticker tape or electronic display showing stock price movements.
Example: They monitored the tape for updates on their investments.

Taxes

Definition: Compulsory contributions to state revenue, levied by the government on workers’ income and business profits.
Example: He filed his taxes before the deadline.

Technical

Definition: Relating to a particular subject, art, or craft, or its techniques.
Example: Technical analysis helps predict market trends.

Tender

Definition: An offer to carry out work, supply goods, or buy land or another asset at a stated fixed price.
Example: They submitted a tender for the construction project.

Term

Definition: A fixed or limited period for which something, e.g., office, imprisonment, or investment, lasts or is intended to last.
Example: The loan has a term of ten years.

The

Definition: Referring to the Dow Jones Industrial Average, a widely followed indicator of the performance of the stock market.
Example: The Dow Jones closed at a record high today.

Thrift

Meaning: Careful management of money and resources; frugality.
Example: Her thrift allowed her to save enough for a down payment on a house.

Ticker

Meaning: A device or system that records financial information, especially stock market data.
Example: Investors watched the ticker for updates on their stock portfolio.

Trade

Meaning: The act or process of buying, selling, or exchanging goods or services.
Example: International trade agreements have boosted economic growth.

Trading

Meaning: The action or activity of buying and selling goods and services, especially on a large scale and between different places.
Example: He made a fortune through trading stocks on the New York Stock Exchange.

Transfer

Meaning: The action of moving something or someone from one place to another.
Example: The bank transfer was completed within minutes.

Transferable

Meaning: Capable of being transferred from one person or place to another.
Example: Stocks are transferable assets that can be sold or given as gifts.

Trend

Meaning: A general direction in which something is developing or changing.
Example: The current trend in the stock market is towards sustainable energy companies.

Uncollected

Meaning: Not collected or gathered.
Example: The uncollected debts posed a significant financial risk to the company.

Underwriter

Meaning: A person or firm that agrees to finance or insure something.
Example: The underwriter approved the loan for the new business venture.

Unit

Meaning: A single item or individual thing.
Example: The apartment complex was divided into rental units for tenants.

Unofficial

Meaning: Not formally authorized or recognized.
Example: He received unofficial notice of his promotion before the official announcement.

Unregulated

Meaning: Not subject to official rules or controls.
Example: The unregulated market allowed for rapid innovation but also posed risks.

Unsecured

Meaning: Not protected or guaranteed by collateral.
Example: An unsecured loan typically has a higher interest rate than a secured one.

Untaxed

Meaning: Not subject to taxation.
Example: The interest earned on municipal bonds is often untaxed at the federal level.

Usury

Meaning: The illegal action or practice of lending money at unreasonably high rates of interest.
Example: Laws protect consumers from usury by setting limits on interest rates.

Utilities

Meaning: Services provided to the public, such as electricity, water, and gas.
Example: The monthly utility bills include charges for electricity, water, and garbage collection.

Valuable

Meaning: Something that is worth a lot of money or is important.
Example: Gold is considered a valuable commodity due to its scarcity and high demand.

Value

Meaning: The monetary worth of something; the importance, worth, or usefulness of something.
Example: The antique vase had both historical value and sentimental value to the family.

Variable

Meaning: Something that is not consistent and can change.
Example: Variable interest rates fluctuate with market conditions, affecting monthly mortgage payments.

Vault

Meaning: A secure room or container used to store money or valuables.
Example: The bank’s vault was protected by multiple security measures to prevent unauthorized access.

Venture

Meaning: A business undertaking that involves risk but has potential for profit.
Example: Starting a new tech venture requires significant investment and market research.

Void

Meaning: Invalid or without legal force.
Example: The contract was declared void because it was signed under duress.

Voucher

Meaning: A document that serves as evidence of a transaction or payment.
Example: Employees submit travel vouchers to claim reimbursement for business expenses.

Wage

Meaning: Payment for work done, usually on an hourly, daily, or weekly basis.
Example: The company increased wages for its employees to retain skilled workers.

Warrant

Meaning: Authorization or legal document allowing something to be done, especially a search or arrest.
Example: The police obtained a search warrant to enter the suspect’s premises.