Top common and basic financial terms list [A-Z]
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Financial terms are the most important part of finance and businesses that help to understand, estimate and implement strategy, planning, and funding into any business. It’s a beginning rule of any business course like MBA, MFM, MMS, MMM, marketing, supply chain, business administration, management information systems, etc. listed below common and basic important financial terms. Start to understand your business journey now.
Top financial terms to understand and implement in business for success
A
Assets
Annual report
Accounts payable
Accounts receivable
Amortization
Arbitrage
Annual percentage rate (APR)
Accrual accounting
Audit
Angel investor
Agent bank
Ask price
Asset allocation
Average cost
Alpha
Alternative investments
Allowance for doubtful accounts
Adjusted gross income (AGI)
Authorized shares
Auction market
Annuity
Average daily trading volume
Automatic stay
All-or-none order
At-the-market order
American Depositary Receipt (ADR)
Asset-backed security
Acid-test ratio
Accumulated depreciation
After-hours trading
B
Balance sheet
Bonds
Bull market
Budget
Bankruptcy
Basis point
Blue chip stocks
Brokerage account
Bear market
Book value
Black-Scholes model
Beta
Bond rating
Back-end load
Business cycle
Bad debt
Break-even point
Block trade
Buy limit order
Bid-ask spread
Business valuation
Broker
Business plan
Bridge financing
Bank statement
Bookkeeping
Beneficiary
Business expense
Basis risk
Bullish
C
Cash flow
Capital
Credit
Currency
Collateral
Commodity
Corporate bonds
Cost of goods sold (COGS)
Capital gains
Credit rating
Capital market
Current assets
Coupon rate
Capital expenditure
Capitalization
Cost of capital
Certificate of deposit (CD)
Consolidation
Call option
Contingent liability
Cash management
Creditor
Conversion ratio
Current liabilities
Cash equivalents
Clearinghouse
Credit risk
Compound interest
Capital structure
Carry trade
D
Debt
Dividend
Depreciation
Derivative
Dow Jones Industrial Average (DJIA)
Default
Discount rate
Due diligence
Direct deposit
Divestment
Deflation
Dividend yield
Day trading
Dividend payout ratio
Debt-to-equity ratio
Discounted cash flow (DCF)
Dilution
Debenture
Debt service
Dividend reinvestment plan (DRIP)
Drawdown
Duration
Debt consolidation
Direct costs
Dead cat bounce
Debt securities
Debt-to-income ratio
Depository
Discretionary income
Derivative market
E
Equity
Exchange rate
Earnings per share (EPS)
Expenses
Ex-dividend
Efficient market hypothesis (EMH)
Economic indicators
Eurobond
Escrow
Equity capital
Exchange-traded fund (ETF)
External audit
Expiration date
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Employee stock option plan (ESOP)
Equity financing
Exchange
Earnings yield
Economic recession
E-mini
Excess return
Expected return
Equity research
Eurocurrency
Exchange rate risk
Expense ratio
Earnings announcement
Equity market
Equity value
Exponential moving average (EMA)
F
Financial statement
Fixed income
Futures
Face value
Federal Reserve
Foreign exchange (Forex)
Free cash flow
Fair value
Financial leverage
Float
Fiscal year
Fund manager
Fundamental analysis
Forward contract
Fixed assets
Franchise
Financing
Financial institution
Fiscal policy
Fill or kill
Fair market value
Floor trader
Fiduciary
Financial ratio
Full-service broker
Forward rate
Front-end load
Frictional unemployment
Financial planner
Financial risk
G
Gross profit
Goodwill
General ledger
Government bond
Gross domestic product (GDP)
Growth stock
Gross margin
Grant
Going public
Golden parachute
Green bonds
Guaranteed investment certificate (GIC)
General partner
Gross income
Good faith estimate
Group life insurance
Gross settlement
Globalization
Group insurance
General and administrative expenses (G&A)
Gilt-edged securities
Growth rate
General obligation bond
General meeting
Good faith violation
Gross rent multiplier
Global macro strategy
Gross operating profit
Government-sponsored enterprise (GSE)
Guaranteed return
H
Hedge fund
Holding period
Home equity
High-yield bond
Hypothetical performance
Hard asset
Hedging
Holding company
Historical cost
Human capital
Horizontal merger
Hidden costs
Holding period return
Homeowners insurance
Hybrid security
Hyperinflation
High-frequency trading
Head and shoulders pattern
Holding period yield
Health savings account (HSA)
High-net-worth individual (HNWI)
Hot IPO
Haircut (finance)
Hurdle rate
Home equity loan
High watermark
Hostile takeover
Hazard insurance
Home office deduction
Herd mentality
I
Inflation
Index
Interest
Initial public offering (IPO)
Investment
Income statement
Insider trading
Intrinsic value
Inheritance tax
Indemnity
Inflation rate
Income tax
Intangible assets
Internal rate of return (IRR)
Invoice
IPO underwriter
In arrears
International Monetary Fund (IMF)
Installment loan
Impairment
Inverted yield curve
Investment banking
Investment horizon
In-the-money
Indirect costs
Interbank market
Investment grade
Interest expense
Interim dividend
Inheritance planning
J
Joint account
Junk bond
J-curve
Jobless claims
Junior debt
Journal entry
Joint venture
Junk fees
Jumbo loan
Joint life annuity
Jumpstart Our Business Startups Act (JOBS Act)
JPY (Japanese yen)
Just-in-time (JIT) inventory
Jumbo CD (certificate of deposit)
Jargon
Juristic person
Jumbo mortgage
Judgment lien
Jurisdiction risk
JOINT (Joint Ownership Investment and Trading) account
Joint and several liability
Joint return
Journal voucher
Joint stock company
JSE (Johannesburg Stock Exchange)
Junior equity
Judicial foreclosure
Joint and survivor annuity
Jobber
Job market
K
Key performance indicators (KPIs)
Keynesian economics
Key rate duration
Kiting
Kicker
Keiretsu
Know Your Customer (KYC)
Knock-in option
Kondratieff Waves
Kicker bond
KYC regulations
Kappa coefficient
Knockout option
K-shares
Kicker loan
Knowledge economy
Kondratieff cycle
Kicker ratio
Kicker pattern
Kicker provision
Kanban
Key rate duration risk
Keogh plan
Kinked demand curve
Kicker feature
Keiretsu system
Keynesian multiplier
Key man insurance
Key rate risk
Keltner channel
L
Liquidity
Loan
Leverage
Liability
Long position
Limited liability
Long-term debt
Listed company
Loss
Line of credit
Lock-up period
Liquidity ratio
Long-term investment
Leasing
Limit order
Lump sum
Leverage ratio
LIBOR (London Interbank Offered Rate)
Loss aversion
Lien
Loan-to-value ratio
Long-term assets
Legal tender
Liquid asset
Loan origination
Liquidity risk
Limited partner
Loss carryforward
Letter of credit
Level 3 assets
M
Money market
Mortgage
Mutual fund
Maturity
Market capitalization
Margin
Merger
Margin call
Microfinance
Money supply
Markup
Market order
Municipal bond
Margin trading
Market risk
Mortgage-backed security
Market value
Money laundering
Market maker
Market price
Market segmentation
Market share
Money market account
Maintenance margin
Market economy
Market timing
Money market fund
Monetary policy
Market index
Market saturation
N
Net income
Net worth
NASDAQ
Nominal interest rate
Notional value
Nonperforming loan
Nonrecourse loan
Naked option
Negotiable instrument
Nonprofit organization
NYSE (New York Stock Exchange)
Net asset value (NAV)
Noncurrent asset
Nominee
Nonfarm payrolls
National debt
Notice of default
Naked short selling
Negative gearing
Nominal value
Noncompete clause
Nonoperating income
Noncallable bond
Normal distribution
Nonrefundable tax credit
Net present value (NPV)
Nonqualified plan
Nostro account
Nonfinancial asset
Nonpublic company
O
Options
Overdraft
Outstanding shares
Open market operations
Operating income
Offshore banking
Over-the-counter (OTC)
Order book
Operating margin
Option premium
Owner's equity
Offer price
Overvaluation
Outperform
Out-of-the-money
Operating expense
Open interest
Order flow
Origination fee
Open-end fund
Organizational chart
Overhead
Order execution
Open outcry
Option contract
Outflow
Overhead ratio
Oligopoly
Operating lease
Over-the-counter market
P
Profit
Portfolio
Price-to-earnings ratio (P/E ratio)
Public company
Principal
Private equity
Purchasing power
Payroll
Par value
Prepaid expenses
Preferred stock
Profit margin
Pension
Price volatility
Prime rate
Present value
Prospectus
Passive income
Payout ratio
Personal finance
Price floor
Provision
Price index
Production cost
Purchase order
Price discrimination
Pre-tax income
Portfolio diversification
Perpetual bond
Price-earnings growth ratio (PEG ratio)
Q
Quantitative easing
Quoted price
Quick ratio
Qualified dividends
Quality of earnings
Quantitative analysis
Quota system
Quiet period
Quotation
Quality spread differential
R
Return on Investment (ROI)
Risk
Revenue
Rate of return
Retirement
Real estate
Recession
Risk management
Risk tolerance
Residual value
Revenue recognition
Return on Assets (ROA)
Return on Equity (ROE)
Ratio analysis
Redemption
Reserve
Regulation
Revenue growth
Reinvestment
Registered investment advisor (RIA)
Return on Capital (ROC)
Risk appetite
Risk-free rate
Rights issue
Royalties
Reconciliation
Real-time
Repo market
Retail investor
Reverse stock split
S
Stock
Securities
Stock market
Shareholders
Savings account
Stock exchange
Solvency
Speculation
Stockholder
S&P 500
Spot price
Stock option
Short selling
Small-cap
Swap
Security deposit
Stock split
Subprime
Stockholder's equity
Savings bond
Syndicate
Systemic risk
Speculative investment
Standard deviation
S&P 500 index
Settlement
Stockholder's meeting
Surplus
Securities and Exchange Commission (SEC)
Swap rate
T
Treasury bonds
Ticker symbol
Tangible assets
Trade deficit
Tax deduction
Term life insurance
Tax return
Trade surplus
Treasury bill
Taxable income
Time value of money
Transaction
Tax-exempt
Treasury note
Trade-off
T-bills
Trustee
Tax shelter
Trading volume
Ticker tape
Terminal value
Treasury yield
Treasury bond yield
Transfer pricing
Trade finance
Turnover rate
Tax liability
Technical analysis
Treasury stock
Tax avoidance
U
Underwriting
Uptick
Unit trust
Unrealized gain
Uniform Gifts to Minors Act (UGMA)
Unsecured loan
User fee
Underlying asset
Underinvestment problem
Universal life insurance
Unearned revenue
Unemployment rate
Utility
Unallocated benefit
Unit cost
Uniform Commercial Code (UCC)
Unit of account
Unlisted company
U.S. Treasury
U.S. Securities and Exchange Commission (SEC)
Unsecured debt
Uniform Transfers to Minors Act (UTMA)
Utility theory
Unit price
Unsystematic risk
Uptrend
Utilization rate
Unsolicited offer
Usury
Umbrella insurance
V
Venture capital
Volatility
Valuation
Vanguard
Volatile market
Value investing
Variable cost
Valuation ratio
Venture capitalist
Value stock
Volume
Volatility index (VIX)
Voting rights
Vendor financing
Voluntary bankruptcy
Value-at-risk (VaR)
Variable interest rate
Voting trust
Venture debt
Vendor agreement
Value chain
Voluntary liquidation
Venture funding
Voluntary disclosure
Voluntary compliance
Voluntary contribution
Variable annuity
Voluntary pension plan
Value proposition
Valuation model
W
Wealth management
Wire transfer
Working capital
Wall Street
Warrant
Write-off
Weighted average
Withdrawal
Wholesale banking
Wage
Wrap account
Walk-away lease
Write-down
Windfall profit
Withholding tax
White-collar
Warehouse receipt
Wage garnishment
Waterfall model
Wage inflation
Wealth effect
Whistleblower
Wash sale
Wealth tax
Walk-away clause
Working capital ratio
Wage earner plan
Wage stagnation
Working capital cycle
Wealth preservation
X
Xenocurrency
XIRR (Extended Internal Rate of Return)
Y
Yield
Yield Curve
Yield to Maturity (YTM)
Yield on Cost
Year-to-Date (YTD)
Yen
Yellow Sheets
Yieldco
Young Investor
Yen Carry Trade
Z
Zero Coupon Bond
Z-Score
Zoning Laws
Zombie Company
Zero-Based Budgeting
Zero-Sum Game
Zero-Interest Financing
Zero-Percent Financing
Zero Balance Account (ZBA)
Zone of Possible Agreement (ZOPA)