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The alphabet glossary from financial and business terms, plus their definition. In the business and finance world there are many jargons, or normal daily words but with different meanings.
Great recession and years after that have brought business and financial requirements more often to the non-specialist newspaper page. For personal reasons, people from all levels of society become more interested in the meaning of these words.
A
ABA Routing Number – Number Nine Unique Digits in Slip Check or Deposit in the US. ABA is an abbreviation of the American Bankers Association. The number identifies the bank or financial institution that issued the check.
Aback – The whole term ‘to be taken aback’ means surprised and surprised. In such a way that you can imagine the listener takes a step back after hearing the news, information, etc. I can say, for example: “John, who is always under the class, was surprised when his science teacher told him that he was at the top. “
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Abatement – In the world of finance, business and law, this term refers to the elimination or reduction of something, usually something unwanted such as fines, payments, or dangerous substances. Property tax reduction, for example, is a temporary elimination or a reduction in property tax – is usually introduced in an effort to improve the real estate and construction sector, and/or the entire economy. Noise reduction is a procedure – often done at the airport – to reduce noise level.
Abbrochment – or abbroachment, Occurs when a business entity or individual monopolizing the market by buying wholesale products (in large quantities) before they come to the market, with the aim of selling it at a much higher price in the retail market. Abbroach means to hoard the product until you are the only one that supplies it, and sells it at a price higher than normal.
ABC Agreement – The contract between the brokerage company and one of its employees regarding the membership of the New York Stock Exchange (NYSE). This is called the ABC agreement because it includes three possible options for employees if he leaves the company one day. The choice includes transferring membership to other employees, selling it to other employees (the results go to the company), or maintain membership as long as employees who go are willing to buy new ones for employees chosen by the company.
Abenomics – Referring to the economic policy introduced by Japanese Prime Minister Shinzō Abe after he won the December 2012 general election. Abenomics focused on monetary and economic growth strategies to promote private investment.
Absolute Advantage – Referring to what can be produced by one country, company, or person at a better/faster level than the others. If I can make 3 shirts per day and Tom can produce 4, it has an absolute advantage over me in the world of shirt making. This concept was first introduced by Economist Adam Smith in the eighteenth century when talking about international trade.
Account – This word has many meanings, both in the business world and daily language. In banking it can mean bank accounts or banking regulations, in accounting that is a separate page in the ledger is posted entry, whereas in trade it can be a supplier agreement with credit requirements, etc. The word came from the old French ‘acont’, which comes from the Latin noun ‘computus’ (calculation) and the verb ‘computare’ (calculate).
Accountant – Someone who meets the requirements to prepare audits, give advice on taxes, and complete company accounts, individuals, organizations, and other entities. Accountants prepare the company’s annual reports and also their financial statements. Some of them give advice on business and investment strategies.
Accounting – Work carried out by accountants in storing individual financial records, companies, and other entities. That means the same as accounting. This is mainly related to the method for recording financial transactions, storing financial records, conducting internal audits, and giving advice on taxation problems.
Accounting Ratios – Also called the financial ratio, is a set of numbers in the company’s financial statements that we use to compare today’s performance, how is the business tariff with competitors, whether it is profitable, if able to pay debts, and how financially healthy is a overall commercial company.
Accounts Payable (A/P) – means unpaid bills. This term refers to all the money owned by the company that sends goods or services based on credit (receive now and pay later). This is the opposite of account receivables.
Accrual – In accounting, this term refers to entering costs or income when the invoice is received/sent or service is provided/received, rather than when the money is paid or received. In the financial sector, accrual means adding together from various investments or interest during a certain period. The verb ‘increases’ means growing in an amount or increase in the amount over a certain period of time.
Accrued Interest – Interest accumulated security since the main investment (or because of previous coupon payments). This is also an interest that has been built on loans.
Accumulated Benefit Obligation (ABO) – an estimate of what the present value of an employee’s pension is if the employee stops work.
Accuracy – the degree to which an expression or measurement conforms to a true value or standard. It also has to do with correctness or freedom of error. Scientists differentiate it from precision.
Acquisition – in business, the term means a takeover. In other words, buying a company. If Company A buys Company B, it acquires Company B – it is an acquisition or a takeover.
Active Market –a markets with many buyers and sellers; So there is a heavy trading volume. In an active market, the difference between supply and Ask (spread) price is smaller than in the market where less trade occurs. The active market is very liquid, and can withstand large purchases without stock prices that are affected disproportionally. That is why pension funds, hedge funds, investment banks and other large volume traders prefer them.
Active Portfolio Strategy – Investment strategies that seek to increase portfolio value by using various methods for evaluating bonds or which shares will generate the greatest profit.
Activist Investor – A person or group who buys a lot of shares in the company so that they can influence management decisions. Fixed activist investors become minority shareholders. Also known as an activist shareholder.
Actuary – Someone who analyzes risks – the possibility of something unpleasant such as death, accident or severe weather events. He/She also calculated what the financial consequences of the incident might occur. There are two main categories: actuaries actuaries and non-life.
Addiction – Conditions depend or addicted to drugs, other substances, activity, or objects. Addicts have compulsive needs for dangerous activity or dangerous habits.
Additive Manufacturing – The process of joining materials to create 3D objects from 3D model data. This involves the addition of layer by layer until the product is complete. 3D printing is a type of additive manufacturing. This is the opposite of subtractive manufacturing.
Adjustable-Rate Mortgage – House loans with interest rates that are ‘adjusting’, i.e. they can fluctuate, usually depending on how the central bank sets the base rate. This is more a term for British US and other English-speaking countries, people say ‘variable-rate mortgage’.
Administrator – a person responsible for ensuring effective operations in a workplace, business, or organisation. He or she is in charge of managing all the paperwork, as well as certain other organisational tasks. Being well-organized and having people skills are prerequisites for an effective administrator. The term can also be used to describe someone in control of a ruined company or the person a court appoints to manage a decedent’s estate.
Advanced Economy – a developed country. A country whose economy is more developed than those of less industrialized nations. We also use the terms industrialized country and more economically developed country.
Advertainment – a term used to describe media (such as movies, TV shows, etc.) that incorporates elements of advertising.
Advertising – the activity of drawing attention and convincing consumers to buy a product or service. Advertising is frequently used to urge individuals to join a campaign or vote in a certain way. Newspapers, magazines, trade journals, radio, television, and the internet all have advertisements. Advertising has existed for literally decades.
Affiliate Marketing – a form of revenue sharing when the seller pays a third-party website commission. Visitors, leads, or buyers are forwarded to the seller’s website from a different website. Compared to the Internet, affiliate marketing has been around far longer. Today, though, almost all of it happens online.
Afford – to be able to pay for something and not struggle financially afterwards. If you cannot afford to go anywhere on vacation, you stay at home. The term also means to provide, as in: “The living room affords a fantastic view of the bay.”
Affordable – the adjective of ‘to afford.’ If something is affordable it means that you can spare enough money to buy it without struggling financially.
A Fortiori Analysis – a strategy for overcoming doubt and uncertainty that supports a preferred path of action. If I prefer Option A, I should weigh each of Option B’s benefits more heavily and consider all of its advantages. I will be more confident that my decision was correct if Option A continues to seem like the better approach to take.
After-Tax Profit Margin – a financial measurement ratio that is derived from dividing net income after taxes by net sales. It shows the percentage of revenue after the costs of all goods have been deducted.
Agency – An agency is a specialised organisation in both business and government. For instance, a travel agency specialises in the sale of vacation packages such flights, hotels, rental cars, and tours. An organisation of the government, like the FDA, for instance, is focused on making sure that drugs and medical equipment are safe and effective.
Agent Bank – a bank that acts on behalf of other entities, such as banks, people, companies or organizations. Also known as an agency bank.
Agile working – a method of organising the workplace that aims to identify the best way to do tasks without tying personnel to specific locations or times. It aspires for maximal flexibility with the fewest restrictions possible. Instead than how and when people complete things, the emphasis is more on how well they complete them.
Agreement Corporation – a type of bank that is allowed to operate in international business – in agreement to the terms of the Edge Act.
Agricultural Robot – a robot designed for use in the agriculture industry. Also known as an agribot.
Air Pollution – The discharge of chemicals and particulates into the atmosphere is considered atmospheric pollution. Polluting gases include carbon monoxide, nitrogen oxides, sulphur dioxide, and CFCs.
Algorithm – a list of directions for carrying out tasks. The order of the series matters. In computing, algorithms instruct computers on what to do.
Alternative Investment – a very ambiguous phrase that typically refers to investments other than stocks, bonds, and cash (traditional asset classes). A few examples of alternative investments are infrastructure, commodities, stamps, coins, real estate, art, and antiques.
Ambassador – a senior diplomat who represents his or her nation while working abroad. He or she is the embassy’s chief. Special envoys for groups or charities are another role that ambassadors can play. In the business world, a firm hires a brand ambassador or corporate ambassador to promote a brand.
Ambition – a persistent desire to succeed, do something, or fulfil a goal. Determination, motivation, and an inner drive are frequently present alongside ambition.
American Depositary Receipts – these are stocks of companies based outside the United States that trade in US stock markets. Also known as ADRs.
American Depositary Shares – shares of a firm with a foreign base that US citizens can buy and sell. Dollars are used in their exchange. Under a contract with the overseas issuing corporation, American depositary banks are authorised to issue these kinds of shares. ADS, also known as.
American Economic Association – a US professional organization with 18,000 members. Just over half of them are academics, while the rest come from industry, business, local and federal governments. It claims to be completely non-partisan.
Amortization – this term can refer to either the repayment schedule of a loan, or the spreading of capital expenses for intangible assets over a given period.
Amortizing Loan – also known as an amortized loan, is one with scheduled regular installments that pay both principal and interest.
Analyst – anybody who did research on a subject. There are numerous varieties, including systems analysts, business analysts, investment analysts, and analysts who analyse accounting data. Their duties resemble those of a doctor in that they examine an organization (the patient), diagnose the issue, and decide what should be done (treatment).
Angel Investor – a person who contributes their personal funds to a new company. Typically, they make an investment in return for convertible debt or a share of the startup company. A business angel, angel, or seed investor is another name for them.
Anglo-Saxon Capitalism – a word that is frequently used to refer to a form of capitalism that is common in English-speaking countries including the US, UK, Canada, Ireland, Australia, and New Zealand. In comparison to the German and Nordic models, taxes are lower, there is less government involvement, and rules are less restrictive.
Annual General Meeting – frequently known by the initials AGM, often known as an annual meeting, is a yearly event where members of a corporation or organisation come together. Shareholders and the Board of Directors are present at an organization’s AGM. Shareholders vote on a number of items at the AGM, including the company’s strategy, new Board members, and the removal of incumbent Board members. The directors disclose to the shareholders the company’s profits or losses, the reasons for its actions, and its long-term goals.
Annual Percentage Rate of Charge (APR) – the yearly interest rate that a business or individual must pay to borrow money. Instead of just a monthly fee or rate, it expresses the interest rate for the entire year. In retail, when customers are given credit terms, the phrase is also used.
Annual Percentage Yield – also known as APY, is the effective annual rate of interest earned, including the effect of compounding. It is expressed as an annualized rate, based on a 365-day year.
Annual Report – a document reported by companies that provides a picture of their financial position, performance, and other corporate information. The report is given to shareholders.
Annuity – a terminating stream of fixed payments that is paid out over a specific period of time.
A Posteriori – one of the two methods of learning; the other method is a priori. A posteriori knowledge is the same as “empirical knowledge,” which is knowledge we learn from experience, such as by seeing events unfold or hearing about other people’s experiences. A priori knowledge is not acquired from experiences but rather by pure reasoning, ideas, or the analysis of concepts.
Appliance – a device, contraption, or piece of gear that has been built with a specific purpose in mind. The majority of appliances are used in homes. However, businesses also frequently use computer/IT equipment.
Application (App) – a computer application that users often download on their smartphones or tablets. This term can also be applied to desktop or web programmes, though. It is typically a programme that performs a specific task.
Applied Economics – involves understanding economic theories, trying them out in real world situations, and also using this data to make economic predictions.
Appraisal Fee – a fee to evaluate the market value of a house – a fee that estimates how much a property is worth.
Arbitrage – The simultaneous buying and selling of an item involves purchasing it at one location for one price and selling it there for a higher price. Arbitrage is not performed concurrently if it is not. Arbitrageurs are those who engage in such behaviour.
Arbitration – a non-judicial conflict resolution procedure. An arbitrator sits in a courtroom in place of a judge (s). The ultimate and binding determination is made by the arbitrator. One or more arbitrators—typically an odd number to avoid a tie—may preside over a hearing. Arbitration has been proved to be effective in averting serious disputes, even wars between nations, and is far less expensive and quicker than litigation (using the courts).
Article 50 – a provision in the Lisbon Treaty from 2007 that any member state of the EU may utilise to exit the economic union. In 2009, the Treaty was ratified. Separation talks start when the UK files Article 50, and they should, in theory, be finished in two years.
Artificial Intelligence –Software that enables computers or robots to think and act like people is referred to as artificial intelligence (AI). In contrast to our inherent intellect, artificial intelligence. AI is becoming more prevalent in our homes, businesses, and manufacturing processes.
Asset – anything tangible or intangible that has a positive economic value that can be converted to cash (such as property or stocks).
Asset Allocation – the way a portfolio is spread across a range of different investment classes so that they do not all rise and decline in tandem (together).
Asset Class – those who invest in a wide range of securities. An asset class’s constituents exhibit comparable market behaviour and are governed by the same laws. Equivalents of cash, equities, and fixed income are the 3 main asset types.
Asset Management – the managing of clients’ money and assets so that as much profit as possible is made. Clients may be rich people, governments, companies and other organizations.
Asset Stripping – the procedure of buying a business and then selling off its assets piecemeal to several bidders. The entire net worth of the target company is less than the fair market value of each asset (added up). Corporate raiders are companies that acquire other businesses.
Audit – an official review or inspection of an organization’s financial records, frequently conducted by a third-party auditor. Anything, not just financial records, can be audited. The accounts of a corporation are audited in the world of business and finance. Publicly traded corporations are required to undergo periodic audits by law in the majority of nations.
Augmented Reality (AR) – technology that expands a person’s field of vision with data. You can point your smartphone at a tower if you’re in Paris, for instance, and you see it. If your phone has a Paris augmented reality app, the name of the building and maybe its architect will be displayed on the screen. It is really different from virtual reality and not the same.
Austerity – an economic policy that reduces government spending and raises taxes, typically employed to reduce budget deficits.
Austrian Economics – a school of thinking that advocates liberalism and laissez-faire economics and was founded by Carl Menger (1840–1921), the father of the Austrian School of Economics. They think that the government shouldn’t get involved since the market can determine its own course.
Autarky – the idea that a nation should become self-sufficient and refrain from importing or exporting, or from engaging in international trade. An isolationist closed economy is known as an autarky. In every instance, governments who have adopted an autarky policy have seen their nation lag behind trading nations, with their populace being relatively poorer and having fewer access to products and services. In contrast to countries with open economies, locked economies have much lower levels of product and service quality.
Authorized Capital – the maximum number of shares a company is allowed to sell to investors. Most firms do not issue their total authorized capital. Also known as authorized stock, registered capital or authorized share capital.
Authorized Stock – the maximum number of shares that a company may offer and sell to the public in accordance with the provisions of its Memorandum of Association in the UK and most of the Commonwealth, or its Articles of Incorporation in the US and Canada.
Auto Financing – means of financing a car purchase; also known as automotive finance and vehicle financing. A bank, credit union, or other financial institution lends the money. Both businesses and individuals frequently use auto financing. Contract employment is frequently chosen by businesses because to its favourable tax and cash flow effects.
Automated Bond System (ABS) – an electronic bond information and trading platform that tracks the prices of inactive bonds on the New York Stock Exchange.
Automated Customer Account Transfer Service (ACATS) – an automated system that helps facilitate the transfer of assets from one trading account to another.
Automated Teller Machine (ATM) – a computerized device that allows customers of banks to withdraw cash from their accounts and perform a limited set of other transactions such as check balances.
Automation – a system, method, or approach that uses electronic devices like computers and artificial intelligence to operate or control a process in a highly automated fashion. It can also refer to a mechanical equipment that is electronically controlled and runs automatically without constant input from the user. Automation seeks to increase productivity while minimising human involvement. There is worry that automation will advance to the point where it would render human labour unnecessary and render us all jobless.
Autonomous Vehicle – a vehicle that can move and guide itself without human input. Autonomous vehicles are also known as “driverless vehicles”.
Avatar – an instance of a person or idea becoming realised, like in a digital reality. The name for a Hindu god’s descend to Earth is derived from Sanskrit. Avatars are becoming virtual persons as a result of technological advancements.
Average Selling Price (ASP) – the average price at which consumers or businesses sell a product. The ASP normally spans a particular time frame. The ASP of a product might change based on its life cycle and the kind of product it is.
Award – a reward, such as money or a prize, that recognises need, merit, or achievement. The phrase can also be used as a verb, as in to give or award a contract.